40 slides from W.w. Grainger's earnings presentation, Feb 3, 2026
Slide 1: Q4 2025 Earnings Call
NYSE: GWW Q4 2025 Earnings Call February 3, 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: Progressed strategy forward despite macro challenges
Progressed strategy forward despite macro challenges 2025 ACCOMPLISHMENTS ✓ Navigated challenging macro environment amidst tariff uncertainty ✓ Strengthened operational advantage while streamlining portfolio – Advanced HTS-NA strategic growth engines, driving share gain and improved customer experie
Slide 5: We have built a best-in-class offer for MRO customers
We have built a best-in-class offer which addresses the basic needs of MRO customers … delivered through our best-in-class offer MRO customers have two basic needs … Relevant, value-add Provide a flawless capabilities experience Broad, stocked • Have what I need assortment • Make it easy to find No
Slide 6: Proprietary data advantage fueling HTS growth engines
Proprietary data advantage fueling HTS growth engines … Seller Customer Merchandising Marketing Seller Coverage Effectiveness Solutions ✓ Added >85k net SKUs ✓ Continuing to see ✓ Added two new ✓ Strong adoption of ✓ Advancing rollout of across the assortment strong ROAS across geographies in 2025 s
Slide 7: Enabling AI / ML opportunities across the business
… and enabling AI / ML opportunities across the business SAMPLE USE CASES Productivity advances Service and CSAT improvements (1) Longstanding ✓ Experimenting with agentic AI to streamline seller ✓ Expanding SKU breadth and depth by advancing track-record administrative tasks proprietary, ML-driven
Slide 8: Propelling the Endless Assortment flywheel
Propelling the proven Endless Assortment flywheel to fuel profitable growth across both businesses The Endless Assortment Flywheel ✓ Optimized assortment to drive ✓ Grew enterprise customer revenue fulfillment consistency and improve by 25% (1) customer experience ✓ Commenced construction on the new
Slide 9: Continued advancing world-class supply chain capabilities
Continued advancing world-class supply chain capabilities, including construction of new DCs Purpose-built B2B supply chain capabilities Current projects underway Northwest DC Houston DC Mito DC (Japan) Stocking strategy Network Footprint Access to the right products The right buildings in the and s
Slide 10: The Grainger Edge helps foster an award-winning culture
The Grainger Edge® helps foster an award-winning culture focused on what matters to customers and team members From Fortune, ©2025 Fortune Media IP Limited. All rights reserved. Used under license. Fortune is a registered trademark and Fortune World’s Most Admired Companies is a trademark of Fortune
Slide 11: Delivered solid full-year 2025 financial results
Delivered solid full-year 2025 financial results Executed well amidst challenging macro environment +4.9% Sales $17.9B $4.1B (daily, organic constant currency) • Reported sales growth of 4.5% (4.9% in daily, organic constant currency) – Outgrew U.S. MRO market by ~250 bps in HTS - U.S. on a volume b
Slide 12: Q4 2025 Results
Q4 2025 Results Dee Merriwether SVP & CFO © 2026 W.W. Grainger, Inc.
Slide 13: Q4 2025 Results: Total Company
Q4 2025 Results: Total Company Summary Results Commentary vs. Prior Year ($ in millions) % vs. PY Q4 2025 Q4 2024 Fav/(Unfav) Sales increased 4.5% (reported and daily) • 4.6% sales growth on a daily, organic constant currency Sales $ 4,425 $ 4,233 4.5% basis Daily Sales 69.1 66.1 4.5% • Generated gr
Slide 14: Q4 2025 Results: High-Touch Solutions - N.A.
