# W.W. GRAINGER, INC. (GWW)

Informational only - not investment advice.

CIK: 0000277135
SIC: 5000 Wholesale-Durable Goods
SIC breadcrumb: [Wholesale Trade](/division/F/) > [SIC Major Group 50](/major-group/50/) > [SIC 5000 Wholesale-Durable Goods](/industry/5000/)
Latest 10-K filed: 2026-02-19
SEC page: https://www.sec.gov/edgar/browse/?CIK=277135
Filing source: https://www.sec.gov/Archives/edgar/data/277135/000027713526000011/gww-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-19 · accession 0000277135-26-000011 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000277135.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 17,942,000,000 USD | 2025 | verified |
| Net income | 1,706,000,000 USD | 2025 | verified |
| Assets | 8,962,000,000 USD | 2025 | verified |
| Free cash flow | 1,331,000,000 USD | 2025 | computed |
| Net margin | 9.51% | 2025 | computed |
| Operating margin | 13.91% | 2025 | computed |
| Revenue YoY | +4.51% | 2025 | computed |
| ROE | 45.66% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | GWW | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 9.5% | 2.8% | 95 | 39 |
| Operating margin | 13.9% | 5.0% | 94 | 37 |
| Revenue growth | 4.5% | 4.0% | 55 | 39 |
| FCF margin | 7.4% | 2.4% | 89 | 38 |
| ROE | 45.7% | 9.1% | 100 | 39 |
| ROA | 19.0% | 3.9% | 100 | 39 |
| Liabilities / equity | 1.40 | 1.51 | 47 | 39 |
| Current ratio | 2.83 | 2.21 | 70 | 38 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 50 SIC Major Group 50, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 17942000000 | USD | 2025 | 2026-02-19 |
| Net income | 1706000000 | USD | 2025 | 2026-02-19 |
| Assets | 8962000000 | USD | 2025 | 2026-02-19 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-19. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000277135.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 10,425,000,000 | 11,221,000,000 | 11,486,000,000 | 11,797,000,000 | 13,022,000,000 | 15,228,000,000 | 16,478,000,000 | 17,168,000,000 | 17,942,000,000 |
| Net income | 606,000,000 | 586,000,000 | 782,000,000 | 849,000,000 | 695,000,000 | 1,043,000,000 | 1,547,000,000 | 1,829,000,000 | 1,909,000,000 | 1,706,000,000 |
| Operating income | 1,113,000,000 | 1,035,000,000 | 1,158,000,000 | 1,262,000,000 | 1,019,000,000 | 1,547,000,000 | 2,215,000,000 | 2,565,000,000 | 2,637,000,000 | 2,495,000,000 |
| Gross profit | 4,115,000,000 | 4,098,000,000 | 4,348,000,000 | 4,397,000,000 | 4,238,000,000 | 4,720,000,000 | 5,849,000,000 | 6,496,000,000 | 6,758,000,000 | 7,009,000,000 |
| Diluted EPS | 9.87 | 10.02 | 13.73 | 15.32 | 12.82 | 19.84 | 30.06 | 36.23 | 38.71 | 35.40 |
| Operating cash flow | 1,024,000,000 | 1,057,000,000 | 1,057,000,000 | 1,042,000,000 | 1,123,000,000 | 937,000,000 | 1,333,000,000 | 2,031,000,000 | 2,111,000,000 | 2,015,000,000 |
| Capital expenditures | 284,000,000 | 237,000,000 | 239,000,000 | 221,000,000 | 197,000,000 | 255,000,000 | 256,000,000 | 445,000,000 | 541,000,000 | 684,000,000 |
| Dividends paid | 303,000,000 | 304,000,000 | 316,000,000 | 328,000,000 | 338,000,000 | 357,000,000 | 370,000,000 | 392,000,000 | 421,000,000 | 467,000,000 |
| Share buybacks | 790,000,000 | 605,000,000 | 425,000,000 | 700,000,000 | 601,000,000 | 695,000,000 | 603,000,000 | 850,000,000 | 1,201,000,000 | 1,045,000,000 |
| Assets | 5,694,000,000 | 5,804,000,000 | 5,873,000,000 | 6,005,000,000 | 6,295,000,000 | 6,592,000,000 | 7,588,000,000 | 8,147,000,000 | 8,829,000,000 | 8,962,000,000 |
| Stockholders' equity | 1,797,935,000 | 1,690,000,000 | 1,921,000,000 | 1,855,000,000 | 1,828,000,000 | 1,874,000,000 | 2,440,000,000 | 3,115,000,000 | 3,358,000,000 | 3,736,000,000 |
| Cash and cash equivalents | 274,000,000 | 327,000,000 | 538,000,000 | 360,000,000 | 585,000,000 | 241,000,000 | 325,000,000 | 660,000,000 | 1,036,000,000 | 585,000,000 |
| Free cash flow | 740,000,000 | 820,000,000 | 818,000,000 | 821,000,000 | 926,000,000 | 682,000,000 | 1,077,000,000 | 1,586,000,000 | 1,570,000,000 | 1,331,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 5.62% | 6.97% | 7.39% | 5.89% | 8.01% | 10.16% | 11.10% | 11.12% | 9.51% |
| Operating margin |  | 9.93% | 10.32% | 10.99% | 8.64% | 11.88% | 14.55% | 15.57% | 15.36% | 13.91% |
| Return on equity | 33.71% | 34.67% | 40.71% | 45.77% | 38.02% | 55.66% | 63.40% | 58.72% | 56.85% | 45.66% |
| Return on assets | 10.64% | 10.10% | 13.32% | 14.14% | 11.04% | 15.82% | 20.39% | 22.45% | 21.62% | 19.04% |
| Liabilities / equity | 2.17 | 2.43 | 2.06 | 2.24 | 2.44 | 2.52 | 2.11 | 1.62 | 1.63 | 1.40 |
| Current ratio | 1.85 | 2.13 | 2.37 | 2.12 | 2.72 | 2.62 | 2.48 | 2.88 | 2.49 | 2.83 |

