W.W. Grainger Reports 5.6% Increase in Q2 2025 Net Sales to $4,554 Million

W.W. Grainger, Inc. reported a notable increase in financial performance for the second quarter of 2025, with net sales reaching $4,554 million, a 5.6% increase from $4,312 million in the same period of 2024. For the first half of 2025, the company achieved net sales of $8,860 million, up 3.7% from $8,547 million year-over-year. Gross profit for the second quarter was $1,755 million, reflecting a 4% increase compared to $1,694 million in the prior year, although the gross profit margin decreased slightly to 38.5%. Operating earnings also rose to $678 million, a 4.5% increase from $649 million in the previous year.

The company experienced growth across its two primary segments: High-Touch Solutions N.A. and Endless Assortment. High-Touch Solutions N.A. reported net sales of $3,544 million, a 2.5% increase, while Endless Assortment saw a significant 19.7% increase in net sales to $929 million. The increase in sales was attributed to higher volumes and repeat business, particularly in the Endless Assortment segment, which benefited from enterprise customer growth at MonotaRO.

Operationally, Grainger's customer base and engagement metrics remained strong, with a diverse portfolio of industries contributing to its revenue. The company reported a slight increase in selling, general, and administrative expenses, which rose to $1,077 million, primarily due to higher marketing costs. The net earnings attributable to Grainger for the second quarter were $482 million, up from $470 million in the same quarter of 2024, resulting in diluted earnings per share of $9.97, a 4.8% increase from $9.51.

Geographically, Grainger's revenue was bolstered by strong performance in the United States, which accounted for $3,652 million of net sales, up from $3,502 million in the previous year. The company also reported growth in Japan and Canada, contributing to its overall sales increase. As of June 30, 2025, Grainger's total assets stood at $8,937 million, with a current ratio of 2.8, indicating a solid liquidity position.

Looking ahead, Grainger remains cautious about macroeconomic conditions, including inflationary pressures and supply chain challenges. The company is actively monitoring these factors and has implemented strategies to mitigate potential adverse effects. Grainger's management expressed confidence in its ability to navigate these challenges while continuing to invest in its business and return value to shareholders through dividends and share repurchases. The company declared a quarterly dividend of $2.26 per share, payable on September 1, 2025, reflecting its commitment to shareholder returns.