On this page of StockholderLetter.com we present the latest annual shareholder letter from W.W. GRAINGER, INC. — ticker symbol GWW. Reading current and past GWW letters to shareholders can bring important insights into the investment thesis.
2024 Annual Report
About Us W.W. Grainger, Inc., is a leading broad line distributor with operations primarily in North America, Japan and the United Kingdom. At Grainger, We Keep The World Working by serving more than 4.5 million customers worldwide with products and solutions delivered through innovative technology and deep customer relationships. Known for its commitment to service and award-winning culture, the Company had 2024 revenue of $17.2 billion across its two business models. In the High-Touch Solutions segment, Grainger offers approximately 2 million maintenance, repair and operating (MRO) products and services, including technical support and inventory management. In the Endless Assortment segment, Zoro.com offers customers access to more than 14 million products, and MonotaRO.com offers more than 24 million products. For more information, visit www.grainger.com. 2024 Financial Summary During the year, the Company continued to drive its strategy forward by remaining focused on what matters most providing our customers with a great experience and exceptional service. The result of this focus helped the Company deliver strong results for 2024. High-Touch Solutions N.A. Endless Assortment Other 1 Total Company $13.7 B $3.1 B $0.4 B $17.2B Reported sales growth 3.4% 7.5% 6.4% 4.2% Daily, organic constant currency sales growth 2 3.2% 11.6% 2.7% 4.7% 17.5% 8.3% (2.2)% 15.5% 41.6% Revenue Adjusted Operating Margin 2 Adjusted ROIC 2 1 2 Grainger s businesses reported in Other do not meet the criteria of a reportable segment. Includes the Cromwell business in the U.K. Reconciliations of the non-GAAP measures referenced in the table above to the most directly comparable GAAP measures are provided on page 83 of this report. More than 26,000 team members $17.2 billion in sales in 2024 More than 4.5 million active customers $ 1.6 billion returned to Grainger shareholders through dividends and share repurchases More than > 30 million primary suppliers products offered globally 53 Grainger s common stock is listed on the New York Stock Exchange under the trading symbol 5,000 consecutive years of dividend increases GWW
Our Purpose SM Our Aspiration Our Strategy We relentlessly expand our leadership position by being the go-to partner for people who build and run safe, sustainable and productive operations. High-Touch Solutions model Endless Assortment model We deliver compelling value-added MRO solutions through our teams of specialists and curated digital experiences. We make business supply purchasing remarkably easy through a streamlined and transparent online relationship that provides access to everything a customer needs. Advantaged MRO solutions Differentiated sales and services Expansive product assortment Innovative customer acquisition Unparalleled customer service and retention capabilities The following principles are at the heart of how we work with one another, our customers, suppliers and communities. Act with intent Start with the customer Our Principles Win as one team Embrace curiosity Invest in our success The Grainger Edge W.W. GRAINGER, INC. AND SUBSIDIARIES i Compete with urgency Do the right thing
Grainger Shareholders: Every day, millions of customers turn to Grainger for an exceptional experience. Thanks to more than 26,000 dedicated team members who live our purpose We Keep The World Working Grainger met and exceeded those expectations in 2024. I am immensely proud of our team s relentless D.G. Macpherson Chairman of the Board and Chief Executive Officer focus on what matters most: providing excellent service to our customers, making their jobs easier, and helping them save time and money. As a result, we achieved another strong year of profitable growth. We saw notable share gains in our High-Touch Solutions segment and continued success in our Endless Assortment model, achieving the following results: Delivered reported sales growth of 4.2% (4.7% in daily, organic constant currency) Outgrew total U.S. MRO market by ~100 bps in High-Touch Solutions U.S. (~325 bps on a volume basis) Drove 11.6% revenue growth in daily, constant currency in Endless Assortment Maintained strong adjusted operating margins of 15.5% Produced adjusted ROIC of 41.6% Generated strong operating cash flow of over $ 2.1 billion, returning $1.6 billion to shareholders through dividends and share repurchases We are proud of what we ve accomplished in 2024 and are excited to build on this momentum in 2025 as we continue to deliver value for our stakeholders. Our world-class supply chain provides the foundation for delivering an exceptional customer experience. We continue to invest in our service capabilities, including breaking ground on a new distribution center (DC) in the Houston area. This, along with continued construction progress at our Pacific Northwest DC and increased building capacity through our strategically located bulk warehouses, will strengthen our service advantage for the future. We also continue to invest in automation to support throughput and durability in our buildings. W.W. GRAINGER, INC. AND SUBSIDIARIES ii
Over the past several years, we ve made a concerted effort to develop proprietary software that strengthens our business. Whether leveraging our product and customer information assets or building platforms to support our efforts in inventory management, seller effectiveness or merchandising, our technology team works closely with our operating teams to execute intentional processes and systems. These investments will help us provide improved customer solutions in the coming years. At the heart of our success is our purpose-driven culture. Grainger continues to be an employer of choice, earning notable workplace awards across North America and Panama. We are proud to have been ranked the top company across all industries on the American Opportunity Index, highlighting our commitment to providing growth opportunities for workers in non-college degree roles. These recognitions are a testament to our focus on being a workplace where every team member has the opportunity for a fulfilling career if they are willing to work hard and perform well. I want to particularly recognize the Grainger team for their tireless efforts in supporting communities impacted by natural disasters. Fulfilling our purpose means standing by our customers during their times of greatest need. Our team has gone above and beyond this year, providing vital supplies and relief resources in the most challenging circumstances. Moving forward, we will continue working alongside our partners to support recovery efforts and ensure impacted communities have the resources they need. While I truly believe the Grainger business and culture have never been stronger, we recognize there is always room to continuously improve our operations. We sincerely appreciate your support, trust and investment in Grainger. We remain focused on advancing the Grainger Edge to deliver tangible value for customers, strong results for shareholders and a meaningful experience for team members. D.G. Macpherson Chairman of the Board and Chief Executive Officer February 20, 2025 W.W. GRAINGER, INC. AND SUBSIDIARIES iii Every day, millions of customers turn to Grainger for an exceptional experience. Thanks to more than 26,000 dedicated team members who live our purpose We Keep The World Working Grainger met and exceeded those expectations in 2024.
 • shareholder letter icon 3/7/2025 Letter Continued (Full PDF)
 • stockholder letter icon 3/16/2023 GWW Stockholder Letter
 • stockholder letter icon 3/14/2024 GWW Stockholder Letter
 • stockholder letter icon More "Industrial Machinery & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon GWW Benford's Law Stock Score = 99


