MSC Industrial Supply Co. Reports Fiscal 2025 Fourth Quarter and Full Year Results

Rhea-AI Summary

MSC Industrial Supply (NYSE:MSM) reported fiscal 2025 Q4 and full-year results for the period ended August 30, 2025. Q4 net sales were $978.2M, up 2.7% YoY, and adjusted Q4 diluted EPS was $1.09, up 5.8% YoY. For FY25, net sales were $3,769.5M, down 1.3% YoY, and adjusted diluted EPS was $3.76, down 21.8% YoY. Adjusted operating margin was 9.2% in Q4 and 8.4% for FY25. The company reported operating cash flow conversion of 169% and free cash flow conversion of 122%, and returned approximately $229M to shareholders via dividends and buybacks. Q1 FY26 outlook: average daily sales up 3.5%–4.5% and adjusted operating margin 8.0%–8.6%.

Positive

• Q4 net sales +2.7% YoY to $978.2M
• Adjusted Q4 diluted EPS +5.8% to $1.09
• Operating cash flow conversion of 169% for FY25
• Free cash flow conversion of 122% for FY25
• Returned ~$229M to shareholders in FY25
• Q1 FY26 ADS guidance up 3.5%–4.5%

Negative

• FY25 net sales down 1.3% YoY to $3,769.5M
• FY25 adjusted diluted EPS down 21.8% to $3.76
• FY25 adjusted income from operations down 22.4%
• Adjusted operating margin contracted ~230 bps to 8.4% in FY25

Insights

Lead Analyst

Quarter showed returning top‑line momentum but fiscal year metrics fell and guidance is cautious; mixed financials signal neutral near‑term impact.

MSC reported $978.2 million in Q4 net sales, a 2.7% year‑over‑year increase, and adjusted diluted EPS of $1.09 (up 5.8% Y/Y for the quarter). The full fiscal year shows a 1.3% sales decline to $3,769.5 million and adjusted diluted EPS down about 21.8% to $3.76. Cash generation was strong, with free cash flow conversion of 122% for the year and ~$229 million returned to shareholders, which supports capital allocation flexibility.

The company’s business mechanism rests on restoring growth among its Core Customer and expanding higher‑margin, high‑touch solutions while tightening cost to serve; Q4 daily sales and adjusted margin beat outlooks, but full‑year operating margin compressed from 10.7% (adjusted FY24) to 8.4% (adjusted FY25). Key dependencies and risks include the pace of Core Customer reengagement, margin recovery to the mid‑teens target the company cites, and the durability of cash conversion; any reversal in daily sales trends or margin pressure would materially affect outcomes.

Watch the early fiscal 2026 signals: management guides first‑quarter ADS growth of 3.5% to 4.5% and adjusted operating margin of 8.0%–8.6%, with the next reporting date on January 7, 2026. Monitor quarterly ADS, adjusted operating margin, and free cash flow conversion against the company’s stated targets and the announced capital plan ($100M–$110M capex and ~24.5%–25.5% tax rate) for a clearer assessment of recovery vs. structural margin pressure.

FISCAL 2025 Q4 HIGHLIGHTS

• Net sales of $978.2 million increased 2.7% YoY

• Operating income of $84.3 million, or $90.3 million on an adjusted basis¹

• Operating margin of 8.6%, or 9.2% on an adjusted basis¹

• Diluted EPS of $1.01 vs. $0.99 in the prior fiscal year quarter

• Adjusted diluted EPS of $1.09 vs. $1.03 in the prior fiscal year quarter¹

FISCAL 2025 HIGHLIGHTS

• Net sales of $3,769.5 million decreased 1.3% YoY

• Operating income of $301.6 million, or $315.8 million on an adjusted basis ¹

• Operating margin of 8.0%, or 8.4% on an adjusted basis¹

• Diluted EPS of $3.57 vs. $4.58 in the prior fiscal year

• Adjusted diluted EPS of $3.76 vs. $4.81 in the prior fiscal year¹

• Generated operating cash flow conversion of 169% and free cash flow conversion¹ of 122% of net income

MELVILLE, NY AND DAVIDSON, NC / ACCESS Newswire / October 23, 2025 / MSC INDUSTRIAL SUPPLY CO. (NYSE:MSM), ("MSC", "MSC Industrial", or the "Company," "we", "us", or "our") a leading North American distributor of a broad range of metalworking and maintenance, repair and operations ("MRO") products and services, today reported financial results for its fiscal 2025 fourth quarter and full year ended August 30, 2025.