## As-reported value updates

2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/GWW/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000277135.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 8.27 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 9.61 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 9.28 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 4,208,000,000 | 476,000,000 | 9.43 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 3,997,000,000 | 395,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 4,235,000,000 | 478,000,000 | 9.62 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 4,312,000,000 | 470,000,000 | 9.51 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 4,388,000,000 | 486,000,000 | 9.87 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 4,233,000,000 | 475,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 4,306,000,000 | 479,000,000 | 9.86 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 4,554,000,000 | 482,000,000 | 9.97 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 4,657,000,000 | 294,000,000 | 6.12 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 4,425,000,000 | 451,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 4,742,000,000 | 555,000,000 | 11.65 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 5,021,000,000 | 570,000,000 | 12.01 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from GWW's latest 10-K: [/company/GWW/business/](/company/GWW/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from GWW's latest 10-K: [/company/GWW/risk-factors/](/company/GWW/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/277135/000027713526000079/gww-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-04
Report date: 2026-06-30

Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations

The following Management’s Discussion and Analysis (MD&A) of Financial Condition and Results of Operations is intended to help the reader understand the results of operations and financial condition of W.W. Grainger, Inc. (Grainger or Company) as it is viewed by management of the Company. The following discussion should be read in conjunction with the Consolidated Financial Statements and accompanying notes for the year ended December 31, 2025 included in the Company's 2025 Form 10-K and the Condensed Consolidated Financial Statements and accompanying notes included in Part I, Item 1: Financial Statements of this Form 10-Q.

Percentage figures included in this section have not been calculated on the basis of such rounded figures but on the basis of such amounts prior to rounding. For this reason, percentage amounts in this section may vary slightly from those obtained by performing the same calculations using the figures in the Company's Condensed Consolidated Financial Statements or in the associated text.

