MSC Industrial Q4 EPS falls 15.8% as sales rise

Fiscal 2027 first-quarter outlook calls for 9.5% to 10.5% average daily sales growth and a 9.5% to 10.1% adjusted operating margin.

Rhea-AI Filing Summary

MSC Industrial Direct Co., Inc. (MSM) reported fiscal 2026 fourth-quarter and full-year results for periods ended August 29, 2026. Fourth-quarter net sales rose 10.3% to $1,079.2 million, while GAAP operating income declined 13.6% to $72.8 million and diluted EPS fell 15.8% to $0.85. Adjusted operating income was $117.8 million, up 30.5%, and adjusted diluted EPS was $1.45, up 33.0%; the reconciliation excludes $41.8 million of asset impairment and related charges, among other adjustments.

For the full year, net sales increased 6.4% to $4,009.7 million, GAAP operating income rose 6.3% to $320.6 million, and diluted EPS grew 11.5% to $3.98. Net cash provided by operating activities was $306.5 million, compared with $333.7 million in fiscal 2025; operating cash flow conversion was 139%, and free cash flow conversion was 102%. MSC's fiscal 2027 first-quarter outlook is average daily sales growth of 9.5% to 10.5% and adjusted operating margin of 9.5% to 10.1%. Full-year outlook includes capital expenditures of approximately $90 million to $100 million and free cash flow conversion of approximately 80% to 90%.

3 points · 0 major

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 2 points

How the balance works

Positive

• Moderate pointFiscal 2026 net sales rose 6.4% to $4,009.7 million.
• Moderate pointFiscal 2026 adjusted diluted EPS increased 24.7% to $4.69.
• Moderate pointFiscal 2026 Q4 adjusted diluted EPS rose 33.0% to $1.45.

Negative

• Moderate pointFiscal 2026 Q4 GAAP diluted EPS fell 15.8% to $0.85.
• Moderate pointOperating cash flow declined to $306.5 million from $333.7 million.

Filing Explained

At August 29, 2026, MSC reported $65,028 thousand in cash and cash equivalents, compared with $56,228 thousand at the prior year-end; current debt including finance leases was $317,191 thousand and long-term debt including finance leases was $159,756 thousand.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Net sales: $1,079.2 million GAAP operating income: $72.8 million Diluted EPS: $0.85 per share +5 more

8 metrics

Net sales $1,079.2 million Fiscal 2026 Q4; up 10.3% year over year

GAAP operating income $72.8 million Fiscal 2026 Q4; down 13.6% year over year

Diluted EPS $0.85 per share Fiscal 2026 Q4; down 15.8% year over year

Adjusted diluted EPS $1.45 per share Fiscal 2026 Q4; up 33.0% year over year

Net sales $4,009.7 million Fiscal 2026; up 6.4% year over year

Adjusted diluted EPS $4.69 per share Fiscal 2026; up 24.7% year over year

Net cash provided by operating activities $306.5 million Fiscal 2026; compared with $333.7 million in fiscal 2025

Average daily sales growth 9.5% to 10.5% Fiscal 2027 first-quarter outlook

Key Terms

Average daily sales, Adjusted operating margin, Operating cash flow conversion, Free cash flow conversion, +1 more

5 terms

Average daily sales financial

"8.6% on an average daily sales basis"

The average daily sales is the typical amount of sales a company makes per day over a chosen period, calculated by dividing total sales (in dollars or units) by the number of days in that period. Investors use it like checking a car's average speed to judge momentum: it smooths out one-off spikes or drops to show underlying demand, revenue run-rate and short-term cash flow trends, helping spot whether business activity is growing, steady or fading.

Adjusted operating margin financial

"Adjusted Operating Margin 1"

Adjusted operating margin shows how much profit a company makes from its core business activities, after removing unusual or one-time costs and income. It helps investors see the company's true profitability by providing a clearer picture, similar to removing unexpected expenses to understand the regular performance. This metric is useful for comparing companies or tracking performance over time, as it highlights consistent earning power.

Operating cash flow conversion financial

"Operating Cash Flow Conversion as Net cash provided by operating activities"

Operating cash flow conversion measures how much of a company’s reported profit actually turns into cash collected from its regular business activities, usually shown as a percentage. It matters to investors because cash is what pays bills, funds growth, and supports dividends or debt repayment; a high conversion rate is like getting paid and having money hit your bank account, while a low rate can signal that reported profits aren’t producing usable cash and may be less reliable.