Financial Highlights2		FY25 Q4				FY24 Q4				Change				FY25				FY24				Change
Net Sales		$	978.2			$	952.3				2.7	%		$	3,769.5			$	3,821.0				(1.3)	%
Income from Operations		$	84.3			$	90.9				(7.3)	%		$	301.6			$	390.4				(22.8 0	%
Operating Margin			8.6	%			9.5	%							8.0	%			10.2	%
Net Income Attributable to MSC		$	56.5			$	55.7				1.4	%		$	199.3			$	258.6				(22.9)	%
Diluted EPS		$	1.01	3		$	0.99	4			2.0	%		$	3.57	3		$	4.58	4			(22.1)	%
Adjusted Financial Highlights2		FY25 Q4				FY24 Q4				Change				FY25				FY24				Change
Net Sales		$	978.2			$	952.3				2.7	%		$	3,769.5			$	3,821.0				(1.3)	%
Adjusted Income from Operations 1		$	90.3			$	94.2				(4.1)	%		$	315.8			$	407.2				(22.4)	%
Adjusted Operating Margin 1			9.2	%			9.9	%							8.4	%			10.7	%
Adjusted Net Income Attributable to MSC 1		$	60.9			$	58.1				4.8	%		$	210.0			$	271.3				(22.6)	%
Adjusted Diluted EPS 1		$	1.09	3		$	1.03	4			5.8	%		$	3.76	3		$	4.81	4			(21.8)	%

1 Represents a non-GAAP financial measure. An explanation and a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure are presented in the schedules accompanying this press release.

2 In millions except percentages and per share data or as otherwise noted.

3 Based on 55.9 million weighted-average diluted shares outstanding for FY25 Q4 and FY25.

4 Based on 56.2 million and 56.4 million weighted-average diluted shares outstanding for FY24 Q4 and FY24, respectively.

Erik Gershwind, Chief Executive Officer, said, "Our fourth quarter results are evidence of the progress we are making through our Mission Critical strategy. We entered the year with three focus areas- maintain momentum in our high touch solutions, reenergize our core customer and optimize our cost to serve. As a result of execution in each of these priorities, we returned to daily sales growth in the fiscal fourth quarter for both the Core Customer and the total company. In fact, the Core Customer growth rate outpaced company average. We also returned to growth in earnings per share, with adjusted EPS in the quarter improving over 5% year over year. I am grateful for the hard work and dedication of our team members this year in supporting our goals."

Greg Clark, Interim Chief Financial Officer, added, "We finished the year on a positive note with average daily sales improving 2.7% compared to the prior year and adjusted operating margin of 9.2% both of which exceeded our outlook. Cash generation remained favorable during the quarter resulting in free cash flow conversion of 122% for the fiscal year, ahead of our annual target. We leveraged this strong cash flow performance and our healthy balance sheet to return approximately $229 million to shareholders in the form of dividends and share repurchases."

Martina McIsaac, President and Chief Operating Officer, concluded, "Looking out, I am encouraged by our performance exiting the fiscal year. As momentum builds, I gain increased confidence in our position to deliver profitable growth in fiscal 2026. We will continue advancing our growth initiatives and identifying areas to generate productivity, both of which are creating a strong foundation for future profitable growth. Our goal remains simple - to restore performance consistent with our long-term objectives of growing to 400 basis points or more above the IP Index and expanding adjusted operating margins to the mid-teens."

First Quarter Fiscal 2026 Financial Outlook
ADS Growth (YoY)	Up 3.5% to 4.5%
Adjusted Operating Margin1	8.0% - 8.6%

Full-Year Fiscal 2026 Outlook for Certain Financial Metrics

• Depreciation and amortization expense of ~$95M-$100M

• Interest and other expense of ~$35M

• Capital expenditures of ~$100M-$110M

• Free cash flow conversion¹ of ~90%

• Tax rate of ~24.5%-25.5%

⁽¹⁾ Guidance provided is a non-GAAP figure presented on an adjusted basis. For further details see the Non-GAAP financial measures information presented in the schedules accompanying this press release.