Overview

Grainger is a broad line distributor of maintenance, repair and operating (MRO) products and services with operations primarily in North America and Japan. In the fourth quarter of 2025, Grainger exited the U.K. market by completing the sale of the Cromwell business and closing the Zoro U.K. business. Grainger uses a combination of its high-touch solutions and endless assortment businesses to serve its customers worldwide, which rely on Grainger for products and services that enable them to run safe, sustainable and productive operations.

Strategic Priorities

For a discussion of the Company’s strategic priorities for 2026, see Part I, Item 1: Business and Part II, Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s 2025 Form 10-K.

Recent Events

Macroeconomic Conditions

The global economy continues to experience elevated levels of volatility and uncertainty, including within the commodity, labor, and transportation markets, driven by a combination of geopolitical developments and macroeconomic factors that can influence demand, cost and execution risk. These dynamics, together with recent changes in U.S. and foreign tariff and trade policies, continue to drive intermittent disruptions in global capital markets and supply chains. These developments may impact the Company’s operations, business, financial condition, and results of operations.

The Company is actively monitoring economic conditions in the U.S. and key international markets, including the continued uncertainty regarding evolving tariff and trade policies, changes in interest rates, foreign currency exchange rate fluctuations, inflationary pressures, rising fuel and transportation costs, and the risk of a global or regional economic recession. Although the precise timing and magnitude of these factors remains uncertain, the Company believes its strategy is well positioned to navigate a range of outcomes. The Company continues to evaluate the impact of evolving tariff and trade policies, including potential changes in product sourcing strategies, cost management and customer pricing, and has implemented various strategies designed to mitigate certain adverse effects of changing inflationary conditions and challenges in our supply chain, while striving to maintain market competitiveness.

Historically, the Company's broad and diverse customer base and the generally nondiscretionary nature of its products have provided a degree of resilience during periods of economic contraction in the industrial MRO market. The full extent and impact of ongoing macroeconomic conditions, including recent, heightened regional military conflict, unprecedented tariff-related developments and shifting government budget policies and priorities at the municipal, state, and national levels, remain uncertain and cannot be predicted at this time, but may affect the Company’s operations, business, financial condition and results of operations.

For further discussion of the Company's risks and uncertainties, see Part I, Item 1A: Risk Factors in the Company’s 2025 Form 10-K.

16

W.W. Grainger, Inc. and Subsidiaries

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

Results of Operations –Three Months Ended June 30, 2026

In this section, Grainger utilizes non-GAAP measures where it believes it will assist users of its financial statements in understanding its business. For further information regarding the Company's non-GAAP measures, including reconciliations to the most directly comparable GAAP measures, see below "Non-GAAP Measures."

The following table is included as an aid to understanding the changes in Grainger’s Condensed Consolidated Statements of Earnings for the three months ended June 30, 2026 and 2025 (in millions of dollars except per share amounts):

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,"],["","","","","","% Change","","% of Net Sales"],["","2026","","2025","","","2026","","2025"],["Net sales(1)","$","5,021","","","$","4,554","","","10.3","%","","100.0","%","","100.0","%"],["Cost of goods sold","3,037","","","2,799","","","8.5","","","60.5","","","61.5"],["Gross profit","1,984","","","1,755","","","13.0","","","39.5","","","38.5"],["Selling, general and administrative expenses","1,177","","","1,077","","","9.3","","","23.4","","","23.6"],["Operating earnings","807","","","678","","","19.0","","","16.1","","","14.9"],["Other expense \u2013 net","9","","","17","","","(47.1)","","","0.2","","","0.3"],["Income tax provision","198","","","153","","","29.4","","","3.9","","","3.4"],["Net earnings","600","","","508","","","18.1","","","12.0","","","11.2"],["Noncontrolling interest","30","","","26","","","15.4","","","0.6","","","0.6"],["Net earnings attributable to W.W. Grainger, Inc.","$","570","","","$","482","","","18.3","","","11.4","%","","10.6","%"],["Diluted earnings per share","$","12.01","","","$","9.97","","","20.5","%"],["(1)For further information regarding the Company's disaggregated revenue, see Note 2 of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1: Financial Statements of this Form 10-Q."]]
[[/GREPCENT_TABLE]]