Free cash flow conversion financial

"Free cash flow conversion of ~80%-90%"

Free cash flow conversion measures how effectively a company turns its reported profits into actual cash that can be used for growth, debt repayment, or dividends. It compares the cash generated after expenses to the company's net income, similar to how a person might compare their savings to their paycheck. High conversion indicates the company is efficient at translating profits into cash, which is important for investors assessing its financial health and flexibility.

Asset impairment and related charges financial

"Asset impairment and related charges"

Earnings Snapshot

Q4 net sales: $1,079.2 million · Guidance included

Fiscal 2026 fourth quarter and full year ended August 29, 2026

Q4 net sales $1,079.2 million up 10.3% year over year

Q4 income from operations $72.8 million down 13.6% year over year

Q4 diluted EPS $0.85 per share down 15.8% year over year

Q4 adjusted diluted EPS $1.45 per share up 33.0% year over year

Full-year net sales $4,009.7 million up 6.4% year over year

Full-year diluted EPS $3.98 per share up 11.5% year over year

Guidance

Fiscal 2027 first-quarter outlook: average daily sales growth of 9.5% to 10.5% and adjusted operating margin of 9.5% to 10.1%. Full-year outlook: depreciation and amortization expense of approximately $100 million to $105 million, interest and other expense of approximately $40 million to $45 million, capital expenditures of approximately $90 million to $100 million, free cash flow conversion of approximately 80% to 90%, and an effective tax rate of approximately 24.5% to 25.5%.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did MSM report in fiscal 2026 fourth-quarter sales?

MSC Industrial reported net sales of $1,079.2 million for fiscal 2026 Q4, up 10.3% year over year and 8.6% on an average daily sales basis.

What was MSM's adjusted diluted EPS in fiscal 2026?

Adjusted diluted EPS was $1.45 in fiscal 2026 Q4, compared with $1.09 a year earlier; for fiscal 2026, it was $4.69, compared with $3.76 in fiscal 2025.

What is MSM's fiscal 2027 outlook?

For fiscal 2027 Q1, MSC projected average daily sales growth of 9.5% to 10.5% and adjusted operating margin of 9.5% to 10.1%. Full-year outlook includes depreciation and amortization expense of approximately $100 million to $105 million, interest and other expense of approximately $40 million to $45 million, capital expenditures of approximately $90 million to $100 million, free cash flow conversion of approximately 80% to 90%, and an effective tax rate of approximately 24.5% to 25.5%.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 10/22/2026 - 07:13 AM EDT Accepted by SEC EDGAR 10/22/2026 - 07:13 AM EDT Learn about SEC filing dates

0001003078FALSE00010030782026-10-222026-10-22

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________

FORM 8-K

___________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 22, 2026

___________________________________

MSC INDUSTRIAL DIRECT CO., INC.

(Exact name of registrant as specified in its charter)

___________________________________

New York			1-14130			11-3289165
(State or other jurisdiction of incorporation)			(Commission File Number)			(IRS Employer Identification No.)

515 Broadhollow Road, Suite 1000, Melville, New York			11747
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (516) 812-2000

Not Applicable

(Former name or former address, if changed since last report)

___________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Class A Common Stock, par value $0.001 per share			MSM			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company    ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

On October 22, 2026, MSC Industrial Direct Co., Inc. issued a press release announcing financial results for its fiscal 2026 fourth quarter and full year ended August 29, 2026. A copy of the press release is furnished with this report as Exhibit 99.1.

The information in this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits:

99.1						Press Release, dated October 22, 2026. issued by MSC Industrial Direct Co., Inc.
104						Cover Page Interactive Data File (embedded within the Inline XBRL documents).

