Grainger Enjoys Six Percent Hike in 3Q Revenues

Contributed by BSM Staff

CHICAGO – Grainger, a broad-line distributor of MRO products, posted third quarter results in line with expectations as revenue grew by six percent.

The company reported third quarter net income of $321 million, or $6.13 a share, on sales of $4.7 billion, compared to $505 million, or $9.90 a share, on sales of $4.4 billion in the same period last year.

"We delivered results in-line with our expectations for the quarter, reinforcing the value and differentiated experience Grainger consistently creates for our customers," said D.G. Macpherson, Chairman and CEO. "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."

Sales in the quarter increased 6.1% compared to the third quarter of 2024. When normalizing for the impact of foreign currency exchange, sales on a daily, constant currency basis increased 5.4% compared to the third quarter of 2024.

For the third quarter of 2025, operating earnings were $511 million, down 25.5% compared to the third quarter of 2024. Reported operating margin was 11.0%, a 460 basis point decrease compared to the third quarter of 2024.

On an adjusted basis, operating earnings for the quarter were $707 million, up 3.1% compared to the third quarter of 2024. Adjusted operating margin was 15.2%, a 40 basis point decrease compared to the third quarter of 2024.

This decrease in adjusted operating margin was driven by unfavorable gross margin in High-Touch Solutions - N.A., which was partially offset by expense leverage in Endless Assortment. These adjusted results for the quarter exclude the asset impairment loss from the planned divestiture of the Cromwell business, along with other expenses related to the intended exit from the U.K. market incurred in the current year period.

For the third quarter of 2025, the effective tax rate was 34.7%, compared to 24.8% in the third quarter of 2024. The increase in the effective tax rate was primarily due to the loss from the planned divestiture of the Cromwell business and intended exit from the U.K. market, for which there are no corresponding tax benefits. On an adjusted basis, the effective tax rate was 24.8% in both periods.

The company has assets of $8.8 billion, and liabilities of $4.9 billion.

For more information, visit www.grainger.com.