MSC Industrial Supply 2026 Financial Outlook, Projects Q2 ADS Growth Of 3.5%–5.5% And Adjusted Operating Margin Of 7.3%-7.9%

Martina McIsaac, President and Chief Executive Officer, said, "We began the fiscal year on solid footing by executing on the continued momentum from our recent growth initiatives. This resulted in average daily sales growth at the midpoint of our outlook and approximately 180 basis points above the Industrial Production Index, despite headwinds related to the government shutdown of roughly 100 basis points. As a result of our improving levels of execution and focus on optimizing costs, we returned to profitable growth in the fiscal first quarter."

Greg Clark, Vice President and Interim Chief Financial Officer, added, "We successfully capitalized on growth by delivering 10 basis points of operating margin expansion, or 40 basis points on an adjusted basis year over year and towards the higher end of our guidance range. This resulted in double digit improvement in earnings per share on both a reported and adjusted basis."

McIsaac concluded, "Looking ahead, I am encouraged by our performance early in the fiscal year. We will continue advancing the benefits from our growth initiatives and identifying areas to optimize our cost to serve that supported our return to operating margin expansion this quarter. The timing of holidays created a soft start to the fiscal second quarter, which is affecting our outlook for average daily sales in the quarter, but I remain confident in profitable growth remaining a trend throughout fiscal 2026 and beyond as this momentum continues."

Second Quarter Fiscal 2026 Financial Outlook
ADS Growth (YoY)	3.5% - 5.5%
Adjusted Operating Margin1	7.3% - 7.9%

Full-Year Fiscal 2026 Outlook for Certain Financial Metrics Maintained

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.