W. W. Grainger

The Company invested $175 million in capital expenditures, resulting in free cash flow of $202 million.

SEC original ↗W. W. Grainger — Earnings release (8-K exhibit)EX-99Aug 1, 2025

During the quarter, the Company returned $336 million to Grainger shareholders through dividends and share repurchases.

SEC original ↗W. W. Grainger — Earnings release (8-K exhibit)EX-99Aug 1, 2025

Total Company (1) Previous 2025 Guidance Range (as of May 1, 2025) Updated 2025 Guidance Range (as of August 1, 2025) Net Sales $17.6 - $18.1 billion $17.9 - $18.2 billion Sales growth 2.7% - 5.2% 4.4% - 5.9% Daily, constant currency sales growth 4.0% - 6.5% 4.5% - 6.0% Gross Profit Margin 39.1% - 39.4% 38.6% - 38.9% Operating Margin 15.1% - 15.5% 14.7% - 15.1% Diluted Earnings per Share $39.00 - $41.50 $38.50 - $40.25 Operating Cash Flow $2.05 - $2.25 billion $2.05 - $2.25 billion CapEx (cash basis) $0.45 - $0.55 billion $0.55 - $0.65 billion Share Buyback $1.15 - $1.25 billion $1.05 - $1.15 billion Effective Tax Rate 23.8% 23.8% Segment Operating Margin High-Touch Solutions - N.

SEC original ↗W. W. Grainger — Earnings release (8-K exhibit)EX-99Aug 1, 2025

Free cash flow (FCF) Calculated using total cash provided by operating activities less capital expenditures.

SEC original ↗W. W. Grainger — Earnings release (8-K exhibit)EX-99Aug 1, 2025

The Company incurred debt issuance costs related to its Senior Notes, representing underwriting fees and other expenses.

SEC original ↗W. W. Grainger — 10-Q Quarterly report10-QAug 4, 2026

These costs were recorded as a contra-liability in Long-term debt and are being amortized over the term of the Senior Notes using the straight-line method to Interest expense net.

SEC original ↗W. W. Grainger — 10-Q Quarterly report10-QAug 4, 2026

Our team remains focused on our customers, fostering deep relationships, providing exceptional service and driving innovation through differentiated capabilities, said D.

SEC original ↗W. W. Grainger — Earnings release (8-K exhibit)EX-99Aug 1, 2025

Forward-looking statements include, but are not limited to, statements about future strategic plans and future financial and operating results.

SEC original ↗W. W. Grainger — Earnings release (8-K exhibit)EX-99Aug 1, 2025

Japanese Yen Term Loans In 2026 and 2025, MonotaRO entered into 7.5 billion and 13 billion, respectively, term loan agreements to fund the expansion of its distribution center (DC) network.

SEC original ↗W. W. Grainger — 10-Q Quarterly report10-QAug 4, 2026

These reportable segments align with Grainger's go-to-market strategies and bifurcated business models of high-touch solutions and endless assortment that generate sales primarily through the distribution of MRO products.

SEC original ↗W. W. Grainger — 10-Q Quarterly report10-QAug 4, 2026

Strategic Priorities For a discussion of the Company s strategic priorities for 2026, see Part I, Item 1: Business and Part II, Item 7: Management s Discussion and Analysis of Financial Condition and Results of Operations in the Company s 2025 Form 10-K.

SEC original ↗W. W. Grainger — 10-Q Quarterly report10-QAug 4, 2026

Our headline results for the quarter finished largely in-line with communicated expectations, although performance was impacted by some tariff-related factors which are also flowing into our updated outlook.

SEC original ↗W. W. Grainger — Earnings release (8-K exhibit)EX-99Aug 1, 2025

Even amid ongoing macroeconomic uncertainty, our commitment to our customers remains steadfast, and we're well-positioned to continue creating value for all stakeholders.

SEC original ↗W. W. Grainger — Earnings release (8-K exhibit)EX-99Aug 1, 2025

segment, gross profit margin was 41.0%, a 70 basis point decrease compared to the prior year quarter as tariff-related inflation caused unfavorable price cost timing and last-in, first-out (LIFO) inventory valuation headwinds.

SEC original ↗W. W. Grainger — Earnings release (8-K exhibit)EX-99Aug 1, 2025

3 Guidance The Company is updating the following guidance ranges to reflect anticipated headwinds from certain known tariff impacts.

SEC original ↗W. W. Grainger — Earnings release (8-K exhibit)EX-99Aug 1, 2025

Grainger cannot guarantee that any forward-looking statement will be realized and achievement of future results is subject to risks and uncertainties, many of which are beyond Grainger's control, which could cause Grainger's results to differ materially from those that are presented.

SEC original ↗W. W. Grainger — Earnings release (8-K exhibit)EX-99Aug 1, 2025

The Company's presentation of revenue by reportable segment and customer industry most reasonably depicts how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic and market-specific factors.

SEC original ↗W. W. Grainger — 10-Q Quarterly report10-QAug 4, 2026