W.w. Grainger, Inc. · NYSE:GWW
W.w. Grainger — Q1 2026 Earnings Presentation
26 slides from W.w. Grainger's earnings presentation, May 7, 2026
Slide 1: Q1 2026 Earnings Call
NYSE: GWW Q1 2026 Earnings Call May 7, 2026 © 2026 W.W. Grainger, Inc.
Slide 2: Safe Harbor Statement and Non-GAAP Financial Measures
Safe Harbor Statement and Non-GAAP Financial Measures All statements in this communication, other than those relating to historical facts, are “forward-looking statements” under the federal securities laws. Forward-looking statements can generally be identified by their use of terms such as “anticip
Slide 3: Opening Remarks
Opening Remarks D.G. Macpherson Chairman & CEO © 2026 W.W. Grainger, Inc.
Slide 4: The Grainger Edge embedded in everything we do
The Grainger Edge® embedded in everything we do Our Principles Our Purpose We relentlessly expand our Our leadership position by being the go-to partner for people who Aspiration build and run safe, sustainable, and productive operations. © 2026 W.W. Grainger, Inc. 4
Slide 5: Q1 2026 Highlights
Q1 2026 Highlights Compared to Q1’25 Focused execution driving results across the business +12.2% Sales $4.7B $4.1B (daily, organic constant currency) • Delivered strong quarter of growth and profitability ─ Generated reported sales growth of 10.1% (12.2% in daily, organic constant currency) Operati
Slide 6: Q1 2026 Results
Q1 2026 Results Dee Merriwether SVP & CFO © 2026 W.W. Grainger, Inc.
Slide 7: Q1 2026 Results: Total Company
Q1 2026 Results: Total Company Summary Results Commentary vs. Prior Year ($ in millions) % vs. PY Q1 2026 Q1 2025 Fav/(Unfav) Sales increased 10.1% (reported and daily) Sales $ 4,742 $ 4,306 10.1% • 12.2% sales growth on a daily, organic constant currency basis Daily Sales 75.3 68.3 10.1% • Generate
Slide 8: Q1 2026 Results: High-Touch Solutions - N.A.
Q1 2026 Results: High-Touch Solutions - N.A. Summary Results Commentary vs. Prior Year ($ in millions) % vs. PY Sales increased 10.5% (reported and daily) Q1 2026 Q1 2025 Fav/(Unfav) • 10.0% sales growth on a daily, constant currency basis Sales $ 3,752 $ 3,397 10.5% • Includes healthy price contrib
Slide 9: Q1 2026 Results: Endless Assortment
Q1 2026 Results: Endless Assortment Summary Results Commentary vs. Prior Year ($ in millions) % vs. PY Sales increased 19.6%; up 21.9% on a daily, Q1 2026 Q1 2025 Fav/(Unfav) organic constant currency basis Sales $ 990 $ 828 19.6% • Zoro growth of 18.7% on a daily basis Daily Sales 15.7 13.1 19.6% •
Slide 10: Looking Ahead
Looking Ahead Dee Merriwether SVP & CFO © 2026 W.W. Grainger, Inc.
Slide 11: Update on inflationary environment
Update on inflationary environment Passed incremental price in January and took incremental cost in February, in line with normal cadence Navigating tariff • January actions included response to previously-delayed tariff inflation as well as offsets to annually and geopolitical YTD negotiated cost i
Slide 12: Full Year Guidance: Total Company
2026 OUTLOOK Full Year Guidance: Total Company Raising 2026 Y/Y change 2025A Guidance 2026 Outlook (as of May 7, 2026) 6.7% to 9.1% Sales ($ billions) $17.9 $19.2 – $19.6 (9.5% to 12.0% daily, organic constant currency sales(1)) Updated guide includes: Prior FY’26 Guidance $18.7 – $19.1 • Sales: con
Slide 13: Closing Remarks
Closing Remarks D.G. Macpherson Chairman & CEO © 2026 W.W. Grainger, Inc.
Slide 14: Q&A
Q&A © 2026 W.W. Grainger, Inc.
Slide 15: Appendix
Appendix © 2026 W.W. Grainger, Inc.
Slide 16: Q1 2026 Segment Highlights: High-Touch Solutions - N.A.
