Slides
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© 2026 W.W. Grainger, Inc. Q3 2026 Earnings Call November 4, 2026 NYSE: GWW
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Safe Harbor Statement and Non-GAAP Financial Measures All statements in this communication, other than those relating to historical facts, are “forward-looking statements” under the federal securities laws. Forward-looking statements can generally be identified by their use of terms such as “anticipate,” “estimate,” “believe,” “expect,” “could,” “forecast,” “may,” “intend,” “plan,” “predict,” “project,” “will,” or “would,” and similar terms and phrases, including references to assumptions. Grainger cannot guarantee that any forward-looking statement will be realized and achievement of future results is subject to risks and uncertainties, many of which are beyond Grainger's control, which could cause Grainger's results to differ materially from those that are presented. Forward-looking statements include, but are not limited to, statements about future strategic plans and future financial and operating results. Important factors that could cause actual results to differ materially from those presented or implied in the forward-looking statements include, without limitation: inflation, higher product costs or other expenses, including operational and administrative expenses; a major loss of customers; loss or disruption of sources of supply; changes in customer or product mix; increased competitive pricing pressures; changes in third-party practices regarding digital advertising; failure to enter into or sustain contractual arrangements on a satisfactory basis with group purchasing organizations; failure to develop, manage or implement new technology initiatives, acquisitions or business strategies including with respect to Grainger's eCommerce platforms and artificial intelligence; failure to adequately protect our intellectual property or successfully defend against infringement claims; fluctuations or declines in Grainger's gross profit margin; Grainger's responses to market pressures; the outcome of pending and future litigation or governmental or regulatory proceedings, including with respect to wage and hour, anti-bribery and corruption, environmental, regulations related to advertising, marketing and the internet, consumer protection, pricing (including disaster or emergency declaration pricing statutes), product liability, compliance or safety, trade and export compliance, general commercial disputes, or privacy and cybersecurity matters; investigations, inquiries, audits and changes in laws and regulations; failure to comply with laws, regulations and standards, including new or stricter environmental laws or regulations; government contract matters, including new or revised provisions relating to contract compliance or performance; the impact of any government shutdown; disruption or breaches of information technology or data security systems involving Grainger or third parties on which Grainger depends; general industry, economic, market or political conditions; general global economic conditions, including existing, new, or increased tariffs, trade issues and changes in trade policies, inflation, and interest rates; currency exchange rate fluctuations; market volatility, including price and trading volume volatility or price declines of Grainger's common stock; an incident that adversely impacts Grainger’s reputation or brand; commodity price volatility; facilities disruptions or shutdowns; higher fuel costs or disruptions in transportation services; effects of outbreaks of pandemic disease or viral contagions, global conflicts, natural or human-induced disasters, extreme weather, and other catastrophes or conditions; effects of climate change; failure to execute on our corporate responsibility efforts; competition for, or failure to attract, retain, train, motivate and develop executives and key team members; loss of key members of management or key team members; loss of operational flexibility and potential for work stoppages or slowdowns if team members unionize or join a collective bargaining arrangement; changes in effective tax rates; changes in credit ratings or outlook; Grainger's incurrence of indebtedness or failure to comply with restrictions and obligations under its debt agreements and instruments and other factors that can be found in our filings with the Securities and Exchange Commission, including our most recent periodic reports filed on Form 10-K and Form 10-Q, which are available on our Investor Relations website. Forward-looking statements are given only as of the date of this communication and we disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Additional information relating to certain non-GAAP financial measures referred to in this presentation is available in the appendix to