The following table is included as an aid to understanding the changes of Grainger's total net sales, daily net sales and daily, organic constant currency net sales compared to the prior year period for the three months ended June 30, 2026 and 2025 (in millions of dollars):

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,"],["","2026","","% Change(1)","","2025","","% Change(1)"],["Net sales","$","5,021","","","10.3","%","","$","4,554","","","5.6","%"],["Daily net sales(2)","$","78.5","","","10.3","%","","$","71.2","","","5.6","%"],["Daily, organic constant currency net sales(2)","$","80.7","","","13.7","%","","$","70.8","","","5.1","%"],["(1)Calculated on the basis of prior year net sales for the three months ended June 30, 2026 and 2025."],["(2)Daily net sales are adjusted for the difference in U.S. selling days relative to the prior year period. There were 64 sales days in the three months ended June 30, 2026 and 2025. Daily, organic constant currency net sales are also adjusted to exclude the impact on net sales due to year-over-year changes in foreign currency exchange rates and the net sales results of the divested and closed businesses in the prior year period on a daily basis. For further information regarding the Company's non-GAAP measures, including reconciliations to the most directly comparable GAAP measures, see below \"Non-GAAP Measures.\""]]
[[/GREPCENT_TABLE]]

17

W.W. Grainger, Inc. and Subsidiaries

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

Net sales of $5,021 million for the three months ended June 30, 2026 increased $467 million, or 10%, and on a daily, organic constant currency basis, net sales increased 14% compared to the same period in 2025. Both High-Touch Solutions N.A. and the Endless Assortment segment contributed to sales growth in the second quarter of 2026. For further discussion on the Company's net sales, see the Segment Analysis section below.

Gross profit of $1,984 million for the three months ended June 30, 2026 increased $229 million, or 13%, and gross profit margin of 39.5% increased 100 basis points compared to the same period in 2025. For further discussion on the Company's gross profit, see the Segment Analysis section below.

Selling, general and administrative (SG&A) expenses of $1,177 million for the three months ended June 30, 2026 increased $100 million, or 9%, compared to the same period in 2025. The increase was due to higher payroll and benefit expenses in the second quarter of 2026 partially offset by a benefit related to the exit from the U.K. market in the fourth quarter of 2025.

Operating earnings of $807 million for the three months ended June 30, 2026 increased $129 million, or 19%, compared to the same period in 2025.

Income tax expense of $198 million for the three months ended June 30, 2026 increased $45 million compared to the same period in 2025. Grainger's effective tax rates were 24.8% and 23.2% for the three months ended June 30, 2026 and 2025, respectively. The Company's effective tax rate increase was primarily due to decreased tax credit activity in the current year period and the impact of tax legislation effective in 2026.

Diluted earnings per share was $12.01 for the three months ended June 30, 2026, an increase of 20% compared to $9.97 for the same period in 2025.

Segment Analysis

In this section, Grainger utilizes non-GAAP measures where it believes it will assist users of its financial statements in understanding its business. For further information regarding the Company's non-GAAP measures, including reconciliations to the most directly comparable GAAP measure, see below "Non-GAAP Measures." For further segment information, see Note 6 of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1: Financial Statements of this Form 10-Q.

High-Touch Solutions N.A.

The following table shows reported segment results (in millions of dollars):

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,"],["","2026","","2025","","% Change"],["Net sales","$","3,967","","","$","3,544","","","11.9","%"],["Gross profit","$","1,660","","","$","1,454","","","14.2","%"],["Selling, general and administrative expenses","974","","","865","","","12.6","%"],["Operating earnings","$","686","","","$","589","","","16.5","%"]]
[[/GREPCENT_TABLE]]

Net sales of $3,967 million for the three months ended June 30, 2026 increased $423 million, which represents a 12% increase on a reported and daily, constant currency basis compared to the same period in 2025. The increase was primarily due to volume.

