01—Abstract
Summary
Summary of the 10-K filed February 19, 2026. Cited figures are marked; the original filing is the authoritative source.
W.W.
Grainger, Inc. reported net sales of $17.94 billiona for the fiscal year ended December 31, 2025, representing a 4.5% increase over the prior year. This growth was driven by both the High-Touch Solutions North America segment, which saw a 2% increase in net sales, and the Endless Assortment segment, which experienced a significant 16% surge in net sales. Despite increased revenue, operating earnings saw a 5.4% decrease to $2.50 billion, impacted by higher selling, general, and administrative (SG&A) expenses, which rose by 9.5% driven by increased payroll, benefits, and marketing costs.
Notably, the company divested its U.K. business (Cromwell and Zoro U.K.) during the year, incurring associated losses. Financially, Grainger maintained a strong liquidity position with $1.8 billionb in available liquidity at year-end 2025. The company continued its commitment to returning capital to shareholders through dividends and share repurchases, totaling $467 million and $1.05 billion respectively in 2025.
Investments in capital expenditures, primarily for supply chain capacity expansion and technology enhancements, increased to $684 millionc in 2025. The company faces ongoing risks related to inflation, supply chain disruptions, and geopolitical instability, but believes its diversified business model and customer base provide resilience.
02—Key points
Key Highlights
- Net sales increased by 4.5% to $17.94 billion, driven by growth in both High-Touch Solutions N.A. (2%) and Endless Assortment (16%).
- Operating earnings decreased by 5.4% to $2.50 billion, primarily due to a 9.5% increase in SG&A expenses.
- The company completed its exit from the U.K. market with the sale of Cromwell and closure of Zoro U.K., incurring $186 million in losses.
- Strong liquidity maintained, with $1.8 billion in available liquidity at year-end 2025.
- Capital expenditures increased to $684 million, focusing on supply chain and technology enhancements.
- Shareholder returns remained a priority, with $467 million in dividends and $1.05 billion in share repurchases.
- The Endless Assortment segment showed robust growth, indicating success in expanding product offerings and customer acquisition.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, W.W. Grainger kept $0.10.
- Revenue$17.94B100.0%
- Cost of revenue−$10.93B60.9%
- Gross profit$7.01B39.1%
- Operating costs−$4.51B25.2%
- Operating income$2.50B13.9%
- Interest, other & tax−$789.0M4.4%
- Net income$1.71B9.5%
Where FY2025 revenue went
$17.94B- Cost of revenue: $10.93B, 61% of revenue
- SG&A: $4.51B, 25% of revenue
- Net income: $1.71B, 9.5% of revenue
- Interest, other & tax: $789.0M, 4.4% of revenue
Kept 9.5% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 19, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $17.94B$17.17B | +4.5% |
| Cost of Revenue | $10.93B$10.41B | +5.0% |
| Gross Profit | $7.01B$6.76B | +3.7% |
| SG&A Expenses | $4.51B$4.12B | +9.5% |
| Operating Income | $2.50B$2.64B | −5.4% |
| Net Income | $1.71B$1.91B | −10.6% |
| EPS (Basic) | $35.47$38.84 | −8.7% |
| EPS (Diluted) | $35.40$38.71 | −8.6% |
| Shares Outstanding (Basic) | 47.90M48.90M | −2.0% |
| Shares Outstanding (Diluted) | 48.00M49.00M | −2.0% |
05—Questions
Frequently Asked Questions
What was the primary driver of W.W. Grainger's sales growth in 2025?
The primary driver of W.W. Grainger's sales growth in 2025 was the strong performance of its Endless Assortment segment, which saw a 16% increase in net sales. This was complemented by a more modest 2% growth in the High-Touch Solutions North America segment.
Why did operating earnings decrease despite higher sales?
Operating earnings decreased by 5.4% despite increased sales primarily due to a significant rise in Selling, General, and Administrative (SG&A) expenses, which grew by 9.5%. This increase was attributed to higher payroll and benefits, as well as increased marketing expenses.
What is the impact of the company's exit from the U.K. market?
W.W. Grainger completed its exit from the U.K. market by divesting its Cromwell business and closing Zoro U.K. This resulted in a loss of $186 million recognized in SG&A expenses for the year. The company does not expect this exit to materially affect future results of operations.
How is the company managing its liquidity and capital allocation?
Grainger maintained a strong liquidity position with $1.8 billion in available liquidity. The company continues to invest in its business through capital expenditures ($684 million in 2025) and return excess capital to shareholders via dividends ($467 million) and share repurchases ($1.05 billion).
06—Continue