this presentation, including: adjusted return on invested capital; adjusted gross profit; adjusted operating earnings; adjusted EBITDA; adjusted SG&A; adjusted net earnings; adjusted EPS; daily sales; daily, organic sales; constant currency sales; daily, organic constant currency sales; constant currency sales in local days; daily, organic constant currency sales in local days; net leverage ratio; and free cash flow. This communication also includes certain non-GAAP forward-looking information (including, but not limited to, slides 12 and 21). The Company believes that a quantitative reconciliation of such forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require the Company to predict the timing and likelihood of future restructurings, asset impairments, and other charges. Neither these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, the most directly comparable forward-looking GAAP measures are not provided. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. © 2026 W.W. Grainger, Inc. 2
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Opening Remarks © 2026 W.W. Grainger, Inc. Chairman & CEO D.G. Macpherson
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The Grainger Edge® embedded in everything we do We relentlessly expand our leadership position by being the go-to partner for people who build and run safe, sustainable, and productive operations. Our Aspiration Our Purpose Our Principles © 2026 W.W. Grainger, Inc. 4
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Q3 2026 Highlights © 2026 W.W. Grainger, Inc. 5 Note: Results are shown on an adjusted basis. See appendix for a reconciliation of any non-GAAP financial measures. Numbers may not sum due to rounding. (1) Includes only share repurchases and dividends related to Grainger common stock. Continued strong results across the business Sales $4.1B Operating Margin $4.1B $4.1B +300 bps$4.1B EPS (diluted) ROIC +22.8% +14.9% (daily, organic constant currency) +90 bps $5.2B 16.1% $12.54 43.3% • Delivered robust sales growth and profitability ─ Generated reported sales growth of 11.3% (14.9% in daily, organic constant currency) ─ Delivered diluted EPS of $12.54, up $2.33 or 22.8% versus prior year ─ Produced operating cash flow of $661 million • Returned $396 million to shareholders through dividends and share repurchases (1) • Completed technology acquisition to enhance inventory management capabilities • Increasing FY 2026 earnings outlook to reflect continued momentum Compared to Q3’25
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VP & Interim CFO Laurie Thomson © 2026 W.W. Grainger, Inc. Q3 2026 Results
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Q3 2026 Results: Total Company © 2026 W.W. Grainger, Inc. 7Note: Results are shown on an adjusted basis. See appendix for a reconciliation of any non-GAAP financial measures. Numbers may not sum due to rounding. Sales increased 11.3% (reported and daily) • 14.9% sales growth on a daily, organic constant currency basis • Generated strong growth in HTS - N.A. and Endless Assortment Gross profit margin increased 20 bps • Expansion in EA combined with benefit of U.K. market exit more than offset modest headwinds in HTS - N.A Operating margin increased 90 bps • Gross margin flow through combined with leverage in both segments and benefit of U.K. market exit Diluted EPS of $12.54, up 22.8% versus prior year ($ in millions) Q3 2026 Q3 2025 % vs. PY Fav/(Unfav) Sales $ 5,181 $ 4,657 11.3% Daily Sales 81.0 72.8 11.3% GP 2,011 1,798 11.8% SG&A 1,175 1,091 (7.7)% Op Earnings $ 836 $ 707 18.2% EPS (diluted) $ 12.54 $ 10.21 22.8% (% of sales) Q3 2026 Q3 2025 bps vs. PY Fav/(Unfav) GP Margin 38.8 % 38.6 % 20 SG&A 22.7 % 23.4 % 70 Op Margin 16.1 % 15.2 % 90 Summary Results Commentary vs. Prior Year
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Q3 2026 Results: High-Touch Solutions - N.A. © 2026 W.W. Grainger, Inc. 8 Sales increased 13.8% (reported and daily) • Increase consistent on a daily, constant currency basis • Includes healthy price contribution and strong volume growth Gross profit margin decreased 30 bps • Continued freight headwinds alongside slightly negative mix • Price / cost roughly neutral Operating margin increased 10 bps • Higher payroll & benefits (inclusive of incentive-based compensation) and marketing investment were more than offset by sales leverage ($ in millions) Q3 2026 Q3 2025 % vs. PY Fav/(Unfav) Sales $ 4,135 $ 3,635 13.8% Daily Sales 64.6 56.8 13.8% GP 1,687 1,495 12.8% SG&A 973 871 (11.7)% Op Earnings $ 714 $ 624 14.4% (% of sales) Q3 2026 Q3 2025 bps vs. PY Fav/(Unfav) GP Margin 40.8 % 41.1 % (30) SG&A 23.5 % 23.9 % 40 Op Margin 17.3 % 17.2 % 10 Summary Results Commentary vs. Prior Year Note: Results are shown on an adjusted basis. See appendix for a reconciliation of any non-GAAP financial measures. Numbers may not sum due to rounding.