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

						MSC INDUSTRIAL DIRECT CO., INC.
Date:			October 22, 2026			By:			/s/ ROBERT KUHNS
						Name:			Robert Kuhns
						Title:			Executive Vice President and Chief Financial Officer

3

						Exhibit 99.1
						NEWS

MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2026 FOURTH QUARTER AND FULL YEAR RESULTS

FISCAL 2026 Q4 HIGHLIGHTS

•Net sales of $1,079.2 million increased 10.3% YoY (8.6% on an average daily sales basis)

•Operating income of $72.8 million, or $117.8 million on an adjusted basis1

•Operating margin of 6.7%, or 10.9% on an adjusted basis1

•Diluted EPS of $0.85 vs. $1.01 in the prior fiscal year quarter

•Adjusted diluted EPS of $1.45 vs. $1.09 in the prior fiscal year quarter1

FISCAL 2026 HIGHLIGHTS

•Net sales of $4,009.7 million increased 6.4% YoY (6.0% on an average daily sales basis)

•Operating income of $320.6 million, or $379.3 million on an adjusted basis1

•Operating margin of 8.0%, or 9.5% on an adjusted basis1

•Diluted EPS of $3.98 vs. $3.57 in the prior fiscal year

•Adjusted diluted EPS of $4.69 vs. $3.76 in the prior fiscal year1

•Generated operating cash flow conversion2 of 139% and free cash flow conversion1 of 102% of net income

MELVILLE, N.Y. and DAVIDSON, N.C. (OCTOBER 22, 2026) - 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 2026 fourth quarter and full year ended August 29, 2026.

Financial Highlights3						FY26 Q4						FY25 Q4						Change						FY26						FY25						Change
Net Sales						$	1,079.2					$	978.2					10.3		%				$	4,009.7					$	3,769.5					6.4		%
Income from Operations						$	72.8					$	84.3					(13.6)		%				$	320.6					$	301.6					6.3		%
Operating Margin						6.7		%				8.6		%										8.0		%				8.0		%
Net Income Attributable to MSC						$	47.9					$	56.5					(15.2)		%				$	222.6					$	199.3					11.7		%
Diluted EPS						$	0.85		4			$	1.01		5			(15.8)		%				$	3.98		4			$	3.57		5			11.5		%
Adjusted Financial Highlights3						FY26 Q4						FY25 Q4						Change						FY26						FY25						Change
Net Sales						$	1,079.2					$	978.2					10.3		%				$	4,009.7					$	3,769.5					6.4		%
Adjusted Income from Operations 1						$	117.8					$	90.3					30.5		%				$	379.3					$	315.8					20.1		%
Adjusted Operating Margin 1						10.9		%				9.2		%										9.5		%				8.4		%
Adjusted Net Income Attributable to MSC 1						$	81.5					$	60.9					33.8		%				$	262.6					$	210.0					25.0		%
Adjusted Diluted EPS 1						$	1.45		4			$	1.09		5			33.0		%				$	4.69		4			$	3.76		5			24.7		%

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 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.

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

4 Based on 56.1 million and 56.0 million weighted-average diluted shares outstanding for FY26 Q4 and FY26, respectively.

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

Martina McIsaac, President and Chief Executive Officer, said, "We had a strong finish to fiscal 2026, with fourth quarter results exceeding our expectations and sales achieving record quarterly levels. Underpinning this performance was core customer growth of approximately 10%—our strongest in more than three years—and accelerating growth in National Accounts. These results provide further evidence that MSC is heading in the right direction, and that the changes we have made to drive profitable growth are taking hold.”

MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2026 FOURTH QUARTER AND FULL YEAR RESULTS 2

Rob Kuhns, Executive Vice President and Chief Financial Officer, added, "Average daily sales exceeded the high end of our guided range, driven by price benefits and stronger volumes that yielded year-over-year improvement of 8.6%. Further progress on our cost structure, combined with this better-than-expected growth, led to an adjusted operating margin of 10.9%—exceeding the high end of our outlook—and an adjusted incremental operating margin of roughly 27%.”

McIsaac concluded, "While we remain mindful of inflationary headwinds and tougher comparisons looking ahead, we are confident that profitable growth will remain the trend. Our strategic execution is building momentum as our end markets continue to improve. This positions MSC well entering fiscal 2027, as demonstrated by first-quarter sales trends showing low double-digit growth to date."

