MSC Industrial Supply Co. Reports Fiscal 2026 Second Quarter Results

MSC Industrial Supply Co. Reports Fiscal 2026 Second Quarter Results FISCAL 2026 Q2 HIGHLIGHTS

Net sales of $917.8 million increased 2.9% YoY

Operating income of $64.8 million, or $69.1 million on an adjusted basis 1

Operating margin of 7.1%, or 7.5% on an adjusted basis 1

Diluted EPS of $0.76 vs. $0.70 in the prior fiscal year quarter

Adjusted diluted EPS of $0.82 vs. $0.72 in the prior fiscal year quarter 1

MELVILLE, NY AND DAVIDSON, NC / ACCESS Newswire / April 1, 2026 / MSC INDUSTRIAL SUPPLY CO. (NYSE:MSM) ("MSC," "MSC Industrial," the "Company," "we," "us," or "our"), a leading North American distributor of a broad range of metalworking and maintenance, repair and operations (MRO) products and services, today reported financial results for its fiscal 2026 second quarter ended February 28, 2026.

FY26 Q2

FY25 Q2

Change

FY26 YTD

FY25 YTD

Change

917.8

891.7

2.9

1,883.5

1,820.2

3.5

64.8

62.2

4.1

141.0

134.5

4.8

7.1

7.0

7.5

7.4

42.5

39.3

8.1

94.3

85.9

9.7

0.76

0.70

8.6

1.69

1.54

9.7

FY26 Q2

FY25 Q2

Change

FY26 YTD

FY25 YTD

Change

917.8

891.7

2.9

1,883.5

1,820.2

3.5

69.1

63.7

8.5

150.3

138.3

8.7

7.5

7.1

8.0

7.6

45.8

40.4

13.4

101.3

88.8

14.1

0.82

0.72

13.9

1.81

1.59

13.8

1 Represents a non-GAAP financial measure. An explanation and a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure are presented in the schedules accompanying this press release.

2 In millions except percentages and per share data or as otherwise noted.

3 Based on 55.9 million weighted-average diluted shares outstanding for FY26 Q2 and FY26 YTD.

4 Based on 55.9 million and 56.0 million weighted-average diluted shares outstanding for FY25 Q2 and FY25 YTD, respectively.

Martina McIsaac, President and Chief Executive Officer, said, "I am encouraged by our performance which resulted in year-over-year operating margin expansion for the second consecutive quarter. While we have not yet seen volumes return to a positive trend, our Core Customer daily sales outperformed total company for the third consecutive quarter, and we expect our volume performance to improve throughout the remainder of the fiscal year."

Greg Clark, Vice President and Interim Chief Financial Officer, added, "Although sales fell short of expectations, I am encouraged by our operating margin, which improved 10 basis points compared to prior year, or 40 basis points on an adjusted basis to 7.5% and within the range of our outlook. This improvement was supported by gross margin expansion as well as actions that took structural costs out of the business and allowed us to achieve incremental margins of 10% or 21% on an adjusted basis this quarter."

McIsaac concluded, "Looking ahead, I remain confident in MSC's ability to execute on our strategic priorities. As we exit the first half of the fiscal year, we expect sales growth and profitability to further strengthen as we leverage our work in sales optimization and productivity. This is reflected in the average daily sales growth of 6% and 10% adjusted operating margin at the midpoint of our outlook for the fiscal third quarter."

Third Quarter Fiscal 2026 Financial Outlook

ADS Growth (YoY)

5.0% - 7.0%

Adjusted Operating Margin 1

9.7% - 10.3%

Full-Year Fiscal 2026 Outlook for Certain Financial Metrics Maintained

Depreciation and amortization expense of ~$95M-$100M

Interest and other expense of ~$35M

Capital expenditures of ~$100M-$110M

Free cash flow conversion 1 of ~90%

Tax rate of ~24.5%-25.5%

1 Guidance provided is a non-GAAP financial measure presented on an adjusted basis. For further details see the Non-GAAP financial measures information presented in the schedules accompanying this press release.