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Q3 2026 Results: Endless Assortment Sales increased 11.9%; up 19.3% on a daily, organic constant currency basis • Zoro growth of 25.2% on a daily basis • MonotaRO growth of 13.6% in local days, local constant currency Gross profit margin increased 90 bps • Zoro benefited from discount strategy change • Favorable product mix across the segment Operating margin increased 190 bps • Gross margin flow through and sales leverage across the segment ($ in millions) Q3 2026 Q3 2025 % vs. PY Fav/(Unfav) Sales $ 1,046 $ 935 11.9% Daily Sales 16.3 14.6 11.9% GP 324 281 15.3% SG&A 202 189 (6.9)% Op Earnings $ 122 $ 92 32.6% (% of sales) Q3 2026 Q3 2025 bps vs. PY Fav/(Unfav) GP Margin 31.0 % 30.1 % 90 SG&A 19.3 % 20.3 % 100 Op Margin 11.7 % 9.8 % 190 © 2026 W.W. Grainger, Inc. 9 Summary Results Commentary vs. Prior Year Note: Results are shown on an adjusted basis. See appendix for a reconciliation of any non-GAAP financial measures. Numbers may not sum due to rounding.
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Looking Ahead © 2026 W.W. Grainger, Inc. VP & Interim CFO Laurie Thomson
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Update on inflationary environment © 2026 W.W. Grainger, Inc. 11 Passed price in September to address ongoing inflationary pressure • Increases in input costs due to conflict in Middle East, particularly on safety and PPE products derived from petrochemicals (e.g., nitrile gloves) • Offsets to ongoing freight headwinds related to the conflict (fuel costs & freight rates) • Adjustments to reflect latest tariff environment (Section 232 update and new Section 301 tariffs) Managing through continued inflationary pressures • September actions addressed all known product cost inflation and tariffs impacts; working with suppliers to understand 2027 cost environment • Taking ongoing freight headwinds into consideration for January pricing actions Expect larger-than-normal sequential GM% step up as supplier rebate favorability more than offsets continued freight pressure Will continue to monitor inflationary landscape and take mitigating actions as needed Q4 Q3 c Looking Ahead Completed actions Expected actions Navigating tariff and geopolitical cost pressures Situation remains fluid; confident in ability to manage impact while adhering to core pricing tenets Note: Commentary on timing of pricing actions related to High-Touch Solutions - U.S. business only.
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Note: 2025 results and 2026 guidance are provided on an adjusted basis. The Company does not reconcile forward-looking non-GAAP financial measures. Updated 2026 Guidance assumes corporate effective tax rate of ~24.7% and JPY / USD FX rate of 158. Normalization of effective tax rate to ~24.7% driving ~100bps Y/Y headwind to 2026 EPS growth rate. Prior 2026 guidance as provided on August 4, 2026. (1) Based on U.S. selling days. There are 255 selling days in both 2026 and 2025. See appendix for a reconciliation of any non -GAAP financial measures. 2025A 2026 Guidance (as of Nov 4, 2026) 30 bps to 45 bps 100 bps to 120 bps 19.1% to 21.6% Y/Y change 10.1% to 11.6% (13.0% to 14.5% daily, organic constant currency sales(1)) Full Year Guidance: Total Company © 2026 W.W. Grainger, Inc. 12 Raising 2026 Earnings Outlook • Sales: continued strong execution amidst improving MRO market demand • OM%: Q3’26 outperformance partly offset by incremental freight pressures Note: • Assumes no change to current effective tariff rates as of 11/3/2026 2026 OUTLOOK Sales ($ billions) $17.9 $19.8 – $20.0 Prior FY’26 Guidance $19.4 – $19.7 Gross Profit Margin 39.1% 39.4% – 39.6% Prior FY’26 Guidance 39.3% – 39.6% Adj. Operating Margin 15.0% 16.0% – 16.2% Prior FY’26 Guidance 15.8% – 16.2% Adj. EPS (diluted) $39.48 $47.00 – $48.00 Prior FY’26 Guidance $45.50 – $47.25 Updated guide includes: 11.5% to 13.0% daily, org cc 20 bps to 50 bps 80 bps to 120 bps 15.3% to 19.7%
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Closing Remarks © 2026 W.W. Grainger, Inc. Chairman & CEO D.G. Macpherson
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Q&A © 2026 W.W. Grainger, Inc.
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Appendix © 2026 W.W. Grainger, Inc.