Gross profit of $1,660 million for the three months ended June 30, 2026 increased $206 million, or 14%, and gross profit margin of 41.8% increased 80 basis points compared to the same period in 2025. The increase was primarily due to tariff refund benefits recognized in the quarter, which was partially offset by an increase in freight costs.

SG&A expenses of $974 million for the three months ended June 30, 2026 increased $109 million, or 13%, compared to the same period in 2025. The increase was primarily due to higher payroll and benefit expenses.

18

W.W. Grainger, Inc. and Subsidiaries

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

Operating earnings of $686 million for the three months ended June 30, 2026 increased $97 million, or 17%, compared to the same period in 2025.

Endless Assortment

The following table shows reported segment results (in millions of dollars):

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/277135/000027713526000011/gww-20251231.htm
Complete FY 2025 MD&A: /company/GWW/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-19
Report date: 2025-12-31

Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations

Objective

The following Management’s Discussion and Analysis (MD&A) of Financial Condition and Results of Operations is intended to help the reader understand the results of operations and financial condition of W.W. Grainger, Inc. (Grainger or Company) as it is viewed by the Company. The following discussion should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in Part II, Item 8: Financial Statements and Supplementary Data of this Form 10-K. This section of this Form 10-K generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 are not included in this Form 10-K, and can be found in MD&A of Financial Condition and Results of Operations in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Percentage figures included in this section have not been calculated on the basis of such rounded figures but on the basis of such amounts prior to rounding. For this reason, percentage amounts in this section may vary slightly from those obtained by performing the same calculations using the figures in the Company's Consolidated Financial Statements or in the associated text.

Overview

W.W. Grainger, Inc. is a broad line distributor of maintenance, repair and operating (MRO) products and services with operations primarily in North America, Japan and the U.K. Grainger uses its high-touch solutions and endless assortment businesses to serve customers worldwide, who rely on Grainger for products and services that enable them to run safe, sustainable and productive operations.

Strategic Priorities

The Company’s continued strategic aspiration for 2026 is to relentlessly expand Grainger’s leadership position by being the go-to partner for people who build and run safe, sustainable, and productive operations. To achieve this, each Grainger business has a set of strategic growth drivers to drive top-line revenue and MRO market outgrowth. The High-Touch Solutions North America (High-Touch Solutions N.A.) segment is focused on three areas: advantaged MRO solutions, differentiated sales and services, and unparalleled customer service. In the Endless Assortment segment, the business is focused on product assortment expansion and innovative customer acquisition and retention capabilities. Additionally, all Grainger businesses are focused on continuously enhancing our operational processes to improve service and cost through technology, strong supplier relationships, supply chain infrastructure and a continuous improvement mindset, which ultimately delivers long-term returns for shareholders.

Recent Events

Macroeconomic Conditions

The global economy continues to experience elevated levels of volatility and uncertainty, including within the commodity, labor, and transportation markets, driven by a combination of geopolitical developments and macroeconomic factors that can influence demand, cost and execution risk. These dynamics, together with recent changes in U.S. and foreign tariff and trade policies, continue to drive intermittent disruptions in global capital markets and supply chains. These developments may impact the Company’s operations, business, financial condition, and results of operations.

The Company is actively monitoring economic conditions in the U.S. and key international markets, including the continued uncertainty regarding evolving tariff and trade policies, changes in interest rates, foreign currency exchange rate fluctuations, inflationary pressures, and the risk of a global or regional economic recession. Although the precise timing and magnitude of these factors remains uncertain, the Company believes its strategy is well positioned to navigate a range of outcomes. The Company continues to evaluate the impact of evolving tariff and trade policies, including potential changes in product sourcing strategies, cost management and customer pricing, and has implemented various strategies designed to mitigate certain adverse effects of changing inflationary conditions and challenges in our supply chain, while striving to maintain market price competitiveness.

