MELVILLE, NY AND DAVIDSON, NC / ACCESS Newswire / October 22, 2026 / MSC INDUSTRIAL SUPPLY CO. (NYSE: MSM), ("MSC", "MSC Industrial", or 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 fourth quarter and full year ended August 29, 2026.
| Financial Highlights3 | FY26 Q4 | FY25 Q4 | Change | FY26 | FY25 | Change | ||||||||||||||||||
Net Sales |
$ | 1,079.2 | $ | 978.2 | 10.3 | % | $ | 4,009.7 | $ | 3,769.5 | 6.4 | % | ||||||||||||
Income from Operations |
$ | 72.8 | $ | 84.3 | (13.6 | )% | $ | 320.6 | $ | 301.6 | 6.3 | % | ||||||||||||
Operating Margin |
6.7 | % | 8.6 | % | 8.0 | % | 8.0 | % | ||||||||||||||||
Net Income Attributable to MSC |
$ | 47.9 | $ | 56.5 | (15.2 | )% | $ | 222.6 | $ | 199.3 | 11.7 | % | ||||||||||||
Diluted EPS |
$ | 0.85 | 4 | $ | 1.01 | 5 | (15.8 | )% | $ | 3.98 | 4 | $ | 3.57 | 5 | 11.5 | % | ||||||||
Adjusted Financial Highlights3 |
FY26 Q4 | FY25 Q4 | Change | FY26 | FY25 | Change | ||||||||||||||||||
Net Sales |
$ | 1,079.2 | $ | 978.2 | 10.3 | % | $ | 4,009.7 | $ | 3,769.5 | 6.4 | % | ||||||||||||
Adjusted Income from Operations 1 |
$ | 117.8 | $ | 90.3 | 30.5 | % | $ | 379.3 | $ | 315.8 | 20.1 | % | ||||||||||||
Adjusted Operating Margin 1 |
10.9 | % | 9.2 | % | 9.5 | % | 8.4 | % | ||||||||||||||||
Adjusted Net Income Attributable to MSC 1 |
$ | 81.5 | $ | 60.9 | 33.8 | % | $ | 262.6 | $ | 210.0 | 25.0 | % | ||||||||||||
Adjusted Diluted EPS 1 |
$ | 1.45 | 4 | $ | 1.09 | 5 | 33.0 | % | $ | 4.69 | 4 | $ | 3.76 | 5 | 24.7 | % | ||||||||
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 The Company defines Operating Cash Flow Conversion as Net cash provided by operating activities as a percentage of Net income. The Company's management uses Operating Cash Flow Conversion to evaluate the Company's operating performance, in particular how efficiently the Company turns its sales and profits into cash, and to assess the efficiency of the Company's use of working capital. The Company believes Operating Cash Flow 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. |
3 In millions except percentages and per share data or as otherwise noted. |
4 Based on 56.1 million and 56.0 million weighted-average diluted shares outstanding for FY26 Q4 and FY26, respectively. |
5 Based on 55.9 million weighted-average diluted shares outstanding for FY25 Q4 and FY25. |
Martina McIsaac, President and Chief Executive Officer, said, "We had a strong finish to fiscal 2026, with fourth quarter results exceeding our expectations and sales achieving record quarterly levels. Underpinning this performance was core customer growth of approximately 10%-our strongest in more than three years-and accelerating growth in National Accounts. These results provide further evidence that MSC is heading in the right direction, and that the changes we have made to drive profitable growth are taking hold."
Rob Kuhns, Executive Vice President and Chief Financial Officer, added, "Average daily sales exceeded the high end of our guided range, driven by price benefits and stronger volumes that yielded year-over-year improvement of 8.6%. Further progress on our cost structure, combined with this better-than-expected growth, led to an adjusted operating margin of 10.9%-exceeding the high end of our outlook-and an adjusted incremental operating margin of roughly 27%."
McIsaac concluded, "While we remain mindful of inflationary headwinds and tougher comparisons looking ahead, we are confident that profitable growth will remain the trend. Our strategic execution is building momentum as our end markets continue to improve. This positions MSC well entering fiscal 2027, as demonstrated by first-quarter sales trends showing low double-digit growth to date."
