26 slides from W.w. Grainger's earnings presentation, May 1, 2025
Slide 1: Q1 2025 Earnings Call
NYSE: GWW Q1 2025 Earnings Call May 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: Q1 2025 Highlights
Q1 2025 Highlights Executed well amidst a continued muted demand environment +4.4% Sales $4.3B $4.1B (daily, constant currency) • Continued advancing HTS-N.A. growth engines and strategic flywheel initiatives within Endless Assortment • Delivered another quarter of solid growth and profitability Ope
Slide 6: Q1 2025 Results
Q1 2025 Results Dee Merriwether SVP & CFO © 2025 W.W. Grainger, Inc.
Slide 7: Q1 2025 Results: Total Company
Q1 2025 Results: Total Company Summary Results Commentary vs. Prior Year ($ in millions) % vs. PY Q1 2025 Q1 2024 Sales increased 1.7%; up 3.3% on a daily basis Fav/(Unfav) • 4.4% sales growth on a daily, constant currency basis Sales $ 4,306 $ 4,235 1.7% • Generated growth in both segments in daily
Slide 8: Q1 2025 Results: High-Touch Solutions - N.A.
Q1 2025 Results: High-Touch Solutions - N.A. Summary Results Commentary vs. Prior Year ($ in millions) % vs. PY Q1 2025 Q1 2024 Fav/(Unfav) Sales decreased 0.2%; up 1.3% on a daily basis • Increased 1.9% on a daily, constant currency basis Sales $ 3,397 $ 3,405 (0.2)% • Growth across all geographies
Slide 9: Volume Outgrowth: High-Touch Solutions - U.S.
Volume Outgrowth: High-Touch Solutions - U.S. Q1’25 outgrowth reflects slow start and heightened market measurement dislocation due to tariffs (2) (2) Annual Trend Quarterly Trend (Volume outgrowth) (Volume outgrowth) 925 Tariff-related dynamics creating noise in quarterly MRO volume benchmark … 525
Slide 10: Q1 2025 Results: Endless Assortment
Q1 2025 Results: Endless Assortment Summary Results Commentary vs. Prior Year ($ in millions) % vs. PY Q1 2025 Q1 2024 Sales increased 10.3%; up 15.3% on a daily, Fav/(Unfav) constant currency basis Sales $ 828 $ 751 10.3% • Zoro growth of 18.4% on a daily basis Daily Sales 13.1 11.7 12.0% • MonotaR
Slide 11: Looking Ahead
Looking Ahead Dee Merriwether SVP & CFO © 2025 W.W. Grainger, Inc.
Slide 12: Navigating potential tariff impacts
Navigating potential tariff impacts Confident in ability After normalizing for Total COGS not subject to full tariff increase, resulting in lower differences in assortment, net inflation impact to Grainger to manage impact believe sourcing mix is at (for illustrative purposes only) while adhering to
Slide 13: 2025 Full Year Guidance: Total Company
2025 Full Year Guidance: Total Company Reaffirming 2024A 2025 Y/Y change Guidance 2025 Outlook (as of May 1, 2025) 2.7% to 5.2% Sales ($ billions) $17.2 $17.6 – $18.1 (4.0% to 6.5% daily, constant currency sales(1)) Tariff Considerations: Prior FY’25 Guidance Unchanged • Includes certain known price
Slide 14: Closing Remarks
Closing Remarks D.G. Macpherson Chairman & CEO © 2025 W.W. Grainger, Inc.
Slide 15: Q&A
Q&A © 2025 W.W. Grainger, Inc.
Slide 16: Appendix
Appendix © 2025 W.W. Grainger, Inc.
Slide 17: Q1 2025 Segment Highlights: High-Touch Solutions - N.A.
Appendix Q1 2025 Segment Highlights: High-Touch Solutions - N.A. HTS - U.S. HTS - Canada ($ millions) ($ millions) Sales Gross Profit Sales Gross Profit +1.8% Daily +60 bps -3.3% Daily -60 bps $3,174 $3,181 42.8% $159 34.0% 33.4% 42.2% $152 Q1’24 Q1’25 Q1’24 Q1’25 Q1’24 Q1’25 Q1’24 Q1’25 Daily, cons
Slide 18: Q1 2025 Segment Highlights: Endless Assortment
Q1 2025 Segment Highlights: Endless Assortment (1) MonotaRO Zoro - U.S. ($ millions) ($ millions) Sales Gross Profit Sales Gross Profit +8.0% +18.4% +80 bps Daily -20 bps +380 bps Daily 27.7% 27.5% 32.1% 32.9% Q1’24 Q1’25 Q1’24 Q1’25 $480 41.4% $339 $451 37.7% Op. Margin $290 Op. Margin +20 bps +240
Slide 19: Q1 2025 Sales Performance: High-Touch Solutions - U.S.
Q1 2025 Sales Performance: High-Touch Solutions - U.S. (1) (1) Large Customers Mid-sized Customers 5% 5% 3% 3% 4% 3% 2% 2% 2% 1% Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Note: FY’24 Large Customer daily sales growth was +2.8% Note: FY’24 Mid-size Customer daily sales growth was +3
Slide 20: Sales Growth By Customer End Market: HTS - U.S.
Sales Growth By Customer End Market: HTS - U.S. (1) Q1’25 5 Quarter Trend Commercial Services UP Low-Single Digits Contractors UP Mid-Single Digits Government UP Low-Single Digits Healthcare UP Mid-Single Digits Manufacturing Flat Retail DOWN Low-Single Digits Transportation UP Low-Single Digits Uti
Slide 21: Operating Metrics: Endless Assortment
Operating Metrics: Endless Assortment Total Registered Users Total Active SKUs (Zoro U.S.) (user count in (SKU count in thousands) millions) +13% 14.9 +11% 14.6 14.3 15,829 16,219 15,008 15,415 14,581 13.7 13.2 5,736 5,868 5,475 5,617 5,322 9,533 9,797 10,093 10,351 9,259 Q1’24 Q2’24 Q3’24 Q4’24 Q1’
Slide 22: 2025 Full Year Supplemental Guidance
Appendix 2025 Full Year Supplemental Guidance Cash Flow Guidance Sales Growth Guidance ($ millions) 2024A 2025 Guidance 2025 Guidance (as of May 1, 2025) Total Company (as of May 1, 2025) Operating Cash Flow $2,111 $2,050 – $2,250 Low High Prior FY’25 Guidance Unchanged Daily, Constant Currency Sale
Slide 23: 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 24: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Sales growth for the three months ended March 31, 2025 (percent change compared to the prior year period) (unaudited) Total Company - Monthly Detail High-Touch Solutions - N.A. - Daily Sales January February March Q1'25 HTS - N.A. HTS - U.S. HTS - Canada Reported sal
Slide 25: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Key metrics for the period ended March 31, 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) Three months ended March 31, 2
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.