Third Quarter Highlights
Delivered sales of $4.7 billion, up 6.1%, or 5.4% on a daily, constant currency basis
Achieved operating margin of 11.0% on a reported basis, down 460 basis points, or 15.2% on an adjusted basis, down 40 basis points, which excludes the non-cash loss related to the Company's intended exit of the U.K. market, including the planned divestiture of Cromwell
Generated diluted EPS of $6.12 on a reported basis, down 38.0%, or $10.21 on an adjusted basis, up 3.4%
Produced $597 million in operating cash flow and returned $399 million to Grainger shareholders through dividends and share repurchases
Updating full year 2025 guidance, including a narrowed adjusted diluted EPS range of $39.00 to $39.75
CHICAGO, Oct. 31, 2025 /PRNewswire/ -- Grainger (NYSE:GWW) today reported results for the third quarter of 2025 with sales of $4.7 billion, up 6.1%, or 5.4% on a daily, constant currency basis, and adjusted diluted EPS of $10.21, up 3.4% compared to the third quarter of 2024.
"We delivered results in-line with our expectations for the quarter, reinforcing the value and differentiated experience Grainger consistently creates for our customers," said D.G. Macpherson, Chairman and CEO. "Looking ahead, we remain focused on navigating the continued uncertain environment through strong execution, industry-leading service and innovative capabilities to deliver on what matters most to our stakeholders."
2025 Third Quarter Financial Summary
($ in millions, except per share amounts)
Q3 2025
Q3 2024
Q3'25 vs. Q3'24
Fav. / (Unfav.)
Reported
Adjusted(1)
Reported
Adjusted
Reported
Adjusted
Net Sales
$4,657
$4,657
$4,388
$4,388
6.1 %
6.1 %
Gross Profit
$1,798
$1,798
$1,720
$1,720
4.5 %
4.5 %
Operating Earnings
$511
$707
$686
$686
(25.5) %
3.1 %
Net Earnings Attributable to W.W. Grainger, Inc.
$294
$490
$486
$486
(39.5) %
0.8 %
Diluted Earnings Per Share
$6.12
$10.21
$9.87
$9.87
(38.0) %
3.4 %
Gross Profit Margin
38.6 %
38.6 %
39.2 %
39.2 %
(60) bps
(60) bps
Operating Margin
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 U.K. market, including the planned divestiture of the Cromwell business, which was held for sale as of September 30, 2025. See the supplemental information of this release for further information regarding the Company's non-GAAP measures including reconciliations to the most directly comparable GAAP measure.
RevenueSales in the quarter increased 6.1% compared to the third quarter of 2024. When normalizing for the impact of foreign currency exchange, sales on a daily, constant currency basis increased 5.4% compared to the third quarter of 2024.
In the High-Touch Solutions - N.A. segment, sales were up 3.4% on both a daily and constant currency basis compared to the third quarter of 2024. Results for the segment were driven by volume growth and improving price contribution as tariff costs are passed. In the Endless Assortment segment, sales were up 18.2%, or 14.6% on a daily, constant currency basis, compared to the third quarter of 2024. Growth for the segment was driven by strong performance at both MonotaRO and Zoro.
Gross Profit MarginGross profit margin was 38.6% in the third quarter of 2025, a decrease of 60 basis points from the third quarter of 2024.
In the High-Touch Solutions - N.A. segment, gross profit margin was 41.1%, a 50 basis point decrease compared to the prior year quarter as tariff-related inflation caused unfavorable price / cost timing and last-in, first-out (LIFO) inventory valuation headwinds. In the Endless Assortment segment, gross profit margin increased by 60 basis points from the third quarter of 2024 due to improvement across the segment.
EarningsFor the third quarter of 2025, total Company reported operating earnings were $511 million, down 25.5% compared to the third quarter of 2024. Reported operating margin was 11.0%, a 460 basis point decrease compared to the third quarter of 2024. On an adjusted basis, operating earnings for the quarter were $707 million, up 3.1% compared to the third quarter of 2024. Adjusted operating margin was 15.2%, a 40 basis point decrease compared to the third quarter of 2024. This decrease in adjusted operating margin was driven by unfavorable gross margin in High-Touch Solutions - N.A., which was partially offset by expense leverage in Endless Assortment. These adjusted results for the quarter exclude the asset impairment loss from the planned divestiture of the Cromwell business, along with other expenses related to the intended exit from the U.K. market incurred in the current year period.
Diluted earnings per share for the third quarter of 2025 were $6.12 on a reported basis, down 38.0% compared to the third quarter of 2024. On an adjusted basis, diluted EPS was $10.21, up 3.4% compared to the third quarter of 2024. The increase was driven primarily by sales growth and fewer shares outstanding.
Tax RateFor the third quarter of 2025, the effective tax rate was 34.7%, compared to 24.8% in the third quarter of 2024. The increase in the effective tax rate was primarily due to the loss from the planned divestiture of the Cromwell business and intended exit from the U.K. market, for which there are no corresponding tax benefits. On an adjusted basis, the effective tax rate was 24.8% in both periods.
Cash FlowDuring the third quarter of 2025, the Company generated $597 million of cash flow from operating activities. The Company invested $258 million in capital expenditures, resulting in free cash flow of $339 million. During the quarter, the Company returned $399 million to Grainger shareholders through dividends and share repurchases.
GuidanceThe 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)
Net Sales
$17.9 - $18.2 billion
$17.8 - $18.0 billion
Sales growth
4.4% - 5.9%
3.9% - 4.7%
Daily, organic constant currency sales growth
4.5% - 6.0%
4.4% - 5.1%
Gross Profit Margin
38.6% - 38.9%
38.9% - 39.1%
Adjusted Operating Margin
14.7% - 15.1%
15.0% - 15.2%
Adjusted Diluted Earnings per Share
$38.50 - $40.25
$39.00 - $39.75
Operating Cash Flow
$2.05 - $2.25 billion
$2.10 - $2.20 billion
CapEx (cash basis)
$0.55 - $0.65 billion
$0.625 - $0.675 billion
Share Buyback
$1.05 - $1.15 billion
$1.05 - $1.15 billion
Effective Tax Rate
~23.8%
~23.8%
Segment Adjusted Operating Margin
High-Touch Solutions - N.A.
16.5% - 16.9%
16.9% - 17.0%
Endless Assortment
9.2% - 9.6%
9.2% - 9.5%
(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.
WebcastThe 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 For those unable to participate in the live event, a webcast replay will be available for 90 days at invest.grainger.com.
About GraingerW.W. Grainger, Inc., is a leading broad line distributor with operations primarily in North America, Japan and the United Kingdom. At Grainger, We Keep the World Working® by serving more than 4.5 million customers worldwide with maintenance, repair and operating (MRO) products and value-added solutions delivered through innovative technology and deep customer expertise. Known for its commitment to service and purpose-driven culture, the Company reported 2024 revenue of $17.2 billion. For more information, visit www.grainger.com.
Visit invest.grainger.com to view information about the Company, including a supplement regarding 2025 third quarter results and additional Company information.
Safe Harbor StatementAll 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)
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
