MSC Industrial Direct: Quarterly Results (FY25 Q4 Earnings Presentation 6981f470)

OCTOBER 23, 2025

1

Average daily sales returned to growth in 4Q'25 with improvement of 2.7% YoY driven by benefits from growth

initiatives and price but down 1.3% in FY'25, primarily due to softness in the first half of the fiscal year

2

Return to growth in Core and Other Customers with average daily sales up 4.1% YoY in 4Q'25 driven by

improving volumes and price

5

Free cash flow conversion* slightly ahead of target with free cash flow* of $241 million achieved in FY'25,

representing 122% of net income

3

Gross margin slightly below expectations but improving with 4Q'25 gross margin declining 60 bps as higher

cost inventories worked through P&L faster than anticipated

4

Reported and adjusted* operating margin down 90 bps and 70 bps YoY, respectively in 4Q'25 due to higher

operating expenses primarily due to increases in personnel and depreciation related costs, but above expectations

6

Repurchased approximately 496,000 shares in FY'25 and returned approximately $229 million to shareholders

during the fiscal year in the form of dividends and share repurchases

* Represents a non-GAAP financial measure. See appendix for non-GAAP reconciliations

investor.mscdirect.com 3

Net Sales

(millions)

Gross Profit

(millions and % of sales)

Operating Profit

(millions and % of sales)

Earnings

(per diluted share)

$952.3

$978.2

$390.6 $395.0

Reported Adjusted*

Reported Adjusted*

Q4 2024 Q4 2025

• Average daily sales ("ADS") growth of 2.7% primarily driven by benefits from price of 170 bps and improving volumes

• Public Sector up 9%, Core and Other Customers up 4%, and National Accounts down 1%

• Sales to customers with an In-Plant program up 11%, representing 20% of total sales

• Sales through vending machines up 10%, representing 19% of total sales

  Q4 2024 Q4 2025

• Gross margin down 60 bps YoY

• Relative to our outlook, gross margins were ~50 bps below the mid point with ~20 bps of the miss being attributed to mix and some other factors

• The remaining ~30 bps of the miss was driven by price/cost as the combination of the rapid surge in supplier price increases, compressed supplier notification periods, and greater mix of direct ship orders resulted in higher than anticipated cost realization

  9.5%

$94.2

$90.3

$90.9

$84.3

Q4 2024 Q4 2025 Q4 2024 Q4 2025

* Represents a non-GAAP financial measure. See appendix for non-GAAP reconciliations.

investor.mscdirect.com 4

MSC Total Organic Sales Growth

3-Month Average - IP Index

MSC Total Growth (3 Mo Avg)

IP Growth (3 Mo Avg)

15%

IP Index Performance YoY of

MSC's Top 5 Industries

10%

5%

0%

-5%

-10%

-15%

20%

-20%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

• Data as of September 16, 2025;

investor.mscdirect.com 5

Net Sales

(millions)

Gross Profit

(millions and % of sales)

Operating Profit

(millions and % of sales)

Earnings

(per diluted share)

$3,821.0 $3,769.5

$1,572.8 $1,536.1

Reported

Adjusted*

$407.2

$315.8

FY 2024 FY 2025

Reported

$4.58

$3.57

Adjusted*

$4.81

$3.76

FY 2024 FY 2025 FY 2024 FY 2025

$390.4

$301.6

FY 2024 FY 2025

• ADS decline of 1.3% driven by lower volumes and a 20 bps headwind from FX, partially offset by price of 60 bps and carryover benefits of acquisitions in the prior year of 50 bps

• Public Sector ADS up 8% while Core and Other Customers and National Accounts each experienced a decline of 2%

• Sales to customers with an In-Plant program up 10%, representing 19% of total sales

• Sales through vending machines up 6%, representing 19% of total sales

  FY 2024 FY 2025

• Gross margin down 40 bps primarily driven by negative price/cost and mix

• Acquisitions represented a ~10 bps headwind YoY

  FY 2024 FY 2025

  • Reported operating profit in FY'25 includes $11.0 million of restructuring and other costs, $1.2 million in loss on sale of property, and $2.1 million on share reclassification litigation costs

  • Reported operating profit in FY'24 includes $14.5 million of restructuring and other costs, $1.1 million of acquisition related costs, and $1.2 million of share reclassification costs

  • Operating margin down due to higher operating expenses YoY on lower levels of sales combined with carryover sales of lower margin acquisitions that occurred in the prior year

  • FY'25 reported EPS includes $0.15 of restructuring and other costs, $0.02 in loss on sale of property, and $0.03 of share reclassification litigation costs

  • FY'24 reported EPS includes $0.19 of restructuring and other costs, $0.03 of acquisition and share reclassification costs

  • Declines reflect lower volumes YoY on higher levels of operating expenses

  • Lower interest and other expenses, which includes FX revaluation, represent an adjusted EPS benefit of $0.12