Appendix Q1 2026 Segment Highlights: High-Touch Solutions - N.A. HTS - U.S. HTS - Canada ($ millions) ($ millions) Sales Gross Profit Sales Gross Profit +9.9% Daily +21.3% +30 bps Daily +80 bps $3,495 42.8% 43.1% $184 33.4% 34.2% $3,181 $152 Q1’25 Q1’26 Q1’25 Q1’26 Q1’25 Q1’26 Q1’25 Q1’26 Daily, con
Slide 17: Q1 2026 Segment Highlights: Endless Assortment
Q1 2026 Segment Highlights: Endless Assortment (1) MonotaRO Zoro - U.S. ($ millions) ($ millions) Sales Gross Profit Sales Gross Profit +22.7% +18.7% +70 bps Daily -10 bps +380 bps Daily 27.5% 27.4% 32.9% 33.6% Q1’25 Q1’26 Q1’25 Q1’26 $589 41.4% $402 37.7% Op. Margin Op. Margin $480 $339 +90 bps +21
Slide 18: Q1 2026 Sales Performance: High-Touch Solutions - U.S.
Q1 2026 Sales Performance: High-Touch Solutions - U.S. (1) (1) Large Customers Mid-sized Customers 14% 9% 7% 7% 4% 3% 4% 2% 2% 1% Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Note: FY’25 Large Customer daily sales growth was +1.9% Note: FY’25 Mid-size Customer daily sales growth was +
Slide 19: Sales Growth By Customer End Market: HTS - U.S.
Sales Growth By Customer End Market: HTS - U.S. Q1’25 Q1’26 (1) Q1’26 5 Quarter Trend Commercial Services UP Mid-Teens Contractors UP High-Teens Government UP High-Single Digits Healthcare UP High-Single Digits Manufacturing UP High-Single Digits Retail UP Mid-Teens Transportation UP High-Single Dig
Slide 20: Operating Metrics: Endless Assortment
Operating Metrics: Endless Assortment Total Registered Users Total Active SKUs (Zoro U.S.) (user count in (SKU count in thousands) millions) +10% 17,452 17,853 -13% 16,628 17,032 14.9 16,219 13.8 12.8 12.9 13.0 6,266 6,388 6,000 6,139 5,868 10,627 10,893 11,187 11,465 10,351 Q1’25 Q2’25 Q3’25 Q4’25
Slide 21: 2026 Full Year Supplemental Guidance
Appendix 2026 Full Year Supplemental Guidance Cash Flow Guidance Sales Growth Guidance Total Company 2026 Guidance ($ millions) 2025A 2026 Guidance (as of May 7, 2026) (as of May 7, 2026) Low High Operating Cash Flow $2,015 $2,200 – $2,400 Prior FY’26 Guidance $2,125 - $2,325 Daily, Organic Constant
Slide 22: Definitions & Calculations
Definitions & Calculations Basis of presentation: The Company has a controlling ownership interest in MonotaRO, which is part of the Endless Assortment segment. MonotaRO’s results are fully consolidated, reflected in U.S. GAAP, and reported one-month in arrears. Results will differ from MonotaRO’s e
Slide 23: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Sales growth for the three months ended March 31, 2026 (percent change compared to the prior year period) (unaudited) Total Company - Monthly Detail High-Touch Solutions - N.A. - Daily Sales January February March Q1'26 HTS - N.A. HTS - U.S. HTS - Canada Reported sal
Slide 24: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Key metrics for the period ended March 31, 2026 (in millions, except for percentage data) (unaudited) Adjusted Return on Invested Capital (ROIC) Three months ended Net Leverage Ratio As of March 31, 2026 March 31, 2026 Reported operating earnings $ 793 Total debt $ 2
Slide 25: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Income statement adjustments for the twelve months ended December 31, 2025 (in millions, except for percentage data) (unaudited) Total Company results included adjusting items which impacted U.S. GAAP as follows: FY 2025 Reported Adjusted(2) Reported Adjustment(1) Ad
Slide 26: IR Contacts
IR Contacts Kyle Bland Vice President, Investor Relations Kevin Byrne Director, Investor Relations Emily Boelter Manager, Investor Relations InvestorRelations@grainger.com © 2026 W.W. Grainger, Inc.