GRAINGER REPORTS RESULTS FOR THE THIRD QUARTER 2025
Grainger (NYSE: GWW) reported third-quarter 2025 results: sales $4.7B (+6.1% reported; +5.4% daily constant currency) and adjusted diluted EPS $10.21 (+3.4% vs. Q3 2024). Reported diluted EPS was $6.12 after an asset impairment and other charges tied to the intended exit of the U.K. market and planned divestiture of Cromwell. Operating cash flow was $597M, free cash flow $339M, and the company returned $399M to shareholders via dividends and buybacks. Grainger narrowed full‑year 2025 adjusted diluted EPS guidance to $39.00–$39.75 and updated sales and margin ranges.
Grainger (NYSE: GWW) ha riportato i risultati del terzo trimestre 2025: vendite 4,7 miliardi di dollari (+6,1% rispetto ai dati pubblicati; +5,4% in valuta costante giornaliera) e EPS diluito rettificato 10,21 dollari (+3,4% rispetto al Q3 2024). EPS diluito riportato 6,12 dollari, dopo impairment di asset e altri oneri legati all'intenzione di abbandonare il mercato del Regno Unito e alla prevista cessione di Cromwell. Flusso di cassa operativo 597 milioni di dollari, free cash flow 339 milioni, e la società ha restituito agli azionisti 399 milioni tramite dividendi e riacquisti. Grainger ha ristretto la guidance per l'intero 2025 sull'EPS diluito rettificato a 39,00–39,75 dollari e ha aggiornato le gamme di vendite e margini.
Grainger (NYSE: GWW) informó resultados del tercer trimestre de 2025: ventas de 4,7 mil millones de dólares (+6,1% reportado; +5,4% en moneda diaria constante) y EPS diluido ajustado de 10,21 dólares (+3,4% frente al 3T de 2024). El EPS diluido reportado de 6,12 dólares se debió a una pérdida por deterioro de activos y a otros cargos vinculados a la retirada prevista del mercado del Reino Unido y a la venta planificada de Cromwell. El flujo de caja operativo fue de 597 millones de dólares, el flujo de caja libre 339 millones, y la empresa devolvió a los accionistas 399 millones mediante dividendos y recompras de acciones. Grainger redujo su guía de EPS diluido ajustado para todo 2025 a 39,00–39,75 dólares y actualizó las previsiones de ventas y márgenes.
Grainger (NYSE: GWW) 는 2025년 3분기 실적을 발표했습니다: 매출 47억 달러(+공시 기준 6.1% 증가; 일간 고정 환율 기준 +5.4%), 조정 희석 주당순이익(EPS) 10.21달러(+2024년 3분기 대비 +3.4%). 공시된 희석 EPS 6.12달러는 자산 손상 및 영국 시장 철수 의도와 Cromwell의 예정된 매각에 따른 기타 비용 때문이었습니다. 영업현금흐름은 5.97억 달러, 자유현금흐름은 3.39억 달러, 회사는 배당 및 자사주 매입을 통해 주주에게 3.99억 달러를 반환했습니다. Grainger는 2025년 연간 조정 희석 EPS 가이던스를 39.00–39.75달러로 축소했고 매출 및 마진 범위를 업데이트했습니다.
Grainger (NYSE: GWW) a publié les résultats du troisième trimestre 2025: ventes de 4,7 milliards de dollars (+6,1% en données publiées; +5,4% en monnaies constantes quotidiennes) et un BPA dilué ajusté 10,21 dollars (+3,4% par rapport au T3 2024). Le BPA dilué publié était de 6,12 dollars après une dépréciation d'actifs et d'autres charges liées à l'intention de quitter le marché britannique et à la cession prévue de Cromwell. Le flux de trésorerie opérationnel était de 597 millions de dollars, le flux de trésorerie libre de 339 millions, et l'entreprise a reversé 399 millions aux actionnaires par dividendes et rachats d'actions. Grainger a révisé à la baisse sa guidance pour l'ensemble de 2025 du BPA dilué ajusté à 39,00–39,75 dollars et a mis à jour les plages de ventes et de marges.