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Q3 2026 Segment Highlights: High-Touch Solutions - N.A. © 2026 W.W. Grainger, Inc. 16 HTS - U.S. ($ millions) Appendix $159 $181 Q3’25 Q3’26 +13.8% Daily 34.6% 35.7% Q3’25 Q3’26 +110 bps Daily, constant currency sales in local days: +15.6% $3,404 $3,876 Q3’25 Q3’26 +13.9% Daily 41.4% 41.0% Q3’25 Q3’26 -40 bps ($ millions) HTS - Canada Sales SalesGross Profit Gross Profit Note: Results are consistent on a reported and adjusted basis. See appendix for a reconciliation of any non-GAAP financial measures. Numbers may not sum due to rounding.
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© 2026 W.W. Grainger, Inc. 17 ($ millions) $367 $459 Q3’25 Q3’26 +25.2% Daily Sales $558 $586 Q3’25 Q3’26 +5.0% Daily Sales Daily, constant currency sales in local days: +13.6% ($ millions) Note: Results are consistent on a reported and adjusted basis. See appendix for a reconciliation of any non-GAAP financial measures. Numbers may not sum due to rounding. (1) The Company has a controlling ownership interest in MonotaRO, which is part of our Endless Assortment segment. MonotaRO’s results are fully consolidated, reflected in U.S. GAAP, and reported one-month in arrears. Results will differ from MonotaRO’s externally reported financials, which follow Japanese GAAP. 37.7% 41.4% Q1’21 Q1’22 +380 bps Gross ProfitGross Profit Gross Profit 13.2% 14.3% Q3’25 Q3’26 +110 bps Op. Margin 33.3% 33.9% Q3’25 Q3’26 +60 bps Op. Margin MonotaRO(1) Zoro - U.S. 28.1% 28.7% Q3’25 Q3’26 +60 bps 5.8% 8.4% Q3’25 Q3’26 +260 bps Q3 2026 Segment Highlights: Endless Assortment
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Q3’25 Q4’25 Q1’26 Q2’26 7% 7% 14% 15% Q3’26 18% Note: See appendix for a reconciliation of any non-GAAP financial measures. (1) Large Customer revenue of $11.8 billion and Mid-sized Customer revenue of $2.0 billion for the last twelve-month (LTM) period ending September 30, 2026. These numbers exclude specialty brands and certain revenue recognition adjustments which are included in the HTS - U.S. business. Growth rates are presented on a daily basis and rounded to the nearest whole percentage. Q3 2026 Sales Performance: High-Touch Solutions - U.S. © 2026 W.W. Grainger, Inc. 18 Q3’25 Q4’25 Q1’26 Q2’26 3% 1% 9% 12% Q3’26 14% Large Customers (1) Mid-sized Customers (1) Note: FY’25 Large Customer daily sales growth was +1.9% Note: FY’25 Mid-size Customer daily sales growth was +5.4%
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Q3’26(1) Commercial Services UP Mid-Teens Contractors UP Mid-Twenties Government UP Mid-Single Digits Healthcare UP Low-Double Digits Manufacturing UP Mid-Teens Retail UP Low-Thirties Transportation UP High-Teens Utilities UP Low-Double Digits Warehousing UP Mid-Single Digits Wholesale UP High-Single Digits Other(2) UP Low-Twenties 5 Quarter Trend Sales Growth By Customer End Market: HTS - U.S. 19 Note: See appendix for a reconciliation of any non-GAAP financial measures. Customer end market definitions primarily follow the North American Industry Classification System (NAICS). Numbers exclude specialty brands and certain revenue recognition adjustments which are included in the HTS - U.S. business. (1) Growth rates are presented on a daily basis in current customer end market alignment. (2) Includes industries that are not material individually, including hospitality, restaurants, property management and natural resources. © 2026 W.W. Grainger, Inc. Q3’25 Q3’26
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Operating Metrics: Endless Assortment © 2026 W.W. Grainger, Inc. 20 (user count in thousands) 12.8 12.9 13.0 13.3 13.8 Q3’25 Q4’25 Q1’26 Q2’26 Q3’26 +8% Note: Numbers may not tie due to rounding. Registered user count excludes non-strategic accounts and channels. (1) MonotaRO’s results are reported one-month in arrears. (SKU count in millions) Total Registered Users Total Active SKUs (Zoro U.S.) 10,893 6,139 Q3’25 11,187 6,266 Q4’25 11,465 6,388 Q1’26 11,757 6,515 Q2’26 12,034 6,639 Q3’26 17,032 17,452 17,853 18,272 18,672 +10% MonotaRO (1) Zoro - U.S.