Q4 2025 Results: High-Touch Solutions - N.A. Summary Results Commentary vs. Prior Year ($ in millions) % vs. PY Sales increased 2.2% (reported and daily) Q4 2025 Q4 2024 Fav/(Unfav) • 2.1% sales growth on a daily, constant currency basis Sales $ 3,417 $ 3,342 2.2% • Improving price contribution as t
Slide 15: Update on tariff actions
HTS – U.S. Update on tariff actions Took pricing actions over the last three quarters as tariffs went into effect 2025 • May actions predominately focused on products directly imported by Grainger Continuing to Completed actions • September updates included initial increases on supplier-imported pro
Slide 16: Comparing different MRO market volume models
HTS – U.S. Comparing different MRO market volume models Shifting macro- IP-based “Single-Factor” Internal “Multi-Factor” economic dynamics U.S. MRO Market Volume Model U.S. MRO Market Volume Model Primarily based on the manufacturing sub- creating noise in component of Industrial Production (IP) Pro
Slide 17: Volume model comparison over time
HTS – U.S. Volume model comparison over time Single-factor model (“SF”) Multi-factor model (“MF”) Market models highly MF ~220 bps (Annual market faster vs. SF (1) correlated over-time, volume growth, bps) but tend to diverge Fiscal Stimulus Prelude & Tariffs 1.0 when macro-economy ~2H’17-2018 shift
Slide 18: 2025 volume outgrowth vs. multi-factor model
HTS – U.S. 2025 volume outgrowth vs. multi-factor model Delivered FY’25 total MRO market volume outgrowth of ~250 bps based on multi-factor model Delivering market FY’25 HTS - U.S. FY’25 U.S. FY’25 Volume MRO Market Volume (1,2) Volume Outgrowth (1) outgrowth, albeit 1.4% - (1.5%) – (0.5%) = ~250 bp
Slide 19: Q4 2025 Results: Endless Assortment
Q4 2025 Results: Endless Assortment Summary Results Commentary vs. Prior Year ($ in millions) % vs. PY Sales increased 14.3%; up 15.7% on a daily, Q4 2025 Q4 2024 Fav/(Unfav) organic constant currency basis Sales $ 933 $ 816 14.3% • Zoro growth of 16.0% on a daily basis Daily Sales 14.6 12.8 14.3% •
Slide 20: Looking Ahead
Looking Ahead Dee Merriwether SVP & CFO © 2026 W.W. Grainger, Inc.
Slide 21: Expect improved revenue growth
2026 OUTLOOK Expect improved revenue growth INVESTOR DAY 5.0 – 7.5% 12.5 – 15.0% $18.7 – 19.1B (1) ((1)(2) High-Touch Solutions - N.A. Endless Assortment Total Company 2026 daily, constant currency sales growth 2026 daily, organic constant currency sales 2026 net sales vs. 2025 growth vs. 2025 Key a
Slide 22: Anticipate strong operating margin expansion
2026 OUTLOOK Anticipate strong operating margin expansion INVESTOR DAY 16.9 – 17.4% 10.0 – 10.5% 15.4 – 15.9% High-Touch Solutions N.A. Endless Assortment Total Company 2026 operating margin; up 10 bps to 60 bps 2026 operating margin; up 20 bps to 70 bps 2026 operating margin vs. 2025 vs. 2025 Key a
Slide 23: Expect robust cash flow to support capital allocation
2026 OUTLOOK Expect robust cash flow to support disciplined capital allocation INVESTOR DAY $2.125 – Capital allocation priorities remain consistent 2.325B 1 Invest in the business 2 Return excess cash to shareholders Total Company 2026 operating cash flow Organic Inorganic Share Dividends Investmen
Slide 24: Full Year Guidance: Total Company
2026 OUTLOOK Full Year Guidance: Total Company 2026 Expect to drive 2025A Guidance Y/Y change profitable growth (as of Feb 3, 2026) 4.2% to 6.7% in 2026 Sales ($ billions) $17.9 $18.7 – $19.1 (6.5% to 9.0% daily, organic constant currency sales(1)) Note: Gross Profit Margin 39.1% 39.2% – 39.5% 10 bp
Slide 25: Long-term earnings framework remains intact
BEYOND 2026 Long-term earnings framework remains intact Focused execution Attractive total return potential Strong Generally Grow SG&A top-line stable gross slower than Double-digit growth profit margins sales (2) Adj. EPS (2)(3) • Targeting 400 - 500bps of Stability around ~39% • Anticipate product
Slide 26: Closing Remarks
Closing Remarks D.G. Macpherson Chairman & CEO © 2026 W.W. Grainger, Inc.
Slide 27: Q&A
Q&A © 2026 W.W. Grainger, Inc.