Grainger (NYSE: GWW) meldete die Ergebnisse des dritten Quartals 2025: Umsatz 4,7 Milliarden USD (+6,1% berichtete; +5,4% in daily constant currency) und ein bereinigter verwässerter Gewinn je Aktie (EPS) von 10,21 USD (+3,4% gegenüber Q3 2024). Das berichtete verwässerte EPS betrug 6,12 USD nach Asset-Impairment und weiteren Abgaben im Zusammenhang mit dem beabsichtigten Marktausstieg aus dem UK-Markt und dem geplanten Verkauf von Cromwell. Der operative Cashflow betrug 597 Mio. USD, der freie Cashflow 339 Mio. USD, und das Unternehmen gab 399 Mio. USD an die Aktionäre durch Dividenden und Aktienrückkäufe zurück. Grainger limierte die Guidance für das Gesamtjahr 2025 des bereinigten verwässerten EPS auf 39,00–39,75 USD und aktualisierte Umsatz- sowie Margenbereiche.
Grainger (NYSE: GWW) أعلنت نتائج الربع الثالث من عام 2025: المبيعات 4.7 مليار دولار (+6.1% كما نشر؛ +5.4% بعملة يومية ثابتة) وربح السهم المخفف المعدل 10.21 دولار (+3.4% مقارنة بالربع الثالث 2024). كان rربح السهم المخفف المبلغ عنه 6.12 دولاراً نتيجة انخفاض قيمة الأصول وبعض الرسوم المرتبطة بنيّة الانسحاب من السوق البريطاني والبيع المخطط لـ Cromwell. التدفق النقدي التشغيلي بلغ 597 مليون دولار، التدفق النقدي الحر 339 مليون دولار، وشركة أعادت 399 مليون دولار إلى المساهمين من خلال الأرباح وإعادة شراء الأسهم. قلّصت Grainger توجيهات السنة الكلية 2025 لـEPS المخفف المعدل إلى 39.00–39.75 دولار وتحديث نطاقات المبيعات وهوامش الربح.
- Net sales +6.1% in Q3 2025 to $4.657B
- Adjusted diluted EPS +3.4% to $10.21
- Adjusted operating earnings +3.1% to $707M
- Operating cash flow $597M; free cash flow $339M
- Returned $399M to shareholders in Q3 2025
- Narrowed 2025 adjusted EPS guidance to $39.00–$39.75
- Reported diluted EPS down 38% to $6.12 due to impairment
- Reported operating margin down 460 bps to 11.0%
- Effective tax rate jumped to 34.7% in Q3 2025
- Cash and cash equivalents fell to $535M from $1,036M
Insights
Solid organic sales and adjusted EPS growth; reported results hit by U.K. exit charges and higher tax; guidance narrowed.
Grainger delivered
Key dependencies and risks include the realized outcome of the U.K. divestiture and associated tax impact, which drove a reported effective tax rate increase to
Items to watch over the next 3–12 months include progress and proceeds from the Cromwell divestiture, any further impairment or tax items related to the U.K. exit, quarterly adjusted operating margin trends versus the updated full‑year adjusted diluted EPS range of
Continued execution fueling solid performance;
Company narrows full year 2025 earnings outlook
Third Quarter Highlights
-
Delivered sales of
$4.7 billion 6.1% , or5.4% on a daily, constant currency basis -
Achieved operating margin of
11.0% on a reported basis, down 460 basis points, or15.2% on an adjusted basis, down 40 basis points, which excludes the non-cash loss related to the Company's intended exit of theU.K. market, including the planned divestiture of Cromwell -
Generated diluted EPS of
$6.12 38.0% , or$10.21 3.4% -
Produced
$597 million $399 million -
Updating full year 2025 guidance, including a narrowed adjusted diluted EPS range of
$39.00 $39.75
"We delivered results in-line with our expectations for the quarter, reinforcing the value and differentiated experience Grainger consistently creates for our customers," said D.G. Macpherson, Chairman and CEO. "Looking ahead, we remain focused on navigating the continued uncertain environment through strong execution, industry-leading service and innovative capabilities to deliver on what matters most to our stakeholders."