GWW Shareholder/Stockholder Letter Transcript:

2024 Annual Report

About Us
W.W. Grainger, Inc., is a leading broad line distributor with operations primarily in North America, Japan and
the United Kingdom. At Grainger, We Keep The World Working   by serving more than 4.5 million customers
worldwide with products and solutions delivered through innovative technology and deep customer relationships.
Known for its commitment to service and award-winning culture, the Company had 2024 revenue of $17.2 billion
across its two business models. In the High-Touch Solutions segment, Grainger offers approximately 2 million
maintenance, repair and operating (MRO) products and services, including technical support and inventory
management. In the Endless Assortment segment, Zoro.com offers customers access to more than 14 million
products, and MonotaRO.com offers more than 24 million products. For more information, visit www.grainger.com.
2024 Financial Summary
During the year, the Company continued to drive its strategy forward by remaining focused on what matters most   providing
our customers with a great experience and exceptional service. The result of this focus helped the Company deliver strong
results for 2024.
High-Touch
Solutions N.A.
Endless
Assortment
Other 1
Total
Company
$13.7 B
$3.1 B
$0.4 B
$17.2B
Reported sales growth
3.4%
7.5%
6.4%
4.2%
Daily, organic constant currency sales growth 2
3.2%
11.6%
2.7%
4.7%
17.5%
8.3%
(2.2)%
15.5%



41.6%
Revenue
Adjusted Operating Margin 2
Adjusted ROIC 2
1
2
Grainger   s businesses reported in    Other    do not meet the criteria of a reportable segment. Includes the Cromwell business in the U.K.
Reconciliations of the non-GAAP measures referenced in the table above to the most directly comparable GAAP measures are provided on page 83 of this report.
More than
26,000
team members
$17.2 billion
in sales in 2024
More than
4.5 million
active customers
$ 1.6 billion
returned to Grainger
shareholders through
dividends and
share repurchases
More than
> 30 million
primary suppliers
products offered globally
53
Grainger   s common stock
is listed on the New York
Stock Exchange under
the trading symbol
5,000
consecutive years of
dividend increases
GWW

