Industrial supplies distributor W.W. Grainger reported steady top-line growth in the third quarter, but a sharp decline in profit linked to its planned withdrawal from the United Kingdom, while narrowing its full-year financial outlook.
For the quarter ending Sept. 30, Grainger recorded sales of $4.657 billion, up 6.1% from $4.388 billion in the same quarter last year. Net earnings attributable to the company fell to $294 million, a 39.5% drop from $486 million in the third quarter of 2024. The decline reflects non-cash charges associated with the company’s intention to exit the U.K. market and divest its Cromwell business.
In a statement announcing the results, CEO D.G. Macpherson said, “We delivered results in-line with our expectations for the quarter, reinforcing the value and differentiated experience Grainger consistently creates for our customers. Looking ahead, we remain focused on navigating the continued uncertain environment through strong execution, industry-leading service, and innovative capabilities to deliver on what matters most to our stakeholders.”
Through the first nine months of the year, net sales totaled $13.517 billion, up 4.5% from $12.935 billion in the same period of 2024. Year-to-date net earnings attributable to Grainger were $1.255 billion, down 12.5% from $1.434 billion a year earlier.
Segment performance
Grainger’s core High-Touch Solutions – North America business, which serves large enterprise customers, posted 3.4% sales growth on a daily, constant-currency basis, helped by higher volume and improved price contribution as tariff costs were passed through. The company’s Endless Assortment segment — which includes online sellers MonotaRO and Zoro — delivered much stronger results, with sales up 18.2% year over year.
Gross profit margin declined to 38.6% from 39.2% in the same quarter of 2024, as tariff-related inflation and last-in, first-out inventory valuation headwinds weighed on High-Touch Solutions. The online-focused Endless Assortment segment, meanwhile, saw gross margin expand by about 60 basis points.
The company generated $597 million in operating cash flow during the quarter and invested $258 million in capital expenditure and returned $399 million to shareholders through dividends and share repurchases. Management said it remains focused on balancing growth investment with shareholder returns.
Citing the evolving demand environment and known tariff impacts, Grainger narrowed its full-year guidance. It now expects 2025 net sales of $17.8 billion to $18.0 billion, compared with the previous range of $17.9 billion to $18.2 billion.
Grainger’s decision to exit the U.K. underscores its intent to concentrate resources in markets where it sees stronger long-term opportunity. When announcing the Cromwell divestiture earlier in October, Macpherson said the move reflects “a concerted effort to focus our portfolio on the geographies where we can deliver the greatest long-term impact,” pointing to its North American and Japanese operations as core growth engines.
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