2025 Third Quarter Financial Summary
|
($ in millions, except per share amounts) |
Q3 2025 |
Q3 2024 |
Q3'25 vs. Q3'24 Fav. / (Unfav.) |
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|
Reported |
Adjusted(1) |
Reported |
Adjusted |
Reported |
Adjusted |
|
Net Sales |
|
|
|
|
6.1 % |
6.1 % |
|
Gross Profit |
|
|
|
|
4.5 % |
4.5 % |
|
Operating Earnings |
|
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|
|
(25.5) % |
3.1 % |
|
Net Earnings Attributable to W.W. Grainger, Inc. |
|
|
|
|
(39.5) % |
0.8 % |
|
Diluted Earnings Per Share |
|
|
|
|
(38.0) % |
3.4 % |
|
|
|
|
|
|
|
|
|
Gross Profit Margin |
38.6 % |
38.6 % |
39.2 % |
39.2 % |
(60) bps |
(60) bps |
|
11.0 % |
15.2 % |
15.6 % |
15.6 % |
(460) bps |
(40) bps |
|
|
Effective Tax Rate |
34.7 % |
24.8 % |
24.8 % |
24.8 % |
(990) bps |
0 bps |
|
(1) Reflects the asset impairment loss and other expenses recorded in the third quarter of 2025 related to the Company's intention to exit the |
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Revenue
Sales in the quarter increased
In the High-Touch Solutions - N.A. segment, sales were up
Gross Profit Margin
Gross profit margin was
In the High-Touch Solutions - N.A. segment, gross profit margin was
Earnings
For the third quarter of 2025, total Company reported operating earnings were
Diluted earnings per share for the third quarter of 2025 were
Tax Rate
For the third quarter of 2025, the effective tax rate was
Cash Flow
During the third quarter of 2025, the Company generated
Guidance
The Company is updating the following guidance ranges which include certain known tariff impacts.
|
Total Company(1) |
Previous 2025 Guidance Range (as of August 1, 2025) |
Updated 2025 Guidance Range (as of October 31, 2025) |
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Net Sales |
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|
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Sales growth |
|
|
|
Daily, organic constant currency sales growth |
|
|
|
Gross Profit Margin |
|
|
|
Adjusted Operating Margin |
|
|
|
Adjusted Diluted Earnings per Share |
|
|
|
Operating Cash Flow |
|
|
|
CapEx (cash basis) |
|
|
|
Share Buyback |
|
|
|
Effective Tax Rate |
~ |
~ |
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|
|
|
|
Segment Adjusted Operating Margin |
|
|
|
High-Touch Solutions - N.A. |
|
|
|
Endless Assortment |
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|
|
(1) |
Guidance provided is on an adjusted basis. Daily, organic constant currency sales growth is adjusted for the impact of one less selling day in 2025 as compared to 2024 and excludes the sales of certain divested or closed businesses in the comparable prior year period post date of divestiture or closure and changes in foreign currency exchange rates. The Company does not reconcile forward-looking non-GAAP financial measures. For further details see the supplemental information of this release. |
Webcast
The Company will conduct a live conference call and webcast at 11:00 a.m. ET on Friday, October 31, 2025, to discuss the third quarter results. The event will be hosted by D.G. Macpherson, Chairman and CEO, and Deidra Merriwether, Senior Vice President and CFO, and can be accessed at invest.grainger.com. To access the conference call via phone, please send a request to InvestorRelations@grainger.com. For those unable to participate in the live event, a webcast replay will be available for 90 days at invest.grainger.com.
About Grainger
W.W. Grainger, Inc., is a leading broad line distributor with operations primarily in
Visit invest.grainger.com to view information about the Company, including a supplement regarding 2025 third quarter results and additional Company information.