Conference Call Information

MSC will host a conference call today at 8:30 a.m. EDT to review the Company's fiscal 2025 fourth quarter and full year results. The call, accompanying slides, and other operational statistics may be accessed at: https://investor.mscdirect.com. The conference call may also be accessed at 1-888-506-0062 (U.S.) or 1-973-528-0011 (international) and providing the access code 420327.

An online archive of the broadcast will be available until November 6, 2025. The Company's reporting date for the fiscal 2026 first quarter is scheduled for January 7, 2026.

Contact Information
Investors:	Media:
Ryan Mills, CFA	Leah Kelso
Head of Investor Relations	VP, Communications and Sales Enablement
Rmills@mscdirect.com	Leah.Kelso@mscdirect.com

About MSC Industrial Supply Co.

MSC Industrial Supply Co. (NYSE:MSM) is a leading North American distributor of a broad range of metalworking and maintenance, repair and operations (MRO) products and services. We help our customers drive greater productivity, profitability and growth with approximately 2.5 million products, inventory management and other supply chain solutions, and deep expertise from more than 80 years of working with customers across industries. Our experienced team of more than 7,000 associates works with our customers to help drive results for their businesses - from keeping operations running efficiently today to continuously rethinking, retooling and optimizing for a more productive tomorrow. For more information on MSC Industrial, please visit mscdirect.com.

Cautionary Note Regarding Forward-Looking Statements:

Statements in this press release 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 developments that MSC expects, believes or anticipates will or may occur in the future, including statements about results of operations and financial condition, expected future results, expected benefits from our investment and strategic plans and other initiatives, and expected future growth and profitability, are forward-looking statements. The words "will," "may," "believes," "anticipates," "thinks," "expects," "estimates," "plans," "intends" and similar expressions are intended to identify forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. In addition, statements which refer to expectations, projections or other characterizations of future events or circumstances, statements involving a discussion of strategy, plans or intentions, statements about management's assumptions, projections or predictions of future events or market outlook and any other statement other than a statement of present or historical fact are forward-looking statements. The inclusion of any statement in this press release does not constitute an admission by MSC or any other person that the events or circumstances described in such statement are material. In addition, new risks may emerge from time to time and it is not possible for management to predict such risks or to assess the impact of such risks on our business or financial results. Accordingly, future results may differ materially from historical results or from those discussed or implied by these forward-looking statements. Given these risks and uncertainties, the reader should not place undue reliance on these forward-looking statements. These risks and uncertainties include, but are not limited to, the following: general economic conditions in the markets in which we operate; changing customer and product mixes; volatility in commodity, energy and labor prices, and the impact of prolonged periods of low, high or rapid inflation; competition, including the adoption by competitors of aggressive pricing strategies or sales methods; industry consolidation and other changes in the industrial distribution sector; the applicability of laws and regulations relating to our status as a supplier to the U.S. government and public sector; the credit risk of our customers; our ability to accurately forecast customer demands; interruptions in our ability to make deliveries to customers; supply chain disruptions; our ability to attract and retain sales and customer service personnel; the risk of loss of key suppliers or contractors or key brands; changes to trade policies or trade relationships, including tariff policies; risks associated with opening or expanding our customer fulfillment centers; our ability to estimate the cost of healthcare claims incurred under our self-insurance plan; interruption of operations at our headquarters or customer fulfillment centers; products liability due to the nature of the products that we sell; impairments of goodwill and other indefinite-lived intangible assets; the impact of climate change; operating and financial restrictions imposed by the terms of our material debt instruments; our ability to access additional liquidity; the significant influence that our principal shareholders will continue to have over our decisions; our ability to execute on our E-commerce strategies and maintain our digital platforms; costs associated with maintaining our information technology ("IT") systems and complying with data privacy laws; disruptions or breaches of our IT systems or violations of data privacy laws, including such disruptions or breaches in connection with our E-commerce channels; risks related to online payment methods and other online transactions; our ability to remediate a material weakness in our internal control over financial reporting and to maintain effective internal control over financial reporting and our disclosure controls and procedures in the future; the retention of key management personnel; litigation risk due to the nature of our business; failure to comply with environmental, health, and safety laws and regulations; and our ability to comply with, and the costs associated with, social and environmental responsibility policies. Additional information concerning these and other risks is described under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual and Quarterly Reports on Forms 10-K and 10-Q, respectively, and in the other reports and documents that we file with the United States Securities and Exchange Commission. We expressly disclaim any obligation to update any of these forward-looking statements, except to the extent required by applicable law.