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Appendix © 2026 W.W. Grainger, Inc. 21 2026 Full Year Supplemental Guidance Note: 2025 results and 2026 guidance provided on an adjusted basis. Updated 2026 Guidance assumes corporate effective tax rate of ~24.7% and JPY / USD FX rate of 158. Prior 2026 guidance as provided on Aug 4, 2026. See appendix for a reconciliation of any non-GAAP financial measures. Numbers may not sum due to rounding. (1) Capital expenditures as reflected in the Statement of Cash Flows. (2) Includes only share repurchases related to Grainger common stock. (3) Based on U.S. selling days: 255 selling days in both 2026 and 2025. (4) Excludes the impact of year-over-year foreign currency exchange rate fluctuations. (5) Excludes the net sales of Cromwell and Zoro U.K. in the comparable prior year period post the date of divestiture or closure. Sales Growth Guidance Total Company 2026 Guidance (as of Nov 4, 2026) Low High Daily, Organic Constant Currency Sales 13.0% 14.5% Daily Impact(3) 0.0% 0.0% Foreign Currency Exchange(4) -0.8% -0.8% Business Divestiture/Closure(5) -2.1% -2.1% Reported Sales 10.1% 11.6% Cash Flow Guidance ($ millions) 2025A 2026 Guidance (as of Nov 4, 2026) Operating Cash Flow $2,015 $2,350– $2,450 Prior FY’26 Guidance $2,250 - $2,400 Capital Expenditures(1) $684 $575 – $625 Prior FY’26 Guidance $575 - $650 Share Repurchases(2) $1,045 $975 – $1,025 Prior FY’26 Guidance $975 - $1,050 Operating Margin 2025A 2026 Guidance (as of Nov 4, 2026) HTS - N.A. 16.8% 17.3% – 17.5% Prior FY’26 Guidance 17.2% - 17.6% Endless Assortment 9.8% 10.9% – 11.1% Prior FY’26 Guidance 10.4% - 10.8% Total Company 15.0% 16.0% – 16.2% Prior FY’26 Guidance 15.8% - 16.2%
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Definitions & Calculations © 2026 W.W. Grainger, Inc. 22 Basis of presentation: The Company has a controlling ownership interest in MonotaRO, which is part of the Endless Assortment segment. MonotaRO’s results are fully consolidated, reflected in U.S. GAAP, and reported one-month in arrears. Results will differ from MonotaRO’s externally reported financials which follow Japanese GAAP. Non-GAAP financial measures: The Company believes these non-GAAP financial measures provide meaningful information to assist investors in understanding financial results and assessing future performance as they provide a better baseline for analyzing the ongoing performance of its business by excluding items that may not be indicative of core operating results. “Adjusted gross profit", "adjusted SG&A", "adjusted operating earnings", “adjusted EBITDA”, "adjusted net earnings", "adjuste d EPS (diluted)”— exclude certain non-recurring items, like restructuring charges, asset impairments, gains and losses associated with business divestitures or closures and other non-recurring, infrequent or unusual gains and losses (together referred to as “non-GAAP adjustments”), from the Company’s most directly comparable reported U.S. GAAP figures (reported gross profit, SG&A, operating earnings, net earnings and EPS). The Company believes these non-GAAP adjustments provide meaningful information to assist investors in understanding financial results and assessing future performance as they provide a better baseline for analyzing the ongoing performance of its business by excluding items that may not be indicative of core operating results. "Adjusted return on invested capital" (ROIC) — is calculated using the Company's annualized adjusted operating earnings (defined above) divided by adjusted average net working assets for the period. Average net working assets is calculated using a two-point average for Q1, a three-point average for Q2, a four-point average for Q3 and a five-point average for Q4. Net working assets are working assets minus working liabilities and defined as follows: working assets equal total assets less cash and cash equivalents, deferred and prepaid income taxes and operating & finance lease right-of-use assets plus any LIFO reserves. Working liabilities are the sum of trade