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Jun 30, 2025
Grainger Q2 2025 Earnings Report
Grainger posted solid Q2 2025 results with moderate revenue and EPS growth, despite margin pressure.
Key Takeaways
Grainger reported revenue growth driven by strong performance in its Endless Assortment segment, although operating and gross margins declined slightly due to tariff-related pressures.
Revenue reached $4.554 billion, up 5.6% from Q2 2024
Adjusted EPS rose to $9.97, up from $9.76 in Q2 2024
Net income attributable to Grainger was $482 million
Gross margin declined 80 bps YoY due to tariff-related cost headwinds
Forward Guidance
Grainger revised its 2025 guidance downward slightly, reflecting tariff-related headwinds, while maintaining confidence in revenue and operational execution.
Positive Outlook
- Raised net sales range to $17.9B–$18.2B
- Maintained operating cash flow guidance at $2.05B–$2.25B
- Improved segment margin outlook for Endless Assortment
- Higher capital investment to support growth
- Effective tax rate steady at ~23.8%
Challenges Ahead
- Lower adjusted EPS range: $38.50–$40.25
- Reduced gross margin guidance to 38.6%–38.9%
- Reduced operating margin guidance to 14.7%–15.1%
- Lowered share buyback range to $1.05B–$1.15B
- Tariff impacts expected to pressure margins further
Historical Earnings Impact
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Avg. Return Before/After Earnings
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