$GWW

GRAINGER W W INC

CIK:0000277135|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net sales	$ 5,021	$ 4,554	$ 9,763	$ 8,860
Cost of goods sold	3,037	2,799	5,883	5,395
Gross profit	1,984	1,755	3,880	3,465
Selling, general and administrative expenses	1,177	1,077	2,280	2,115
Operating earnings	807	678	1,600	1,350
Other expense (income):
Interest expense – net	20	20	41	41
Other – net	(11)	(3)	(14)	(9)
Total other expense – net	9	17	27	32
Earnings before income taxes	798	661	1,573	1,318
Income tax provision	198	153	392	310
Net earnings	600	508	1,181	1,008
Less net earnings attributable to noncontrolling interest	30	26	56	47
Net earnings attributable to W.W. Grainger, Inc.	$ 570	$ 482	$ 1,125	$ 961
Earnings per share:
Basic (in dollars per share)	$ 12.02	$ 9.99	$ 23.69	$ 19.87
Diluted (in dollars per share)	$ 12.01	$ 9.97	$ 23.66	$ 19.83
Weighted average number of shares outstanding:
Basic (in shares)	47.2	48.0	47.3	48.1
Diluted (in shares)	47.2	48.1	47.3	48.2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net earnings	$ 1,181	$ 1,008
Adjustments to reconcile net earnings to net cash provided by operating activities:
Provision for credit losses	13	13
Deferred income taxes and tax uncertainties	31	1
Depreciation and amortization	128	125
Non-cash lease expense	40	41
Stock-based compensation	39	35
Change in operating assets and liabilities:
Accounts receivable	(510)	(212)
Inventories	14	(19)
Prepaid expenses and other assets	(32)	(33)
Trade accounts payable	312	231
Operating lease liabilities	(48)	(53)
Accrued liabilities	21	(60)
Income taxes – net	(4)	(37)
Other non-current liabilities	(2)	(17)
Net cash provided by operating activities	1,183	1,023
Cash flows from investing activities:
Capital expenditures	(281)	(300)
Proceeds from sale of assets	0	4
Other – net	(13)	13
Net cash used in investing activities	(294)	(283)
Cash flows from financing activities:
Short-term borrowings (repayments), original maturities of 90 days or less, net	(125)	0
Proceeds from debt	52	63
Payments of debt	(4)	(503)
Proceeds from stock options exercised	8	2
Payments for employee taxes withheld from stock awards	(30)	(30)
Purchases of treasury stock	(461)	(507)
Purchases of noncontrolling interests	(70)	0
Cash dividends paid	(253)	(225)
Other – net	9	(1)
Net cash used in financing activities	(874)	(1,201)
Exchange rate effect on cash and cash equivalents	(11)	22
Net change in cash and cash equivalents	4	(439)
Cash and cash equivalents at beginning of year	585	1,036
Cash and cash equivalents at end of period	$ 589	$ 597

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 589	$ 585
Accounts receivable (less allowance for credit losses of $33 and $32, respectively)	2,825	2,329
Inventories – net	2,371	2,394
Prepaid expenses and other current assets	213	176
Total current assets	5,998	5,484
Property, buildings and equipment – net	2,401	2,268
Goodwill	354	360
Intangibles – net	272	265
Operating lease right-of-use	360	345
Other assets	233	240
Total assets	9,618	8,962
Current liabilities
Current maturities	2	126
Trade accounts payable	1,280	963
Accrued compensation and benefits	347	343
Operating lease liability	72	73
Accrued expenses	389	386
Income taxes payable	48	49
Total current liabilities	2,138	1,940
Long-term debt	2,406	2,362
Long-term operating lease liability	317	301
Deferred income taxes and tax uncertainties	149	121
Other non-current liabilities	95	97
Shareholders' equity
Cumulative preferred stock – $5 par value – 12,000,000 shares authorized; none issued or outstanding	0	0
Common Stock – $0.50 par value – 300,000,000 shares authorized; 109,659,219 shares issued	55	55
Additional contributed capital	1,448	1,446
Retained earnings	15,858	14,958
Accumulated other comprehensive losses	(198)	(165)
Treasury stock, at cost – 62,558,699 and 62,240,438 shares, respectively	(13,032)	(12,558)
Total W.W. Grainger, Inc. shareholders’ equity	4,131	3,736
Noncontrolling interest	382	405
Total shareholders' equity	4,513	4,141
Total liabilities and shareholders' equity	$ 9,618	$ 8,962