The Investor
31 Oct 2025, 18:07
Grainger Reports Q3 2025 Results; Narrows Full-Year Outlook Amid U.K. Exit
W.W. Grainger, Inc. (NYSE: GWW) announced third-quarter 2025 sales of $4.7 billion, up 6.1% year-over-year (5.4% on a daily, constant currency basis). The company delivered adjusted diluted EPS of $10.21, a 3.4% increase, while reported EPS fell 38% to $6.12 due to a non-cash impairment loss tied to its planned exit from the U.K. market and divestiture of the Cromwell business.
Operating performance:
• Reported operating earnings: $511 million, down 25.5%
• Adjusted operating earnings: $707 million, up 3.1%
• Adjusted operating margin: 15.2%, down 40 basis points
• Gross profit margin: 38.6%, down 60 basis points
•
By segment, High-Touch Solutions – North America grew 3.4%, supported by volume gains and improved pricing, while Endless Assortment surged 18.2% (14.6% constant currency), led by strong results at MonotaRO and Zoro.
Tax and cash flow:
The effective tax rate rose to 34.7% (24.8% adjusted), primarily reflecting the Cromwell divestiture’s non-deductible loss. Operating cash flow reached $597 million, with free cash flow of $339 million after $258 million in capital expenditures. Grainger returned $399 million to shareholders through dividends and buybacks.
Outlook:
Grainger narrowed its full-year 2025 adjusted EPS guidance to $39.00–$39.75, reflecting continued confidence in execution despite near-term headwinds. CEO D.G. Macpherson emphasized Grainger’s focus on “strong execution, industry-leading service, and innovation” to sustain stakeholder value amid a challenging environment.
W.W. Grainger, Inc. (NYSE: GWW) announced third-quarter 2025 sales of $4.7 billion, up 6.1% year-over-year (5.4% on a daily, constant currency basis). The company delivered adjusted diluted EPS of $10.21, a 3.4% increase, while reported EPS fell 38% to $6.12 due to a non-cash impairment loss tied to its planned exit from the U.K. market and divestiture of the Cromwell business.
Operating performance:
• Reported operating earnings: $511 million, down 25.5%
• Adjusted operating earnings: $707 million, up 3.1%
• Adjusted operating margin: 15.2%, down 40 basis points
• Gross profit margin: 38.6%, down 60 basis points
•
By segment, High-Touch Solutions – North America grew 3.4%, supported by volume gains and improved pricing, while Endless Assortment surged 18.2% (14.6% constant currency), led by strong results at MonotaRO and Zoro.
Tax and cash flow:
The effective tax rate rose to 34.7% (24.8% adjusted), primarily reflecting the Cromwell divestiture’s non-deductible loss. Operating cash flow reached $597 million, with free cash flow of $339 million after $258 million in capital expenditures. Grainger returned $399 million to shareholders through dividends and buybacks.
Outlook:
Grainger narrowed its full-year 2025 adjusted EPS guidance to $39.00–$39.75, reflecting continued confidence in execution despite near-term headwinds. CEO D.G. Macpherson emphasized Grainger’s focus on “strong execution, industry-leading service, and innovation” to sustain stakeholder value amid a challenging environment.