Slide 28: Appendix
Appendix © 2026 W.W. Grainger, Inc.
Slide 29: FY 2025 Results: Total Company
FY 2025 Results: Total Company Summary Results Commentary vs. Prior Year ($ in millions) % vs. PY FY 2025 FY 2024 Sales increased 4.5%; up 4.9% on a daily basis Fav/(Unfav) Sales $ 17,942 $ 17,168 4.5% • 4.9% sales growth on a daily, organic constant currency basis Daily Sales 70.4 67.1 4.9% • Daily
Slide 30: Q4 2025 Segment Highlights: High-Touch Solutions - N.A.
Appendix Q4 2025 Segment Highlights: High-Touch Solutions - N.A. HTS - U.S. HTS - Canada ($ millions) ($ millions) Sales Gross Profit Sales Gross Profit +2.0% Daily +9.3% +20 bps Daily -20 bps $3,126 $3,187 42.6% 42.8% $167 $153 35.4% 35.2% Q4’24 Q4’25 Q4’24 Q4’25 Q4’24 Q4’25 Q4’24 Q4’25 Daily, cons
Slide 31: Q4 2025 Segment Highlights: Endless Assortment
Q4 2025 Segment Highlights: Endless Assortment (1) MonotaRO Zoro - U.S. ($ millions) ($ millions) Sales Gross Profit Sales Gross Profit +14.5% +16.0% +60 bps Daily +50 bps +380 bps Daily 27.6% 28.1% 32.9% 33.5% Q4’24 Q4’25 Q4’24 Q4’25 $573 41.4% $354 $501 37.7% Op. Margin Op. Margin $306 +100 bps +2
Slide 32: Q4 2025 Sales Performance: High-Touch Solutions - U.S.
Q4 2025 Sales Performance: High-Touch Solutions - U.S. (1) (1) Large Customers Mid-sized Customers FY’25: +1.9% FY’25: 5.4% 7% 7% 4% 4% 3% 3% 2% 2% 1% 1% Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Note: FY’24 Large Customer daily sales growth was +2.8% Note: FY’24 Mid-size Customer
Slide 33: Sales Growth By Customer End Market: HTS - U.S.
Sales Growth By Customer End Market: HTS - U.S. (1) Q4’25 5 Quarter Trend Commercial Services UP Mid-Single Digits Contractors UP Low-Double Digits Government DOWN High-Single Digits Healthcare UP Low-Single Digits Manufacturing UP Mid-Single Digits Retail UP Mid-Single Digits Transportation UP High
Slide 34: Operating Metrics: Endless Assortment
Operating Metrics: Endless Assortment Total Registered Users Total Active SKUs (Zoro U.S.) (user count in (SKU count in thousands) millions) +10% 17,032 17,452 -12% 16,219 16,628 14.6 14.9 15,829 13.8 12.8 12.9 6,139 6,266 5,868 6,000 5,736 10,351 10,627 10,893 11,187 10,093 Q4’24 Q1’25 Q2’25 Q3’25
Slide 35: 2026 Full Year Supplemental Guidance
Appendix 2026 Full Year Supplemental Guidance Cash Flow Guidance Sales Growth Guidance Total Company 2026 Guidance ($ millions) 2025A 2026 Guidance (as of February 3, 2026) (as of February 3, 2026) Low High Operating Cash Flow $2,015 $2,125 – $2,325 Daily, Organic Constant Currency Sales 6.5% 9.0% (
Slide 36: 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 37: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Sales growth for the three and twelve months ended December 31, 2025 (percent change compared to the prior year period) (unaudited) Total Company - Monthly Detail High-Touch Solutions - N.A. - Daily Sales October November December Q4 2025 FY 2025 HTS - N.A. HTS - U.S
Slide 38: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Income statement adjustments for the twelve months ended December 31, 2025 and December 31, 2024 (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) FY
Slide 39: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Key metrics for the period ended December 31, 2025 (in millions, except for percentage data) (unaudited) Net Leverage Ratio As of Adjusted Return on Invested Capital (ROIC) Twelve months ended December 31, 2025 December 31, 2025 Total debt $ 2,488 Reported operating
Slide 40: 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.