W W Grainger (GWW) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales reached $4.3 billion, up 1.7% year-over-year or 4.4% on a daily constant currency basis, with solid growth and profitability despite a fluid macro environment and muted demand.

• Diluted EPS increased to $9.86, up 2.5%–3% year-over-year.

• Operating cash flow was $646 million; $380 million returned to shareholders via dividends and buybacks.

• Announced a 10% increase in quarterly dividend, marking 54 consecutive years of increases.

• Both High-Touch Solutions and Endless Assortment segments contributed to sales growth.

Financial highlights

• Q1 sales: $4.3B, up 1.7% year-over-year; daily, constant currency sales up 4.4%.

• Gross profit margin improved 30 bps to 39.7%; operating margin was 15.6%, down 20 bps year-over-year.

• Operating earnings were $672 million, up 0.4% year-over-year.

• Free cash flow for Q1 2025 was $521 million.

• SG&A expenses increased, mainly due to higher marketing and investments.

Outlook and guidance

• 2025 sales guidance: $17.6–$18.1 billion, representing 2.7%–5.2% growth (4.0%–6.5% daily, constant currency).

• Gross profit margin expected at 39.1%–39.4%; operating margin at 15.1%–15.5%.

• Diluted EPS guidance: $39.00–$41.50.

• CapEx expected at $450M–$550M; share buyback $1.15B–$1.25B.

• Guidance incorporates known tariff impacts, with further cost increases expected to be offset by pricing actions.