Feb 3 (Reuters) - WW Grainger GWW.N forecast 2026 profit largely below Wall Street estimates on Tuesday amid slow demand for industrial equipment and tools as customers turn cautious in an uncertain economy.
A shifting trade environment has made companies hesitant to place orders, weighing on firms such as Grainger, which caters to end markets such as home improvement retailers, construction businesses and aerospace manufacturers.
In December, the Institute for Supply Management's U.S. manufacturing PMI came in at 47.9, marking the tenth consecutive month of contraction in the sector. A reading below 50 signals shrinking activity, while one above 50 indicates growth.
Despite the PMI rising to 52.6 in January, manufacturers remain wary due to the shifting U.S. trade policy.
The toolmaker expects 2026 adjusted earnings in the range of $42.25 to $44.75 per share, with the midpoint falling below analysts' projections of $43.89 per share, according to data compiled by LSEG.
The Lake Forest, Illinois-based company, which provides manual and power tools and industrial products, expects full-year sales between $18.7 billion and $19.1 billion.
The toolmaker's largest segment, High Touch Solutions, which provides pumps, plumbing equipment, metalworking and hand tools, saw a 4.5% rise in sales.
It posted a quarterly profit of $9.44 per share, down from $9.71 per share a year earlier.
Total revenue for the quarter ended December 31 was $4.42 billion, up from $4.23 billion from a year earlier. Analysts on average had expected $4.4 billion.
(Reporting by Aishwarya Jain and Anshuman Tripathy in Bengaluru; Editing by Leroy Leo and Maju Samuel)
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