Safe Harbor Statement
All statements in this communication, other than those relating to historical facts, are "forward-looking statements." Forward-looking statements can generally be identified by their use of terms such as "anticipate," "estimate," "believe," "expect," "could," "forecast," "may," "intend," "plan," "predict," "project," "will," or "would," and similar terms and phrases, including references to assumptions. Grainger cannot guarantee that any forward-looking statement will be realized and achievement of future results is subject to risks and uncertainties, many of which are beyond Grainger's control, which could cause Grainger's results to differ materially from those that are presented. Forward-looking statements include, but are not limited to, statements about future strategic plans and future financial and operating results. Important factors that could cause actual results to differ materially from those presented or implied in the forward-looking statements include, without limitation: inflation, higher product costs or other expenses, including operational and administrative expenses; a major loss of customers; loss or disruption of sources of supply; changes in customer or product mix; increased competitive pricing pressures; changes in third-party practices regarding digital advertising; failure to enter into or sustain contractual arrangements on a satisfactory basis with group purchasing organizations; failure to develop, manage or implement new technology initiatives or business strategies including with respect to Grainger's eCommerce platforms and artificial intelligence; failure to adequately protect intellectual property or successfully defend against infringement claims; fluctuations or declines in Grainger's gross profit margin; Grainger's responses to market pressures; the outcome of pending and future litigation or governmental or regulatory proceedings, including with respect to wage and hour, anti-bribery and corruption, environmental, regulations related to advertising, marketing and the internet, consumer protection, pricing (including disaster or emergency declaration pricing statutes), product liability, compliance or safety, trade and export compliance, general commercial disputes, or privacy and cybersecurity matters; investigations, inquiries, audits and changes in laws and regulations; failure to comply with laws, regulations and standards, including new or stricter environmental laws or regulations; government contract matters; the impact of any government shutdown; disruption or breaches of information technology or data security systems involving Grainger or third parties on which Grainger depends; general industry, economic, market or political conditions; general global economic conditions, including existing, new, or increased tariffs, trade issues and changes in trade policies, inflation, and interest rates; currency exchange rate fluctuations; market volatility, including price and trading volume volatility or price declines of Grainger's common stock; commodity price volatility; facilities disruptions or shutdowns; higher fuel costs or disruptions in transportation services; effects of outbreaks of pandemic disease or viral contagions, global conflicts, natural or human induced disasters, extreme weather, and other catastrophes or conditions; effects of climate change; failure to execute on our efforts and programs related to environmental, social and governance matters; competition for, or failure to attract, retain, train, motivate and develop executives and key team members; loss of key members of management or key team members; loss of operational flexibility and potential for work stoppages or slowdowns if team members unionize or join a collective bargaining arrangement; changes in effective tax rates; changes in credit ratings or outlook; Grainger's incurrence of indebtedness or failure to comply with restrictions and obligations under its debt agreements and instruments and other factors that can be found in our filings with the Securities and Exchange Commission, including our most recent periodic reports filed on Form 10-K and Form 10-Q, which are available on our Investor Relations website. Forward-looking statements are given only as of the date of this communication and we disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
