W W Grainger (GWW) Q4 2024 earnings summary

Executive summary

• Achieved $17.2 billion in 2024 sales, up 4.2% reported and 4.7% daily organic constant currency, outpacing the U.S. MRO market by ~100 bps in High-Touch Solutions and delivering 11.6% growth in Endless Assortment.

• Operating margin for 2024 was 15.5%, with ROIC at 41.6% and operating cash flow exceeding $2.1 billion.

• Adjusted EPS grew over 6% to $38.96; Q4 diluted EPS was $9.71, up over 16% year-over-year.

• Returned $1.6 billion to shareholders via dividends and share repurchases.

• Leveraged proprietary data and AI/ML to drive operational efficiency, customer experience, and supply chain expansion.

Financial highlights

• FY 2024 sales: $17.2B (+4.2% YoY); Q4 2024 sales: $4.23B (+5.9% YoY).

• FY 2024 adjusted EPS: $38.96 (+6.2% YoY); Q4 2024 adjusted EPS: $9.71 (+16.6% YoY).

• FY 2024 operating margin: 15.5% (down 20 bps YoY); Q4 2024 operating margin: 15.0% (up 40 bps YoY).

• FY 2024 gross profit margin: 39.4% (flat YoY); Q4 2024 gross profit margin: 39.6% (up 50 bps YoY).

• FY 2024 free cash flow: $1.57B; net leverage ratio: 0.61x.

Outlook and guidance

• 2025 net sales guidance: $17.6B–$18.1B, with 4.0%–6.5% daily constant currency sales growth.

• 2025 operating margin expected at 15.1%–15.5%; gross profit margin at 39.1%–39.4%.

• 2025 adjusted EPS guidance: $39.00–$41.50, flat to +6.5% growth.

• Operating cash flow projected at $2.05B–$2.25B; CapEx $450M–$550M.

• High-Touch Solutions 2025 daily constant currency sales growth expected at 2.5%–4.5%; Endless Assortment at 11%–15%.