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.