First Quarter Fiscal 2027 Financial Outlook
ADS Growth (YoY)			9.5% to 10.5%
Adjusted Operating Margin1			9.5% to 10.1%

Full-Year Fiscal 2027 Outlook for Certain Financial Metrics

•Depreciation and amortization expense of ~$100M-$105M

•Interest and other expense of ~$40M-$45M

•Capital expenditures of ~$90M-$100M

•Free cash flow conversion1 of ~80%-90%

•Effective tax rate of ~24.5%-25.5%

(1) Guidance provided is a non-GAAP financial measure 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 2026 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 287054.

An online archive of the broadcast will be available until November 5, 2026. The Company’s reporting date for the fiscal 2027 first quarter is scheduled for January 6, 2027.

Contact Information
Investors:			Media:
Ryan Mills, CFA			Leah Kelso
VP, Investor Relations & Business Development			VP, Communications & 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, maintenance, repair and operations (MRO), and production fastener and hardware products and services. With approximately 2.5 million products, industry‑leading inventory management and supply chain solutions, and more than 80 years of experience, we help customers improve productivity, profitability, and operational performance.

Our team of over 7,000 associates partners closely with customers across industries to keep their operations running efficiently today while enabling them with insights and comprehensive solutions to continually rethink, retool, and optimize 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,”

MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2026 FOURTH QUARTER AND FULL YEAR RESULTS 3

“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; 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 SUPPLY CO. REPORTS FISCAL 2026 FOURTH QUARTER AND FULL YEAR RESULTS 4

MSC INDUSTRIAL DIRECT CO., INC.

Consolidated Balance Sheets

(In thousands)

			August 29, 2026						August 30, 2025
ASSETS
Current Assets:
Cash and cash equivalents			$	65,028					$	56,228
Accounts receivable, net of allowance for credit losses			451,550						423,306
Inventories			688,738						644,090
Prepaid expenses and other current assets			114,097						102,930
Total current assets			1,319,413						1,226,554
Property, plant and equipment, net			339,023						346,706
Goodwill			723,977						723,702
Identifiable intangibles, net			69,919						85,455
Operating lease assets			50,761						52,464
Other assets			5,922						27,183
Total assets			$	2,509,015					$	2,462,064
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Current portion of debt including obligations under finance leases			$	317,191					$	316,868
Current portion of operating lease liabilities			23,642						22,236
Accounts payable			237,978						225,150
Accrued expenses and other current liabilities			161,475						165,092
Total current liabilities			740,286						729,346
Long-term debt including obligations under finance leases			159,756						168,831
Noncurrent operating lease liabilities			27,605						30,872
Deferred income taxes and tax uncertainties			142,101						136,513
Other noncurrent liabilities			13,560						—
Total liabilities			$	1,083,308					$	1,065,562
Commitments and Contingencies
Shareholders’ Equity:
MSC Industrial Shareholders’ Equity:
Preferred Stock			—						—
Class A Common Stock			57						57
Additional paid-in capital			1,114,507						1,093,630
Retained earnings			450,238						432,622
Accumulated other comprehensive loss			(19,641)						(20,736)
Class A treasury stock, at cost			(119,454)						(117,363)
Total MSC Industrial shareholders’ equity			1,425,707						1,388,210
Noncontrolling interest			—						8,292
Total shareholders’ equity			1,425,707						1,396,502
Total liabilities and shareholders’ equity			$	2,509,015					$	2,462,064

MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2026 FOURTH QUARTER AND FULL YEAR RESULTS 5

MSC INDUSTRIAL DIRECT CO., INC.

Consolidated Statements of Income

(In thousands, except per share data)

			(Unaudited)
			Fiscal Quarters Ended												Fiscal Years Ended
			August 29, 2026						August 30, 2025						August 29, 2026						August 30, 2025
Net sales			$	1,079,162					$	978,175					$	4,009,703					$	3,769,521
Cost of goods sold			640,579						583,196						2,370,450						2,233,386
Gross profit			438,583						394,979						1,639,253						1,536,135
Operating expenses			322,664						306,108						1,266,344						1,223,573
Restructuring and other costs			1,355						4,569						8,679						10,999
Asset impairment and related charges			41,774						—						43,664						—
Income from operations			72,790						84,302						320,566						301,563
Other income (expense):
Interest expense			(5,329)						(5,731)						(21,715)						(24,063)
Interest income			375						188						936						1,130
Other expense, net			(3,567)						(2,610)						(7,742)						(15,052)
Total other expense			(8,521)						(8,153)						(28,521)						(37,985)
Income before provision for income taxes			64,269						76,149						292,045						263,578
Provision for income taxes			16,330						20,015						72,135						65,742
Net income			47,939						56,134						219,910						197,836
Less: Net loss attributable to noncontrolling interest			—						(412)						(2,679)						(1,492)
Net income attributable to MSC Industrial			$	47,939					$	56,546					$	222,589					$	199,328
Per share data attributable to MSC Industrial:
Net income per common share:
Basic			$	0.86					$	1.01					$	3.99					$	3.57
Diluted			$	0.85					$	1.01					$	3.98					$	3.57
Weighted average shares used in computing     net income per common share:
Basic			55,848						55,739						55,825						55,781
Diluted			56,095						55,890						55,990						55,894

MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2026 FOURTH QUARTER AND FULL YEAR RESULTS 6

MSC INDUSTRIAL DIRECT CO., INC.

Consolidated Statements of Comprehensive Income

(In thousands)

			(Unaudited)
			Fiscal Quarters Ended												Fiscal Years Ended
			August 29, 2026						August 30, 2025						August 29, 2026						August 30, 2025
Net income, as reported			$	47,939					$	56,134					$	219,910					$	197,836
Other comprehensive income, net of tax:
Foreign currency translation adjustments			(113)						1,161						1,444						707
Comprehensive income			47,826						57,295						221,354						198,543
Comprehensive income attributable to noncontrolling interest:
Net loss			—						412						2,679						1,492
Foreign currency translation adjustments			—						(228)						(349)						(299)
Comprehensive income attributable to MSC Industrial			$	47,826					$	57,479					$	223,684					$	199,736

MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2026 FOURTH QUARTER AND FULL YEAR RESULTS 7

MSC INDUSTRIAL DIRECT CO., INC.

Consolidated Statements of Cash Flows

(In thousands)

			Fiscal Years Ended
			August 29, 2026						August 30, 2025
Cash Flows from Operating Activities:
Net income			$	219,910					$	197,836
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			101,395						90,627
Amortization of cloud computing arrangements			1,399						1,790
Non-cash operating lease cost			24,166						24,472
Stock-based compensation			19,017						12,551
Loss on disposal of property, plant and equipment			1,005						1,957
Asset Impairment and related charges			43,664						—
Non-cash changes in fair value of estimated contingent consideration			(696)						293
Provision for credit losses			10,739						7,495
Expenditures for cloud computing arrangements			(5,107)						(4,688)
Deferred income taxes and tax uncertainties			7,768						(2,925)
Changes in operating assets and liabilities, net of amounts associated with business acquired:
Accounts receivable			(37,982)						(17,742)
Inventories			(46,679)						1,719
Prepaid expenses and other current assets			(8,844)						482
Operating lease liabilities			(24,323)						(23,819)
Other assets			13						350
Accounts payable and accrued liabilities			1,055						43,319
Total adjustments			86,590						135,881
Net cash provided by operating activities			306,500						333,717
Cash Flows from Investing Activities:
Expenditures for property, plant and equipment			(81,344)						(92,840)
Cash used in acquisitions, net of cash acquired			(240)						(790)
Net proceeds from sale of property			1,057						30,336
Net cash used in investing activities			(80,527)						(63,294)
Cash Flows from Financing Activities:
Repurchases of Class A Common Stock			(13,967)						(39,317)
Payments of regular cash dividends			(194,338)						(189,650)
Proceeds from sale of Class A Common Stock in connection with Associate Stock Purchase Plan			4,014						4,253
Proceeds from exercise of Class A Common Stock options			—						8,123
Borrowings under credit facilities			406,000						253,498
Payments under credit facilities			(411,000)						(254,998)
Payments under Private Placement Debt			(100,000)						(20,000)
Proceeds from Private Placement Debt			100,000						—
Purchase of noncontrolling interest			(8,195)						—
Other, net			403						(5,481)
Net cash used in financing activities			(217,083)						(243,572)
Effect of foreign exchange rate changes on cash and cash equivalents			(90)						(211)
Net increase in cash and cash equivalents			8,800						26,640
Cash and cash equivalents—beginning of period			56,228						29,588
Cash and cash equivalents—end of period			$	65,028					$	56,228
Supplemental Disclosure of Cash Flow Information:
Net cash paid for income taxes			$	77,907					$	60,284
Cash paid for interest			$	20,972					$	23,891

MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2026 FOURTH QUARTER AND FULL YEAR RESULTS 8

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 incremental operating margin, non-GAAP provision for income taxes, non-GAAP net income and non-GAAP diluted earnings per share, that exclude asset impairments and related charges, restructuring and other costs, share reclassification litigation costs, employee retention credit (“ERC”) tax benefit, loss on sale of property (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.

