Core Insights - W.W. Grainger reported quarterly earnings of $9.44 per share, slightly exceeding the Zacks Consensus Estimate of $9.43 per share, but down from $9.71 per share a year ago, indicating a +0.07% earnings surprise [1] - The company achieved revenues of $4.43 billion for the quarter, surpassing the Zacks Consensus Estimate by 0.59% and showing an increase from $4.23 billion year-over-year [2] - W.W. Grainger's stock has increased by approximately 8.6% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $10.49 for the upcoming quarter and $43.79 for the current fiscal year, with revenues expected to be $4.52 billion and $18.87 billion respectively [7] - The estimate revisions trend for W.W. Grainger was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market [6] Industry Context - The Industrial Services industry, to which W.W. Grainger belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of W.W. Grainger's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - Fourth quarter 2025 sales reached $4.4 billion, an increase of 4.5%, or 4.6% on a daily, organic constant currency basis compared to Q4 2024[2] - Full year 2025 sales totaled $17.9 billion, also up 4.5%, or 4.9% on a daily, organic constant currency basis compared to the previous year[2] - Net sales for Q4 2025 reached $4,425 million, a 4.5% increase from $4,233 million in Q4 2024[28] - Reported sales growth for FY 2025 was 4.5%, with daily organic constant currency sales growth of 4.9%[43] Earnings and Margins - Operating margin for Q4 2025 was 14.3%, a decrease of 70 basis points year-over-year, primarily due to increased expenses and slower sales growth[12] - Diluted EPS for Q4 2025 was $9.44, down 2.8% compared to the prior year quarter, influenced by an unfavorable tax rate[13] - Full year 2025 reported operating earnings were $2.5 billion, down 5.4% year-over-year, with an operating margin of 13.9%, a decrease of 150 basis points[14] - Basic earnings per share for Q4 2025 was $9.45, compared to $9.74 in Q4 2024, indicating a decrease of 3.0%[28] - Diluted earnings per share for FY 2025 were $39.48, with an adjusted increase of 1.3% year-over-year[46] - Adjusted operating margin for FY 2025 was 15.0%, compared to a reported margin of 13.9%[46] Cash Flow and Expenditures - The company generated $2.0 billion in operating cash flow for the full year 2025, with free cash flow of $1.3 billion after $684 million in capital expenditures[20] - Free cash flow (FCF) for Q4 2025 was $269 million, and for FY 2025 it was $1,331 million[44] - Net cash provided by operating activities for the twelve months ended December 31, 2025, was $2,015 million, compared to $2,111 million in 2024, reflecting a decrease of 4.5%[32] - Capital expenditures for the twelve months ended December 31, 2025, totaled $684 million, an increase from $541 million in 2024[32] - The company reported a net cash used in financing activities of $1,825 million for the twelve months ended December 31, 2025, compared to $1,180 million in 2024, indicating a significant increase in cash outflows[32] Market and Segment Performance - The Endless Assortment segment saw a sales increase of 14.3%, or 15.7% on a daily, organic constant currency basis, driven by strong performance at MonotaRO and Zoro[7] - High-Touch Solutions in North America reported sales growth of 2.0% for FY 2025, while Endless Assortment saw a growth of 15.7%[43] Tax and Market Changes - The effective tax rate for the full year 2025 was reported at 25.6%, an increase from 23.0% in 2024, primarily due to the exit from the U.K. market[18] - The exit from the U.K. market, including the sale of the Cromwell business, was completed in Q4 2025[46] Assets and Liabilities - Total assets as of December 31, 2025, increased to $8,962 million from $8,829 million as of December 31, 2024[30] - Current liabilities decreased to $1,940 million as of December 31, 2025, from $2,305 million in 2024, showing a reduction of 15.9%[30]

Core Insights - Grainger reported a diluted EPS of $9.44 for Q4 2025, a decrease of 2.8% year-over-year, and a full-year diluted EPS of $35.40, down 8.6% on a reported basis [1][2][3] - The company achieved sales of $4.4 billion in Q4 2025, reflecting a 4.5% increase, and full-year sales of $17.9 billion, also up 4.5% [1][2][3] - Grainger's operating margin for Q4 2025 was 14.3%, down 70 basis points, while the full-year operating margin was 13.9%, down 150 basis points [1][2][3] Financial Performance - Q4 2025 net sales were $4,425 million, a 4.5% increase compared to Q4 2024, with gross profit of $1,746 million, up 4.2% [2][4] - For FY 2025, net sales reached $17,942 million, also a 4.5% increase, with gross profit of $7,009 million, up 3.7% [2][4] - Operating earnings for Q4 2025 were $634 million, a slight increase of 0.2%, while FY 2025 operating earnings were $2,495 million, down 5.4% [2][4] Segment Performance - In the High-Touch Solutions - N.A. segment, Q4 2025 sales increased by 2.2%, while the Endless Assortment segment saw a significant growth of 14.3% [2][3] - For FY 2025, the High-Touch Solutions - N.A. segment grew by 2.0%, and the Endless Assortment segment grew by 15.7% [2][3] Cash Flow and Shareholder Returns - Grainger generated $395 million in cash flow from operating activities in Q4 2025, with free cash flow of $269 million [3][5] - For the full year, the company generated $2.0 billion in operating cash flow and returned $1.5 billion to shareholders through dividends and share repurchases [1][3] 2026 Guidance - Grainger provided a 2026 outlook with expected net sales between $18.7 billion and $19.1 billion, representing a sales growth of 4.2% to 6.7% [3][5] - The company anticipates diluted EPS in the range of $42.25 to $44.75 and an operating margin of 15.4% to 15.9% [3][5]

