01—Abstract
Summary
Summary of the 10-Q filed May 1, 2025. Cited figures are marked; the original filing is the authoritative source.
W.W.
Grainger, Inc. (GWW) reported its first-quarter 2025 results, showcasing modest top-line growth and a slight increase in profitability. Net sales reached $4.31 billiona, up 1.7% year-over-year, with daily, constant currency net sales showing a more robust 4.4% increase, indicating underlying business momentum. This growth was primarily driven by the Endless Assortment segment, which saw a significant 10.3% rise in net sales, while the High-Touch Solutions North America segment remained relatively flat.
Diluted earnings per share (EPS) improved to $9.86b from $9.62 in the prior year, reflecting a 2.5% increase, suggesting effective cost management and operational efficiencies. The company also maintained a strong operating margin of 15.6% and a solid gross profit margin of 39.7%. Financially, Grainger demonstrated healthy cash flow from operations, generating $646 million, although this was a slight decrease from the prior year, attributed to working capital movements.
The company repaid $500 millionc in senior notes, leading to a significant increase in cash used in financing activities. Despite this debt repayment, Grainger maintained an investment-grade credit rating and ample liquidity, with $666 million in cash and cash equivalents and $1.9 billion in available liquidity. The company continues its commitment to returning capital to shareholders, with a declared quarterly dividend of $2.26 per share, signaling confidence in its ongoing financial health and strategic direction.
02—Key points
Key Highlights
- Net sales increased by 1.7% to $4.31 billion for Q1 2025, with daily, constant currency net sales growing by 4.4%.
- Diluted Earnings Per Share (EPS) rose to $9.86 from $9.62 in the prior year, representing a 2.5% increase.
- The Endless Assortment segment experienced strong net sales growth of 10.3%, while High-Touch Solutions N.A. saw a slight decline of 0.2%.
- Gross profit margin improved by 30 basis points to 39.7%, and operating earnings saw a modest increase of 0.4% to $672 million.
- Cash flow from operating activities was $646 million, slightly down from $661 million in Q1 2024, primarily due to working capital changes.
- The company repaid $500 million in senior notes, impacting cash flow from financing activities.
- W.W. Grainger, Inc. declared a quarterly dividend of $2.26 per share, signaling continued commitment to shareholder returns.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, W.W. Grainger kept $0.11.
- Revenue$4.31B100.0%
- Cost of revenue−$2.60B60.3%
- Gross profit$1.71B39.7%
- Operating costs−$1.04B24.1%
- Operating income$672.0M15.6%
- Interest, other & tax−$193.0M4.5%
- Net income$479.0M11.1%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 1, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $4.31B$4.24B | +1.7% |
| Cost of Revenue | $2.60B$2.57B | +1.1% |
| Gross Profit | $1.71B$1.67B | +2.5% |
| SG&A Expenses | $1.04B$999.00M | +3.9% |
| Operating Income | $672.00M$669.00M | +0.4% |
| Net Income | $479.00M$478.00M | +0.2% |
| EPS (Basic) | $9.88$9.65 | +2.4% |
| EPS (Diluted) | $9.86$9.62 | +2.5% |
| Shares Outstanding (Basic) | 48.20M49.20M | −2.0% |
| Shares Outstanding (Diluted) | 48.30M49.40M | −2.2% |
05—Questions
Frequently Asked Questions
What was W.W. Grainger's revenue growth in the first quarter of 2025?
W.W. Grainger's net sales for the three months ended March 31, 2025, were $4.306 billion, an increase of 1.7% compared to $4.235 billion in the same period of 2024. On a daily, constant currency basis, net sales increased by 4.4%.
How did the different business segments perform?
The High-Touch Solutions N.A. segment's net sales were flat at $3.397 billion, with a 2% increase on a daily, constant currency basis. The Endless Assortment segment showed strong performance with net sales increasing by 10.3% to $828 million, and a 15% increase on a daily, constant currency basis.
What is the company's profitability and earnings per share?
For the three months ended March 31, 2025, net earnings attributable to W.W. Grainger, Inc. were $479 million, a slight increase from $478 million in the prior year. Diluted earnings per share (EPS) increased by 2.5% to $9.86 from $9.62 in the same period last year.
How is the company managing its debt and liquidity?
W.W. Grainger repaid $500 million of its 1.85% Senior Notes that matured in February 2025, leading to a significant decrease in cash used in financing activities compared to the prior year. As of March 31, 2025, the company had $666 million in cash and cash equivalents and $1.9 billion in available liquidity, indicating sufficient resources to meet its obligations and continue investing in its business and returning capital to shareholders.
06—Continue