First Quarter Fiscal 2027 Financial Outlook | |
ADS Growth (YoY) |
9.5% to 10.5% |
Adjusted Operating Margin1 |
9.5% to 10.1% |
Full-Year Fiscal 2027 Outlook for Certain Financial Metrics
- Depreciation and amortization expense of ~$100M-$105M
- Interest and other expense of ~$40M-$45M
- Capital expenditures of ~$90M-$100M
- Free cash flow conversion1 of ~80%-90%
- Effective 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 fourth quarter and full year results. The call, accompanying slides, and other operational statistics may be accessed at: https://investor.mscdirect.com. The conference call may also be accessed at 1-888-506-0062 (U.S.) or 1-973-528-0011 (international) and providing the access code 287054.
An online archive of the broadcast will be available until November 5, 2026. The Company's reporting date for the fiscal 2027 first quarter is scheduled for January 6, 2027.
Contact Information |
|
Investors: |
Media: |
Ryan Mills, CFA |
Leah Kelso |
VP, Investor Relations & Business Development |
VP, Communications & Sales Enablement |
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.
Consolidated Balance Sheets
(In thousands)
|
August 29, 2026 |
August 30, 2025 |
|||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash and cash equivalents |
$ | 65,028 | $ | 56,228 | ||||
Accounts receivable, net of allowance for credit losses |
451,550 | 423,306 | ||||||
Inventories |
688,738 | 644,090 | ||||||
Prepaid expenses and other current assets |
114,097 | 102,930 | ||||||
Total current assets |
1,319,413 | 1,226,554 | ||||||
Property, plant and equipment, net |
339,023 | 346,706 | ||||||
Goodwill |
723,977 | 723,702 | ||||||
Identifiable intangibles, net |
69,919 | 85,455 | ||||||
Operating lease assets |
50,761 | 52,464 | ||||||
Other assets |
5,922 | 27,183 | ||||||
Total assets |
$ | 2,509,015 | $ | 2,462,064 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
Current Liabilities: |
||||||||
Current portion of debt including obligations under finance leases |
$ | 317,191 | $ | 316,868 | ||||
Current portion of operating lease liabilities |
23,642 | 22,236 | ||||||
Accounts payable |
237,978 | 225,150 | ||||||
Accrued expenses and other current liabilities |
161,475 | 165,092 | ||||||
Total current liabilities |
740,286 | 729,346 | ||||||
Long-term debt including obligations under finance leases |
159,756 | 168,831 | ||||||
Noncurrent operating lease liabilities |
27,605 | 30,872 | ||||||
Deferred income taxes and tax uncertainties |
142,101 | 136,513 | ||||||
Other noncurrent liabilities |
13,560 | - | ||||||
Total liabilities |
$ | 1,083,308 | $ | 1,065,562 | ||||
Commitments and Contingencies |
||||||||
Shareholders' Equity: |
||||||||
MSC Industrial Shareholders' Equity: |
||||||||
Preferred Stock |
- | - | ||||||
Class A Common Stock |
57 | 57 | ||||||
Additional paid-in capital |
1,114,507 | 1,093,630 | ||||||
Retained earnings |
450,238 | 432,622 | ||||||
Accumulated other comprehensive loss |
(19,641 | ) | (20,736 | ) | ||||
Class A treasury stock, at cost |
(119,454 | ) | (117,363 | ) | ||||
Total MSC Industrial shareholders' equity |
1,425,707 | 1,388,210 | ||||||
Noncontrolling interest |
- | 8,292 | ||||||
Total shareholders' equity |
1,425,707 | 1,396,502 | ||||||
Total liabilities and shareholders' equity |
$ | 2,509,015 | $ | 2,462,064 | ||||
MSC INDUSTRIAL DIRECT CO., INC.