Conference Call Information

MSC will host a conference call today at 8:30 a.m. EDT to review the Company's fiscal 2026 second quarter results. To access the earnings release, webcast, presentation slides and operational statistics, please visit the Company's website at: http://investor.mscdirect.com. Alternatively, the conference call can be accessed by dialing 1-888-506-0062 (U.S.) or 1-973-528-0011 (international) and providing the access code 987025.

An online archive of the broadcast will be available within one hour of the conclusion of the call and remain available until Wednesday, April 15, 2026. The Company's reporting date for its fiscal 2026 third quarter results is scheduled for July 1, 2026.

Contact Information

Investors:

Media:

Ryan Mills, CFA

Leah Kelso

VP, Investor Relations & Business Development

VP, Communications & Sales Enablement

[email protected]

About MSC Industrial Supply Co.

MSC Industrial Supply Co. (NYSE:MSM) is a leading North American distributor of a broad range of metalworking, maintenance, repair and operations (MRO), and production fastener and hardware products and services. With approximately 2.5 million products, industry‑leading inventory management and supply chain solutions, and more than 80 years of experience, we help customers improve productivity, profitability, and operational performance.

Our team of over 7,000 associates partners closely with customers across industries to keep their operations running efficiently today while enabling them with insights and comprehensive solutions to continually rethink, retool, and optimize for a more productive tomorrow.

For more information on MSC Industrial, please visit mscdirect.com.

Cautionary Note Regarding Forward-Looking Statements

Statements in this press release may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of present or historical fact, that address activities, events or developments that MSC expects, believes or anticipates will or may occur in the future, including statements about results of operations and financial condition, expected future results, expected benefits from our investment and strategic plans and other initiatives, and expected future growth and profitability, are forward-looking statements. The words "will," "may," "believes," "anticipates," "thinks," "expects," "estimates," "plans," "intends" and similar expressions are intended to identify forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. In addition, statements which refer to expectations, projections or other characterizations of future events or circumstances, statements involving a discussion of strategy, plans or intentions, statements about management's assumptions, projections or predictions of future events or market outlook and any other statement other than a statement of present or historical fact are forward-looking statements. The inclusion of any statement in this press release does not constitute an admission by MSC or any other person that the events or circumstances described in such statement are material. In addition, new risks may emerge from time to time and it is not possible for management to predict such risks or to assess the impact of such risks on our business or financial results. Accordingly, future results may differ materially from historical results or from those discussed or implied by these forward-looking statements. Given these risks and uncertainties, the reader should not place undue reliance on these forward-looking statements. These risks and uncertainties include, but are not limited to, the following: general economic conditions in the markets in which we operate; changing customer and product mixes; volatility in commodity, energy and labor prices, and the impact of prolonged periods of low, high or rapid inflation; competition, including the adoption by competitors of aggressive pricing strategies or sales methods; industry consolidation and other changes in the industrial distribution sector; the applicability of laws and regulations relating to our status as a supplier to the U.S. government and public sector; the credit risk of our customers; our ability to accurately forecast customer demands; interruptions in our ability to make deliveries to customers; supply chain disruptions; our ability to attract and retain sales and customer service personnel; the risk of loss of key suppliers or contractors or key brands; changes to trade policies or trade relationships, including tariff policies; risks associated with opening or expanding our customer fulfillment centers; our ability to estimate the cost of healthcare claims incurred under our self-insurance plan; interruption of operations at our headquarters or customer fulfillment centers; products liability due to the nature of the products that we sell; impairments of goodwill and other indefinite-lived intangible assets; the impact of climate change; operating and financial restrictions imposed by the terms of our material debt instruments; our ability to access additional liquidity; the significant influence that our principal shareholders will continue to have over our decisions; our ability to execute on our E-commerce strategies and maintain our digital platforms; costs associated with maintaining our information technology ("IT") systems and complying with data privacy laws; disruptions or breaches of our IT systems or violations of data privacy laws, including such disruptions or breaches in connection with our E-commerce channels; risks related to online payment methods and other online transactions; the retention of key management personnel; litigation risk due to the nature of our business; failure to comply with environmental, health, and safety laws and regulations; and our ability to comply with, and the costs associated with, social and environmental responsibility policies. Additional information concerning these and other risks is described under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual and Quarterly Reports on Forms 10-K and 10-Q, respectively, and in the other reports and documents that we file with the United States Securities and Exchange Commission. We expressly disclaim any obligation to update any of these forward-looking statements, except to the extent required by applicable law.