Our Purpose
SM
Our Aspiration
Our Strategy
We relentlessly expand our leadership position by being the go-to partner
for people who build and run safe, sustainable and productive operations.
High-Touch Solutions model
Endless Assortment model
We deliver compelling value-added MRO
solutions through our teams of specialists
and curated digital experiences.
We make business supply purchasing
remarkably easy through a streamlined and
transparent online relationship that provides
access to everything a customer needs.
    Advantaged MRO solutions
    Differentiated sales and services
    Expansive product assortment
    Innovative customer acquisition
    Unparalleled customer service
and retention capabilities
The following principles are at the heart of how we work     with one another,
our customers, suppliers and communities.
Act with
intent
Start with the
customer
Our Principles
Win as
one team
Embrace
curiosity
Invest in our
success
The Grainger Edge

W.W. GRAINGER, INC. AND SUBSIDIARIES i
Compete with
urgency
Do the
right thing

Grainger Shareholders:
Every day, millions of customers turn to Grainger for an exceptional
experience. Thanks to more than 26,000 dedicated team members who live
our purpose   We Keep The World Working       Grainger met and exceeded
those expectations in 2024. I am immensely proud of our team   s relentless
D.G. Macpherson
Chairman of the Board and
Chief Executive Officer
focus on what matters most: providing excellent service to our customers,
making their jobs easier, and helping them save time and money.
As a result, we achieved another strong year of profitable growth.
We saw notable share gains in our High-Touch Solutions segment and
continued success in our Endless Assortment model, achieving the
following results:

Delivered reported sales growth of 4.2% (4.7% in daily, organic
constant currency)
    Outgrew total U.S. MRO market by ~100 bps in High-Touch
Solutions U.S. (~325 bps on a volume basis)
    Drove 11.6% revenue growth in daily, constant currency in
Endless Assortment

Maintained strong adjusted operating margins of 15.5%

Produced adjusted ROIC of 41.6%

Generated strong operating cash flow of over $ 2.1 billion, returning
$1.6 billion to shareholders through dividends and share repurchases
We are proud of what we   ve accomplished in 2024 and are excited
to build on this momentum in 2025 as we continue to deliver value for
our stakeholders.
Our world-class supply chain provides the foundation for delivering an
exceptional customer experience. We continue to invest in our service
capabilities, including breaking ground on a new distribution center (DC)
in the Houston area. This, along with continued construction progress at our
Pacific Northwest DC and increased building capacity through our strategically
located bulk warehouses, will strengthen our service advantage for the
future. We also continue to invest in automation to support throughput
and durability in our buildings.
W.W. GRAINGER, INC. AND SUBSIDIARIES ii

Over the past several years, we   ve made a concerted effort to develop
proprietary software that strengthens our business. Whether leveraging our
product and customer information assets or building platforms to support
our efforts in inventory management, seller effectiveness or merchandising,
our technology team works closely with our operating teams to execute
intentional processes and systems. These investments will help us provide
improved customer solutions in the coming years.
At the heart of our success is our purpose-driven culture. Grainger continues
to be an employer of choice, earning notable workplace awards across North
America and Panama. We are proud to have been ranked the top company
across all industries on the American Opportunity Index, highlighting our
commitment to providing growth opportunities for workers in non-college
degree roles. These recognitions are a testament to our focus on being a
workplace where every team member has the opportunity for a fulfilling career
if they are willing to work hard and perform well.
I want to particularly recognize the Grainger team for their tireless efforts
in supporting communities impacted by natural disasters. Fulfilling our
purpose means standing by our customers during their times of greatest
need. Our team has gone above and beyond this year, providing vital supplies
and relief resources in the most challenging circumstances. Moving forward,
we will continue working alongside our partners to support recovery efforts
and ensure impacted communities have the resources they need.
While I truly believe the Grainger business and culture have never been
stronger, we recognize there is always room to continuously improve our
operations. We sincerely appreciate your support, trust and investment
in Grainger. We remain focused on advancing the Grainger Edge   to
deliver tangible value for customers, strong results for shareholders and
a meaningful experience for team members.
D.G. Macpherson
Chairman of the Board and Chief Executive Officer
February 20, 2025
W.W. GRAINGER, INC. AND SUBSIDIARIES iii
   Every day, millions
of customers turn
to Grainger for an
exceptional experience.
Thanks to more than
26,000 dedicated
team members who
live our purpose   
We Keep The World
Working       Grainger met
and exceeded those
expectations in 2024.   



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