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WW Grainger Inc
DUS:GWW

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WW Grainger Inc
DUS:GWW
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Price: 868.2 EUR 1.81% Market Closed
Market Cap: 42.4B EUR

WW Grainger Inc
Investor Relations

W.W. Grainger Inc., founded in 1927 by William Wallace Grainger, has built a resilient narrative over the decades, becoming a pivotal player in the industrial supply sector. At its core, Grainger operates as a comprehensive provider of maintenance, repair, and operations (MRO) products and services, serving a vast array of industries including manufacturing, government, and hospitality. Grainger’s business model revolves around its vast catalog of over 1.5 million products, ranging from safety equipment and tools to lighting and material handling solutions. This extensive range is supported by a robust logistics and distribution network that ensures timely delivery, which is critical in maintaining its customer base of large and small businesses alike. The company deftly leverages its comprehensive ecommerce and brick-and-mortar operations to cater to diverse customer needs, ensuring seamless accessibility and convenience.

Grainger's financial engine is driven by its commitment to customer service and operational efficiency. By focusing relentlessly on inventory management and supply chain optimization, the company manages to uphold high service levels while controlling costs—a crucial balance in the low-margin world of industrial supply. Furthermore, it derives substantial revenue from its value-added services such as technical support and inventory management solutions, which reinforce customer loyalty and add another layer of revenue beyond the traditional goods sale. The emphasis on digital innovation, particularly through its digital channels like Zoro and MonotaRO, helps Grainger tap into the evolving purchasing habits of modern businesses, fortifying its market position. By marrying decades-long industry expertise with a forward-looking digital strategy, Grainger continues to secure its role as a linchpin in the MRO supply chain, navigating the complexities of modern industry with a blend of tradition and innovation.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Oct 31, 2025
AI Summary
Q3 2025

Sales Growth: Grainger reported Q3 sales of nearly $4.7 billion, up 6.1% as reported and 5.4% on a daily constant currency basis.

Margin Performance: Gross margin was 38.6% and operating margin was 15.2%, both coming in ahead of prior guidance despite headwinds from LIFO inventory accounting and tariffs.

EPS & Shareholder Returns: Diluted EPS rose to $10.21, up $0.34 year-over-year, as the company returned $399 million to shareholders through dividends and buybacks.

Guidance Update: The 2025 adjusted EPS outlook was narrowed to $39–$39.75, reflecting slightly lower sales due to the exit from the UK, but with higher margin expectations.

UK Exit: Grainger is exiting the UK market, selling its Cromwell and Zoro UK businesses, resulting in about a $40 million revenue impact in Q4 and a 20 basis point positive lift to operating margin once closed.

Pricing Actions: Multiple price increases were implemented in response to continued inflation and tariffs, with further modest price hikes planned as cost pressures persist into 2026.

End Market Trends: Public sector and government sales are being impacted by the US government shutdown and lapping last year’s hurricane boost, while other segments remain stable.

LIFO Impact: LIFO-related inventory charges weighed on gross margins, but are expected to diminish over time as inflation cools and further pricing is passed through.

Key Financials
Revenue
$4.7B
Gross Margin
38.6%
Operating Margin
15.2%
Diluted EPS
$10.21
Operating Cash Flow
$597M
Shareholder Returns
$399M returned through dividends and repurchases
High Tech Solutions Segment Sales Growth
3.4% (reported and daily constant currency basis)
High Tech Solutions Gross Margin
41.1%
High Tech Solutions Operating Margin
17.2%
Endless Assortment Sales Growth
18.2% as reported; 14.6% on daily constant currency basis
Zoro US Sales Growth
17.8%
MonotaRO Sales Growth
12.6% in local constant currency
Endless Assortment Operating Margin
9.8%
MonotaRO Operating Margin
13.2%
Zoro Operating Margin
5.8%
Earnings Call Recording
Other Earnings Calls

Management

Contacts

Address
ILLINOIS
Lake Forest
100 Grainger Parkway
Contacts
+18475351000
www.grainger.com