MSC INDUSTRIAL DIRECT CO., INC.
Consolidated Balance Sheets
(In thousands)

		August 30, 2025				August 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents		$	56,228			$	29,588
Accounts receivable, net of allowance for credit losses			423,306				412,122
Inventories			644,090				643,904
Prepaid expenses and other current assets			102,930				102,475
Total current assets			1,226,554				1,188,089
Property, plant and equipment, net			346,706				360,255
Goodwill			723,702				723,894
Identifiable intangibles, net			85,455				101,147
Operating lease assets			52,464				58,649
Other assets			27,183				30,279
Total assets		$	2,462,064			$	2,462,313
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of debt including obligations under finance leases		$	316,868			$	229,911
Current portion of operating lease liabilities			22,236				21,941
Accounts payable			225,150				205,933
Accrued expenses and other current liabilities			165,092				147,642
Total current liabilities			729,346				605,427
Long-term debt including obligations under finance leases			168,831				278,853
Noncurrent operating lease liabilities			30,872				37,468
Deferred income taxes and tax uncertainties			136,513				139,283
Total liabilities		$	1,065,562			$	1,061,031
Commitments and Contingencies
Shareholders' Equity:
MSC Industrial Shareholders' Equity:
Preferred Stock			-				-
Class A Common Stock			57				57
Additional paid-in capital			1,093,630				1,070,269
Retained earnings			432,622				456,850
Accumulated other comprehensive loss			(20,736	)			(21,144	)
Class A treasury stock, at cost			(117,363	)			(114,235	)
Total MSC shareholders' equity			1,388,210				1,391,797
Noncontrolling interest			8,292				9,485
Total shareholders' equity			1,396,502				1,401,282
Total liabilities and shareholders' equity		$	2,462,064			$	2,462,313

MSC INDUSTRIAL DIRECT CO., INC.
Consolidated Statements of Income
(In thousands, except per share data)

		(Unaudited)
		Fiscal Quarters Ended								Fiscal Years Ended
		August 30, 2025				August 31, 2024				August 30, 2025				August 31, 2024
Net sales		$	978,175			$	952,284			$	3,769,521			$	3,820,951
Cost of goods sold			583,196				561,676				2,233,386				2,248,168
Gross profit			394,979				390,608				1,536,135				1,572,783
Operating expenses			306,108				297,011				1,223,573				1,167,870
Restructuring and other costs			4,569				2,739				10,999				14,526
Income from operations			84,302				90,858				301,563				390,387
Other income (expense):
Interest expense			(5,731	)			(6,615	)			(24,063	)			(25,770	)
Interest income			188				110				1,130				412
Other income (expense), net			(2,610	)			(8,213	)			(15,052	)			(22,280	)
Total other expense			(8,153	)			(14,718	)			(37,985	)			(47,638	)
Income before provision for income taxes			76,149				76,140				263,578				342,749
Provision for income taxes			20,015				22,188				65,742				86,792
Net income			56,134				53,952				197,836				255,957
Less: Net loss attributable to noncontrolling interest			(412	)			(1,740	)			(1,492	)			(2,637	)
Net income attributable to MSC Industrial		$	56,546			$	55,692			$	199,328			$	258,594
Per share data attributable to MSC Industrial:
Net income per common share:
Basic		$	1.01			$	0.99			$	3.57			$	4.60
Diluted		$	1.01			$	0.99			$	3.57			$	4.58
Weighted average shares used in computing net income per common share:
Basic			55,739				56,061				55,781				56,257
Diluted			55,890				56,223				55,894				56,441

MSC INDUSTRIAL DIRECT CO., INC.
Consolidated Statements of Comprehensive Income
(In thousands)

