W.W. Grainger AGM: Shareholders Approve Proposals as CEO Highlights 2025 Growth and AI Push

Key Points

• Shareholders approved all three proposals—the election of 12 directors, ratification of Ernst & Young as auditor, and the advisory say-on-pay vote—after about 47.3 million shares were entitled to vote.
• Grainger reported 2025 results with total sales of $17.9 billion (4.5% reported, 4.9% daily organic constant currency), a 15% operating margin and adjusted EPS of $39.48; operating cash flow was $2.0 billion, enabling $1.5 billion returned to shareholders via dividends and buybacks.
• Management emphasized strategic priorities for growth, including investments in supply-chain capacity (new Houston and Northwestern distribution centers), portfolio actions such as exiting the U.K., and an aggressive push to embed AI across customer experience, productivity and team training.

D.G. Macpherson, chairman and CEO of W.W. Grainger NYSE: GWW, used the company’s annual shareholders’ meeting to review voting results and highlight the company’s 2025 performance and strategic priorities, including portfolio actions, supply chain investments, and expanding the use of artificial intelligence across the business.

Shareholders approve all three proposals

Macpherson opened the meeting by outlining three agenda items: election of directors, ratification of the independent auditor, and an advisory “say-on-pay” vote on executive compensation. Corporate Secretary Paul Stanukinas confirmed a quorum and said the meeting was properly convened.

Shareholders voted on three proposals:

• Election of 12 director nominees, including Macpherson and 11 other candidates named in the proxy statement dated March 10, 2026
• Ratification of Ernst & Young LLP as independent auditor for the fiscal year ending Dec. 31, 2026
• Approval of the advisory say-on-pay proposal for compensation of named executive officers

After votes were tallied, Stanukinas reported that approximately 47.3 million shares were entitled to vote as of the record date and that all three proposals were approved by the necessary votes. As a result, the company’s 12 director nominees were elected, the appointment of Ernst & Young was ratified, and the say-on-pay vote was approved.

Management reviews 2025 execution and portfolio actions

While voting was in progress, Macpherson provided an update focused “solely on our 2025 performance,” and noted the company planned to release first-quarter 2026 results the following Thursday morning, May 7. He said that “despite the challenging environment in 2025,” the company executed its strategy, leveraged technology and MRO capabilities, and streamlined its portfolio “by exiting the U.K. market.”

Macpherson also said the company invested “in new supply chain capacity to extend our service leadership,” citing continued construction of a new Houston-area distribution center and progress on a new Northwestern distribution center “slated to fully open in mid 2026.”

Highlights across high-touch and endless assortment segments

In the high-touch segment, Macpherson said Grainger continued investing in growth and service drivers. In merchandising, he pointed to efforts to expand a curated assortment through category reviews and greater use of the Grainger brand within the private label offering. He said these efforts produced net assortment growth of “over 85,000 SKUs,” described as the largest net SKU growth for the high-touch segment in nearly a decade.

In marketing, Macpherson said the company focused on improving program effectiveness and further leveraged “information assets” to increase personalization and enhance marketing investment decisions. He added that Grainger expanded its sales force through a sales coverage initiative, adding 110 new sellers across two geographies in 2025, and reported strong adoption of a “new seller insights platform.”

For the endless assortment segment, Macpherson said results were strong in 2025. He highlighted MonotaRO’s performance in Japan, saying it delivered “25% growth with enterprise customers,” while improving distribution capabilities and breaking ground on the new Mito distribution center. In the U.S., he said Zoro “regained its growth momentum in 2025,” with improvements tied to repeat purchase rates, delivery times, and direct marketing capabilities, which he said helped drive sales growth “back into the teens for the year.”

2025 financial results and shareholder returns

Macpherson said Grainger delivered total company sales growth of 4.5% on a reported basis, or 4.9% on a daily organic constant currency basis, with total sales of $17.9 billion. He said annual growth included continued share gains in the High-Touch Solutions U.S. business, which finished the year with “roughly 250 basis points of outgrowth on a volume basis.” In the endless assortment segment, he cited daily organic constant currency sales growth of 15.6%.

Macpherson said operating margin finished the year at 15% “despite LIFO headwinds.” He also reported adjusted EPS growth of 1.3% to $39.48 per share and return on invested capital of 39.1%. Operating cash flow was $2 billion, which he said enabled Grainger to return $1.5 billion to shareholders through dividends and share repurchases.

AI, private label, KeepStock, and branches

During the Q&A portion, Macpherson addressed questions on artificial intelligence, private label, and Grainger’s KeepStock and branch network.

On AI, Macpherson said the company is leveraging it in three broad ways: embedding AI experts and models to improve customer experience (including marketing optimization and on-site search), using AI tools to improve productivity and service (including customer service and financial process automation), and training the organization to use basic tools to improve team member experience. He said Grainger is “leveraging AI aggressively across both our high touch and endless assortment models.”

On private label, Macpherson said Grainger continues to invest in the portfolio and curate products aimed at performance and value. He noted that “as a result of the tariff cycle,” the company is seeing some share shift to national brands and “some rate degradation,” which he said is putting modest pressure on gross margins. He added that Grainger has had success leveraging the Grainger brand in private label over the past two years and expects that to continue.

On KeepStock, Macpherson said demand for value-added services is increasing as labor scarcity and cost savings become customer imperatives. He said KeepStock “continues to perform well,” with daily sales growing faster than the broader High-Touch Solutions U.S. business over the last couple of years, supported by installs at new locations and share-of-wallet expansion through category additions. He also said branches remain important to the go-to-market strategy—supporting walk-in pickup, same-day service, emergency access, and coverage where distribution centers cannot reach next day—and are “growing roughly in line with the broader business.”

About W.W. Grainger NYSE: GWW

W.W. Grainger, Inc NYSE: GWW is an industrial supply distributor founded in 1927 and headquartered in Lake Forest, Illinois. The company supplies maintenance, repair and operations (MRO) products and services to businesses, institutions and government customers. Over its long history Grainger has developed a broad product assortment and a national distribution network that supports operations across a range of end markets, including manufacturing, healthcare, hospitality, transportation and public sector organizations.

Grainger's product portfolio spans core categories such as electrical and lighting, safety and personal protective equipment, material handling, motors and power transmission, plumbing and HVAC, fasteners and adhesives, hand and power tools, and janitorial and facility supplies.

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