Core Insights - W.W. Grainger, Inc. (GWW) is set to report its fourth-quarter 2025 results on February 3, with sales expected to reach $4.40 billion, reflecting a 3.9% year-over-year growth [1][4] - The earnings consensus estimate for GWW is $9.43 per share, indicating a 2.9% decrease compared to the previous year, with a slight downward revision of 0.3% in the last 60 days [1][4] Sales and Earnings Expectations - The Zacks Consensus Estimate for GWW's sales is $4.40 billion, which represents a 3.9% increase from the prior year [1][4] - Earnings are projected at $9.43 per share, down 2.9% year-over-year, with a recent 0.3% decrease in the consensus estimate [1][4] Earnings Surprise History - Grainger has a mixed earnings surprise history, beating estimates in two of the last four quarters, with an average surprise of 1.6% [2] Factors Influencing Q4 Performance - Strong growth in core product sales is anticipated, supported by investments in e-commerce, digital capabilities, and supply-chain improvements, with expected organic daily sales growth of 4.9% [6] - The High-Touch Solutions North America segment is projected to benefit from growth in commercial and heavy manufacturing sectors, with an expected organic daily sales growth of 2.6% [7] - The Endless Assortment segment is likely to see a significant increase in sales, projected at $928 million, indicating a 13.8% rise year-over-year, driven by customer acquisition and repeat business [9] Margin Pressures - GWW is facing margin pressures due to elevated material and freight costs, along with increased operating and SG&A costs related to technology investments [10] Stock Performance - GWW shares have increased by 2.8% over the past year, compared to a 4.5% growth in the industry [11]

In its upcoming report, W.W. Grainger (GWW) is predicted by Wall Street analysts to post quarterly earnings of $9.43 per share, reflecting a decline of 2.9% compared to the same period last year. Revenues are forecasted to be $4.4 billion, representing a year-over-year increase of 3.9%.Over the last 30 days, there has been a downward revision of 0.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial ...

Core Insights - W.W. Grainger, Inc. is a leading distributor in the maintenance, repair, and operating (MRO) products sector, competing with companies like Fastenal and MSC Industrial Direct [1] Financial Performance - Grainger reported earnings of $10.21 per share in the previous quarter, exceeding the consensus estimate of $9.95, with revenue of $4.66 billion, slightly above the expected $4.64 billion, marking a 6.1% increase year-over-year [3] - The company has a strong financial health indicated by a return on equity of 49.40% and a net margin of 9.75% [4][6] - For fiscal year 2025, Grainger's guidance suggests earnings per share between $39.00 and $39.75, reflecting confidence in ongoing performance [5] Stock Performance - Oppenheimer upgraded Grainger's stock rating from "Perform" to "Outperform" with a current stock price of $1,049.97 ahead of the fourth-quarter 2025 earnings announcement [2][6] - The stock has fluctuated over the past year, reaching a high of $1,139.15 and a low of $893.99, with a trading volume of 137,703 shares on the NYSE [5]

Core Insights - W.W. Grainger (GWW) demonstrates strong operating performance as a leading MRO distributor, gaining market share in the U.S. while effectively managing margin erosion in a challenging environment [1] Company Performance - Grainger continues to leverage its scale to limit margin erosion, indicating effective operational strategies amidst market challenges [1]

Oselote/iStock via Getty Images MoneyShow’s top contributing analysts, strategists, and newsletter editors share their investment recommendations for the year ahead. See Part 8 here. Target Corp. By Ben Reynolds, Editor of Sure Dividend Target Corp. (TGT) was ...

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sectors, emphasizing cash flow and the companies that generate it, which leads to value and growth prospects with real potential [1] Company and Industry Summary - Subscribers gain access to a model account with over 50 stocks, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1]

Group 1: SGA U.S. Large Cap Growth Strategy Performance - The portfolio returned -1.3% (Gross) and -1.4% (Net) in Q3 2025, underperforming the Russell 1000 Growth Index which returned 10.5% and the S&P 500 Index which returned 8.1% [1] - The investment objective is to focus on high-quality growth businesses expected to achieve consistent mid-teens earnings growth, stable revenue, and cash flow [1] - Market leadership in Q3 was unfavorable for SGA's investment style as lower-quality stocks and cyclical industries outperformed [1] Group 2: W.W. Grainger, Inc. Overview - W.W. Grainger, Inc. is a leading distributor of maintenance, repair, and operating (MRO) products, primarily operating in North America, Japan, and the UK [3] - The company serves over 4.5 million customers and operates approximately 250 branches across the U.S., Canada, South America, and the UK [3] - Grainger offers more than 2 million MRO products in its High-Touch Solutions segment and over 30 million products through online channels [3] Group 3: Grainger's Business Model and Market Position - Grainger's high-touch business model provides strong pricing power by embedding services like inventory management and consulting into customer operations, with over 60% of revenue from customers with at least one embedded solution [3] - The company generates resilient, repeatable revenue through mission-critical product offerings and seamless digital procurement platforms, ensuring consistent demand and cash flow [3] - Grainger is well-positioned to gain market share in the B2B supply market, benefiting from trends such as manufacturing reshoring, industry consolidation, and accelerated digital adoption [3]