MSC INDUSTRIAL DIRECT CO., INC.

Condensed Consolidated Balance Sheets

(In thousands)

February 28,

2026

August 30,

2025

(Unaudited)

46,192

56,228

373,553

423,306

677,384

644,090

132,599

102,930

1,229,728

1,226,554

345,001

346,706

724,456

723,702

77,829

85,455

46,459

52,464

27,344

27,183

2,450,817

2,462,064

317,233

316,868

21,491

22,236

222,143

225,150

148,175

165,092

709,042

729,346

194,517

168,831

25,491

30,872

136,543

136,513

1,065,593

1,065,562

1,102,284

1,093,630

420,212

432,622

(18,438

)

(20,736

)

(120,544

)

(117,363

)

1,383,571

1,388,210

1,653

8,292

1,385,224

1,396,502

2,450,817

2,462,064

MSC INDUSTRIAL DIRECT CO., INC.

Condensed Consolidated Statements of Income

(In thousands, except per share data)

(Unaudited)

Thirteen Weeks Ended

Twenty-Six Weeks Ended

February 28,

2026

March 1,

2025

February 28,

2026

March 1,

2025

917,774

891,717

1,883,458

1,820,201

540,186

526,487

1,113,193

1,076,784

377,588

365,230

770,265

743,417

310,342

301,578

621,910

605,141

2,454

1,406

7,324

3,750

64,792

62,246

141,031

134,526

(5,587

)

(6,226

)

(11,003

)

(12,301

)

130

233

405

574

(3,317

)

(4,540

)

(6,901

)

(10,484

)

(8,774

)

(10,533

)

(17,499

)

(22,211

)

56,018

51,713

123,532

112,315

13,860

12,566

30,266

27,474

42,158

39,147

93,266

84,841

(326

)

(167

)

(1,022

)

(1,096

)

42,484

39,314

94,288

85,937

0.76

0.70

1.69

1.54

0.76

0.70

1.69

1.54

55,809

55,793

55,807

55,845

55,900

55,851

55,938

55,960

MSC INDUSTRIAL DIRECT CO., INC.

Condensed Consolidated Statements of Comprehensive Income

(In thousands)

(Unaudited)

Thirteen Weeks Ended

Twenty-Six Weeks Ended

February 28,

2026

March 1,

2025

February 28,

2026

March 1,

2025

42,158

39,147

93,266

84,841

3,631

(2,596

)

2,729

(6,662

)

45,789

36,551

95,995

78,179

326

167

1,022

1,096

(323

)

(431

)

291

45,792

36,775

96,586

79,566

MSC INDUSTRIAL DIRECT CO., INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Twenty-Six Weeks Ended

February 28,

2026

March 1,

2025

93,266

84,841

50,407

44,671

598

995

11,819

12,189

9,328

7,192

153

401

1,890

269

3,142

4,316

(2,001

)

(1,080

)

47,798

10,514

(30,660

)

(3,695

)

(28,110

)

(10,827

)

(11,941

)

(12,304

)

779

(22,659

)

18,785

30,543

71,493

123,809

156,334

(43,325

)

(49,957

)

(240

)

(790

)

1,057

(42,508

)

(50,747

)

(13,723

)

(30,541

)

(97,175

)

(94,933

)

2,118

2,237

120

218,000

197,000

(193,000

)

(166,750

)

(8,195

)

1,134

699

(503

)

(922

)

(91,344

)

(93,090

)

(809

)

(10,036

)

11,688

56,228

29,588

46,192

41,276

40,233

31,101

10,939

12,250

Non-GAAP Financial Measures

To supplement MSC's unaudited selected financial data presented consistent with accounting principles generally accepted in the United States ("GAAP"), the Company discloses certain non-GAAP financial measures, including non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP provision for income taxes, non-GAAP net income and non-GAAP diluted earnings per share, that exclude items such as restructuring and other costs, property, plant and equipment asset impairment, and share reclassification litigation costs, and tax effects.