Consolidated Statements of Income
(In thousands, except per share data)
| (Unaudited) | ||||||||||||||||
| Fiscal Quarters Ended | Fiscal Years Ended | |||||||||||||||
|
August 29, 2026 |
August 30, 2025 |
August 29, 2026 |
August 30, 2025 |
|||||||||||||
Net sales |
$ | 1,079,162 | $ | 978,175 | $ | 4,009,703 | $ | 3,769,521 | ||||||||
Cost of goods sold |
640,579 | 583,196 | 2,370,450 | 2,233,386 | ||||||||||||
Gross profit |
438,583 | 394,979 | 1,639,253 | 1,536,135 | ||||||||||||
Operating expenses |
322,664 | 306,108 | 1,266,344 | 1,223,573 | ||||||||||||
Restructuring and other costs |
1,355 | 4,569 | 8,679 | 10,999 | ||||||||||||
Asset impairment and related charges |
41,774 | - | 43,664 | - | ||||||||||||
Income from operations |
72,790 | 84,302 | 320,566 | 301,563 | ||||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(5,329 | ) | (5,731 | ) | (21,715 | ) | (24,063 | ) | ||||||||
Interest income |
375 | 188 | 936 | 1,130 | ||||||||||||
Other expense, net |
(3,567 | ) | (2,610 | ) | (7,742 | ) | (15,052 | ) | ||||||||
Total other expense |
(8,521 | ) | (8,153 | ) | (28,521 | ) | (37,985 | ) | ||||||||
Income before provision for income taxes |
64,269 | 76,149 | 292,045 | 263,578 | ||||||||||||
Provision for income taxes |
16,330 | 20,015 | 72,135 | 65,742 | ||||||||||||
Net income |
47,939 | 56,134 | 219,910 | 197,836 | ||||||||||||
Less: Net loss attributable to noncontrolling interest |
- | (412 | ) | (2,679 | ) | (1,492 | ) | |||||||||
Net income attributable to MSC Industrial |
$ | 47,939 | $ | 56,546 | $ | 222,589 | $ | 199,328 | ||||||||
Per share data attributable to MSC Industrial: |
||||||||||||||||
Net income per common share: |
||||||||||||||||
Basic |
$ | 0.86 | $ | 1.01 | $ | 3.99 | $ | 3.57 | ||||||||
Diluted |
$ | 0.85 | $ | 1.01 | $ | 3.98 | $ | 3.57 | ||||||||
|
Weighted average shares used in computing
net income per common share:
|
||||||||||||||||
Basic |
55,848 | 55,739 | 55,825 | 55,781 | ||||||||||||
Diluted |
56,095 | 55,890 | 55,990 | 55,894 | ||||||||||||
MSC INDUSTRIAL DIRECT CO., INC.
Consolidated Statements of Comprehensive Income
(In thousands)
| (Unaudited) | ||||||||||||||||
| Fiscal Quarters Ended | Fiscal Years Ended | |||||||||||||||
|
August 29, 2026 |
August 30, 2025 |
August 29, 2026 |
August 30, 2025 |
|||||||||||||
Net income, as reported |
$ | 47,939 | $ | 56,134 | $ | 219,910 | $ | 197,836 | ||||||||
Other comprehensive income, net of tax: |
||||||||||||||||
Foreign currency translation adjustments |
(113 | ) | 1,161 | 1,444 | 707 | |||||||||||
Comprehensive income |
47,826 | 57,295 | 221,354 | 198,543 | ||||||||||||
Comprehensive income attributable to noncontrolling interest: |
||||||||||||||||
Net loss |
- | 412 | 2,679 | 1,492 | ||||||||||||
Foreign currency translation adjustments |
- | (228 | ) | (349 | ) | (299 | ) | |||||||||
Comprehensive income attributable to MSC Industrial |
$ | 47,826 | $ | 57,479 | $ | 223,684 | $ | 199,736 | ||||||||
MSC INDUSTRIAL DIRECT CO., INC.