Historically, the Company's broad and diverse customer base and the generally nondiscretionary nature of its products have provided a degree of resilience during periods of economic contraction in the industrial MRO market. The full extent and impact of ongoing macroeconomic conditions, including recent, unprecedented tariff-related developments and shifting government budget policies and priorities at the municipal, state, and national levels,

27

remains uncertain and cannot be predicted at this time, but may impact the Company’s operations, business, financial condition and results of operations.

For further discussion of the Company's risks and uncertainties, see Part I, Item 1A: Risk Factors of this Form 10-K.

28

Results of Operations

In this section, Grainger utilizes non-GAAP measures where it believes it will assist users of its financial statements in understanding its business. Non-GAAP measures exclude certain items affecting comparability that can affect the year-over-year assessment of operating results and other one-time items that do not directly reflect ongoing operating results. As discussed in the "Non-GAAP Measures" section, we have adjusted the current year results to exclude one-time losses recorded in SG&A expenses of $186 million within Other and $10 million within Endless Assortment related to the Cromwell divestiture and closure of Zoro U.K., respectively. For further information regarding the Company's non-GAAP measures, including reconciliations to the most directly comparable U.S. generally accepted accounting principles (GAAP) measures, see "Non-GAAP Measures."

The following table is included as an aid to understanding the changes in Grainger's Consolidated Statements of Earnings for the twelve months ended December 31, 2025 and 2024 (in millions of dollars except per share amounts):

[[GREPCENT_TABLE]]
[["","For the Years Ended December 31,"],["","","","","% of Net Sales"],["","2025","","2024","","% Change","2025","","2024"],["Net sales(1)","$","17,942","","","$","17,168","","","4.5","%","","100.0","%","","100.0","%"],["Cost of goods sold","10,933","","","10,410","","","5.0","","","60.9","","","60.6"],["Gross profit","7,009","","","6,758","","","3.7","","","39.1","","","39.4"],["Selling, general and administrative expenses","4,514","","","4,121","","","9.5","","","25.2","","","24.0"],["Operating earnings","2,495","","","2,637","","","(5.4)","","","13.9","","","15.4"],["Other expense \u2013 net","65","","","53","","","22.6","","","0.3","","","0.3"],["Income tax provision","622","","","595","","","4.5","","","3.5","","","3.5"],["Net earnings","1,808","","","1,989","","","(9.1)","","","10.1","","","11.6"],["Less noncontrolling interest","102","","","80","","","27.5","","","0.6","","","0.5"],["Net earnings attributable to W.W. Grainger, Inc.","$","1,706","","","$","1,909","","","(10.6)","","","9.5","%","","11.1","%"],["Diluted earnings per share:","$","35.40","","","$","38.71","","","(8.6)","%"],["(1)For further information regarding the Company's disaggregated revenue, see Note 3 of the Notes to the Consolidated Financial Statements in Part II, Item 8: Financial Statements and Supplementary Data of this Form 10-K."]]
[[/GREPCENT_TABLE]]

The following table is included as an aid to understanding the changes of Grainger's total net sales, daily net sales and daily, organic constant currency net sales from the prior period for the twelve months ended December 31, 2025 (in millions of dollars):

[[GREPCENT_TABLE]]
[["","For the Years Ended December 31,"],["","2025","","% Change(1)","","2024","","% Change(1)"],["Net sales","$","17,942","","","4.5","%","","$","17,168","","","4.2","%"],["Daily net sales(2)","$","70.4","","","4.9","%","","$","66.5","","","3.4","%"],["Daily, organic constant currency net sales(2)","$","70.4","","","4.9","%","","$","67.4","","","4.7","%"],["(1)Calculated on the basis of prior year reported net sales for the years ended December 31, 2025 and 2024."],["(2)Daily net sales are adjusted for the difference in U.S. selling days relative to the prior year period. Daily, organic constant currency net sales are also adjusted to exclude the impact on net sales due to year-over-year foreign currency exchange rate fluctuations and excludes the results of Cromwell and Zoro U.K. in the comparable prior year period post date of divestiture and closure, respectively, for the year ended December 31, 2025. There were 255 and 256 sales days in the full year 2025 and 2024, respectively. For further information regarding the Company's non-GAAP measures, including reconciliations to the most directly comparable GAAP measure, see below \"Non-GAAP Measures.\""]]
[[/GREPCENT_TABLE]]

