Msc Industrial Direct Company, Inc. · NYSE:MSM
Msc Industrial Direct — Q2 2025 Earnings Presentation
35 slides from Msc Industrial Direct's earnings presentation, Jun 15, 2025
Slide 1: Investor Presentation Fiscal 2025
MSC INDUSTRIAL SUPPLY CO. INVESTOR PRESENTATION FISCAL 2025
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: MSC Industrial Direct: Company Overview
MSC INDUSTRIAL DIRECT: COMPANY OVERVIEW MSC is a leading value-add industrial distributor offering products, services and solutions that enable its customers to achieve higher levels of growth, productivity, and profitability $3.8B 7% $1,350M+ ✓ Founded in 1941 and listed on NYSE (MSM) since 1995 To
Slide 4: Key MSC Investment Highlights
KEY MSC INVESTMENT HIGHLIGHTS Leader in the highly fragmented North American industrial distribution 1 market with significant opportunities for organic and acquisitive growth Value-added solutions approach focuses on addressing customer total cost of 2 ownership with highly technical expertise and
Slide 5: Highly Fragmented Industrial Distribution Market
HIGHLY FRAGMENTED INDUSTRIAL DISTRIBUTION MARKET The North American industrial distribution market is very large and highly fragmented both across the addressable market and the customer landscape Total Addressable Market Industrial Distribution Customer Landscape Company Size Customer Revenue The t
Slide 6: MSC's Position in the Market
MSC’S POSITION IN THE MARKET MSC’s target manufacturing market makes up about 50% of total addressable marketplace spend, making brand awareness and equity critical to attract and maintain customers Total Addressable Market MSC Fiscal Year 2023 Sales The top 50 distributors represent ~33% of the mar
Slide 7: MSC's Differentiator in the Market: Built to Make You Better
MSC’S DIFFERENTIATOR IN THE MARKET: BUILT TO MAKE YOU BETTER MSC’s value-added solutions approach focuses on addressing customer total cost of ownership with highly technical expertise across a broad portfolio of products and services Industry Model MSC Solutions Approach (Product Price Driven) (Tot
Slide 8: MSC Customer Care: Ensuring Customer Satisfaction
MSC CUSTOMER CARE: ENSURING CUSTOMER SATISFACTION Obsession with delivering personalized and effortless customer experiences that enable success, measured directly from our customers Customer Care Delivery Customer Care Center Satisfaction Levels MSC Other Contact Center Average High-Touch Technical
Slide 9: MSC Solutions: Turning Expertise and Data into Information and Savings
MSC SOLUTIONS: TURNING EXPERTISE AND DATA INTO INFORMATION AND SAVINGS MSC provides continuous improvement solutions for customers by combining technical expertise and data analytics, driving significant and documented customer cost savings Technical Solutions MSC MillMax® (Ap Op ) New Opportunity C
Slide 10: MSC Customer Value: True Stories. True Results.
MSC CUSTOMER VALUE: TRUE STORIES. TRUE RESULTS. $2.7 million ▼ Documentation program delivered ~$500 million in documented cost savings presented to: Annual Cost Savings MSC customers in Fiscal 2024 Paper Manufacturing Large paper manufacturer realizes savings through MSC’s broad across multiple US
Slide 11: Fiscal Year 2023 ESG Report Highlights
FISCAL YEAR 2023 ESG REPORT HIGHLIGHTS Striving For a BETTER World and BETTER Tomorrow >20K lbs 1.5K tons 80% Environment Carbide recycled since 2021 through Of corrugate packaging recycled at New recycling target across all major regrind services MSC CFC’s in FY’23 distribution centers Awards & Rec
Slide 12: Next Chapter of Mission Critical
THE NEXT CHAPTER OF MISSION CRITICAL IS EXPECTED TO GENERATE FAVORABLE RESULTS ACROSS THE BUSINESS OVER THE CYCLE Maintaining Momentum Performance Metrics Over the Cycle Extensive Digital Roadmap • Win in Metalworking • Drive Innovative Solutions • Expand Share of Wallet Across • Further Penetrate A
Slide 13: Track Record of Growth and Resilience
TRACK RECORD OF GROWTH AND RESILIENCE $4.5 50% $800 $4.0 $700 40% $3.5 $600 $3.0 $500 30% $2.5 $400 Millions Billions $2.0 20% $300 $1.5 $200 $1.0 10% $0.5 $100 $0.0 0% $0 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2023 2024 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Rev
Slide 14: 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 15: Fiscal Second Quarter 2025 Updates
FISCAL SECOND QUARTER 2025 UPDATES
Slide 16: Fiscal Second Quarter 2025 Reported and Adjusted Results
FISCAL SECOND QUARTER 2025 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* $935.3 $891.7 $388.6 $365.2 $97.8 $1.18 $91.2 $1.10 $62.2 $63.7 $0.72 42.
