W.W. Grainger Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw double-digit sales growth, margin expansion, and EPS up 18%, driven by strong execution, price realization, and broad-based demand. Guidance was raised for the year, with continued focus on managing inflation, tariffs, and supply chain risks.
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Shareholders approved all proposals, including director elections and auditor ratification. 2025 saw 4.5% sales growth, strong margin management, and major investments in supply chain and technology. AI, private label, and service expansion were key focus areas.
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Two distinct business models target different customer segments, supported by advanced technology and a robust supply chain. Strong financial performance is expected to continue, with 2026 guidance projecting revenue up to $19.1 billion and EPS growth, while disciplined capital allocation and market share gains remain key priorities.
Fiscal Year 2025
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Delivered 4.5% sales growth in 2025 with strong margin management and $17.9B in revenue, despite macro headwinds. 2026 guidance calls for 6.5%–9% organic sales growth, margin expansion, and over 10% EPS growth, supported by technology investments and portfolio streamlining.
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Q3 2025 results exceeded expectations with $4.7B in sales, strong margin management, and robust digital growth. The company is exiting the U.K. market, focusing on North America and Japan, and expects gross margin to stabilize around 39% as LIFO impacts subside.
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Second quarter sales grew 5.6% year-over-year to $4.6 billion, with operating margin at 14.9% and EPS up 2.2%. LIFO and tariff-related headwinds drove a lower gross margin outlook for 2025, but pricing actions and supply chain investments are expected to support recovery over time.
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Q1 2025 results met expectations with 4.4% sales growth and strong profitability despite tariff uncertainty. Guidance for 2025 is reaffirmed, with initial tariff-related price increases modest and targeted, and a 10% dividend hike announced.
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Shareholders approved all proposals, including director elections, auditor ratification, Say-on-Pay, and governance changes. 2024 saw strong sales, margin, and cash flow growth, with continued investment in technology, supply chain, and customer solutions. Growth and resilience remain priorities.
Fiscal Year 2024
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2024 saw 4.2% sales growth and strong margin performance, with High-Touch Solutions and Endless Assortment both outgrowing their markets. 2025 guidance anticipates 4%–6.5% sales growth, stable margins, and continued investment in supply chain and technology, while monitoring tariff and FX risks.
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Sales grew 4.3% year-over-year with healthy margins and strong cash flow, despite muted demand. Both business segments expanded, with Endless Assortment accelerating and High-Touch Solutions maintaining solid outgrowth. Full-year guidance was narrowed, and capital returns remain a priority.
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Q2 2024 saw 3.1% sales growth and 5.2% EPS growth, with strong performance in both main segments despite macro softness and JPY headwinds. Guidance was trimmed at the top end, but profitability and cash flow remain robust, with continued investment in growth and productivity.