01—Abstract
Summary
Summary of the 10-K filed February 20, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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%b, 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.
02—Key points
Key Highlights
- Net sales grew 4.2% to $17.17 billion for the year ended December 31, 2024, indicating sustained demand for MRO products.
- Diluted Earnings Per Share (EPS) increased by 6.8% to $38.71, reflecting improved profitability.
- Gross profit margin remained stable at 39.4%, demonstrating effective cost management and pricing strategies.
- The High-Touch Solutions North America segment contributed significantly to sales growth, supported by volume increases.
- The 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.
- Grainger returned $1.201 billion to shareholders through share repurchases and $421 million in dividends, underscoring a strong commitment to capital return.
- The company ended the year with substantial liquidity, reporting $1.036 billion in cash and cash equivalents and $2.3 billion in available liquidity.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, W.W. Grainger kept $0.11.
- Revenue$17.17B100.0%
- Cost of revenue−$10.41B60.6%
- Gross profit$6.76B39.4%
- Operating costs−$4.12B24.0%
- Operating income$2.64B15.4%
- Interest, other & tax−$728.0M4.2%
- Net income$1.91B11.1%
Where FY2024 revenue went
$17.17B- Cost of revenue: $10.41B, 61% of revenue
- SG&A: $4.12B, 24% of revenue
- Net income: $1.91B, 11% of revenue
- Interest, other & tax: $728.0M, 4.2% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 20, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $17.17B$16.48B | +4.2% |
| Cost of Revenue | $10.41B$9.98B | +4.3% |
| Gross Profit | $6.76B$6.50B | +4.0% |
| SG&A Expenses | $4.12B$3.93B | +4.8% |
| Operating Income | $2.64B$2.56B | +2.8% |
| Net Income | $1.91B$1.83B | +4.4% |
| EPS (Basic) | $38.84$36.39 | +6.7% |
| EPS (Diluted) | $38.71$36.23 | +6.8% |
| Shares Outstanding (Basic) | 48.90M49.90M | −2.0% |
| Shares Outstanding (Diluted) | 49.00M50.10M | −2.2% |
05—Questions
Frequently Asked Questions
What was W.W. Grainger's overall financial performance in 2024?
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%.
How did the company's two main business segments perform?
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.
What is Grainger's strategy for managing costs and operational efficiency?
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.
How is Grainger returning capital to its shareholders?
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.
06—Continue