28 slides from W.w. Grainger's earnings presentation, Oct 31, 2025
Slide 1: Q3 2025 Earnings Call
NYSE: GWW Q3 2025 Earnings Call October 31, 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: Q3 2025 Highlights
Q3 2025 Highlights Continued solid performance amidst muted market demand +5.4% Sales $4.7B $4.1B (daily, constant currency) • Delivered another quarter of steady growth and profitability ─ Generated reported sales growth of 6.1% (5.4% in daily, constant currency) Operating Margin 15.2% $4.1B (40) b
Slide 6: Q3 2025 Results
Q3 2025 Results Dee Merriwether SVP & CFO © 2025 W.W. Grainger, Inc.
Slide 7: Q3 2025 Results: Total Company
Q3 2025 Results: Total Company Summary Results Commentary vs. Prior Year ($ in millions) % vs. PY Q3 2025 Q3 2024 Sales increased 6.1% (reported and daily) Fav/(Unfav) • 5.4% sales growth on a daily, constant currency basis Sales $ 4,657 $ 4,388 6.1% • Generated growth in both segments Daily Sales 7
Slide 8: Q3 2025 Results: High-Touch Solutions - N.A.
Q3 2025 Results: High-Touch Solutions - N.A. Summary Results Commentary vs. Prior Year ($ in millions) % vs. PY Sales increased 3.4% (reported and daily) Q3 2025 Q3 2024 Fav/(Unfav) • 3.4% sales growth on a daily, constant currency basis Sales $ 3,635 $ 3,515 3.4% • Price contribution improving as t
Slide 9: Q3 2025 Results: Endless Assortment
Q3 2025 Results: Endless Assortment Summary Results Commentary vs. Prior Year ($ in millions) % vs. PY Sales increased 18.2%; up 14.6% on a daily, Q3 2025 Q3 2024 Fav/(Unfav) constant currency basis Sales $ 935 $ 791 18.2% • Zoro growth of 17.8% on a daily basis Daily Sales 14.6 12.4 18.2% • MonotaR
Slide 10: Looking Ahead
Looking Ahead Dee Merriwether SVP & CFO © 2025 W.W. Grainger, Inc.
Slide 11: Update on tariff actions and path forward
Update on tariff actions and path forward Took pricing actions over the last two quarters as tariffs went into effect YTD • May actions predominately focused on products directly imported by Grainger Continuing to Completed actions • September updates included initial increases 7on supplier-imported
Slide 12: LIFO Impact: Inventory accounting dynamics having outsized impact on GP%
LIFO Impact: Inventory accounting dynamics having outsized impact on GP%; will normalize as inflationary cycle subsides LIFO impact more pronounced during periods of heightened cost inflation … … however, as inflation cools Implied FIFO GP% Inflationary Inflationary Period Period Total Company repor
Slide 13: 2025 Full Year Guidance: Total Company
2025 Full Year Guidance: Total Company Narrowing 2024A 2025 Y/Y change Guidance 2025 Earnings (as of Oct 31, 2025) Outlook Sales ($ billions) $17.2 $17.8 – $18.0 3.9% to 4.7% (4.4% to 5.1% daily, organic constant currency sales(1)) Prior FY’25 Guidance $17.9 – $18.2 Tariff Considerations: • Includes
Slide 14: Long-term earnings framework remains intact
BEYOND 2025 Long-term earnings framework remains intact Focused execution Attractive total return potential Strong Generally Grow SG&A top-line stable gross slower than Double-digit growth profit margins sales (2) Adj. EPS (2)(3) • Targeting 400 - 500bps of Stability around ~39% • Anticipate product
Slide 15: Closing Remarks
Closing Remarks D.G. Macpherson Chairman & CEO © 2025 W.W. Grainger, Inc.
Slide 16: Q&A
Q&A © 2025 W.W. Grainger, Inc.
Slide 17: Appendix
Appendix © 2025 W.W. Grainger, Inc.
Slide 18: Q3 2025 Segment Highlights: High-Touch Solutions - N.A.
Appendix Q3 2025 Segment Highlights: High-Touch Solutions - N.A. HTS - U.S. HTS - Canada ($ millions) ($ millions) Sales Gross Profit Sales Gross Profit +3.5% Daily +4.8% -50 bps Daily -90 bps $3,290 $3,404 $159 41.9% 41.4% $152 35.5% 34.6% Q3’24 Q3’25 Q3’24 Q3’25 Q3’24 Q3’25 Q3’24 Q3’25 Daily, cons
Slide 19: Q3 2025 Segment Highlights: Endless Assortment
Q3 2025 Segment Highlights: Endless Assortment (1) MonotaRO Zoro - U.S. ($ millions) ($ millions) Sales Gross Profit Sales Gross Profit +18.4% +17.8% +70 bps Daily +50 bps +380 bps Daily 27.6% 28.1% 32.6% 33.3% Q3’24 Q3’25 Q3’24 Q3’25 $558 41.4% $367 37.7% Op. Margin Op. Margin $471 $311 +80 bps +15
Slide 20: Q3 2025 Sales Performance: High-Touch Solutions - U.S.
Q3 2025 Sales Performance: High-Touch Solutions - U.S. (1) (1) Large Customers Mid-sized Customers 7% 4% 4% 3% 3% 2% 2% 2% 2% 1% Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Note: FY’24 Large Customer daily sales growth was +2.8% Note: FY’24 Mid-size Customer daily sales growth was +3
Slide 21: Sales Growth By Customer End Market: HTS - U.S.
Sales Growth By Customer End Market: HTS - U.S. (1) Q3’25 5 Quarter Trend Commercial Services UP Mid-Single Digits Contractors UP Low-Double Digits Government UP Low-Single Digits Healthcare UP Mid-Single Digits Manufacturing UP Low-Single Digits Retail UP Low-Single Digits Transportation UP Mid-Sin
Slide 22: Operating Metrics: Endless Assortment
Operating Metrics: Endless Assortment Total Registered Users Total Active SKUs (Zoro U.S.) (user count in (SKU count in thousands) millions) +10% -10% 16,628 17,032 15,829 16,219 14.6 14.9 15,415 14.3 13.8 12.8 6,000 6,139 5,736 5,868 5,617 10,093 10,351 10,627 10,893 9,797 Q3’24 Q4’24 Q1’25 Q2’25 Q
Slide 23: 2025 Full Year Supplemental Guidance
Appendix 2025 Full Year Supplemental Guidance Cash Flow Guidance Sales Growth Guidance ($ millions) 2024A 2025 Guidance 2025 Guidance (as of October 31, 2025) Total Company (as of October 31, 2025) Operating Cash Flow $2,111 $2,100 – $2,200 Low High Prior FY’25 Guidance $2,050 - $2,250 Daily, Organi
Slide 24: 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 25: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Sales growth for the three months ended September 30, 2025 (percent change compared to the prior year period) (unaudited) Total Company - Monthly Detail High-Touch Solutions - N.A. - Daily Sales July August September Q3'25 HTS - N.A. HTS - U.S. HTS - Canada Reported
Slide 26: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Income statement adjustments for the three months ended September 30, 2025 and September 30, 2024 (in millions, except for percentage data) (unaudited) Total Company results included adjusting items which impacted U.S. GAAP as follows: Q3 2025 Reported Adjusted(2) Q3
Slide 27: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Key metrics for the period ended September 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) Nine months ended Septembe
Slide 28: 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.