•Incremental Operating Margin and Adjusted Incremental Operating Margin

The Company defines Incremental Operating Margin as the change in year-over-year Income from Operations as a percentage of the change in year-over-year Net Sales and Adjusted Incremental Operating Margin as Incremental Operating Margin adjusted to exclude such items listed above from Income from Operations. The Company’s management believes that Incremental Operating Margin is useful because it shows the direction that operating profit margins are moving as a result of changes in net sales between periods, and that, by excluding the aforementioned items, Adjusted Incremental Operating Margin helps to show, on a comparable basis between periods, trends in the Company’s underlying business and results of operations. The Company believes 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.

•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 29, 2026 and August 30, 2025, respectively, is shown below.

•Results Excluding Asset Impairments and Related Charges, Share Reclassification Litigation Costs, ERC Tax Benefit, Restructuring and Other Costs, Loss on Sale of Property (prior year), and tax effects

In calculating certain non-GAAP financial measures, we exclude asset impairments and related charges, restructuring and other costs, share reclassification litigation costs, ERC tax benefit, loss on sale of property (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 SUPPLY CO. REPORTS FISCAL 2026 FOURTH QUARTER AND FULL YEAR RESULTS 9

MSC INDUSTRIAL DIRECT CO., INC.
Reconciliation of GAAP and Non-GAAP Financial Information
Fiscal Quarters and Years Ended August 29, 2026 and August 30, 2025
(dollars in thousands, except percentages)
			Fiscal Quarters Ended												Fiscal Years Ended
			August 29, 2026						August 30, 2025						August 29, 2026						August 30, 2025
(a) Net cash provided by operating activities			$	80,965					$	80,256					$	306,500					$	333,717
(b) Expenditures for property, plant and equipment			$	(17,214)					$	(21,731)					$	(81,344)					$	(92,840)
(a-b) = (c) Free cash flow			$	63,751					$	58,525					$	225,156					$	240,877
(d) Net income			$	47,939					$	56,134					$	219,910					$	197,836
(a)/(d) Operating cash flow conversion			169		%				143		%				139		%				169		%
(c)/(d) Free cash flow conversion			133		%				104		%				102		%				122		%

MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2026 FOURTH QUARTER AND FULL YEAR RESULTS 10

MSC INDUSTRIAL DIRECT CO., INC.
Reconciliation of GAAP and Non-GAAP Financial Information
Fiscal Quarter Ended August 29, 2026
(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						Asset Impairments and Related Charges						Adjusted Total MSC Industrial
Net Sales			$	1,079,162					$	—					$	—					$	—					$	1,079,162
Cost of Goods Sold			640,579						—						—						—						640,579
Gross Profit			438,583						—						—						—						438,583
Gross Margin			40.6		%				—		%				—		%				—		%				40.6		%
Operating Expenses			322,664						—						1,841						—						320,823
Operating Expenses as % of Sales			29.9		%				—		%				(0.2)		%				—		%				29.7		%
Restructuring and Other Costs			1,355						1,355						—						—						—
Asset impairment and related charges			41,774						—						—						41,774						—
Income from Operations			72,790						(1,355)						(1,841)						(41,774)						117,760
Operating Margin			6.7		%				0.1		%				0.2		%				3.9		%				10.9		%
Total Other Expense			(8,521)						—						—						—						(8,521)
Income before provision for income taxes			64,269						(1,355)						(1,841)						(41,774)						109,239
Provision for income taxes			16,330						(344)						(468)						(10,605)						27,747
Net income			47,939						(1,011)						(1,373)						(31,169)						81,492
Net loss attributable to noncontrolling interest			—						—						—						—						—
Net income attributable to MSC Industrial			$	47,939					$	(1,011)					$	(1,373)					$	(31,169)					$	81,492
Net income per common share:
Diluted			$	0.85					$	(0.02)					$	(0.02)					$	(0.56)					$	1.45

