Msc Industrial Direct Company, Inc. · NYSE:MSM
Msc Industrial Direct — Q1 2026 Earnings Presentation
22 slides from Msc Industrial Direct's earnings presentation, Jan 7, 2026
Slide 1: Fiscal First Quarter 2026 Earnings
FISCAL FIRST QUARTER 2026 EARNINGS JANUARY 7, 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 First Quarter 2026 Highlights
FISCAL FIRST QUARTER 2026 HIGHLIGHTS 1 Average daily sales (“ADS”) up 4% YoY and at the midpoint of outlook as Core Customer strength and return to growth in National Accounts offset government shutdown headwinds that persisted through most of 1Q’26 2 Gross margin of 40.7% at the midpoint of outlook
Slide 4: Driving Growth and Sales Excellence in Direct Partnership with Our Supplier Community
DRIVING GROWTH AND SALES EXCELLENCE IN DIRECT PARTNERSHIP WITH OUR SUPPLIER COMMUNITY PLAN PARTNER GROW 3 Day ~1,400 Strongly Participated Industry-Leading Event MSC Associates Attending By Suppliers investor.mscdirect.com 4
Slide 5: ESG Highlights and Long-Term Sustainability Goals
ESG HIGHLIGHTS AND LONG-TERM SUSTAINABILITY GOALS Establishing Military Recognition long-term sustainability goals 119,651 Tools re-ground 15% 8,400 lbs Reduction in Scope 1 & 2 GHG emissions by 2030 Carbide recycled Military Partnerships investor.mscdirect.com 5
Slide 6: Encouraging Results in Fiscal 1Q as Progress Continues
ENCOURAGING RESULTS IN FISCAL 1Q AS PROGRESS CONTINUES Fiscal 1Q’26 4% 40.7% 8.4% 18% Highlights AVERAGE DAILY GROSS ADJUSTED ADJUSTED* INCREMENTAL SALES GROWTH MARGIN OPERATING MARGIN* OPERATING MARGIN** Core Customers and National Accounts Coverage and Solutions Public Sector Web and Marketing ADS
Slide 7: Performance Against Industrial Production Improving as Momentum Builds from Growth Initiatives
PERFORMANCE AGAINST INDUSTRIAL PRODUCTION IMPROVING AS MOMENTUM BUILDS FROM GROWTH INITIATIVES 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 1Q’26 5% Machinery &
Slide 8: Fiscal First Quarter 2026 Reported and Adjusted Results
FISCAL FIRST 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* $378.2 $392.7 $76.2 $81.2 $965.7 $72.3 $74.6 $0.99 $928.5 $0.93 $0.86 $0.8
Slide 9: Fiscal First Quarter 2026 Balance Sheet and Cash Flow
FISCAL FIRST QUARTER 2026 BALANCE SHEET AND CASH FLOW Free Cash Flow* (millions) $81.7 • Decrease in operating cash flow YoY primarily driven by investments in working capital due to the increase in sales resulting in operating cash flow conversion** of 58% $7.4 • Generated free cash flow conversion
Slide 10: Clear Capital Allocation Priorities
CLEAR CAPITAL ALLOCATION PRIORITIES Long-Term Priorities Dividends and Share Strategic Significant capital allocation optionality after deprioritizing special dividends; potential uses include organic growth investments, Repurchases Optionality strategic M&A, debt paydown, or further deployment to s
Slide 11: Second Quarter Expectations Reflect Continued Momentum Partially Offset by a Slow Start
SECOND QUARTER EXPECTATIONS REFLECT CONTINUED MOMENTUM BEING PARTIALLY OFFSET BY A SLOW START TO THE QUARTER Up 3.5% to 5.5% YoY 7.3% to 7.9% 2Q’26 OUTLOOK AVERAGE DAILY SALES (ADS) ADJUSTED OPERATING MARGIN* ADS YoY TRENDS ASSUMPTIONS Average Daily Sales 2Q’25 3Q’25 4Q’25 1Q’26 2Q’26 • Midpoint of
Slide 12: FY'26 Guided Metrics and Historical Sequential Average Daily Sales 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 13: Summary
SUMMARY 1 Average daily sales up 4% YoY and at the midpoint of outlook as Core Customer strength and return to growth in National Accounts offset government shutdown headwinds that persisted through most of 1Q’26 2 Gross margin of 40.7% at the midpoint of outlook as price/cost returned to expected l
Slide 14: Appendix
APPENDIX MSC
Slide 15: 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 16: Reconciliations
RECONCILIATIONS Non-GAAP Financial Measures Results Excluding Restructuring and Other Costs and Share Reclassification Litigation Costs In calculating certain non-GAAP financial measures, we exclude items such as restructuring and other costs and share reclassification litigation costs, and tax effe
Slide 17: Reconciliations
RECONCILIATIONS investor.mscdirect.com 17
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: Thank You
THANK YOU MSC
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