MSC INDUSTRIAL DIRECT CO (MSM) Company Report

Analyst Earnings Quarterly Reports

Earnings summaries and quarterly performance for MSC INDUSTRIAL DIRECT CO.

Analyst Coverage

Research analysts who have asked questions during MSC INDUSTRIAL DIRECT CO earnings calls.

David Manthey

Robert W. Baird & Co. Incorporated

9 questions for MSM

Also covers: AIT, BECN, BLDR +13 more

Patrick Baumann

JPMorgan Chase & Co.

8 questions for MSM

Also covers: ATS, CNM, FAST +5 more

Christopher Dankert

Loop Capital Markets

7 questions for MSM

Also covers: AIT, ATKR, BDC +10 more

Ryan Merkel

William Blair & Company

7 questions for MSM

Also covers: AAON, AYI, AZEK +15 more

Tommy Moll

Stephens Inc.

6 questions for MSM

Also covers: CARR, CGNX, DGII +12 more

Kenneth Newman

KeyBanc Capital Markets

5 questions for MSM

Also covers: AIT, BOOM, CGNX +10 more

Ryan Cooke

William Blair & Company

3 questions for MSM

Also covers: FAST, FERG, GWW

Thomas Moll

Stephens Inc.

3 questions for MSM

Also covers: CARR, CGNX, DGII +13 more

Chris Dankert

Loop Capital

2 questions for MSM

Also covers: AIT, ATKR, GWW +1 more

Ken Newman

KeyBanc

2 questions for MSM

Also covers: AIT, SYM, URI

Nigel Coe

Wolfe Research, LLC

2 questions for MSM

Also covers: AME, CARR, CNM +28 more

Stephen Volkmann

Jefferies

2 questions for MSM

Also covers: AGCO, CARR, CAT +21 more

Katie

KeyBanc Capital Markets

1 question for MSM

Also covers: LEGN

Katie Fleischer

KeyBanc Capital Markets

1 question for MSM

Also covers: CGNX, DSGR, EMR +3 more

Patrick Bowman

JPMorgan Chase & Co.

1 question for MSM

Latest news

Recent press releases and 8-K filings for MSM.

MSC Industrial Direct Co., Inc. Announces Q1 2026 Results and Q2 2026 Outlook

MSM

Earnings

Guidance Update

Share Buyback

MSC Industrial Direct Co., Inc. (MSM) reported adjusted diluted EPS of $0.99 for Q1 2026, representing a 15% increase year-over-year.
Average daily sales (ADS) grew 4% year-over-year in Q1 2026, driven by strength in Core Customers and a return to growth in National Accounts, which offset headwinds from a government shutdown.
The company achieved a gross margin of 40.7% and an adjusted operating margin of 8.4% in Q1 2026.
Approximately $62 million was returned to shareholders in Q1 2026 through dividends and share repurchases.
For Q2 2026, the company anticipates average daily sales (ADS) growth of 3.5% to 5.5% year-over-year and an adjusted operating margin between 7.3% and 7.9%.

Jan 7, 2026, 1:30 PM

Presentation

MSC Industrial Reports Q1 2026 Results and Provides Q2 and Full-Year 2026 Outlook

MSM

Earnings

Guidance Update

Demand Weakening

MSC Industrial reported Q1 2026 adjusted EPS of $0.99 and sales of approximately $966 million, which increased 4% year over year, driven by 4.2% from price, partially offset by 0.3% volume contraction due to a federal government shutdown.
The company's adjusted operating margin was 8.4% in Q1 2026, and it returned approximately $62 million to shareholders through dividends and share repurchases.
For Q2 2026, MSC Industrial anticipates average daily sales growth of 3.5%-5.5% year over year and an adjusted operating margin of 7.3% to 7.9%, with gross margins expected around 40.8%.
Management expects adjusted incremental operating margins to be approximately 20% for the full fiscal year 2026 under a mid-single-digit growth scenario, with full-year capital expenditures projected between $100 million and $110 million.
The company is experiencing significant inflation in metalworking, particularly tungsten, and plans to pass on mid to high single-digit price increases from suppliers starting in mid-January.

Jan 7, 2026, 1:30 PM

Transcript

MSM Reports Q1 2026 Results and Provides Q2 and Full-Year Outlook

MSM

Earnings

Guidance Update

Management Change

**MSM reported Q1 2026 adjusted EPS of $0.99, a 15% increase year over year, with average daily sales growing 4%. **
**Q1 2026 average daily sales growth was primarily driven by 4.2% from price, partially offset by a 0.3% volume contraction and a 100 basis point negative impact from a federal government shutdown. **
**For Q2 2026, the company anticipates average daily sales growth of 3.5%-5.5% year over year and an adjusted operating margin of 7.3%-7.9%. **
**MSM expects full fiscal year adjusted incremental operating margins of approximately 20% under a mid-single-digit growth scenario and approximately 90% free cash flow conversion. **
**The company is focused on optimizing its sales organization, strengthening supplier relationships through events like an inaugural growth forum, and is actively searching for a permanent CFO. **

Jan 7, 2026, 1:30 PM

Transcript

MSC Industrial Reports Q1 2026 Results and Provides Q2 and Full-Year Outlook

MSM

Earnings

Guidance Update

CEO Change

MSC Industrial reported Q1 2026 sales of $966 million, an increase of 4% year-over-year, driven by 4.2% price benefits partially offset by 0.3% volume contraction due to a federal government shutdown.
For Q1 2026, the company achieved an adjusted operating margin of 8.4% and adjusted EPS of $0.99, marking a 15% improvement year-over-year.
MSC Industrial anticipates Q2 2026 average daily sales growth of 3.5%-5.5% year-over-year, with an expected adjusted operating margin between 7.3% and 7.9%.
The company expects full fiscal year 2026 capital expenditures to be $100 million-$110 million and free cash flow conversion of approximately 90%.
New CEO Martina McIsaac highlighted strategic priorities including sales organization optimization, leveraging supplier partnerships, and managing inflation, with price increases expected in Q2 due to rising tungsten costs.