Consolidated Statements of Cash Flows
(In thousands)
| Fiscal Years Ended | ||||||||
| August 29, 2026 | August 30, 2025 | |||||||
Cash Flows from Operating Activities: |
||||||||
Net income |
$ | 219,910 | $ | 197,836 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
101,395 | 90,627 | ||||||
Amortization of cloud computing arrangements |
1,399 | 1,790 | ||||||
Non-cash operating lease cost |
24,166 | 24,472 | ||||||
Stock-based compensation |
19,017 | 12,551 | ||||||
Loss on disposal of property, plant and equipment |
1,005 | 1,957 | ||||||
Asset Impairment and related charges |
43,664 | - | ||||||
Non-cash changes in fair value of estimated contingent consideration |
(696 | ) | 293 | |||||
Provision for credit losses |
10,739 | 7,495 | ||||||
Expenditures for cloud computing arrangements |
(5,107 | ) | (4,688 | ) | ||||
Deferred income taxes and tax uncertainties |
7,768 | (2,925 | ) | |||||
Changes in operating assets and liabilities, net of amounts associated with business acquired: |
||||||||
Accounts receivable |
(37,982 | ) | (17,742 | ) | ||||
Inventories |
(46,679 | ) | 1,719 | |||||
Prepaid expenses and other current assets |
(8,844 | ) | 482 | |||||
Operating lease liabilities |
(24,323 | ) | (23,819 | ) | ||||
Other assets |
13 | 350 | ||||||
Accounts payable and accrued liabilities |
1,055 | 43,319 | ||||||
Total adjustments |
86,590 | 135,881 | ||||||
Net cash provided by operating activities |
306,500 | 333,717 | ||||||
Cash Flows from Investing Activities: |
||||||||
Expenditures for property, plant and equipment |
(81,344 | ) | (92,840 | ) | ||||
Cash used in acquisitions, net of cash acquired |
(240 | ) | (790 | ) | ||||
Net proceeds from sale of property |
1,057 | 30,336 | ||||||
Net cash used in investing activities |
(80,527 | ) | (63,294 | ) | ||||
Cash Flows from Financing Activities: |
||||||||
Repurchases of Class A Common Stock |
(13,967 | ) | (39,317 | ) | ||||
Payments of regular cash dividends |
(194,338 | ) | (189,650 | ) | ||||
Proceeds from sale of Class A Common Stock in connection with Associate Stock Purchase Plan |
4,014 | 4,253 | ||||||
Proceeds from exercise of Class A Common Stock options |
- | 8,123 | ||||||
Borrowings under credit facilities |
406,000 | 253,498 | ||||||
Payments under credit facilities |
(411,000 | ) | (254,998 | ) | ||||
Payments under Private Placement Debt |
(100,000 | ) | (20,000 | ) | ||||
Proceeds from Private Placement Debt |
100,000 | - | ||||||
Purchase of noncontrolling interest |
(8,195 | ) | - | |||||
Other, net |
403 | (5,481 | ) | |||||
Net cash used in financing activities |
(217,083 | ) | (243,572 | ) | ||||
Effect of foreign exchange rate changes on cash and cash equivalents |
(90 | ) | (211 | ) | ||||
Net increase in cash and cash equivalents |
8,800 | 26,640 | ||||||
Cash and cash equivalents-beginning of period |
56,228 | 29,588 | ||||||
Cash and cash equivalents-end of period |
$ | 65,028 | $ | 56,228 | ||||
Supplemental Disclosure of Cash Flow Information: |
||||||||
Net cash paid for income taxes |
$ | 77,907 | $ | 60,284 | ||||
Cash paid for interest |
$ | 20,972 | $ | 23,891 | ||||
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 income from operations, non-GAAP operating margin, non-GAAP incremental operating margin, non-GAAP provision for income taxes, non-GAAP net income and non-GAAP diluted earnings per share, that exclude asset impairments and related charges, restructuring and other costs, share reclassification litigation costs, employee retention credit ("ERC") tax benefit, loss on sale of property (prior year), and tax effects, as well as free cash flow conversion, which is a measure calculated using free cash flow, which is a non-GAAP measure.
These non-GAAP financial measures are not presented in accordance with GAAP or an alternative 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. The Company believes that a quantitative reconciliation of such forward-looking information to the most directly comparable financial measure 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, capital expenditures 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 measure 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 such items listed above 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 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. A reconciliation of cash provided by operating activities to FCF, operating cash flow conversion and FCF conversion for the fiscal quarters and years ended August 29, 2026 and August 30, 2025, respectively, is shown below.
