Msc Industrial Direct Company, Inc. · NYSE:MSM
Msc Industrial Direct — Q3 2025 Earnings Presentation
21 slides from Msc Industrial Direct's earnings presentation, Jul 1, 2025
Slide 1: Fiscal Third Quarter 2025 Earnings
FISCAL THIRD QUARTER 2025 EARNINGS JULY 1, 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: Fiscal Third Quarter 2025 Highlights
FISCAL THIRD QUARTER 2025 HIGHLIGHTS 1 Average daily sales down 0.8% YoY but above historical sequential averages with 7% QoQ improvement 2 Improving YoY trends in Core and Other Customer average daily sales along with 8% QoQ growth 3 Gross margin of 41.0% up 10 bps YoY and flat sequentially primari
Slide 4: Performance Against Industrial Production Improving as Growth Initiatives Show Early Signs
PERFORMANCE AGAINST INDUSTRIAL PRODUCTION IMPROVING AS GROWTH INITIATIVES SHOW EARLY ENCOURAGING SIGNS 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 3Q’25 5% Ma
Slide 5: Navigating Tariff Impacts
NAVIGATING TARIFF IMPACTS Canada < 3% China ~10% COGS BY COUNTRY Rest of OF ORIGIN World Mexico USA Europe > 50% ~10% < 25% < 3% MITIGATION GOALS MADE IN USA • Confident in ability to manage impacts • Stocked and ready to ship items o Working closely with suppliers and customers o ADS up LSD YoY vs.
Slide 6: Fiscal Third Quarter 2025 Reported and Adjusted Results
FISCAL THIRD 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* $106.8 $111.5 $1.33 $971.1 $400.4 $397.7 $1.27 $979.4 $1.08 $82.7 $87.2 $1
Slide 7: Fiscal Third Quarter 2025 Balance Sheet and Cash Flow
FISCAL THIRD QUARTER 2025 BALANCE SHEET AND CASH FLOW Free Cash Flow* (millions) Quarterly Year to Date $230.1 $114.0 • Strong operating cash flow conversion** of ~170% in $182.4 the fiscal third quarter despite a step up in accounts $76.0 receivable from higher sales and slightly higher inventories
Slide 8: 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 9: Fiscal 4Q Expectations Reflect Expected Benefits from Price and Growth Initiatives
FISCAL 4Q EXPECTATIONS REFLECT EXPECTED BENEFITS FROM PRICE AND GROWTH INITIATIVES COUPLED WITH MACRO UNCERTAINTY (0.5)% to 1.5% YoY 8.5% to 9.0% 4Q’25 OUTLOOK AVERAGE DAILY SALES (ADS) ADJUSTED OPERATING MARGIN**** 4Q’25 OUTLOOK ADS YoY TRENDS ASSUMPTIONS 4Q’24** 1Q’25 2Q’25 3Q’25 4Q’25 • ADS expec
Slide 10: Summary
SUMMARY 1 Average daily sales down 0.8% YoY but above historical sequential averages with 7% QoQ improvement 2 Improving YoY trends in Core and Other Customer average daily sales along with 8% QoQ growth 3 Gross margin of 41.0% up 10 bps YoY and flat sequentially primarily driven by favorable price/
Slide 11: Appendix
APPENDIX MSC
Slide 12: Reconciliations: Non-GAAP Financial Measures
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 13: Reconciliations: Non-GAAP Financial Measures
RECONCILIATIONS Non-GAAP Financial Measures Results Excluding Restructuring and Other Costs, Loss on Sale of Property, Share Reclassification Litigation Costs, Share Reclassification Costs (prior year) and Acquisition-Related Costs (prior year) In calculating certain non-GAAP financial measures, we
Slide 14: Reconciliations
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Slide 15: Reconciliations
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Slide 16: Reconciliations
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Slide 17: Reconciliations
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Slide 18: Reconciliations
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Slide 19: Reconciliations
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Slide 20: Reconciliations
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Slide 21: Thank You
THANK YOU
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