		Fiscal Years Ended
		August 30, 2025				August 31, 2024
Net income, as reported		$	197,836			$	255,957
Other comprehensive income, net of tax:
Foreign currency translation adjustments			707				(4,715	)
Comprehensive income			198,543				251,242
Comprehensive income attributable to noncontrolling interest:
Net loss			1,492				2,637
Foreign currency translation adjustments			(299	)			1,296
Comprehensive income attributable to MSC Industrial		$	199,736			$	255,175

MSC INDUSTRIAL DIRECT CO., INC.
Consolidated Statements of Cash Flows
(In thousands)

		Fiscal Years Ended
		August 30, 2025				August 31, 2024
Cash Flows from Operating Activities:
Net income		$	197,836			$	255,957
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			90,627				80,886
Amortization of cloud computing arrangements			1,790				1,988
Non-cash operating lease cost			24,472				22,973
Stock-based compensation			12,551				18,848
Loss on disposal of property, plant and equipment			790				687
Loss on sale of property			1,167				-
Non-cash changes in fair value of estimated contingent consideration			293				906
Provision for credit losses			7,495				7,355
Expenditures for cloud computing arrangements			(4,688	)			(20,282	)
Deferred income taxes and tax uncertainties			(2,925	)			9,706
Changes in operating assets and liabilities, net of amounts associated with business acquired:
Accounts receivable			(17,742	)			18,846
Inventories			1,719				85,098
Prepaid expenses and other current assets			482				2,027
Operating lease liabilities			(23,819	)			(23,383	)
Other assets			350				3,149
Accounts payable and accrued liabilities			43,319				(54,065	)
Total adjustments			135,881				154,739
Net cash provided by operating activities			333,717				410,696
Cash Flows from Investing Activities:
Expenditures for property, plant and equipment			(92,840	)			(99,406	)
Cash used in acquisitions, net of cash acquired			(790	)			(23,990	)
Net proceeds from sale of property			30,336				-
Net cash used in investing activities			(63,294	)			(123,396	)
Cash Flows from Financing Activities:
Repurchases of Class A Common Stock			(39,317	)			(187,695	)
Payments of regular cash dividends			(189,650	)			(187,280	)
Proceeds from sale of Class A Common Stock in connection with associate stock purchase plan			4,253				4,426
Proceeds from exercise of Class A Common Stock options			8,123				9,587
Borrowings under credit facilities			253,498				434,500
Payments under credit facilities			(254,998	)			(381,000	)
Payments under Shelf Facility Agreements and Private Placement Debt			(20,000	)			(50,000	)
Proceeds from other long-term debt			-				50,000
Contingent consideration paid			(3,500	)			-
Payments on finance lease and financing obligations			(1,512	)			(3,625	)
Other, net			(469	)			3,735
Net cash used in financing activities			(243,572	)			(307,352	)
Effect of foreign exchange rate changes on cash and cash equivalents			(211	)			(412	)
Net increase (decrease) in cash and cash equivalents			26,640				(20,464	)
Cash and cash equivalents-beginning of period			29,588				50,052
Cash and cash equivalents-end of period		$	56,228			$	29,588
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes		$	60,284			$	79,088
Cash paid for interest		$	23,891			$	24,721

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 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 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 an alternative 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.

This press release also includes 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 measure 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. A reconciliation of cash provided by operating activities to FCF, operating cash flow conversion and FCF conversion for the fiscal quarters and years ended August 30, 2025 and August 31, 2024, respectively, is shown below.

• 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 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 comparison 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.

MSC INDUSTRIAL DIRECT CO., INC.

Reconciliation of GAAP and Non-GAAP Financial Information

Fiscal Quarters and Years Ended August 30, 2025 and August 31, 2024

(dollars in thousands, except percentages)

		Fiscal Quarters Ended								Fiscal Years Ended
		August 30, 2025				August 31, 2024				August 30, 2025				August 31, 2024
(a) Net cash provided by operating activities		$	80,256			$	107,263			$	333,717			$	410,696
(b) Expenditures for property, plant and equipment		$	(21,731	)		$	(26,052	)		$	(92,840	)		$	(99,406	)
(a-b) = (c) Free cash flow		$	58,525			$	81,211			$	240,877			$	311,290
(d) Net income		$	56,134			$	53,952			$	197,836			$	255,957
(a)/(d) Operating cash flow conversion			143	%			199	%			169	%			160	%
(c)/(d) Free cash flow conversion			104	%			151	%			122	%			122	%

MSC INDUSTRIAL DIRECT CO., INC.

