MSM: 3Q26 Abridged Earnings Transcript

研报英文原文证据摘录

MSM: 3Q26 Abridged Earnings Transcript

July 1, 2026

MSM 3Q26 Abridged Earnings Transcript

Wednesday, July 1st, 2026

Please find below, our detailed notes from the MSC Industrial Direct (MSM) 3Q26 earnings call. Please excuse any

unintentional typos in the interests of getting this to you quickly. We will be out with our post-3Q26 model adjustments

later. In the meantime, let us know if you have any questions.

Opening Remarks — Martina McIsaac, CEO

Opening Comments

●ADS +7.8% Y/Y

○Up 7.8% Y/Y and above our quarterly outlook range driven by favorability in both price and volume growth

●Gross margin of 41.1% was slightly above expectations and primarily driven by benefits from price/cost and

customer mix

●Reported and adjusted operating margin up 170 bps and 160 bps YoY, respectively, and above the range of our

outlook driven by gross margin and sales performing better than expected combined with benefits from cost

actions

●Achieved incremental operating margin of 32% on both a reported and adjusted basis in fiscal 3Q’26, inline with

our expectation of stronger performance in second half of the fiscal year

●Reported EPS $1.44 and adjusted EPS of $1.43 up 41% and 32% YoY, respectively

●Approximately $160 million returned to shareholders in the form of dividends and share repurchases fiscal 6

year-to-date

●5 consecutive months of MBI index above 50

Performance Improving Against IP as Volumes Begin to Inflect Positively

●IP Index Performance Y/Y of MSC's Top 5 Industries in 3Q26:

○Fabricated Metals: 2.0%

○Machinery & Equipment: 3.9%

○Aerospace: 8.5%

○Automotive: -0.8%

○Primary Metals: 2.8%

Fiscal 3Q Summary

●Fiscal 3Q26 Highlights

○7.8% ADS Growth

○41.1% GM

○10.6% Adjusted Operating Margin

●Core Customers and Web

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