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

MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2026 FOURTH QUARTER AND FULL YEAR RESULTS 11

MSC INDUSTRIAL DIRECT CO., INC.
Reconciliation of GAAP and Non-GAAP Financial Information
Fiscal Year Ended August 29, 2026
(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						ERC Tax Benefit						Asset Impairments and Related Charges												Adjusted Total MSC Industrial
Net Sales			$	4,009,703					$	—					$	—					$	—					$	—											$	4,009,703
Cost of Goods Sold			2,370,450						—						—						—						—												2,370,450
Gross Profit			1,639,253						—						—						—						—												1,639,253
Gross Margin			40.9		%				—		%				—		%				—		%				—		%										40.9		%
Operating Expenses			1,266,344						—						6,381						—						—												1,259,963
Operating Expenses as % of Sales			31.6		%				—		%				(0.2)		%				—		%				—		%										31.4		%
Restructuring and Other Costs			8,679						8,679						—						—						—												—
Asset impairment and related charges			43,664						—						—						—						43,664												—
Income from Operations			320,566						(8,679)						(6,381)						—						(43,664)												379,290
Operating Margin			8.0		%				0.2		%				0.2		%				—		%				1.1		%										9.5		%
Total Other Expense			(28,521)						—						—						5,129						—												(33,650)
Income before provision for income taxes			292,045						(8,679)						(6,381)						5,129						(43,664)												345,640
Provision for income taxes			72,135						(2,196)						(1,614)						1,298						(11,072)												85,719
Net income			219,910						(6,483)						(4,767)						3,831						(32,592)												259,921
Net loss attributable to noncontrolling interest			(2,679)						—						—						—						—												(2,679)
Net income attributable to MSC Industrial			$	222,589					$	(6,483)					$	(4,767)					$	3,831					$	(32,592)											$	262,600
Net income per common share:
Diluted			$	3.98					$	(0.12)					$	(0.09)					$	0.07					$	(0.58)											$	4.69

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

MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2026 FOURTH QUARTER AND FULL YEAR RESULTS 12

MSC INDUSTRIAL DIRECT CO., INC.
Reconciliation of GAAP and Non-GAAP Financial Information
Fiscal Quarters Ended August 29, 2026 and 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						Asset Impairments and Related Charges						Adjusted Total MSC Industrial
Net Sales - quarter ended August 29, 2026			$	1,079,162					$	—					$	—					$	—					$	1,079,162
Net Sales - quarter August 30, 2025			978,175						—						—						—						978,175
Income from Operations - quarter ended August 29, 2026			72,790						(1,355)						(1,841)						(41,774)						117,760
Income from Operations - quarter ended August 30, 2025			84,302						(4,569)						(1,450)						—						90,321
Incremental Operating Margin - quarter ended August 29, 2026			(11.4)		%				(3.2)		%				0.4		%				41.4		%				27.2		%

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

MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2026 FOURTH QUARTER AND FULL YEAR RESULTS 13

MSC INDUSTRIAL DIRECT CO., INC.
Reconciliation of GAAP and Non-GAAP Financial Information
Fiscal Years Ended August 29, 2026 and 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						Asset Impairments and Related Charges						Loss on Sale of Property						Adjusted Total MSC Industrial
Net Sales - year ended August 29, 2026			$	4,009,703					$	—					$	—					$	—					$	—					$	4,009,703
Net Sales - year ended August 30, 2025			3,769,521						—						—						—						—						3,769,521
Income from Operations - year ended August 29, 2026			320,566						(8,679)						(6,381)						(43,664)						—						379,290
Income from Operations - year ended August 30, 2025			301,563						(10,999)						(2,094)						—						(1,167)						315,823
Incremental Operating Margin - year ended August 29, 2026			7.9		%				(1.0)		%				1.8		%				18.2		%				(0.5)		%				26.4		%

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

MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2026 FOURTH QUARTER AND FULL YEAR RESULTS 14

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 SUPPLY CO. REPORTS FISCAL 2026 FOURTH QUARTER AND FULL YEAR RESULTS 15

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.

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