W.W. Grainger reported second-quarter revenue of $5.02 billion, beating analyst estimates of $4.96 billion with 10.3% year-on-year growth. Adjusted earnings per share reached $12.01, surpassing expectations of $11.30. Despite the strong results, shares fell over 5% as product mix headwinds and higher freight costs pressured gross margins. Operating margin improved to 16.1% from 14.9% in the prior year, whilst organic revenue rose 13.7%. The company raised its full-year revenue guidance to $19.55 billion at the midpoint from $19.4 billion. Chief executive Donald Macpherson cited robust growth in both High-Touch and Endless Assortment segments, driven by manufacturing and government demand. Management noted that tariff refunds boosted second-quarter performance, with minimal impact expected in future quarters. September price increases are anticipated to add approximately one percentage point to annual growth.

Grainger reported second quarter 2026 sales of $5.0 billion, up 10.3%, or 13.7% on a daily, organic constant currency basis. The industrial distributor achieved diluted earnings per share of $12.01, up 20.5% compared to the second quarter of 2025. Operating margin reached 16.1%, up 120 basis points, inclusive of IEEPA tariff refunds that reduced cost of goods sold by $43 million. The company generated $444 million in operating cash flow and returned $341 million to shareholders through dividends and share repurchases. Grainger raised its full year 2026 guidance, increasing the net sales range to $19.4–$19.7 billion and the diluted adjusted EPS range to $45.50–$47.25. Chairman and CEO D.G. Macpherson cited strong execution and exceptional customer service despite geopolitical uncertainty, noting continued momentum across the demand environment.

Mergermarket: Platte River eyes utility services tailwinds with Tallman acquisition. Platte River Equity had been calling on Tallman Equipment for more than five years before acquiring the business last month, according to Peter Calamari, a Managing Director, and Mike Reilly, a Principal, at the Denver-based private equity firm. Tallman was on Platte River's radar because of the historic stability of the utility market and the favorable long-term tailwinds, Reilly said. Platte River, which takes a thematic, business model-focused approach to investing, has significant experience with power, utility and distribution businesses. Calamari characterized Platte River as having "a core focus in industrials, with expertise in value-added distribution and critical services," noting that utility services have been a focus since the firm's inception in 2006. More recently, the sector has benefited from tailwinds including the need to upgrade the electrical power grid, the data center buildup and the re-shoring trend, Reilly noted. In a press release announcing the deal, Reilly cited Tallman's customer relationships, field expertise and service-oriented culture as key attractions. Founded in 1952, Tallman was an ESOP company prior to Platte River's acquisition and generates over USD 100m of revenue. Tallman is the sixth investment from Platte River's Fund V, which closed in 2024, with no size disclosed. The acquisition also represents Platte River's 100th transaction overall. Calamari said the sponsor's prior three funds made eight investments each. The firm's typical end markets include automation, infrastructure, safety and power. Almost all investments are in family- or founder-owned businesses with a typical platform size of USD 5m to USD 30m of EBITDA. The sweet spot is USD 10m to USD 15m, Calamari said. Platte River uses modest debt with a goal of doubling or tripling the scale of a business over a typical five-year holding period, he said. Its value creation playbook leans on acquisitions, as well as investments in salesforce expansion, inventory and other organic growth initiatives. Platte River almost always takes control stakes. In Tallman's case, the firm negotiated the transaction directly with the company. There was no auction process or sell-side advisor, Reilly said. Stephens served as financial advisor to Platte River, with Bartlit Beck providing legal counsel. Acquisitions on tap Tallman supplies tools, equipment and related services to utility line workers. Its customers include contractors, investor-owned utilities and electric cooperatives. It operates from a headquarters in Indiana and has additional locations in Illinois and Florida. Tallman has not been especially acquisitive historically, having completed a small acquisition roughly a decade ago, Reilly said. Going forward, however, Tallman "would love to make strategic acquisitions of the right companies in the power utility space," particularly distribution businesses, he added. Calamari said targets could be located anywhere in the US. Size is flexible, but they would generally be smaller than Tallman. Tallman competes with large national distributors such a Wesco and Grainger, as well as smaller regional players, Reilly said. Tallman "sees itself as a high-touch expert that understands what crews in the field need," he added. By Marlene Givant Star