payables, accrued compensation and benefits, accrued contributions to employees’ retirement savings plans and accrued expenses less current operating & finance lease liabilities. The Company believes the presentation of adjusted ROIC provides useful information regarding how effectively the Company is using capital to generate financial returns. "Free cash flow" (FCF) — is calculated using total cash provided by operating activities less capital expenditures. The Company believes the presentation of FCF allows investors to evaluate the capacity of the Company's operations to generate free cash flow. "Net leverage ratio" — is calculated by dividing the Company’s net debt (total debt outstanding less debt issuance costs less cash and cash equivalents) by adjusted EBITDA. Adjusted EBITDA is defined as EBITDA less the Company's non-GAAP adjustments for the last twelve months. The Company believes the presentation of its net debt to adjusted EBITDA ratio provides useful information regarding the Company's liquidity and leverage. “Daily sales” — refers to net sales for the period divided by the number of U.S. selling days for the period. “Daily, constant currency sales” — refers to the daily sales adjusted for changes in foreign currency exchange rates. “Daily, constant currency sales in local days” — refers to daily sales adjusted for changes in foreign currency exchange rates and local selling days for the business unit. “Daily, organic sales” — refers to daily sales excluding the net sales of certain divested or closed businesses in the comparable prior year period post date of divestiture or closure. “Daily, organic constant currency sales” — refers to daily sales excluding the sales of certain divested or closed businesses in the comparable prior year period post date of divestiture or closure and changes in foreign currency exchange rates. “Daily, organic constant currency sales in local days” — refers to daily sales excluding the net sales of certain divested or closed businesses in the comparable prior year period post date of divestiture or closure, changes in foreign currency exchange rates and local selling days for the business unit. “Foreign currency exchange” — impact is calculated by dividing current period local currency daily sales by current period average exchange rate and subtracting the current period local currency daily sales divided by the prior period average exchange rate. “Volume outgrowth” — measured as High-Touch Solutions - U.S. daily, organic sales growth excluding price/customer mix contribution, less the estimated U.S. MRO market volume which uses IP - NAICS Manufacturing sub-index as its primary input. U.S. selling days: 2025: Q1-63, Q2-64, Q3-64, Q4-64, FY-255 2026: Q1-63, Q2-64, Q3-64, Q4-64, FY-255 2027: Q1-63, Q2-64, Q3-64, Q4-63, FY-254
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Note: For more information on the Company's use of non-GAAP measures in this presentation, please see the appendix Definitions and Calculations. (1) Based on U.S. selling days, there were 64 selling days in Q3 2026 and Q3 2025. (2) Excludes the impact on total sales due to year-over-year foreign currency exchange rate fluctuations. (3) Excludes the net sales results of the divested Cromwell business and closed Zoro U.K. business, announced in the third quarter of 2025 and completed in the fourth quarter of 2025, in the prior year period on a daily basis. © 2026 W.W. Grainger, Inc. 23 GAAP to Non-GAAP Reconciliations Sales growth for the three months ended September30, 2026 (percent change compared to the prior year period) (unaudited) Total Company - Monthly Detail July August September Q3'26 Reported sales 10.0% 11.8% 11.9% 11.3% Daily impact —% —% —% —% Daily sales(1) 10.0% 11.8% 11.9% 11.3% Foreign currency exchange(2) 1.4% 1.3% 0.8% 1.2% Business divestiture(3) 2.4% 2.1% 2.5% 2.4% Daily, organic constant currency sales 13.8% 15.2% 15.2% 14.9% Endless Assortment (EA) - Daily Sales EA Zoro - U.S. MonotaRO Q3'26 Q3'26 Q3'26 Reported sales 11.9% 25.2% 5.0% Daily impact —% —% —% Daily