10-KPeriod: FY2025

W.W. GRAINGER, INC. Annual Report, Year Ended Dec 31, 2025

Filed February 19, 2026For Securities:GWW

Summary

W.W. Grainger, Inc. reported net sales of $17.94 billion 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 billion 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 million 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.

Financial Highlights

51 data points
Beta

Revenue

$17.94B

39.1% Gross Margin

Net Income

$1.71B

9.5% Net Margin

EPS (Diluted)

$35.40

Total Assets

$8.96B

Cash & Equivalents

$585.00M

Free Cash Flow

$1.33B

Financial Statements
Beta
Revenue$17.94B
Cost of Revenue$10.93B
Gross Profit$7.01B
SG&A Expenses$4.51B
Operating Income$2.50B
Net Income$1.71B
EPS (Basic)$35.47
EPS (Diluted)$35.40
Shares Outstanding (Basic)47.90M
Shares Outstanding (Diluted)48.00M

Key Highlights

  • 1Net sales increased by 4.5% to $17.94 billion, driven by growth in both High-Touch Solutions N.A. (2%) and Endless Assortment (16%).
  • 2Operating earnings decreased by 5.4% to $2.50 billion, primarily due to a 9.5% increase in SG&A expenses.
  • 3The 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.
  • 4Strong liquidity maintained, with $1.8 billion in available liquidity at year-end 2025.
  • 5Capital expenditures increased to $684 million, focusing on supply chain and technology enhancements.
  • 6Shareholder returns remained a priority, with $467 million in dividends and $1.05 billion in share repurchases.
  • 7The Endless Assortment segment showed robust growth, indicating success in expanding product offerings and customer acquisition.

Frequently Asked Questions

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.

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.

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.

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).