Results Excluding Asset Impairments and Related Charges, Share Reclassification Litigation Costs, ERC Tax Benefit, |
In calculating certain non-GAAP financial measures, we exclude asset impairments and related charges, restructuring and other costs, share reclassification litigation costs, ERC tax benefit, loss on sale of property (prior year), and tax effects. Management makes these adjustments to facilitate a review of the Company's operating performance on a comparable basis between periods, for comparison 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
Fiscal Quarters and Years Ended August 29, 2026 and August 30, 2025
(dollars in thousands, except percentages)
| Fiscal Quarters Ended | Fiscal Years Ended | |||||||||||||||
| August 29, 2026 | August 30, 2025 | August 29, 2026 | August 30, 2025 | |||||||||||||
(a) Net cash provided by operating activities |
$ | 80,965 | $ | 80,256 | $ | 306,500 | $ | 333,717 | ||||||||
(b) Expenditures for property, plant and equipment |
$ | (17,214 | ) | $ | (21,731 | ) | $ | (81,344 | ) | $ | (92,840 | ) | ||||
(a-b) = (c) Free cash flow |
$ | 63,751 | $ | 58,525 | $ | 225,156 | $ | 240,877 | ||||||||
(d) Net income |
$ | 47,939 | $ | 56,134 | $ | 219,910 | $ | 197,836 | ||||||||
(a)/(d) Operating cash flow conversion |
169 | % | 143 | % | 139 | % | 169 | % | ||||||||
(c)/(d) Free cash flow conversion |
133 | % | 104 | % | 102 | % | 122 | % | ||||||||
MSC INDUSTRIAL DIRECT CO., INC.
Reconciliation of GAAP and Non-GAAP Financial Information
Fiscal Quarter Ended August 29, 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 | Asset Impairments and Related Charges | Adjusted Total MSC Industrial | |||||||||||
Net Sales |
$ | 1,079,162 | $ | - | $ | - | $ | - | $ | 1,079,162 | |||||
Cost of Goods Sold |
640,579 | - | - | - | 640,579 | ||||||||||
Gross Profit |
438,583 | - | - | - | 438,583 | ||||||||||
Gross Margin |
40.6 | % | - | % | - | % | - | % | 40.6 | % | |||||
Operating Expenses |
322,664 | - | 1,841 | - | 320,823 | ||||||||||
Operating Expenses as % of Sales |
29.9 | % | - | % | (0.2 | )% | - | % | 29.7 | % | |||||
Restructuring and Other Costs |
1,355 | 1,355 | - | - | - | ||||||||||
Asset impairment and related charges |
41,774 | - | - | 41,774 | - | ||||||||||
Income from Operations |
72,790 | (1,355 | ) | (1,841 | ) | (41,774 | ) | 117,760 | |||||||
Operating Margin |
6.7 | % | 0.1 | % | 0.2 | % | 3.9 | % | 10.9 | % | |||||
Total Other Expense |
(8,521 | ) | - | - | - | (8,521 | ) | ||||||||
Income before provision for income taxes |
64,269 | (1,355 | ) | (1,841 | ) | (41,774 | ) | 109,239 | |||||||
Provision for income taxes |
16,330 | (344 | ) | (468 | ) | (10,605 | ) | 27,747 | |||||||
Net income |
47,939 | (1,011 | ) | (1,373 | ) | (31,169 | ) | 81,492 | |||||||
Net loss attributable to noncontrolling interest |
- | - | - | - | - | ||||||||||
Net income attributable to MSC Industrial |
$ | 47,939 | $ | (1,011 | ) | $ | (1,373 | ) | $ | (31,169 | ) | $ | 81,492 | ||
Net income per common share: |
|||||||||||||||
Diluted |
$ | 0.85 | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.56 | ) | $ | 1.45 | ||
*Individual amounts may not agree to the total due to rounding.
MSC INDUSTRIAL DIRECT CO., INC.