Reconciliation of GAAP and Non-GAAP Financial Information

Fiscal Quarter Ended August 30, 2025

(In thousands, except percentages and per share data)

		GAAP Financial Measure				Items Affecting Comparability								Non-GAAP Financial Measure
		Total MSC Industrial				Restructuring and Other Costs				Share Reclassification Litigation Costs				Adjusted Total MSC Industrial
Net Sales		$	978,175			$	-			$	-			$	978,175
Cost of Goods Sold			583,196				-				-				583,196
Gross Profit			394,979				-				-				394,979
Gross Margin			40.4	%			-	%			-	%			40.4	%
Operating Expenses			306,108				-				1,450				304,658
Operating Expenses as % of Sales			31.3	%			-	%			(0.1	) %			31.1	%
Restructuring and Other Costs			4,569				4,569				-				-
Income from Operations			84,302				(4,569	)			(1,450	)			90,321
Operating Margin			8.6	%			0.5	%			0.1	%			9.2	%
Total Other Expense			(8,153	)			-				-				(8,153	)
Income before provision for income taxes			76,149				(4,569	)			(1,450	)			82,168
Provision for income taxes			20,015				(1,254	)			(399	)			21,668
Net income			56,134				(3,315	)			(1,051	)			60,500
Net loss attributable to noncontrolling interest			(412	)			-				-				(412	)
Net income attributable to MSC Industrial		$	56,546			$	(3,315	)		$	(1,051	)		$	60,912
Net income per common share:
Diluted		$	1.01			$	(0.06	)		$	(0.02	)		$	1.09

*Individual amounts may not agree to the total due to rounding.

MSC INDUSTRIAL DIRECT CO., INC.

Reconciliation of GAAP and Non-GAAP Financial Information

Fiscal Year Ended August 30, 2025

(In thousands, except percentages and per share data)

		GAAP Financial Measure				Items Affecting Comparability												Non-GAAP Financial Measure
		Total MSC Industrial				Restructuring and Other Costs				Loss on Sale of Property				Share Reclassification Litigation Costs				Adjusted Total MSC Industrial
Net Sales		$	3,769,521			$	-			$	-			$	-			$	3,769,521
Cost of Goods Sold			2,233,386				-				-				-				2,233,386
Gross Profit			1,536,135				-				-				-				1,536,135
Gross Margin			40.8	%			-	%			-	%			-	%			40.8	%
Operating Expenses			1,223,573				-				1,167				2,094				1,220,312
Operating Expenses as % of Sales			32.5	%			-	%			0.0	%			(0.1	) %			32.4	%
Restructuring and Other Costs			10,999				10,999				-				-				-
Income from Operations			301,563				(10,999	)			(1,167	)			(2,094	)			315,823
Operating Margin			8.0	%			0.3	%			0.0	%			0.1	%			8.4	%
Total Other Expense			(37,985	)			-				-				-				(37,985	)
Income before provision for income taxes			263,578				(10,999	)			(1,167	)			(2,094	)			277,838
Provision for income taxes			65,742				(2,781	)			(295	)			(530	)			69,348
Net income			197,836				(8,218	)			(872	)			(1,564	)			208,490
Net loss attributable to noncontrolling interest			(1,492	)			-				-				-				(1,492	)
Net income attributable to MSC Industrial		$	199,328			$	(8,218	)		$	(872	)		$	(1,564	)		$	209,982
Net income per common share:
Diluted		$	3.57			$	(0.15	)		$	(0.02	)		$	(0.03	)		$	3.76

*Individual amounts may not agree to the total due to rounding.

MSC INDUSTRIAL DIRECT CO., INC.