sales(1) 11.9% 25.2% 5.0% Foreign currency exchange(2) 6.2% —% 10.4% Business divestiture(3) 1.2% —% —% Daily, organic constant currency sales 19.3% 25.2% 15.4% Impact of local days (1.8)% Daily, organic constant currency in local days 13.6% High-Touch Solutions - N.A. - Daily Sales HTS - N.A. HTS - U.S. HTS - Canada Q3'26 Q3'26 Q3'26 Reported sales 13.8% 13.9% 13.8% Daily impact —% —% —% Daily sales(1) 13.8% 13.9% 13.8% Foreign currency exchange(2) —% —% 1.8% Daily, organic constant currency sales 13.8% 13.9% 15.6% Impact of local days —% Daily, organic constant currency in local days 15.6% High-Touch Solutions - N.A. - Daily Sales Drivers HTS - N.A. HTS - U.S. HTS - Canada Q3'26 Q3'26 Q3'26 Volume/product mix 10.5% 10.4% 14.4% Price/customer mix 3.3% 3.5% 1.2% Foreign currency exchange(2) —% —% (1.8)% Daily sales(1) 13.8% 13.9% 13.8%
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Note: For more information on the Company's use of non-GAAP measures in this presentation, please see the appendix Definitions and Calculations. (1) Last twelve months. (2) Reflects transaction costs associated with the acquisition of technology assets from Adroit Worldwide Media, Inc. in the third quarter of 2026. (3) Adjusted ROIC is calculated using the Company's annualized adjusted operating earnings. Annualized adjusted operating earnings are calculated by multiplying the YTD average daily operating earnings based off U.S. selling days by the total U.S. selling days in the full year period. (4) Includes deferred and prepaid income taxes and operating & finance lease right-of-use assets. (5) Reflects the loss from the Company's exit of the U.K. market, including the sale of the Cromwell business and closure of Zoro U.K., announced in the third quarter of 2025 and completed in the fourth quarter of 2025. © 2026 W.W. Grainger, Inc. 24 GAAP to Non-GAAP Reconciliations Key metrics for the period ended September 30, 2026 (in millions, except for percentage data) (unaudited) Adjusted Return on Invested Capital (ROIC) Nine months ended September 30, 2026 Reported operating earnings $ 2,428 Adjustment(2) 8 Adjusted operating earnings $ 2,436 Annualized adjusted operating earnings(3) $ 3,252 Q3'26 Q2'26 Q1'26 Q4'25 Total assets 10,128 9,618 9,473 8,962 Cash and cash equivalents (768) (589) (695) (585) LIFO reserve 1,024 1,000 976 939 Other asset adjustments(4) (466) (468) (423) (445) Working liabilities (2,039) (2,012) (1,920) (1,684) Net working assets $ 7,879 $ 7,549 $ 7,411 $ 7,187 Average net working assets $ 7,507 Adjusted ROIC(3) 43.3 % Free Cash Flow (FCF) Three months ended September 30, 2026 Net cash flows provided by operating activities $ 661 Capital expenditures (115) Free cash flow $ 546 Net Leverage Ratio As of September 30, 2026 Total debt $ 2,685 Debt issuance costs — net of amortization 20 Cash and cash equivalents (768) Net debt $ 1,937 LTM(1) ended September 30, 2026 Net earnings $ 2,276 Other expense — net 55 Income tax provision 731 Depreciation and amortization 259 EBITDA $ 3,321 Adjustments(2,5) 204 Adjusted EBITDA $ 3,525 Net leverage ratio 0.5x
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GAAP to Non-GAAP Reconciliations Income statement adjustments for the three months ended September30, 2026 and September 30, 2025 (in millions, except for percentage data) (unaudited) Note: For more information on the Company's use of non-GAAP measures in this presentation, please see the appendix Definitions and Calculations. (1) Reflects transaction costs associated with the acquisition of technology assets from Adroit Worldwide Media, Inc. in the third quarter of 2026. (2) Reflects the loss from the Company's exit of the U.K. market, including the sale of the Cromwell business and closure of Zoro U.K., announced in the third quarter of 2025 and completed in the fourth quarter of 2025. (3) Calculated on the basis of reported net sales for the third quarter of 2026 and 2025. (4) Grainger's businesses reported in Other do not meet the criteria of a reportable segment. (5) The reported effective