    FISCAL FOURTH QUARTER 2025 BALANCE SHEET AND CASH FLOW

    Free Cash Flow* (millions)

    • Net debt down approximately $50 million as a result of lower debt levels and higher cash on hand

    • Maintaining a healthy balance sheet with net debt to EBITDA currently at 1.10x*

    • Target net debt to EBITDA ratio between 1.0x and 2.0x*

Quarterly Year to Date

$311.3

$240.9

$81.2

$58.5

Q4 2024 Q4 2025

FY 2024 FY 2025

Net Debt and Financial Leverage (millions, except ratio)

Net Debt Net Debt to EBITDA*

$429.5

$479.2

1.10x

1.02x

* Represents a non-GAAP financial measure. See appendix for non-GAAP reconciliations

Q4 2024 Q4 2025

Q4 2024 Q4 2025

** The Company defines Operating Cash Flow Conversion as Net cash provided by operating activities as a percentage of Net Income. The Company's management uses Operating Cash Flow Conversion to evaluate the Company's operating performance, in particular how efficiently the Company turns its sales and profits into cash, and to assess the efficiency of the Company's use of working capital. The Company believes Operating Cash Flow Conversion is useful to investors for the foregoing reasons and as a measure of the rate at which the Company converts its net income reported in accordance with GAAP to cash inflows, which helps investors assess whether the Company is generating sufficient cash flow to provide an adequate return

Long-Term Priorities

Core and Other Customers National Accounts Public Sector

ADS & IP QOQ TRENDS INDEXED TO 100

105

100

95

90

85

Core Customer ADS IP Index

1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25

105

100

95

90

85

National Accounts ADS IP Index

1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25

130

120

110

100

90

80

Public Sectors ADS IP Index

1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25

• Launched web enhancements and marketing campaign exiting fiscal 2Q'25

• Territory redesign completed in early 3Q'25

• Continuing to experience improving Core Customer ADS Trends with return to YoY growth in 4Q'25

Driving customer acquisition through disciplined sales execution while strengthening customer retention by delivering unmatched customer service and support…

investor.mscdirect.com 11

1Q'26 OUTLOOK

Up 3.5% to 4.5% YoY

AVERAGE DAILY SALES (ADS)

8.0% to 8.6%

ADJUSTED OPERATING MARGIN*

ADS YoY TRENDS

ASSUMPTIONS

10%

0%

1Q'25

(3)%

2Q'25

(5)%

3Q'25

(1)%

4Q'25

3%

1Q'26

QTD

5.1% 4%-5%

• ADS improvement reflects building momentum in growth initiatives combined with benefits from price

• Low end of the range assumes the government shutdown lasts through the remainder of 1Q'26 to reflect timing uncertainty

• Gross margin expected to improve from 4Q'25 levels and to be 40.7% +/- 20 bps

  (10)%

  Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Oct Nov

• Incremental depreciation and amortization, incentive compensation, marketing investments, and merit increases resulting in adjusted operating expenses* to step-up approximately $7M to $10M from 4Q'25 levels

*Represents a non-GAAP financial measure. See appendix for non-GAAP reconciliations

investor.mscdirect.com 12

FY'26 MODELING

$95-$100M ~$35M $100-$110M*** ~90% 24.5%-25.5%

ASSUMPTIONS

Depreciation and

Amortization

Interest and Other

Expense

Capital

Expenditures

Free Cash Flow

Conversion*

Tax

Rate

1Q'26 ADS Mid Point

AVERAGE DAILY SALES CADENCE

*Represents a non-GAAP financial measure. See appendix for non-GAAP reconciliations

**5-year historical ADS average (FY'21-FY'25)

*** Includes expenditures associated with cloud computing arrangements

investor.mscdirect.com 13

1

Average daily sales returned to growth in 4Q'25 with improvement of 2.7% YoY driven by benefits from growth

initiatives and price but down 1.3% in FY'25, primarily due to softness in the first half of the fiscal year

2

Return to growth in Core and Other Customers with average daily sales up 4.1% YoY in 4Q'25 driven by

improving volumes and price

3

Gross margin slightly below expectations but improving with 4Q'25 gross margin declining 60 bps as higher

cost inventories worked through P&L faster than anticipated

5

Free cash flow conversion* slightly ahead of target with free cash flow* of $241 million achieved in FY'25,

representing 122% of net income

4

Reported and adjusted* operating margin down 90 bps and 70 bps YoY, respectively in 4Q'25 due to higher

operating expenses primarily due to increases in personnel and depreciation related costs, but above expectations

6

Repurchased approximately 496,000 shares in FY'25 and returned approximately $229 million to shareholders

during the fiscal year in the form of dividends and share repurchases

* Represents a non-GAAP financial measure. See appendix for non-GAAP reconciliations

investor.mscdirect.com 14

APPENDIX

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 defined below), non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP provision for income taxes, non-GAAP net income and non-GAAP diluted earnings per share, that exclude items such as restructuring and other costs, loss on sale of property, share reclassification litigation costs, share reclassification costs (prior year) and acquisition-related costs (prior year), and tax effects, as well as free cash flow conversion, which is a measure calculated using free cash flow, which is a non-GAAP measure.