|
W.W. Grainger, Inc. and Subsidiaries CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (In millions of dollars, except for share and per share amounts) (Unaudited) |
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|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Net sales |
$ 4,657 |
|
$ 4,388 |
|
$ 13,517 |
|
$ 12,935 |
|
Cost of goods sold |
2,859 |
|
2,668 |
|
8,254 |
|
7,853 |
|
Gross profit |
1,798 |
|
1,720 |
|
5,263 |
|
5,082 |
|
Selling, general and administrative expenses |
1,287 |
|
1,034 |
|
3,402 |
|
3,078 |
|
Operating earnings |
511 |
|
686 |
|
1,861 |
|
2,004 |
|
Other (income) expense: |
|
|
|
|
|
|
|
|
Interest expense – net |
20 |
|
19 |
|
61 |
|
60 |
|
Other – net |
(1) |
|
(4) |
|
(10) |
|
(18) |
|
Total other expense – net |
19 |
|
15 |
|
51 |
|
42 |
|
Earnings before income taxes |
492 |
|
671 |
|
1,810 |
|
1,962 |
|
Income tax provision |
171 |
|
166 |
|
481 |
|
470 |
|
Net earnings |
321 |
|
505 |
|
1,329 |
|
1,492 |
|
Less net earnings attributable to noncontrolling interest |
27 |
|
19 |
|
74 |
|
58 |
|
Net earnings attributable to W.W. Grainger, Inc. |
$ 294 |
|
$ 486 |
|
$ 1,255 |
|
$ 1,434 |
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
Basic |
$ 6.13 |
|
$ 9.90 |
|
$ 26.02 |
|
$ 29.10 |
|
Diluted |
$ 6.12 |
|
$ 9.87 |
|
$ 25.97 |
|
$ 29.00 |
|
Weighted average number of shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
47.8 |
|
48.8 |
|
48.0 |
|
49.0 |
|
Diluted |
47.9 |
|
48.9 |
|
48.1 |
|
49.2 |
|
W.W. Grainger, Inc. and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEETS (In millions of dollars) (Unaudited) |
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|
|
|||
|
|
As of |
||
|
|
(Unaudited) |
|
|
|
Assets |
September 30, 2025 |
|
December 31, 2024 |
|
Current assets |
|
|
|
|
Cash and cash equivalents |
$ 535 |
|
$ 1,036 |
|
Accounts receivable (less allowance for credit
losses of |
2,408 |
|
2,232 |
|
Inventories – net |
2,275 |
|
2,306 |
|
Prepaid expenses and other current assets |
206 |
|
163 |
|
Assets held for sale |
50 |
|
— |
|
Total current assets |
5,474 |
|
5,737 |
|
Property, buildings and equipment – net |
2,237 |
|
1,927 |
|
Goodwill |
361 |
|
355 |
|
Intangibles – net |
264 |
|
243 |
|
Operating lease right-of-use |
320 |
|
371 |
|
Other assets |
192 |
|
196 |
|
Total assets |
$ 8,848 |
|
$ 8,829 |
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
Current liabilities |
|
|
|
|
Current maturities |
$ 2 |
|
$ 499 |
|
Trade accounts payable |
1,123 |
|
952 |
|
Accrued compensation and benefits |
297 |
|
324 |
|
Operating lease liability |
76 |
|
78 |
|
Accrued expenses |
410 |
|
407 |
|
Income taxes payable |
25 |
|
45 |
|
Liabilities held for sale |
82 |
|
— |
|
Total current liabilities |
2,015 |
|
2,305 |
|
Long-term debt |
2,367 |
|
2,279 |
|
Long-term operating lease liability |
275 |
|
327 |
|
Deferred income taxes and tax uncertainties |
135 |
|
101 |
|
Other non-current liabilities |
95 |
|
114 |
|
Shareholders' equity |
3,961 |
|
3,703 |
|
Total liabilities and shareholders' equity |
$ 8,848 |
|
$ 8,829 |
|
W.W. Grainger, Inc. and Subsidiaries CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions of dollars) (Unaudited) |
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|
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|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
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|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net earnings |
$ 321 |
|
$ 505 |
|
$ 1,329 |
|
$ 1,492 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Provision for credit losses |
7 |
|
6 |
|
20 |
|
18 |
|
Deferred income taxes and tax uncertainties |
36 |
|
9 |
|
37 |
|
24 |
|
Depreciation and amortization |
65 |
|
59 |
|
190 |
|
175 |
|
Non-cash lease expense |
21 |
|
20 |
|
62 |
|
61 |
|
Impairment loss and net losses from business divestitures |
196 |
|
— |
|
196 |
|
— |
|
Stock-based compensation |
14 |
|
14 |
|
49 |
|
48 |
|
Change in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
(40) |
|
22 |
|
(252) |
|
(183) |
|
Inventories |
(8) |
|
15 |
|
(27) |
|
86 |
|
Prepaid expenses and other assets |
1 |
|
16 |
|
(32) |
|
(26) |
|
Trade accounts payable |
(46) |
|
(85) |
|
185 |
|
99 |
|
Operating lease liabilities |
(26) |
|
(26) |
|
(79) |
|
(73) |
|
