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.
2025 Annual Report
About Us W.W. Grainger, Inc., is a leading broad line distributor with operations primarily in North America and Japan. At Grainger, We Keep The World Working by serving more than 4.6 million customers worldwide with maintenance, repair and operating (MRO) products and value-added solutions delivered through innovative technology and deep customer expertise. Known for its commitment to service and purpose-driven culture, the Company reported 2025 revenue of $ 17.9 billion. For more information, visit www.grainger.com. 2 0 2 5 F IN A N C IAL 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 2025. High-Touch Solutions N.A. Endless Assortment Total Company $14.0B $3.6B $17.9B Reported sales growth 2.0% 15.7% 4.5% Daily, organic constant currency sales growth 2 2.6% 15.6% 4.9% 16.8% 9.8% 15.0% 39.1% Revenue Adjusted Operating Margin 2 Adjusted ROIC 2 1 1 Total Company includes Other. Grainger s businesses reported in Other do not meet the criteria of a reportable segment. Includes the Cromwell business through December 17, 2025. 2 Reconciliations of the non-GAAP measures referenced in the table above to the most directly comparable GAAP measures are provided on page 85 of this report. Nearly 25,000 team members $17.9 billion in sales in 2025 More than 4.6 million active customers $ 1.5 billion returned to Grainger shareholders through dividends and share repurchases in 2025 More than 5,000 More than 35 million primary suppliers products offered globally 54 Grainger s common stock is listed on the New York Stock Exchange under the trading symbol 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 Despite a challenging macro environment in 2025, we navigated the year in a way that honors who we are by executing well, strengthening our advantage and delivering on our financial commitments. Time and again, Grainger team members demonstrate an unwavering commitment to serving our customers and helping us deliver strong results for our shareholders. Across both the High-Touch Solutions and Endless Assortment segments, our teams worked hard to provide exceptional service and a best-in-class experience for our customers. 2025 Financial Highlights: D.G. Macpherson Chairman of the Board and Chief Executive Officer Reported sales growth of 4.5% (4.9% in daily, organic constant currency) Outgrew the U.S. MRO market by ~250 bps in High-Touch Solutions U.S. on a volume basis Drove 15.6% revenue growth in daily, organic constant currency in Endless Assortment Delivered adjusted operating margins of 15.0% Produced adjusted ROIC of 39.1% Generated strong operating cash flow of $ 2.0 billion, returning $1.5 billion to shareholders through dividends and share repurchases In 2025, we invested in the things that help us extend our leadership position and matter most to our customers. Our supply chain fuels advantage with our service, onsite and digital capabilities and enables us to deliver next-day complete orders to customers across both segments. In 2025, we made meaningful progress on three new distribution centers across the U.S. and Japan while leveraging inventory and transportation solutions to improve service in other markets. We also continued to invest in building market-leading data and technology capabilities. This includes core product and customer information assets, which have taken on even greater importance as AI accelerates and creates new opportunities to unlock additional value. These data assets underpin our five strategic growth engines and fuel our ability to gain share. In 2025, we made progress across our efforts in merchandising, marketing, seller coverage and effectiveness, and customer solutions, and remain confident in our ability to drive continued growth over the long term with these initiatives. W.W. GRAINGER, INC. AND SUBSIDIARIES ii
Additionally, we strengthened our focus on where we can win and deliver the greatest long-term impact in North America and Japan, as we streamlined our portfolio and exited the U.K. market. During the year, we were once again recognized as an industry leader, a responsible company and a top place to work. For the first time, we were honored as one of the World s Most Ethical Companies by Ethisphere, a testament to the culture we ve built and our commitment to do the right thing. Making it all happen are the nearly 25,000 Grainger team members who work together every day to fulfill our purpose We Keep The World Working. Grainger has and will always be a place that creates opportunities for team members who work hard and start with the customer. Looking forward, I m excited about what s in store for 2026 and confident in our ability to extend our advantage for the long term. Regardless of the environment, we will continue to provide a best-in-class MRO offer while investing in the core of our business an industry-leading distribution network and innovative technology capabilities. I m proud of the resilience of our Grainger team and grateful to our customers, suppliers, and stakeholders who put their trust in us every day. As we have for almost a century in this industry, we remain deeply committed to those who keep our world working, getting better every day and upholding a culture that sets Grainger apart. D.G. Macpherson Chairman of the Board and Chief Executive Officer February 19, 2026 W.W. GRAINGER, INC. AND SUBSIDIARIES iii By staying focused on what matters most to our customers and creating a great workplace for our team members, we are poised to deliver continued growth, share gain and strong returns for our shareholders.
 • shareholder letter icon 3/10/2026 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 3/7/2025 GWW Stockholder Letter
 • stockholder letter icon More "Industrial Machinery & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon GWW Benford's Law Stock Score = 96


GWW Shareholder/Stockholder Letter Transcript:

2025 Annual Report

About Us
W.W. Grainger, Inc., is a leading broad line distributor with operations primarily in North
America and Japan. At Grainger, We Keep The World Working   by serving more than
4.6 million customers worldwide with maintenance, repair and operating (MRO) products
and value-added solutions delivered through innovative technology and deep customer
expertise. Known for its commitment to service and purpose-driven culture, the Company
reported 2025 revenue of $ 17.9 billion. For more information, visit www.grainger.com.
2 0 2 5 F IN A N C IAL 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 2025.
High-Touch Solutions N.A.
Endless Assortment
Total Company
$14.0B
$3.6B
$17.9B
Reported sales growth
2.0%
15.7%
4.5%
Daily, organic constant currency sales growth 2
2.6%
15.6%
4.9%
16.8%
9.8%
15.0%


39.1%
Revenue
Adjusted Operating Margin 2
Adjusted ROIC 2
1
1
Total Company includes Other. Grainger   s businesses reported in Other do not meet the criteria of a reportable segment. Includes the Cromwell business
through December 17, 2025.
2
Reconciliations of the non-GAAP measures referenced in the table above to the most directly comparable GAAP measures are provided on page 85 of this report.
Nearly
25,000
team members
$17.9 billion
in sales in 2025
More than
4.6 million
active customers
$ 1.5 billion
returned to Grainger
shareholders through
dividends and share
repurchases in 2025
More than
5,000
More than
35 million
primary suppliers
products offered globally
54
Grainger   s common stock
is listed on the New York
Stock Exchange under
the trading symbol
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
Despite a challenging macro environment in 2025, we navigated the year
in a way that honors who we are by executing well, strengthening our
advantage and delivering on our financial commitments.
Time and again, Grainger team members demonstrate an unwavering
commitment to serving our customers and helping us deliver strong results
for our shareholders. Across both the High-Touch Solutions and Endless
Assortment segments, our teams worked hard to provide exceptional service
and a best-in-class experience for our customers.
2025 Financial Highlights:
D.G. Macpherson
Chairman of the Board and
Chief Executive Officer
    Reported sales growth of 4.5% (4.9% in daily, organic constant currency)
    Outgrew the U.S. MRO market by ~250 bps in High-Touch Solutions
U.S. on a volume basis
    Drove 15.6% revenue growth in daily, organic constant currency in
Endless Assortment
    Delivered adjusted operating margins of 15.0%
    Produced adjusted ROIC of 39.1%
    Generated strong operating cash flow of $ 2.0 billion, returning
$1.5 billion to shareholders through dividends and share repurchases
In 2025, we invested in the things that help us extend our leadership position
and matter most to our customers.
Our supply chain fuels advantage with our service, onsite and digital
capabilities and enables us to deliver next-day complete orders to customers
across both segments. In 2025, we made meaningful progress on three new
distribution centers across the U.S. and Japan while leveraging inventory and
transportation solutions to improve service in other markets.
We also continued to invest in building market-leading data and technology
capabilities. This includes core product and customer information assets,
which have taken on even greater importance as AI accelerates and creates
new opportunities to unlock additional value. These data assets underpin our
five strategic growth engines and fuel our ability to gain share. In 2025, we
made progress across our efforts in merchandising, marketing, seller coverage
and effectiveness, and customer solutions, and remain confident in our ability
to drive continued growth over the long term with these initiatives.
W.W. GRAINGER, INC. AND SUBSIDIARIES ii

Additionally, we strengthened our focus on where we can win and deliver the
greatest long-term impact in North America and Japan, as we streamlined our
portfolio and exited the U.K. market.
During the year, we were once again recognized as an industry leader, a
responsible company and a top place to work. For the first time, we were
honored as one of the World   s Most Ethical Companies   by Ethisphere, a
testament to the culture we   ve built and our commitment to do the right thing.
Making it all happen are the nearly 25,000 Grainger team members who
work together every day to fulfill our purpose     We Keep The World Working.  
Grainger has and will always be a place that creates opportunities for team
members who work hard and start with the customer.
Looking forward, I   m excited about what   s in store for 2026 and confident
in our ability to extend our advantage for the long term. Regardless of the
environment, we will continue to provide a best-in-class MRO offer while
investing in the core of our business     an industry-leading distribution
network and innovative technology capabilities.
I   m proud of the resilience of our Grainger team and grateful to our customers,
suppliers, and stakeholders who put their trust in us every day. As we have for
almost a century in this industry, we remain deeply committed to those who
keep our world working, getting better every day and upholding a culture that
sets Grainger apart.
D.G. Macpherson
Chairman of the Board and Chief Executive Officer
February 19, 2026
W.W. GRAINGER, INC. AND SUBSIDIARIES iii
By staying focused on
what matters most to our
customers and creating
a great workplace for
our team members, we
are poised to deliver
continued growth, share
gain and strong returns
for our shareholders.


shareholder letter icon 3/10/2026 Letter Continued (Full PDF)
 

GWW Stockholder/Shareholder Letter (W.W. GRAINGER, INC.) | www.StockholderLetter.com
Copyright © 2023 - 2026, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.