29

Net sales of $17,942 million for the year ended December 31, 2025 increased $774 million, which represents a 5% increase on a reported and daily, organic constant currency basis compared to the same period in 2024. Both High-Touch Solutions N.A. and the Endless Assortment segments contributed to sales growth in 2025. For further discussion on the Company's net sales, see the Segment Analysis section below.

Gross profit of $7,009 million for the year ended December 31, 2025 increased $251 million, or 4%, and gross profit margin of 39.1% decreased 30 basis points compared to the same period in 2024. For further discussion on the Company's gross profit, see the Segment Analysis section below.

Selling, general, and administrative (SG&A) expenses of $4,514 million for the year ended December 31, 2025 increased $393 million, or 10%. Adjusted SG&A of $4,318 million increased $213 million, or 5%, due to higher payroll and benefits and marketing expenses in 2025.

Operating earnings of $2,495 million for the year ended December 31, 2025 decreased $142 million, or 5%, compared to the same period in 2024. Adjusted operating earnings of $2,691 million increased $38 million, or 1%, compared to the same period in 2024.

Income taxes of $622 million for the year ended December 31, 2025 increased $27 million, compared to the same period in 2024. Grainger's effective tax rates were 25.6% and 23.0% for the years ended December 31, 2025 and 2024, respectively. The adjusted effective tax rates were 23.7% and 23.0% for the twelve months ended December 31, 2025 and 2024, respectively. The Company's adjusted effective tax rate increase was primarily due to the prior year benefit from the expiration of a statue of limitation period in 2024.

Diluted earnings per share was $35.40 for the year ended December 31, 2025, a decrease of 9% compared to $38.71 for the same period in 2024. Adjusted diluted earnings per share was $39.48 for the year ended December 31, 2025, an increase of 1% compared to $38.96 for the same period in 2024.

Segment Analysis

In this section, Grainger utilizes non-GAAP measures where it believes it will assist users of its financial statements in understanding its business. For further information regarding the Company's non-GAAP measures, including reconciliations to the most directly comparable GAAP measures, see "Non-GAAP Measures." For further segment information, see Note 13 of the Notes to Consolidated Financial Statements in Part II, Item 8: Financial Statements and Supplementary Data of this Form 10-K.

High-Touch Solutions N.A.

The following table shows reported segment results (in millions of dollars):

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/GWW/mda/fy2025/
All MD&A years: /company/GWW/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/GWW/mda/fy2024/): filed 2025-02-20; accession 0000277135-25-000010 (https://www.sec.gov/Archives/edgar/data/277135/000027713525000010/gww-20241231.htm)
- [FY 2023 MD&A](/company/GWW/mda/fy2023/): filed 2024-02-22; accession 0000277135-24-000011 (https://www.sec.gov/Archives/edgar/data/277135/000027713524000011/gww-20231231.htm)
- [FY 2022 MD&A](/company/GWW/mda/fy2022/): filed 2023-02-21; accession 0000277135-23-000014 (https://www.sec.gov/Archives/edgar/data/277135/000027713523000014/gww-20221231.htm)
- [FY 2021 MD&A](/company/GWW/mda/fy2021/): filed 2022-02-23; accession 0000277135-22-000012 (https://www.sec.gov/Archives/edgar/data/277135/000027713522000012/gww-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 5000 Wholesale-Durable Goods) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade
- [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/GWW.md · JSON record: /company/GWW.json · verified financials: /company/GWW/financials.json / /company/GWW/financials.csv · machine TOC for the whole site: /llms.txt