These non-GAAP financial measures are not presented in accordance with GAAP or alternatives for GAAP financial measures and may be different from similar non-GAAP financial measures used by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP financial measure and should only be used to evaluate MSC's results of operations in conjunction with the corresponding GAAP financial measure.

This press release also includes certain forward-looking information that is not presented in accordance with GAAP, including adjusted operating margin and free cash flow conversion. The Company believes that a quantitative reconciliation of such forward-looking information to the most directly comparable financial measures calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts because a reconciliation of these non-GAAP financial measures would require the Company to predict the timing and likelihood of potential future events such as restructurings, M&A activity, and other infrequent or unusual gains and losses. Neither the timing or likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward-looking information to the most directly comparable GAAP financial measures is not provided.

Incremental Operating Margin and Adjusted Incremental Operating Margin

The Company defines Incremental Operating Margin as the change in year-over-year Income from Operations as a percentage of the change in year-over-year Net Sales and Adjusted Incremental Operating Margin as Incremental Operating Margin adjusted to exclude restructuring and other costs, property, plant and equipment asset impairment, and share reclassification litigation costs by excluding such items from Income from Operations. The Company's management believes that Incremental Operating Margin is useful because it shows the direction that operating profit margins are moving as a result of changes in net sales between periods, and that, by excluding the aforementioned items, Adjusted Incremental Operating Margin helps to more clearly show, on a comparable basis between periods, trends in the Company's underlying business and results of operations. The Company believes that investors benefit from seeing results from the perspective of management in addition to seeing results presented in accordance with GAAP for the same reasons and purposes for which management uses such non-GAAP financial measures.

Free Cash Flow ("FCF") and Free Cash Flow Conversion ("FCF Conversion")

FCF is a non-GAAP financial measure. FCF is used in addition to and in conjunction with results presented in accordance with GAAP, and FCF should not be relied upon to the exclusion of GAAP financial measures. Management strongly encourages investors to review our financial statements and publicly-filed reports in their entirety and to not rely on any single financial measure. FCF, which we reconcile to "Net cash provided by operating activities," is cash flow from operations reduced by "Expenditures for property, plant and equipment". We believe that FCF, although similar to cash flow from operations, is a useful additional measure since capital expenditures are a necessary component of ongoing operations. Management also views FCF, as a measure of the Company's ability to reduce debt, add to cash balances, pay dividends, and repurchase stock. FCF has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures. For example, FCF does not incorporate payments made on finance lease obligations or required debt service payments. In addition, different companies define FCF differently. Therefore, we believe it is important to view FCF as a complement to our entire consolidated statements of cash flows. FCF Conversion is useful to investors for the foregoing reasons and as a measure of the rate at which the Company converts its net income reported in accordance with GAAP to cash inflows, which helps investors assess whether the Company is generating sufficient cash flow to provide an adequate return.

Results Excluding Restructuring and Other Costs, Property, Plant and Equipment Asset Impairment, and Share Reclassification Litigation Costs

In calculating certain non-GAAP financial measures, we exclude items such as restructuring and other costs, property, plant and equipment asset impairment, and share reclassification litigation costs, and tax effects. Management makes these adjustments to facilitate a review of the Company's operating performance on a comparable basis between periods, for comparing with forecasts and strategic plans, for identifying and analyzing trends in the Company's underlying business and for benchmarking performance externally against competitors. We believe that investors benefit from seeing results from the perspective of management in addition to seeing results presented in accordance with GAAP for the same reasons and purposes for which management uses such non-GAAP financial measures.

MSC INDUSTRIAL DIRECT CO., INC.