Accrued liabilities |
64 |
|
54 |
|
4 |
|
36 |
|
Income taxes – net |
(5) |
|
(2) |
|
(42) |
|
(64) |
|
Other non-current liabilities |
(3) |
|
4 |
|
(20) |
|
(10) |
|
Net cash provided by operating activities |
597 |
|
611 |
|
1,620 |
|
1,683 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Capital expenditures |
(258) |
|
(88) |
|
(558) |
|
(283) |
|
Proceeds from sale of assets |
— |
|
1 |
|
4 |
|
2 |
|
Other – net |
(2) |
|
2 |
|
11 |
|
19 |
|
Net cash used in investing activities |
(260) |
|
(85) |
|
(543) |
|
(262) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Proceeds from debt |
27 |
|
500 |
|
90 |
|
503 |
|
Payments of debt |
— |
|
(21) |
|
(503) |
|
(38) |
|
Proceeds from stock options exercised |
— |
|
16 |
|
2 |
|
26 |
|
Payments for employee taxes withheld from stock awards |
(1) |
|
(4) |
|
(31) |
|
(44) |
|
Purchases of treasury stock |
(291) |
|
(227) |
|
(798) |
|
(739) |
|
Cash dividends paid |
(133) |
|
(115) |
|
(358) |
|
(321) |
|
Other – net |
— |
|
(1) |
|
(1) |
|
(2) |
|
Net cash used in financing activities |
(398) |
|
148 |
|
(1,599) |
|
(615) |
|
Exchange rate effect on cash and cash equivalents |
(1) |
|
5 |
|
21 |
|
(18) |
|
Net change in cash and cash equivalents |
(62) |
|
679 |
|
(501) |
|
788 |
|
Cash and cash equivalents at beginning of period |
597 |
|
769 |
|
1,036 |
|
660 |
|
Cash and cash equivalents at end of period |
$ 535 |
|
$ 1,448 |
|
$ 535 |
|
$ 1,448 |
SUPPLEMENTAL INFORMATION
- RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES (Unaudited)
The Company supplements the reporting of financial information determined under
Basis of presentation
The Company has a controlling ownership interest in MonotaRO, which is part of our Endless Assortment segment. MonotaRO's results are fully consolidated, reflected in
Adjusted gross profit, adjusted SG&A, adjusted operating earnings, adjusted operating margin, adjusted net earnings, adjusted diluted EPS
Exclude certain non-recurring items, like restructuring charges, asset impairments, gains and losses associated with business divestitures and other non-recurring, infrequent or unusual gains and losses (together referred to as "non-GAAP adjustments"), from the Company's most directly comparable reported
Free cash flow (FCF)
Calculated using total cash provided by operating activities less capital expenditures. The Company believes the presentation of FCF allows investors to evaluate the capacity of the Company's operations to generate free cash flow.
Daily sales
Refers to sales for the period divided by the number of
Daily, constant currency sales
Refers to daily sales adjusted for changes in foreign currency exchange rates.
Daily, organic constant currency sales
Refers to daily sales excluding the sales of certain divested or closed businesses in the comparable prior year period post date of divestiture or closure and changes in foreign currency exchange rates.
Foreign currency exchange
Calculated by dividing current period local currency daily sales by current period average exchange rate and subtracting the current period local currency daily sales divided by the prior period average exchange rate.
2024: Q1-64, Q2-64, Q3-64, Q4-64, FY-256
2025: Q1-63, Q2-64, Q3-64, Q4-64, FY-255
2026: Q1-63, Q2-64, Q3-64, Q4-64, FY-255
As non-GAAP financial measures are not standardized, it may not be possible to compare these measures with other companies' non-GAAP measures having the same or similar names. These non-GAAP measures should not be considered in isolation or as a substitute for reported results. These non-GAAP measures reflect an additional way of viewing aspects of operations that, when viewed with GAAP results, provide a more complete understanding of the business. This press release also includes certain non-GAAP forward-looking information. The Company believes that a quantitative reconciliation of such forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require the Company to predict the timing and likelihood of future restructurings, asset impairments, and other charges. Neither of these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measures is not provided.
The reconciliations provided below reconcile GAAP financial measures to non-GAAP financial measures used in this release: daily sales; daily, constant currency sales; and free cash flow.