Slide 17: Fiscal Second Quarter 2025 Balance Sheet and Cash Flow
FISCAL SECOND QUARTER 2025 BALANCE SHEET AND CASH FLOW Free Cash Flow* (millions) Quarterly Year to Date $116.1 $53.4 $106.4 • Strong operating cash flow conversion** of 139% in the fiscal second quarter despite working capital investment primarily related to accelerated purchases $24.7 towards the
Slide 18: Strategically Creating Opportunities from Tariffs
STRATEGICALLY CREATING OPPORTUNITIES FROM TARIFFS BY LEVERAGING STRENGTHS LEVERAGING A STRONG QUALITY OFFERING OF MADE IN USA ~200k Made in USA Products Available & Ready to Ship PRODUCTS… Including ~40K Exclusive Brand Products EXCLUSIVE BRAND EXAMPLES DRIVING AWARENESS Social Media Marketing…. Abi
Slide 19: Enhancing Search Navigation with Table View
ENHANCING SEARCH NAVIGATION WITH TABLE VIEW Product Detail Page Saving Customers Time By Table View Helping Them Quickly Find and Compare Products… Easy to use “toggle” allows customers to quickly choose their preferred navigation view Critical attributes refined and moved to the top for customers t
Slide 20: Improving and Streamlining the Checkout Experience
IMPROVING AND STREAMLINING THE CHECKOUT EXPERIENCE CHECKOUT Revamped cart CART page layout Autofill and auto save capabilities Reduced clicks to purchase by ~50% Reduced checkout pages from 3 to 1 “I like the new checkout. Quicker and less screens to flip through. CUSTOMER FEEDBACK I just want to cl
Slide 21: Fiscal 3Q Expectations Reflect Improving ADS Trends
FISCAL 3Q EXPECTATIONS REFLECT IMPROVING ADS TRENDS COUPLED WITH TARIFF UNCERTAINTY Down 2.0% to Flat YoY 8.7% to 9.3% 3Q’25 OUTLOOK AVERAGE DAILY SALES (ADS) ADJUSTED OPERATING MARGIN*** ADS YoY TRENDS ASSUMPTIONS 3Q’24** 4Q’24** 1Q’25 2Q’25 3Q’25 • Preliminary March ADS includes a ~200 bps 5% (7)%
Slide 22: FY'25 Guidance Assumptions and Historical ADS Cadence
FY’25 GUIDANCE ASSUMPTIONS AND HISTORICAL ADS CADENCE FY’25 MODELING $90-$95M ~$45M $100-$110M*** ~100% 24.5%-25.0% Depreciation and Interest and Other Capital Free Cash Flow Tax ASSUMPTIONS Amortization Expense Expenditures Conversion* Rate AVERAGE DAILY SALES CADENCE 3Q’25 ADS Mid Point 2Q to 3Q 3
Slide 23: Key MSC Investment Highlights
KEY MSC INVESTMENT HIGHLIGHTS Leader in the highly fragmented North American industrial distribution 1 market with significant opportunities for organic and acquisitive growth Value-added solutions approach focuses on addressing customer total cost of 2 ownership with highly technical expertise and
Slide 24: Appendix
APPENDIX MSC
Slide 25: Taking Action to Return Growth Well Above Industrial Production
TAKING ACTION TO RETURN GROWTH WELL ABOVE INDUSTRIAL PRODUCTION MSC Total Organic Sales Growth 3-Month Average - IP Index* 20% MSC Total Growth (3 Mo Avg) IP Growth (3 Mo Avg) IP Index Performance YoY of 15% MSC’s Top 5 Industries 10% Industry Group 2Q’25 5% Machinery & Equipment 0.2% Primary Metals
Slide 26: 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 27: Reconciliations
RECONCILIATIONS Non-GAAP Financial Measures Results Excluding Restructuring and Other Costs, Share Reclassification Costs (prior year) and Acquisition-Related Costs (prior year) In calculating certain non-GAAP financial measures, we exclude restructuring and other costs, share reclassification costs
Slide 28: Reconciliations
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Slide 29: Reconciliations
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Slide 30: Reconciliations
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Slide 31: Reconciliations
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Slide 32: Reconciliations
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Slide 33: Reconciliations
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Slide 34: Reconciliations
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Slide 35: Thank You
THANK YOU
MSC Industrial Direct — Q2 2025 Earnings Presentation on 6ix