W W Grainger (GWW) Q4 2025 earnings summary

Executive summary

• Achieved 4.5% reported sales growth for 2025, reaching $17.9 billion, with 4.9% daily organic constant currency growth, outpacing the U.S. MRO market by 250 bps in High-Touch Solutions and delivering 15.6% growth in Endless Assortment.

• Navigated macroeconomic headwinds, including tariffs and a government shutdown, and exited the UK market, divesting Cromwell and closing Zoro UK.

• Advanced digital, AI, and data initiatives, expanded product assortment, and invested in new distribution centers in the U.S. and Japan.

• Recognized as a top employer and for ethical business practices, supporting a strong workplace culture.

Financial highlights

• FY 2025 sales reached $17.9B, up 4.5% year-over-year; operating margin was 15.0% adjusted (down 50 bps); diluted EPS was $39.48 adjusted (up 1.3%).

• Q4 2025 sales were $4.43B, up 4.5%; operating margin was 14.3%, down 70 bps; diluted EPS was $9.44, down 2.8%.

• Gross margin for FY 2025 was 39.1%, down 30 bps due to tariff headwinds; Q4 gross margin was 39.5%, down 10 bps.

• ROIC for FY 2025 was 39.1%; operating cash flow was $2.0B; $1.5B returned to shareholders via dividends and buybacks.

Outlook and guidance

• 2026 net sales expected at $18.7–$19.1B, with daily organic constant currency sales growth of 6.5%–9.0%.

• High-Touch Solutions segment projected to grow 5%–7.5%; Endless Assortment to grow 12.5%–15%.

• 2026 operating margin guidance: 15.4%–15.9%, with EPS expected at $42.25–$44.75, up over 10% at midpoint.

• CapEx planned at $550M–$650M; $1B in share repurchases; anticipated high single-digit to low double-digit dividend increases.

• Operating cash flow projected at $2.125–$2.325B.