WW Grainger reported a solid QQ2 2025 performance with revenue of $4.554 billion, marking a 5.6% year-over-year increase and a 5.8% sequential rise. Gross margin stood at 38.54%, with operating and net margins at 14.89% and 10.58%, respectively, underscoring disciplined cost management and favorable product mix in a resilient MRO market. Diluted EPS reached $10.02, and net income was $482 million, reflecting Grainger’s cash-generative model supported by its dual-segment platform (HighTouch Solutions NA and Endless Assortment).
Cash flow generation remained a core strength: operating cash flow was $377 million and free cash flow was $202 million after $175 million of capital expenditures. The company ended the quarter with $597 million in cash and equivalents and total debt of $2.73 billion, yielding net debt of approximately $2.13 billion. Liquidity metrics are robust (current ratio 2.82; quick ratio 1.65; interest coverage ~33.9x), and the firm continues to allocate capital toward dividends and selective investments while maintaining a conservative balance sheet posture.
From a valuation perspective, the stock trades at a premium (P/E ≈ 26x; EV/EBITDA ≈ 70x) reflecting Grainger’s quality franchise, consistent cash generation, and multichannel distribution capabilities. Absent explicit quarterly guidance in the data provided, the QQ2 trajectory implies mid-single-digit revenue growth with stable margins. The near-term outlook depends on continued demand resilience in essential MRO categories, pricing discipline, and working-capital efficiency as the company pursues debt reduction and potentialShareholder returns.
Key Performance Indicators
Revenue
Increasing
4.55B
QoQ: 5.76% | YoY: 5.61%
Gross Profit
Increasing
1.76B
38.54% margin
QoQ: 2.63% | YoY: 3.60%
Operating Income
Increasing
678.00M
QoQ: 0.89% | YoY: 4.47%
Net Income
Increasing
482.00M
QoQ: 0.63% | YoY: 2.55%
EPS
Increasing
10.04
QoQ: 1.62% | YoY: 4.69%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $4,554.0M; YoY +5.61%; QoQ +5.76%.
Gross Profit: $1,755.0M; Gross Margin 38.54%; YoY +3.60%; QoQ +2.63%.
Operating Income: $678.0M; Operating Margin 14.89%; YoY +4.47%; QoQ +0.89%.
Net Income: $482.0M; Net Margin 10.58%; YoY +2.55%; QoQ +0.63%.
EPS: $10.04; Diluted $10.02; YoY +4.69%; QoQ +1.62%.
Cash Flow & Capital Allocation:
- Net cash provided by operating activities: $377.0M
- Capital expenditures: $175.0M
- Free cash flow: $202.0M
- Free cash flow per share: $4.20
- Operating cash flow per share: $7.84
Balance Sheet & Leverage:
- Cash and cash equivalents: $597.0M
- Total debt: $2,729.0M; Net debt: $2,132.0M
- Total assets: $8,937.0M; Total stockholders’ equity: $3,674.0M
- Current ratio: 2.82; Quick ratio: 1.645; Cash ratio: 0.298
- DSO: 48.85 days; DIO: 75.79 days; DPO: 38.71 days; CCC: 124.64 days
Valuation & Returns:
- P/E: 25.95x; P/BV: 13.62x; P/S: 10.99x; EV/EBITDA: 70.02x
- Dividend yield: 0.22%
- Dividend payout ratio: 22.8%
- Return on assets: 5.39%; Return on equity: 13.1%; Return on capital employed: 9.78%
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
4.55B
5.61%
5.76%
Gross Profit
1.76B
3.60%
2.63%
Operating Income
678.00M
4.47%
0.89%
Net Income
482.00M
2.55%
0.63%
EPS
10.04
4.69%
1.62%
Key Financial Ratios
Gross Profit Margin
Fair
38.50%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
14.90%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Good
10.60%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Fair
5.39%
Return on assets is acceptable but below top-tier companies
Return on Equity
Good
13.10%
Return on equity shows solid performance and effective asset utilization
Current Ratio
Strong
2.82
Current ratio indicates excellent liquidity and financial flexibility