10-KPeriod: FY2024

W.W. GRAINGER, INC. Annual Report, Year Ended Dec 31, 2024

Filed February 20, 2025For Securities:GWW

Summary

W.W. Grainger, Inc. (GWW) reported solid financial results for the fiscal year ended December 31, 2024. The company's net sales increased by 4.2% to $17.17 billion, driven by growth in both its High-Touch Solutions North America and Endless Assortment segments. Diluted earnings per share (EPS) saw a healthy increase of 6.8% to $38.71. Grainger continues to execute its "The Grainger Edge" strategy, focusing on providing value-added MRO solutions and an extensive online product offering. The company demonstrated strong operational efficiency, maintaining its gross profit margin at 39.4%, while managing selling, general, and administrative (SG&A) expenses effectively. Despite broader economic uncertainties, Grainger's diversified customer base and the non-discretionary nature of its MRO products provided resilience. The company also returned significant capital to shareholders through share repurchases and dividends, underscoring its commitment to shareholder value.

Financial Highlights

52 data points
Beta

Revenue

$17.17B

39.4% Gross Margin

Net Income

$1.91B

11.1% Net Margin

EPS (Diluted)

$38.71

Total Assets

$8.83B

Cash & Equivalents

$1.04B

Free Cash Flow

$1.57B

Financial Statements
Beta
Revenue$17.17B
Cost of Revenue$10.41B
Gross Profit$6.76B
SG&A Expenses$4.12B
Operating Income$2.64B
Net Income$1.91B
EPS (Basic)$38.84
EPS (Diluted)$38.71
Shares Outstanding (Basic)48.90M
Shares Outstanding (Diluted)49.00M

Key Highlights

  • 1Net sales grew 4.2% to $17.17 billion for the year ended December 31, 2024, indicating sustained demand for MRO products.
  • 2Diluted Earnings Per Share (EPS) increased by 6.8% to $38.71, reflecting improved profitability.
  • 3Gross profit margin remained stable at 39.4%, demonstrating effective cost management and pricing strategies.
  • 4The High-Touch Solutions North America segment contributed significantly to sales growth, supported by volume increases.
  • 5The Endless Assortment segment showed robust growth, with net sales increasing by 7.5% and daily constant currency net sales up 12%, highlighting the success of online channels.
  • 6Grainger returned $1.201 billion to shareholders through share repurchases and $421 million in dividends, underscoring a strong commitment to capital return.
  • 7The company ended the year with substantial liquidity, reporting $1.036 billion in cash and cash equivalents and $2.3 billion in available liquidity.

Frequently Asked Questions

W.W. Grainger reported a 4.2% increase in net sales to $17.17 billion and a 6.8% rise in diluted EPS to $38.71 for the year ended December 31, 2024, compared to 2023. Gross profit margin remained stable at 39.4%.

The High-Touch Solutions North America segment saw a 3.4% increase in net sales, primarily driven by volume. The Endless Assortment segment exhibited stronger growth, with net sales up 7.5% and daily, organic constant currency net sales increasing by 12%, driven by customer acquisition and growth at MonotaRO.

Grainger focuses on strategic priorities such as expanding its leadership position and driving top-line revenue and MRO market outgrowth. The company emphasizes enhancing operational processes through customer experience, technology, and supply chain improvements to drive service and cost efficiencies. This is reflected in the stable gross profit margin and disciplined management of SG&A expenses.

The company actively returns capital to shareholders through share repurchases and dividends. In 2024, Grainger repurchased $1.201 billion of its common stock and paid $421 million in dividends, demonstrating a commitment to shareholder value enhancement.