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Sep 30, 2025
Grainger Q3 2025 Earnings Report
Grainger posted solid Q3 results with steady revenue growth and strong adjusted earnings, despite losses tied to its planned U.K. exit.
Key Takeaways
Grainger delivered $4.66B in revenue and strong adjusted EPS of $10.21 in Q3 2025. While reported earnings declined due to a non-cash loss related to its U.K. exit, operating performance remained strong, especially in the Endless Assortment segment.
Adjusted EPS rose to $10.21, supported by sales growth and fewer outstanding shares.
Endless Assortment segment grew 18.2%, driven by MonotaRO and Zoro.
Reported net income dropped due to asset impairment related to the U.K. market exit.
Generated $597M in operating cash flow and returned $399M to shareholders.
Forward Guidance
Grainger slightly narrowed its full-year 2025 outlook, maintaining a positive outlook on adjusted EPS and operating margins.
Positive Outlook
- Adjusted EPS raised to $39.00–$39.75
- Gross margin guided slightly higher at 38.9%–39.1%
- Operating cash flow forecast raised to $2.10–$2.20B
- Adjusted operating margin increased to 15.0%–15.2%
- High-Touch Solutions N.A. margin guidance improved to 16.9%–17.0%
Challenges Ahead
- Reported earnings affected by U.K. market exit costs
- Full-year sales guidance lowered to $17.8–$18.0B
- Top-line growth range revised down to 3.9%–4.7%
- Endless Assortment segment margin guidance slightly narrowed
- CapEx forecast raised to $625M–$675M
Historical Earnings Impact
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Avg. Return Before/After Earnings
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