Jan 7, 2026, 1:30 PM

Transcript

MSC Industrial Direct Co. Inc. Reports Fiscal 2026 First Quarter Results and Provides Outlook

MSM

Earnings

Guidance Update

Revenue Acceleration/Inflection

MSC Industrial Direct Co. Inc. reported net sales of $965.7 million, a 4.0% year-over-year increase, and diluted EPS of $0.93 for the first quarter of fiscal 2026, which ended November 29, 2025.
The company's adjusted diluted EPS for Q1 2026 was $0.99, with an adjusted operating margin of 8.4%.
For the second quarter of fiscal 2026, the company expects average daily sales growth of 3.5% - 5.5% year-over-year and an adjusted operating margin of 7.3% - 7.9%.
The full-year fiscal 2026 outlook includes capital expenditures of ~$100 million - $110 million and a free cash flow conversion of ~90%.

Jan 7, 2026, 11:43 AM

8-K

MSC Industrial Direct Reports Fiscal Q1 Sales and EPS Beat

MSM

Earnings

Guidance Update

CEO Change

MSC Industrial Direct reported fiscal first-quarter sales of $965.7 million, marking a 4.0% year-over-year increase, and achieved an adjusted EPS of $0.99, which beat estimates by $0.04.
The company reiterated its FY26 financial framework, forecasting depreciation and amortization between $95–100 million and capital expenditures of $100–110 million.
Management anticipates Q2 daily sales growth of 3.5%–5.5% year-over-year.
New CEO Martina McIsaac is prioritizing the optimization of sales operations and improvements to customer experience.
MSC Industrial Direct demonstrates financial strength with an Altman Z-Score of 5.07, a current ratio of 1.68, and a debt-to-equity ratio of 0.39.

Jan 7, 2026, 11:39 AM

Morningstar

MSC Industrial Direct Reports Fiscal Year 2025 Financial Results and Outlines Strategic Initiatives

MSM

Earnings

Guidance Update

New Projects/Investments

MSC Industrial Direct (MSM), a leading value-add industrial distributor founded in 1941, operates in the highly fragmented North American industrial distribution market.
For the fiscal year ended August 30, 2025, the company reported Net Sales of $3,769,521 thousand, a GAAP Operating Margin of 8.0%, and Adjusted Diluted EPS of $3.76.
The company's "Next Chapter of Mission Critical" strategy targets long-term performance metrics including at least 400 bps of market outgrowth, incremental margins of ~20%, an adjusted operating margin in the mid-teens, and greater than 20% Return on Invested Capital (ROIC).
Key capital allocation priorities include ongoing Capex, bolt-on M&A, share repurchases to offset stock-based compensation dilution, and modest annual increases in ordinary dividends.

Jan 6, 2026, 12:00 PM

Presentation

MSM Discusses Business Transformation, Core Customer Growth, and Financial Targets at Stephens Conference

MSM

Management Change

Revenue Acceleration/Inflection

New Projects/Investments

MSC has transformed from a catalog house to a value-added service provider, focusing on inventory management solutions and technical product categories like metalworking, which constitutes approximately 45% of its business and represents just under 10% of the $15 billion to $20 billion North American market.
The company has successfully reinvigorated its core customer segment (around 55% of revenues) through strategic initiatives, resulting in 4% growth in Q4 (June-August) and continued improvement in September and October, following a period of decline.
MSM's implant program, offering on-site support, has seen significant growth, increasing from 287 locations at the beginning of the last fiscal year to 411. While these accounts have lower gross margins, they are "extremely sticky" and are expected to achieve operating margins at or above the company average by year three, with a potential runway in the thousands.
Despite a prolonged period of stabilization rather than strong recovery in the industrial demand environment, particularly in heavy manufacturing, MSM targets at least mid-teens operating margins (currently high single digits) and anticipates mid-single-digit revenue growth in fiscal 2026 to generate approximately 20% incremental margins.

Nov 18, 2025, 3:00 PM

Transcript

MSC Industrial Direct Discusses Leadership Transition and Strategic Initiatives

MSM

CEO Change

CFO Change

New Projects/Investments

Nov 18, 2025, 3:00 PM

Transcript

MSC Industrial Announces CEO Transition and Strategic Priorities

MSM

CEO Change

Revenue Acceleration/Inflection

New Projects/Investments

MSC Industrial (MSM) is undergoing a CEO transition, with Erik Gershwind moving to Vice Chair of the board and Martina McIsaac becoming the new CEO, the fifth in the company's history.
The company, an industrial distributor with revenues approaching $4 billion, reported a return to overall growth and growth in its core customer base in its fiscal fourth quarter (June, July, August) and continued momentum into the first two months of fiscal 2026.
Strategic priorities include maintaining momentum in high-touch solutions, investing in the core customer base (over half of revenues), and reducing cost to serve through supply chain optimization (targeting $10 million-$15 million in run rate savings) and sales model optimization.
MSC Industrial aims for an incremental margin on growth of approximately 20% at mid-single-digit revenues and prioritizes organic reinvestment and steady ordinary dividend growth (yield around 4%), while moderating share repurchases to maintain liquidity.