Msc Industrial Direct Company, Inc. · NYSE:MSM
Msc Industrial Direct — Q2 2025 Earnings Presentation
24 slides from Msc Industrial Direct's earnings presentation, Apr 3, 2025
Slide 1: Fiscal Second Quarter 2025 Earnings
FISCAL SECOND QUARTER 2025 EARNINGS APRIL 3, 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 Second Quarter 2025 Highlights
FISCAL SECOND QUARTER 2025 HIGHLIGHTS 1 Average daily sales down 4.7% YoY primarily driven by low levels of industrial demand and greater holiday shutdown activity around calendar year-end but within the 2Q’25 outlook range 2 Maintaining momentum in solutions with the number of vending machines in s
Slide 4: 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 5: Improving and Streamlining the Checkout Experience
IMPROVING AND STREAMLINING THE CHECKOUT EXPERIENCE CART CHECKOUT Revamped 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 6: 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 7: Strategically Creating Opportunities from Tariffs by Leveraging Strengths
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 8: 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 9: 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 10: 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 11: Fiscal 3Q Expectations Reflect Improving ADS Trends Coupled with Tariff Uncertainty
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 12: 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 13: Summary
SUMMARY 1 Average daily sales down 4.7% YoY primarily driven by low levels of industrial demand and greater holiday shutdown activity around calendar year-end but within the 2Q’25 outlook range 2 Maintaining momentum in solutions with the number of vending machines in service and In-Plant programs u
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, 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 17: Reconciliations
RECONCILIATIONS investor.mscdirect.com 17
Slide 18: Reconciliations
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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
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Slide 23: Reconciliations
RECONCILIATIONS investor.mscdirect.com 23
Slide 24: Thank You
THANK YOU MSC
MSC Industrial Direct Company — Q2 2025 Earnings Presentation on 6ix