Reconciliation of GAAP and Non-GAAP Financial Information

Fiscal Quarter Ended August 31, 2024

(In thousands, except percentages and per share data)

		GAAP Financial Measure				Items Affecting Comparability								Non-GAAP Financial Measure
		Total MSC Industrial				Restructuring and Other Costs				Acquisition-related Costs				Adjusted Total MSC Industrial
Net Sales		$	952,284			$	-			$	-			$	952,284
Cost of Goods Sold			561,676				-				-				561,676
Gross Profit			390,608				-				-				390,608
Gross Margin			41.0	%			-	%			-	%			41.0	%
Operating Expenses			297,011				-				614				296,397
Operating Expenses as % of Sales			31.2	%			-	%			(0.1	) %			31.1	%
Restructuring and Other Costs			2,739				2,739				-				-
Income from Operations			90,858				(2,739	)			(614	)			94,211
Operating Margin			9.5	%			0.3	%			0.1	%			9.9	%
Total Other Expense			(14,718	)			-				-				(14,718	)
Income before provision for income taxes			76,140				(2,739	)			(614	)			79,493
Provision for income taxes			22,188				(797	)			(179	)			23,164
Net income			53,952				(1,942	)			(435	)			56,329
Net loss attributable to noncontrolling interest			(1,740	)			-				-				(1,740	)
Net income attributable to MSC Industrial		$	55,692			$	(1,942	)		$	(435	)		$	58,069
Net income per common share:
Diluted		$	0.99			$	(0.03	)		$	(0.01	)		$	1.03

*Individual amounts may not agree to the total due to rounding.

MSC INDUSTRIAL DIRECT CO., INC.

Reconciliation of GAAP and Non-GAAP Financial Information

Fiscal Year Ended August 31, 2024

(In thousands, except percentages and per share data)

		GAAP Financial Measure				Items Affecting Comparability												Non-GAAP Financial Measure
		Total MSC Industrial				Restructuring and Other Costs				Acquisition-related Costs				Share Reclassification Costs				Adjusted Total MSC Industrial
Net Sales		$	3,820,951			$	-			$	-			$	-			$	3,820,951
Cost of Goods Sold			2,248,168				-				-				-				2,248,168
Gross Profit			1,572,783				-				-				-				1,572,783
Gross Margin			41.2	%			-	%			-	%			-	%			41.2	%
Operating Expenses			1,167,870				-				1,079				1,187				1,165,604
Operating Expenses as % of Sales			30.6	%			-	%			0.0	%			0.0	%			30.5	%
Restructuring and Other Costs			14,526				14,526				-				-				-
Income from Operations			390,387				(14,526	)			(1,079	)			(1,187	)			407,179
Operating Margin			10.2	%			0.4	%			0.0	%			0.0	%			10.7	%
Total Other Expense			(47,638	)			-				-				-				(47,638	)
Income before provision for income taxes			342,749				(14,526	)			(1,079	)			(1,187	)			359,541
Provision for income taxes			86,792				(3,577	)			(266	)			(293	)			90,928
Net income			255,957				(10,949	)			(813	)			(894	)			268,613
Net income attributable to noncontrolling interest			(2,637	)			-				-				-				(2,637	)
Net income attributable to MSC Industrial		$	258,594			$	(10,949	)		$	(813	)		$	(894	)		$	271,250
Net income per common share:
Diluted		$	4.58			$	(0.19	)		$	(0.01	)		$	(0.02	)		$	4.81

*Individual amounts may not agree to the total due to rounding.

SOURCE: MSC Industrial Direct Co.

View the original press release on ACCESS Newswire

FAQ

What were MSC (MSM) fiscal 2025 Q4 net sales and YoY change?

Q4 net sales were $978.2M, an increase of 2.7% year‑over‑year.

How did MSC (MSM) report adjusted diluted EPS for fiscal 2025 Q4 and FY25?

Adjusted diluted EPS was $1.09 in Q4 (up 5.8% YoY) and $3.76 for FY25 (down 21.8% YoY).

What cash generation metrics did MSC (MSM) report for fiscal 2025?

MSC reported operating cash flow conversion of 169% and free cash flow conversion of 122% for FY25.

How much did MSC (MSM) return to shareholders in fiscal 2025?

The company returned approximately $229 million via dividends and share repurchases in FY25.

What is MSC (MSM) first‑quarter fiscal 2026 sales and margin guidance?

Q1 FY26 guidance calls for average daily sales growth of 3.5%–4.5% and adjusted operating margin of 8.0%–8.6%.

What material margin changes did MSC (MSM) report for fiscal 2025?

Adjusted operating margin declined to 8.4% for FY25 from 10.7% the prior year (≈230 basis points lower).