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CHICAGO - On Friday, W.W. Grainger, Inc. (NYSE:GWW) reported third-quarter 2025 results that exceeded analyst expectations, with adjusted earnings per share of $10.21 beating estimates of $9.95 and revenue of $4.7 billion surpassing the $4.64 billion consensus.
The industrial supply company delivered sales growth of 6.1% compared to the same period last year, or 5.4% on a daily, constant currency basis. Adjusted operating earnings rose 3.1% to $707 million, though adjusted operating margin decreased slightly by 40 basis points to 15.2%.
"We delivered results in-line with our expectations for the quarter, reinforcing the value and differentiated experience Grainger consistently creates for our customers," said D.G. Macpherson, Chairman and CEO. "Looking ahead, we remain focused on navigating the continued uncertain environment through strong execution, industry-leading service and innovative capabilities."
The company’s High-Touch Solutions North America segment saw sales increase 3.4% YoY, while the Endless Assortment segment demonstrated robust growth with sales up 18.2%, or 14.6% on a daily, constant currency basis. Gross profit margin declined 60 basis points to 38.6% compared to the third quarter of 2024, primarily due to tariff-related inflation causing unfavorable price/cost timing.
During the quarter, Grainger generated $597 million in operating cash flow and returned $399 million to shareholders through dividends and share repurchases. The company also announced its intention to exit the U.K. market, including plans to divest its Cromwell business.
Grainger narrowed its full-year 2025 adjusted earnings guidance to between $39.00 and $39.75 per share, compared to the previous range of $38.50 to $40.25, in line with analyst expectations of $39.50. The company also adjusted its revenue forecast to $17.8-$18.0 billion from the previous $17.9-$18.2 billion range.
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