GWWW. W. Grainger

Twelve Months Ended December 31, 2025 Reported Adjustment(1) Adjusted % Change Reported(3) % Change Adjusted(3) Selling, general and administrative expenses High-Touch Solutions N.A. $ 3,478 $ — $ 3,478 Endless Assortment 740 (10) 730 Other(4) 296 (186) 110 Selling, general and administrative expenses $ 4,514 $ (196) $ 4,318 9.5% 5.2% Earnings High-Touch Solutions N.A. $ 2,354 $ — $ 2,354 Endless Assortment 345 10 355 Other(4) (204) 186 (18) Operating earnings $ 2,495 $ 196 $ 2,691 (5.4)% 1.4% Total other expense – net (65) — (65) Income tax provision(5) (622) — (622) Net earnings $ 1,808 $ 196 $ 2,004 Noncontrolling interest (102) — (102) Net earnings attributable to W.W. Grainger, Inc. $ 1,706 $ 196 $ 1,902 (10.6)% (1.0)% Diluted earnings per share $ 35.40 $ 4.08 $ 39.48 (8.6)% 1.3% Twelve Months Ended December 31, 2024 Reported Adjustment(1) Adjustment(2) Adjusted % Change Reported(2) Reported(3) % Change Adjusted(2) Adjusted(3) Selling, general and administrative expenses High-Touch Solutions N.A. $ 3,356 $ (15) $ 3,341 Endless Assortment 663 — 663 Other(3) Other(4) 102 (1) 101 Selling, general and administrative expenses $ 4,121 $ (16) $ 4,105 4.8% 5.1% Earnings High-Touch Solutions N.A. $ 2,385 $ 15 $ 2,400 Endless Assortment 260 — 260 Other(3) Other(4) (8) 1 (7) Operating earnings $ 2,637 $ 16 $ 2,653 2.8% 2.4% Total other expense – net (53) — (53) Income tax provision(4) provision(5) (595) (4) (599) Net earnings $ 1,989 $ 12 $ 2,001 Noncontrolling interest (80) — (80) Net earnings attributable to W.W. Grainger, Inc. $ 1,909 $ 12 $ 1,921 4.4% 3.8% Diluted earnings per share $ 38.71 $ 0.25 $ 38.96 6.8% 6.2% Twelve Months Ended December 31, 2023 Reported Adjustment(1) Adjusted % Change Reported(2) % Change Adjusted(2) Selling, general (1)Reflects the loss on sale of the Cromwell business and administrative expenses High-Touch Solutions N.A. $ 3,212 $ (26) $ 3,186 Endless Assortment 631 — 631 Other(3) 88 — 88 Selling, general closure of Zoro U.K. announced in the third quarter of 2025 and administrative expenses $ 3,931 $ (26) $ 3,905 8.2% 6.8% Earnings High-Touch Solutions N.A. $ 2,334 $ 26 $ 2,360 Endless Assortment 233 — 233 Other(3) (2) — (2) Operating earnings $ 2,565 $ 26 $ 2,591 15.8% 18.1% Total other expense – net (65) — (65) Income tax provision(5) (597) (4) (601) Net earnings $ 1,903 $ 22 $ 1,925 Noncontrolling interest (74) — (74) Net earnings attributable to W.W. Grainger, Inc. $ 1,829 $ 22 $ 1,851 18.2% 21.2% Diluted earnings per share $ 36.23 $ 0.44 $ 36.67 20.5% 23.6% (1) Reflects completed in the fourth quarter of 2025. (2)Reflects restructuring costs incurred in the second quarter of 2024 and the loss on divestiture of E&R in the fourth quarter of 2023. (2) Compared 2024. (3)Compared to the reported and adjusted results of the prior year period. (3) Grainger's (4)Grainger's businesses reported in Other do not meet the criteria of a reportable segment. (4) Reflects (5)Grainger's reported and adjusted effective tax rates were 25.6% and 23.7% for the twelve months ended December 31, 2025, respectively. The twelve months ended December 31, 2024 reflect a tax benefit related to the restructuring costs incurred in the second quarter of 2024. Grainger's reported and adjusted effective tax rates were 23.0% for the year ended December 31, 2024. (5) Reflects a one-time tax benefit recognized upon the divestiture of E&R in the fourth quarter of 2023. Grainger's reported and adjusted effective tax rates were 23.9% and 23.8%, respectively, for the year ended December 31, 2023.

Techniques used to obtain unauthorized access or to sabotage systems change frequently and may not be recognized until they are launched against a target. Although Grainger has a dedicated Information Security team, Grainger may be unable to anticipate, detect or prevent these techniques or implement effective preventative measures in all circumstances. Security measures and efforts may not be effective in each instance and may be subject to human error or failures. Any breach of Grainger’s security measures or any breach, error or malfeasance by its third-party business partners could cause Grainger to incur significant costs to protect any respond to and remediate such incidents, including implementing additional safeguards and addressing impacts to customers, suppliers, team members and other parties whose information is compromised. Such a breach could also cause Grainger to make changes to its information systems and administrative processes to address security issues. Although Grainger maintains insurance coverage that may, subject to policy terms and conditions, cover certain aspects of cybersecurity risks, depending on the nature, location scope and extent of any event, such insurance coverage may be insufficient to cover all losses.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update requires public entities to disclose consistent categories and greater disaggregation of information in the rate reconciliation, reconciliation and income taxes paid disaggregated by jurisdiction. The Company adopted this ASU effective date is for fiscal years beginning after December 15, 2024, with 31, 2025 on retrospective basis and it did not have material impact on the option to early adopt prior to the effective date and should be applied on prospective basis, but retrospective application is permitted. The Company is evaluating the impact of the requirements on Consolidated Financial Statements. For the related income tax disclosures. reporting disclosure, see Note 12.

The Company remains has been engaged in litigation involving KMCO, LLC (KMCO) as previously disclosed. described in previous quarterly and annual reports. The Company continues to contest has settled or resolved all remaining lawsuits pending against the remaining KMCO-related lawsuits and cannot predict the timing, outcome Company. These settlements had no effect on net earnings or any estimate of possible loss or range of losses on the remaining KMCO lawsuits. cash flows.