26 slides from W.w. Grainger's earnings presentation, Aug 1, 2025
Slide 1: Q2 2025 Earnings Call
NYSE: GWW Q2 2025 Earnings Call August 1, 2025 © 2025 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.” Forward-looking statements can generally be identified by their use of terms such as “anticipate,” “estimate,” “believe,” “expe
Slide 3: Opening Remarks
Opening Remarks D.G. Macpherson Chairman & CEO © 2025 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. © 2025 W.W. Grainger, Inc. 4
Slide 5: Q2 2025 Highlights
Q2 2025 Highlights Solid execution amidst a continued muted demand environment +5.1% Sales $4.6B $4.1B (daily, constant currency) • Delivered another quarter of solid growth and profitability ─ Generated reported sales growth of 5.6% (5.1% in daily, constant currency) Operating ─ Delivered diluted E
Slide 6: Q2 2025 Results
Q2 2025 Results Dee Merriwether SVP & CFO © 2025 W.W. Grainger, Inc.
Slide 7: Q2 2025 Results: Total Company
Q2 2025 Results: Total Company Summary Results Commentary vs. Prior Year ($ in millions) % vs. PY Q2 2025 Q2 2024 Sales increased 5.6% (reported and daily) Fav/(Unfav) • 5.1% sales growth on a daily, constant currency basis Sales $ 4,554 $ 4,312 5.6% • Generated growth in both segments Daily Sales 7
Slide 8: Q2 2025 Results: High-Touch Solutions - N.A.
Q2 2025 Results: High-Touch Solutions - N.A. Summary Results Commentary vs. Prior Year ($ in millions) % vs. PY Q2 2025 Q2 2024 Sales increased 2.5% (reported and daily) Fav/(Unfav) • 2.8% sales growth on a daily, constant currency basis Sales $ 3,544 $ 3,458 2.5% • Growth across all geographies in
Slide 9: Q2 2025 Results: Endless Assortment
Q2 2025 Results: Endless Assortment Summary Results Commentary vs. Prior Year ($ in millions) % vs. PY Sales increased 19.7%; up 16.3% on a daily, Q2 2025 Q2 2024 Fav/(Unfav) constant currency basis Sales $ 929 $ 776 19.7% • Zoro growth of 20.0% on a daily basis Daily Sales 14.5 12.1 19.7% • MonotaR
Slide 10: Looking Ahead
Looking Ahead Dee Merriwether SVP & CFO © 2025 W.W. Grainger, Inc.
Slide 11: Update on tariff actions
Update on tariff actions Took initial pricing actions in May Q2 • Largely represented increases on products directly imported by Grainger Completed Despite actions Progressed cost negotiations with suppliers; expect dialogue to remain ongoing lumpiness, through balance of year expect to Taking addit
Slide 12: 2025 Full Year Guidance: Total Company
2025 Full Year Guidance: Total Company Updating 2024A 2025 Y/Y change Guidance 2025 Outlook (as of Aug 1, 2025) 4.4% to 5.9% Sales ($ billions) $17.2 $17.9 – $18.2 (4.5% to 6.0% daily, constant currency sales(1)) Tariff Considerations: Prior FY’25 Guidance $17.6 – $18.1 • Includes expected timing- r
Slide 13: Closing Remarks
Closing Remarks D.G. Macpherson Chairman & CEO © 2025 W.W. Grainger, Inc.
Slide 14: Q&A
Q&A © 2025 W.W. Grainger, Inc.
Slide 15: Appendix
Appendix © 2025 W.W. Grainger, Inc.
Slide 16: Q2 2025 Segment Highlights: High-Touch Solutions - N.A.
Appendix Q2 2025 Segment Highlights: High-Touch Solutions - N.A. HTS - U.S. HTS - Canada ($ millions) ($ millions) Sales Gross Profit Sales Gross Profit +2.8% Daily +2.5% -70 bps Daily -10 bps $3,220 $3,309 $164 34.2% 34.1% 42.1% 41.4% $161 Q2’24 Q2’25 Q2’24 Q2’25 Q2’24 Q2’25 Q2’24 Q2’25 Daily, cons
Slide 17: Q2 2025 Segment Highlights: Endless Assortment
Q2 2025 Segment Highlights: Endless Assortment (1) MonotaRO Zoro - U.S. ($ millions) ($ millions) Sales Gross Profit Sales Gross Profit +19.9% +20.0% +50 bps Daily +10 bps +380 bps Daily 27.6% 27.7% 32.8% 33.3% Q2’24 Q2’25 Q2’24 Q2’25 $561 41.4% $358 37.7% Op. Margin Op. Margin $468 $299 +60 bps +38
Slide 18: Q2 2025 Sales Performance: High-Touch Solutions - U.S.
Q2 2025 Sales Performance: High-Touch Solutions - U.S. (1) (1) Large Customers Mid-sized Customers 5% 4% 3% 4% 3% 2% 2% 2% 2% 1% Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Note: FY’24 Large Customer daily sales growth was +2.8% Note: FY’24 Mid-size Customer daily sales growth was +3
Slide 19: Sales Growth By Customer End Market: HTS - U.S.
Sales Growth By Customer End Market: HTS - U.S. (1) Q2’25 5 Quarter Trend Commercial Services UP Low-Single Digits Contractors UP High-Single Digits Government UP Low-Single Digits Healthcare UP Mid-Single Digits Manufacturing UP Low-Single Digits Retail DOWN Mid-Single Digits Transportation UP High
Slide 20: Operating Metrics: Endless Assortment
Operating Metrics: Endless Assortment Total Registered Users Total Active SKUs (Zoro U.S.) (user count in (SKU count in thousands) millions) +11% +1% 16,219 16,628 14.9 15,415 15,829 14.6 15,008 14.3 6,000 13.7 13.8 5,736 5,868 5,475 5,617 9,797 10,093 10,351 10,627 9,533 Q2’24 Q3’24 Q4’24 Q1’25 Q2’
Slide 21: 2025 Full Year Supplemental Guidance
Appendix 2025 Full Year Supplemental Guidance Cash Flow Guidance Sales Growth Guidance ($ millions) 2024A 2025 Guidance 2025 Guidance (as of August 1, 2025) Total Company (as of August 1, 2025) Operating Cash Flow $2,111 $2,050 – $2,250 Low High Prior FY’25 Guidance Unchanged Daily, Constant Currenc
Slide 22: Definitions & Calculations
Definitions & Calculations Basis of presentation: The Company has a controlling ownership interest in MonotaRO, which is part of our 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 June 30, 2025 (percent change compared to the prior year period) (unaudited) Total Company - Monthly Detail High-Touch Solutions - N.A. - Daily Sales April May June Q2'25 HTS - N.A. HTS - U.S. HTS - Canada Reported sales 5.0% 1
Slide 24: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Income statement adjustments for the three months ended June 30, 2025 and June 30, 2024 (in millions, except for percentage data) (unaudited) Total Company results included adjusting items which impacted U.S. GAAP as follows: Q2 2025 Reported Adjusted(2) Q2 2024 Repo
Slide 25: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Key metrics for the period ended June 30, 2025 and Operating margin for the twelve months ended December 31, 2024 (in millions, except for percentage data) (unaudited) Net Leverage Ratio As of Adjusted Return on Invested Capital (ROIC) Six months ended June 30, 2025
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 © 2025 W.W. Grainger, Inc.