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Mar 31, 2025
Grainger Q1 2025 Earnings Report
Grainger reported steady performance in Q1 2025 with modest sales growth and strong cash flow despite a muted demand environment.
Key Takeaways
Grainger delivered $4.31 billion in revenue and $479 million in net income for Q1 2025, supported by strength in its Endless Assortment segment and improved gross margins.
Revenue reached $4.31 billion, up 1.7% year-over-year.
Endless Assortment segment saw strong 10.3% growth, driven by MonotaRO and Zoro.
Operating cash flow was $646 million, with $380 million returned to shareholders.
Gross profit margin increased to 39.7% due to favorable product mix and supplier funding.
Forward Guidance
Grainger reaffirmed its full-year 2025 guidance, expecting continued moderate growth and strong profitability.
Positive Outlook
- Projected net sales between $17.6B and $18.1B.
- Daily, constant currency sales growth guidance of 4.0% to 6.5%.
- Expected EPS in the range of $39.00 to $41.50.
- Gross margin expected to remain strong at 39.1% to 39.4%.
- Share buybacks projected at $1.15B to $1.25B.
Challenges Ahead
- One fewer selling day in 2025 vs. 2024 impacts year-over-year comparisons.
- Operating margin guidance slightly lower at 15.1% to 15.5%.
- CapEx range of $450M to $550M, representing increased investment.
- High-Touch Solutions segment expected to remain under pressure.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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