Reconciliation of GAAP and Non-GAAP Financial Information
Fiscal Year Ended August 29, 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 | ERC Tax Benefit | Asset Impairments and Related Charges | Adjusted Total MSC Industrial | ||||||||||||||
Net Sales |
$ | 4,009,703 | $ | - | $ | - | $ | - | $ | - | $ | 4,009,703 | |||||||
Cost of Goods Sold |
2,370,450 | - | - | - | - | 2,370,450 | |||||||||||||
Gross Profit |
1,639,253 | - | - | - | - | 1,639,253 | |||||||||||||
Gross Margin |
40.9 | % | - | % | - | % | - | % | - | % | 40.9 | % | |||||||
Operating Expenses |
1,266,344 | - | 6,381 | - | - | 1,259,963 | |||||||||||||
Operating Expenses as % of Sales |
31.6 | % | - | % | (0.2 | )% | - | % | - | % | 31.4 | % | |||||||
Restructuring and Other Costs |
8,679 | 8,679 | - | - | - | - | |||||||||||||
Asset impairment and related charges |
43,664 | - | - | - | 43,664 | - | |||||||||||||
Income from Operations |
320,566 | (8,679 | ) | (6,381 | ) | - | (43,664 | ) | 379,290 | ||||||||||
Operating Margin |
8.0 | % | 0.2 | % | 0.2 | % | - | % | 1.1 | % | 9.5 | % | |||||||
Total Other Expense |
(28,521 | ) | - | - | 5,129 | - | (33,650 | ) | |||||||||||
Income before provision for income taxes |
292,045 | (8,679 | ) | (6,381 | ) | 5,129 | (43,664 | ) | 345,640 | ||||||||||
Provision for income taxes |
72,135 | (2,196 | ) | (1,614 | ) | 1,298 | (11,072 | ) | 85,719 | ||||||||||
Net income |
219,910 | (6,483 | ) | (4,767 | ) | 3,831 | (32,592 | ) | 259,921 | ||||||||||
Net loss attributable to noncontrolling interest |
(2,679 | ) | - | - | - | - | (2,679 | ) | |||||||||||
Net income attributable to MSC Industrial |
$ | 222,589 | $ | (6,483 | ) | $ | (4,767 | ) | $ | 3,831 | $ | (32,592 | ) | $ | 262,600 | ||||
Net income per common share: |
|||||||||||||||||||
Diluted |
$ | 3.98 | $ | (0.12 | ) | $ | (0.09 | ) | $ | 0.07 | $ | (0.58 | ) | $ | 4.69 | ||||
*Individual amounts may not agree to the total due to rounding
MSC INDUSTRIAL DIRECT CO., INC.
Reconciliation of GAAP and Non-GAAP Financial Information
Fiscal Quarters Ended August 29, 2026 and August 30, 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 | Share Reclassification Litigation Costs | Asset Impairments and Related Charges | Adjusted Total MSC Industrial | |||||||||||
Net Sales - quarter ended August 29, 2026 |
$ |
1,079,162 |
$ |
- |
$ |
- |
$ |
- |
$ |
1,079,162 |
|||||
Net Sales - quarter August 30, 2025 |
978,175 | - | - | - | 978,175 | ||||||||||
Income from Operations - quarter ended August 29, 2026 |
72,790 | (1,355 | ) | (1,841 | ) | (41,774 | ) | 117,760 | |||||||
Income from Operations - quarter ended August 30, 2025 |
84,302 | (4,569 | ) | (1,450 | ) | - | 90,321 | ||||||||
Incremental Operating Margin - quarter ended August 29, 2026 |
(11.4 | )% | (3.2 | )% | 0.4 | % | 41.4 | % | 27.2 | % | |||||
*Individual amounts may not agree to the total due to rounding.
MSC INDUSTRIAL DIRECT CO., INC.
Reconciliation of GAAP and Non-GAAP Financial Information
Fiscal Years Ended August 29, 2026 and August 30, 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 | Share Reclassification Litigation Costs | Asset Impairments and Related Charges | Loss on Sale of Property | Adjusted Total MSC Industrial | ||||||||||||||
Net Sales - year ended August 29, 2026 |
$ |
4,009,703 |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
4,009,703 |
|||||||
Net Sales - year ended August 30, 2025 |
3,769,521 | - | - | - | - | 3,769,521 | |||||||||||||
Income from Operations - year ended August 29, 2026 |
320,566 | (8,679 | ) | (6,381 | ) | (43,664 | ) | - | 379,290 | ||||||||||
Income from Operations - year ended August 30, 2025 |
301,563 | (10,999 | ) | (2,094 | ) | - | (1,167 | ) | 315,823 | ||||||||||
Incremental Operating Margin - year ended August 29, 2026 |
7.9 | % | (1.0 | )% | 1.8 | % | 18.2 | % | (0.5 | )% | 26.4 | % | |||||||
*Individual amounts may not agree to the total due to rounding.
MSC INDUSTRIAL DIRECT CO., INC.