Reconciliation of GAAP and Non-GAAP Financial Information

Thirteen Weeks Ended February 28, 2026

(In thousands, except percentages and per share data)

GAAP Financial Measure

Items Affecting Comparability

Non-GAAP Financial Measure

Total MSC Industrial

Restructuring and Other Costs

Property, Plant and Equipment Asset Impairment

Adjusted Total MSC Industrial

917,774

540,186

377,588

41.1

310,342

1,890

308,452

33.8

(0.2)

33.6

2,454

64,792

(2,454

)

(1,890

)

69,136

7.1

0.3

0.2

7.5

9.8

4.0

7.3

21.0

(8,774

)

(8,774

)

56,018

(2,454

)

(1,890

)

60,362

13,860

(607

)

(467

)

14,934

42,158

(1,847

)

(1,423

)

45,428

(326

)

(326

)

42,484

(1,847

)

(1,423

)

45,754

0.76

(0.03

)

(0.03

)

0.82

*Individual amounts may not agree to the total due to rounding.

MSC INDUSTRIAL DIRECT CO., INC.

Reconciliation of GAAP and Non-GAAP Financial Information

Twenty-Six Weeks Ended February 28, 2026

(In thousands, except percentages and per share data)

GAAP Financial Measure

Items Affecting Comparability

Non-GAAP Financial Measure

Total MSC Industrial

Restructuring and Other Costs

Share Reclassification Litigation Costs

Property, Plant and Equipment Asset Impairment

Adjusted Total MSC Industrial

1,883,458

1,113,193

770,265

40.9

621,910

1,890

619,969

33.0

0.0

(0.1)

32.9

7,324

141,031

(7,324

)

(51

)

(1,890

)

150,296

7.5

0.4

0.0

0.1

8.0

10.3

5.6

0.1

3.0

19.0

(17,499

)

(17,499

)

123,532

(7,324

)

(51

)

(1,890

)

132,797

30,266

(1,794

)

(12

)

(463

)

32,535

93,266

(5,530

)

(39

)

(1,427

)

100,262

(1,022

)

(1,022

)

94,288

(5,530

)

(39

)

(1,427

)

101,284

1.69

(0.10

)

0.00

(0.03

)

1.81

*Individual amounts may not agree to the total due to rounding.

MSC INDUSTRIAL DIRECT CO., INC.

Reconciliation of GAAP and Non-GAAP Financial Information

Thirteen Weeks Ended March 1, 2025

(In thousands, except percentages and per share data)

GAAP Financial Measure

Items Affecting Comparability

Non-GAAP Financial Measure

Total MSC Industrial

Restructuring and Other Costs

Adjusted Total MSC Industrial

891,717

526,487

365,230

41.0

301,578

33.8

1,406

62,246

(1,406

)

63,652

7.0

0.2

7.1

(10,533

)

(10,533

)

51,713

(1,406

)

53,119

12,566

(337

)

12,903

39,147

(1,069

)

40,216

(167

)

(167

)

39,314

(1,069

)

40,383

0.70

(0.02

)

0.72

*Individual amounts may not agree to the total due to rounding.

MSC INDUSTRIAL DIRECT CO., INC.

Reconciliation of GAAP and Non-GAAP Financial Information

Twenty-Six Weeks Ended March 1, 2025

(In thousands, except percentages and per share data)

GAAP Financial Measure

Items Affecting Comparability

Non-GAAP Financial Measure

Total MSC Industrial

Restructuring and Other Costs

Adjusted Total MSC Industrial

1,820,201

1,076,784

743,417

40.8

605,141

33.2

3,750

134,526

(3,750

)

138,276

7.4

0.2

7.6

(22,211

)

(22,211

)

112,315

(3,750

)

116,065

27,474

(892

)

28,366

84,841

(2,858

)

87,699

(1,096

)

(1,096

)

85,937

(2,858

)

88,795

1.54

(0.05

)

1.59

*Individual amounts may not agree to the total due to rounding

SOURCE: MSC Industrial Direct Co.