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Sales growth for the three months ended September 30, 2025 (percent change compared to prior year period) (unaudited) |
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Q3 2025 |
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Total Company |
High-Touch Solutions - N.A. |
Endless Assortment |
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Reported sales |
6.1 % |
3.4 % |
18.2 % |
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Daily impact |
— % |
— % |
— % |
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Daily sales(1) |
6.1 % |
3.4 % |
18.2 % |
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Foreign currency exchange(2) |
(0.7) % |
— % |
(3.6) % |
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Daily, constant currency sales |
5.4 % |
3.4 % |
14.6 % |
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(1) Based on |
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(2) Excludes the impact of year-over-year foreign currency exchange rate fluctuations. |
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Free cash flow (FCF) for the three months ended September 30, 2025 (in millions of dollars) (unaudited) |
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Q3 2025 |
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Net cash flows provided by operating activities |
$ 597 |
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Capital expenditures |
(258) |
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Free cash flow |
$ 339 |
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Income statement adjustments for the three months ended September 30, 2025 and 2024 (in millions of dollars) (unaudited) |
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Q3 2025 |
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Reported |
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Adjusted (2) |
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Reported |
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Adjusted |
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Reported |
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Adjustment(1) |
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Adjusted |
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% of Net sales |
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Y/Y |
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Earnings reconciliation: |
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SG&A |
$ 1,287 |
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$ (196) |
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$ 1,091 |
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27.6 % |
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23.4 % |
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24.5 % |
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5.5 % |
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Operating earnings |
511 |
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196 |
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707 |
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11.0 |
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15.2 |
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(25.5) |
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3.1 |
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Other expense — net |
(19) |
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— |
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(19) |
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0.4 |
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0.4 |
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26.7 |
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26.7 |
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Earnings before income taxes |
492 |
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196 |
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688 |
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10.6 |
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14.8 |
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(26.7) |
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2.5 |
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Income tax provision(3) |
(171) |
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— |
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(171) |
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3.7 |
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3.7 |
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3.0 |
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3.0 |
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Net earnings |
321 |
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196 |
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517 |
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6.9 |
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11.1 |
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(36.4) |
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2.4 |
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Noncontrolling interest(4) |
(27) |
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— |
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(27) |
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0.6 |
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0.6 |
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42.1 |
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42.1 |
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Net earnings attributable to W.W. Grainger, Inc. |
$ 294 |
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$ 196 |
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$ 490 |
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6.3 % |
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10.5 % |
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(39.5) % |
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0.8 % |
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Diluted earnings per share: |
$ 6.12 |
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4.09 |
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$ 10.21 |
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(38.0) % |
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3.4 % |
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Q3 2024 |
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Reported |
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Adjusted (2) |
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Reported |
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Adjusted |
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Reported |
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Adjustment(1) |
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Adjusted |
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% of Net sales |
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Y/Y |
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Earnings reconciliation: |
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SG&A |
$ 1,034 |
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$ — |
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$ 1,034 |
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23.6 % |
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23.6 % |
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4.7 % |
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4.7 % |
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Operating earnings |
686 |
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— |
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686 |
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15.6 |
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15.6 |
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2.8 |
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2.8 |
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Other expense — net |
(15) |
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— |
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(15) |
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0.3 |
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0.3 |
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— |
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— |
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Earnings before income taxes |
671 |
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— |
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671 |
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15.3 |
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15.3 |
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2.9 |
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2.9 |
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Income tax provision |
(166) |
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— |
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(166) |
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3.8 |
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3.8 |
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4.4 |
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4.4 |
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Net earnings |
505 |
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— |
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505 |
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11.5 |
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11.5 |
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2.4 |
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2.4 |
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Noncontrolling interest(4) |
(19) |
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— |
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(19) |
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0.4 |
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0.4 |
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11.8 |
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11.8 |
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Net earnings attributable to W.W. Grainger, Inc. |
$ 486 |
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$ — |
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$ 486 |
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11.1 % |
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11.1 % |
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2.1 % |
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2.1 % |
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Diluted earnings per share: |
$ 9.87 |
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— |
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$ 9.87 |
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4.7 % |
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4.7 % |
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(1) Reflects the asset impairment loss and other expenses recorded in the third quarter of 2025 related to the Company's intention to exit the U.K. market, including the planned divestiture of the Cromwell business, which was held for sale as of September 30, 2025. There were no non-GAAP adjustments for three months ended September 30, 2024. |
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(2) Calculated on the basis of reported net sales for the third quarter of 2025 and 2024. |
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(3) The Company's reported and adjusted effective tax rates were |
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(4) The Company has a controlling ownership interest in MonotaRO with the residual representing noncontrolling interest. |
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View original content:https://www.prnewswire.com/news-releases/grainger-reports-results-for-the-third-quarter-2025-302600375.html
SOURCE W.W. Grainger, Inc.
FAQ
What were Grainger (GWW) Q3 2025 sales and sales growth?
Why did Grainger (GWW) report lower GAAP EPS in Q3 2025?
What is Grainger's updated full‑year 2025 adjusted EPS guidance (GWW)?
How much cash flow did Grainger (GWW) generate in Q3 2025 and how much was returned to shareholders?
How did Grainger's (GWW) operating margins perform in Q3 2025?
