Msc Industrial Direct Company, Inc. · NYSE:MSM
Msc Industrial Direct — Q2 2026 Earnings Presentation
23 slides from Msc Industrial Direct's earnings presentation, Apr 1, 2026
Slide 1: Fiscal Second Quarter 2026 Earnings
FISCAL SECOND QUARTER 2026 EARNINGS APRIL 1, 2026
Slide 2: Cautionary Note Regarding Forward-Looking Statements
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Statements in this presentation 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 develop
Slide 3: Fiscal Second Quarter 2026 Highlights
FISCAL SECOND QUARTER 2026 HIGHLIGHTS 1 Average daily sales (“ADS”) up 2.9% YoY but below the quarterly outlook range despite continued mid-single digit growth in Core Customer ADS 2 Gross margin of 41.1% was above expectations and primarily driven by benefits from price/cost and customer mix 3 Repo
Slide 4: Growth Forum '26
GROWTH FORUM ‘26 Over 1,000 MSC reps and 400 Suppliers Structured more than 3,000 pre-scheduled meetings to discuss whitespace overlap and joint growth opportunities Identified close to $500M in combined near- term and long-term growth opportunities “We now use this experience to judge all trade sho
Slide 5: Making Progress on Inventory Metrics and Supply Chain Costs
MAKING PROGRESS ON INVENTORY METRICS AND SUPPLY CHAIN COSTS BUT MORE TO BE DONE Inventory Metrics Supply Chain Headcount Supply Chain Expenses Inventory Turns* % Change Compensation Expense YoY % Change 3.5x 3.4x 3.3x 3.2x 3.2x FY'22 FY'23 FY'24 FY'25 2Q'26 Inventory Days** 114.1 114.1 110.6 107.4 1
Slide 6: Performance Against IP Expected to Improve
PERFORMANCE AGAINST IP EXPECTED TO IMPROVE AS INITIATIVES BEGIN TO DRIVE BETTER VOLUME PERFORMANCE MSC Total Organic Sales Growth 3-Month Average - IP Index 20% MSC Total Growth (3 Mo Avg) IP Growth (3 Mo Avg) 15% IP Index Performance YoY of MSC’s Top 5 Industries 10% Industry Group 2Q’26 5% Machine
Slide 7: Fiscal Second Quarter 2026 Reported and Adjusted Results
FISCAL SECOND QUARTER 2026 REPORTED AND ADJUSTED RESULTS Net Sales Gross Profit Operating Profit Earnings (millions) (millions and % of sales) (millions and % of sales) (per diluted share) Reported Adjusted* Reported Adjusted* $377.6 $64.8 $69.1 $62.2 $0.82 $917.8 $365.2 $63.7 $0.76 $891.7 41.1% 7.1
Slide 8: Fiscal Second Quarter 2026 Balance Sheet and Cash Flow
FISCAL SECOND QUARTER 2026 BALANCE SHEET AND CASH FLOW Free Cash Flow* (millions) Quarterly Year to Date $106.4 $73.1 • Strong operating cashflow conversion** of 224% in $80.5 fiscal 2Q’26 and partly driven by benefits from amended A/R securitization during the quarter • Generated free cash flow con
Slide 9: Clear Capital Allocation Priorities
CLEAR CAPITAL ALLOCATION PRIORITIES Long-Term Priorities Significant capital allocation optionality after deprioritizing special Dividends and Share Strategic dividends; potential uses include organic growth investments, Repurchases Optionality strategic M&A, debt paydown, or further deployment to s
Slide 10: Third Quarter Expectations
THIRD QUARTER EXPECTATIONS REFLECT BENEFITS FROM PRICE AND VOLUMES PERFORMING BETTER YOY COMPARED TO 2Q LEVELS Up 5% to 7% YoY 9.7% to 10.3% 3Q’26 OUTLOOK AVERAGE DAILY SALES (ADS) ADJUSTED OPERATING MARGIN* ADS YoY TRENDS ASSUMPTIONS Average Daily Sales 3Q’25 4Q’25 1Q’26 2Q’26 3Q’26 • Headwind of 1
Slide 11: FY'26 Guided Metrics and Historical Sequential ADS Trends
FY’26 GUIDED METRICS AND HISTORICAL SEQUENTIAL AVERAGE DAILY SALES TRENDS WITH CONSIDERATIONS FY’26 MODELING $95-$100M ~$35M $100-$110M*** ~90% 24.5%-25.5% Depreciation and Interest and Other Capital Free Cash Flow Tax ASSUMPTIONS Amortization Expense Expenditures Conversion* Rate AVERAGE DAILY SALE
Slide 12: Summary
SUMMARY 1 Average daily sales (“ADS”) up 2.9% YoY but below the quarterly outlook range despite continued mid-single digit growth in Core Customer ADS 2 Gross margin of 41.1% was above expectations and primarily driven by benefits from price/cost and customer mix 3 Reported and adjusted* operating m
Slide 13: Appendix
APPENDIX MSC
Slide 14: Reconciliations
RECONCILIATIONS 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 return on invested capital (as defi
Slide 15: Reconciliations
RECONCILIATIONS Non-GAAP Financial Measures 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, propert
Slide 16: Reconciliations
RECONCILIATIONS investor.mscdirect.com 16
Slide 17: Reconciliations
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Slide 18: Reconciliations
RECONCILIATIONS investor.mscdirect.com 18
Slide 19: Reconciliations
RECONCILIATIONS investor.mscdirect.com 19
Slide 20: Reconciliations
RECONCILIATIONS investor.mscdirect.com 20
Slide 21: Reconciliations
RECONCILIATIONS investor.mscdirect.com 21
Slide 22: Reconciliations
RECONCILIATIONS investor.mscdirect.com 22
Slide 23: Thank You
THANK YOU
MSC Industrial Direct Company — Q2 2026 Earnings Presentation on 6ix