Grainger reported solid performance in 2025, driven by consistent sales growth across both segments despite a challenging macro environment. The company made progress on strategic initiatives and maintained operational resilience, positioning itself for continued strong performance.
Full year sales grew 4.5% to $17.9 billion, or 4.9% on a daily, organic constant currency basis.
positiveEndless Assortment segment sales increased 14.3% (15.7% daily, organic constant currency) driven by strong performance at MonotaRO and Zoro.
positiveReturned $1.5 billion to shareholders through dividends and share repurchases in full year 2025.
positiveGenerated $2.0 billion in operating cash flow for the full year 2025.
positiveReported operating margin for full year 2025 was 13.9%, down 150 basis points from the prior year.
attentionReported diluted EPS for full year 2025 was $35.40, down 8.6% versus 2024.
negativeFourth quarter operating margin decreased 70 basis points to 14.3% due to increased expense and slower sales growth in High-Touch Solutions - N.A.
attentionFourth quarter diluted EPS was $9.44, down 2.8% versus the prior year quarter, primarily due to an unfavorable tax rate.
negativeFull year gross profit margin decreased 30 basis points to 39.1% due to tariff-related inflation and LIFO inventory headwinds.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
High-Touch Solutions - N.A. | N/A | — | — | — |
Endless Assortment | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
In 2025, we executed well, delivering exceptional service and a best-in-class experience for our customers across both our High-Touch Solutions and Endless Assortment segments.
Despite a challenging macro environment, we drove profitable share gain, made strong progress with our strategic initiatives, and operated with resiliency.
I’m very proud of the Grainger team and believe we are poised to drive strong performance moving forward.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.