Reconciliation of GAAP and Non-GAAP Financial Information
Fiscal Quarter Ended August 30, 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 | Share Reclassification Litigation Costs | Adjusted Total MSC Industrial | |||||||||||||
Net Sales |
$ | 978,175 | $ | - | $ | - | $ | 978,175 | ||||||||
Cost of Goods Sold |
583,196 | - | - | 583,196 | ||||||||||||
Gross Profit |
394,979 | - | - | 394,979 | ||||||||||||
Gross Margin |
40.4 | % | - | % | - | % | 40.4 | % | ||||||||
Operating Expenses |
306,108 | - | 1,450 | 304,658 | ||||||||||||
Operating Expenses as % of Sales |
31.3 | % | - | % | (0.1 | )% | 31.1 | % | ||||||||
Restructuring and Other Costs |
4,569 | 4,569 | - | - | ||||||||||||
Income from Operations |
84,302 | (4,569 | ) | (1,450 | ) | 90,321 | ||||||||||
Operating Margin |
8.6 | % | 0.5 | % | 0.1 | % | 9.2 | % | ||||||||
Total Other Expense |
(8,153 | ) | - | - | (8,153 | ) | ||||||||||
Income before provision for income taxes |
76,149 | (4,569 | ) | (1,450 | ) | 82,168 | ||||||||||
Provision for income taxes |
20,015 | (1,254 | ) | (399 | ) | 21,668 | ||||||||||
Net income |
56,134 | (3,315 | ) | (1,051 | ) | 60,500 | ||||||||||
Net loss attributable to noncontrolling interest |
(412 | ) | - | - | (412 | ) | ||||||||||
Net income attributable to MSC Industrial |
$ | 56,546 | $ | (3,315 | ) | $ | (1,051 | ) | $ | 60,912 | ||||||
Net income per common share: |
||||||||||||||||
Diluted |
$ | 1.01 | $ | (0.06 | ) | $ | (0.02 | ) | $ | 1.09 | ||||||
*Individual amounts may not agree to the total due to rounding.
MSC INDUSTRIAL DIRECT CO., INC.
Reconciliation of GAAP and Non-GAAP Financial Information
Fiscal Year Ended August 30, 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 | Loss on Sale of Property | Share Reclassification Litigation Costs | Adjusted Total MSC Industrial | ||||||||||||
Net Sales |
$ | 3,769,521 | $ | - | $ | - | $ | - | $ | 3,769,521 | ||||||
Cost of Goods Sold |
2,233,386 | - | - | - | 2,233,386 | |||||||||||
Gross Profit |
1,536,135 | - | - | - | 1,536,135 | |||||||||||
Gross Margin |
40.8 | % | - | % | - | % | - | % | 40.8 | % | ||||||
Operating Expenses |
1,223,573 | - | 1,167 | 2,094 | 1,220,312 | |||||||||||
Operating Expenses as % of Sales |
32.5 | % | - | % | 0.0 | % | (0.1 | )% | 32.4 | % | ||||||
Restructuring and Other Costs |
10,999 | 10,999 | - | - | - | |||||||||||
Income from Operations |
301,563 | (10,999 | ) | (1,167 | ) | (2,094 | ) | 315,823 | ||||||||
Operating Margin |
8.0 | % | 0.3 | % | 0.0 | % | 0.1 | % | 8.4 | % | ||||||
Total Other Expense |
(37,985 | ) | - | - | - | (37,985 | ) | |||||||||
Income before provision for income taxes |
263,578 | (10,999 | ) | (1,167 | ) | (2,094 | ) | 277,838 | ||||||||
Provision for income taxes |
65,742 | (2,781 | ) | (295 | ) | (530 | ) | 69,348 | ||||||||
Net income |
197,836 | (8,218 | ) | (872 | ) | (1,564 | ) | 208,490 | ||||||||
Net loss attributable to noncontrolling interest |
(1,492 | ) | - | - | - | (1,492 | ) | |||||||||
Net income attributable to MSC Industrial |
$ | 199,328 | $ | (8,218 | ) | $ | (872 | ) | $ | (1,564 | ) | $ | 209,982 | |||
Net income per common share: |
||||||||||||||||
Diluted |
$ | 3.57 | $ | (0.15 | ) | $ | (0.02 | ) | $ | (0.03 | ) | $ | 3.76 | |||
*Individual amounts may not agree to the total due to rounding.
SOURCE: MSC Industrial Direct Co.
View the original press release on ACCESS Newswire