These non-GAAP financial measures are not presented in accordance with GAAP or alternatives for GAAP financial measures and may be different from similar non-GAAP financial measures used by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP financial measure and should only be used to evaluate MSC's results of operations in conjunction with the corresponding GAAP financial measure.

Financial data may also include certain forward-looking information that is not presented in accordance with GAAP. The Company believes that a quantitative reconciliation of such forward-looking information to the most directly comparable financial measures calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts because a reconciliation of these non-GAAP financial measures would require the Company to predict the timing and likelihood of potential future events such as restructurings, M&A activity, capital expenditures and other infrequent or unusual gains and losses. Neither the timing or likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward-looking information to the most directly comparable GAAP financial measure is not provided.

Free Cash Flow ("FCF") and Free Cash Flow Conversion ("FCF Conversion")

FCF is a non-GAAP financial measure. FCF is used in addition to and in conjunction with results presented in accordance with GAAP, and FCF should not be relied upon to the exclusion of GAAP financial measures. Management strongly encourages investors to review our financial statements and publicly-filed reports in their entirety and to not rely on any single financial measure. FCF, which we reconcile to "Net cash provided by operating activities," is cash flow from operations reduced by "Expenditures for property, plant and equipment". We believe that FCF, although similar to cash flow from operations, is a useful additional measure since capital expenditures are a necessary component of ongoing operations. Management also views FCF, as a measure of the Company's ability to reduce debt, add to cash balances, pay dividends, and repurchase stock. FCF has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures. For example, FCF does not incorporate payments made on finance lease obligations or required debt service payments. In addition, different companies define FCF differently.

Therefore, we believe it is important to view FCF as a complement to our entire consolidated statements of cash flows. FCF Conversion is useful to investors for the foregoing reasons and as a measure of the rate at which the Company converts its net income reported in accordance with GAAP to cash inflows, which helps investors assess whether the Company is generating sufficient cash flow to provide an adequate return.

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 exclude items such as restructuring and other costs, loss on sale of property, share reclassification litigation costs, share reclassification costs (prior year) and acquisition-related costs (prior year), and tax effects. Management makes these adjustments to facilitate a review of the Company's operating performance on a comparable basis between periods, for comparing with forecasts and strategic plans, for identifying and analyzing trends in the Company's underlying business and for benchmarking performance externally against competitors. We believe that investors benefit from seeing results from the perspective of management in addition to seeing results presented in accordance with GAAP for the same reasons and purposes for which management uses such non-GAAP financial measures.

Return on Invested Capital ("ROIC")

ROIC is calculated using a non-GAAP financial measure. We calculate ROIC by dividing non-GAAP net operating profit after tax ("NOPAT") by average invested capital, a GAAP measure. NOPAT is defined as tax effected income from operations. Average invested capital is defined as net debt plus shareholder's equity using a trailing 13-month average. We believe that ROIC is useful to investors as a measure of performance and of the effectiveness of the use of capital in our operations. We use ROIC as one measure to monitor and evaluate operating performance. This method of determining non-GAAP ROIC may differ from other companies' methods and therefore may not be comparable to those used by other companies. ROIC should be considered in addition to, rather than as a substitute for, other information provided in accordance with GAAP. The financial measure calculated under GAAP which is most directly comparable to ROIC is considered to be the ratio of Net income to Average invested capital. See below for the calculation of ROIC and the reconciliation to the comparable GAAP measure.

Net Debt to Earnings before Interest, Taxes, and Depreciation and Amortization ("EBITDA")

Net debt to EBITDA is calculated using a non-GAAP financial measure, EBITDA. The Company defines EBITDA as GAAP net income adjusted for taxes, total other expense and depreciation and amortization for the preceding 12 months. Net debt, a GAAP measure, is calculated as total debt less cash and cash equivalents. The Company presents net debt to EBITDA because it more clearly represents the operating profitability of the company and is a more accurate representation of the Company's financial position and its ability to cover its net debt obligations with results from its core operations. The Company's management uses net debt to EBITDA to evaluate the timeframe it would take to pay back its debt if net debt and EBITDA are held constant. The Company believes net debt to EBITDA is useful to investors for the foregoing reasons and as a measure of the rate at which the Company can cover its debts, which helps investors assess whether the Company has ability to grow its debt to support future growth initiatives. This method of determining non-GAAP EBITDA may differ from other companies' methods and therefore may not be comparable to those used by other companies. EBITDA should be considered in addition to, rather than as a substitute for, other information provided in accordance with GAAP.