tax rates for Q3 2026 and Q3 2025 were 24.3% and 34.7%, respectively. The adjusted tax rate was 24 .3% and 24.8% for the three months ended September 30, 2026 and 2025, respectively. (6) The Company has a controlling ownership interest in MonotaRO, with the residual representing noncontrolling interest. © 2026 W.W. Grainger, Inc. 25 Total Company results included adjusting items which impacted U.S. GAAP as follows: Q3 2026 Reported Adjusted(3) Q3 2025 Reported Adjusted(3) Reported Adjustment(1) Adjusted % of Net Sales Reported Adjustment(2) Adjusted % of Net Sales Selling, general and administrative expenses High-Touch Solutions N.A. $ 981 $ (8) $ 973 23.7 % 23.5 % $ 871 $ — $ 871 23.9 % 23.9 % Endless Assortment 202 — 202 19.3 % 19.3 % 199 (10) 189 21.3 % 20.3 % Other(4) — — — — % — % 217 (186) 31 249.4 % 35.6 % Selling, general and administrative expenses $ 1,183 $ (8) $ 1,175 22.8 % 22.7 % $ 1,287 $ (196) $ 1,091 27.6 % 23.4 % Earnings High-Touch Solutions N.A. $ 706 $ 8 $ 714 17.1 % 17.3 % $ 624 $ — $ 624 17.2 % 17.2 % Endless Assortment 122 — 122 11.7 % 11.7 % 82 10 92 8.8 % 9.8 % Other(4) — — — — % — % (195) 186 (9) (224.1)% (10.3)% Operating earnings 828 8 836 16.0 % 16.1 % 511 196 707 11.0 % 15.2 % Total other expense - net (14) — (14) 0.3 % 0.2 % (19) — (19) 0.4 % 0.4 % Earnings before income taxes 814 8 822 15.7 % 15.9 % 492 196 688 10.6 % 14.8 % Income tax provision(5) (198) (2) (200) 3.8 % 3.9 % (171) — (171) 3.7 % 3.7 % Net earnings 616 6 622 11.9 % 12.0 % 321 196 517 6.9 % 11.1 % Noncontrolling interest(6) (29) — (29) 0.6 % 0.6 % (27) — (27) 0.6 % 0.6 % Net earnings attributable to W.W. Grainger, Inc. $ 587 $ 6 $ 593 11.3 % 11.4 % $ 294 $ 196 $ 490 6.3 % 10.5 % Diluted earnings per share $ 12.42 $ 0.12 $ 12.54 $ 6.12 $ 4.09 $ 10.21
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GAAP to Non-GAAP Reconciliations Income statement adjustments for the twelve months ended December31, 2025 (in millions, except for percentage data) (unaudited) Note: For more information on the Company's use of non-GAAP measures in this presentation, please see the appendix Definitions and Calculations. (1) Reflects the loss from the Company's exit of the U.K. market, including the sale of the Cromwell business and closure of Zoro U.K., announced in the third quarter of 2025 and completed in the fourth quarter of 2025. (2) Calculated on the basis of reported net sales for the full year of 2025. (3) Grainger's businesses reported in Other do not meet the criteria of a reportable segment. (4) The reported effective tax rate for 2025 was 25.6%. The adjusted effective tax rate for 2025 was 23.7%. (5) The Company has a controlling ownership interest in MonotaRO, with the residual representing noncontrolling interest. © 2026 W.W. Grainger, Inc. 26 Total Company results included adjusting items which impacted U.S. GAAP as follows: FY 2025 Reported Adjusted(2) Reported Adjustment(1) Adjusted % of Net Sales Selling, general and administrative expenses High-Touch Solutions N.A. $ 3,478 $ — $ 3,478 24.9 % 24.9 % Endless Assortment 740 (10) 730 20.4 % 20.1 % Other(3) 296 (186) 110 91.4 % 34.0 % Selling, general and administrative expenses $ 4,514 $ (196) $ 4,318 25.2 % 24.1 % Earnings High-Touch Solutions N.A. $ 2,354 $ — $ 2,354 16.8 % 16.8 % Endless Assortment 345 10 355 9.5 % 9.8 % Other(3) (204) 186 (18) (63.0) % (5.6)% Operating earnings 2,495 196 2,691 13.9 % 15.0 % Total other expense — net (65) — (65) (0.3) % (0.3)% Earnings before income taxes 2,430 196 2,626 13.6 % 14.7 % Income tax provision(4) (622) — (622) (3.5) % (3.5)% Net earnings 1,808 196 2,004 10.1 % 11.2 % Noncontrolling interest(5) (102) — (102) (0.6) % (0.6)% Net earnings attributable to W.W. Grainger, Inc. $ 1,706 $ 196 $ 1,902 9.5 % 10.6 % Diluted earnings per share: $ 35.40 $ 4.08 $ 39.48
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Kyle Bland Vice President, Investor Relations Kevin Byrne Director, Investor Relations Emily Boelter Manager, Investor Relations InvestorRelations@grainger.com IR Contacts © 2026 W.W. Grainger, Inc.