Msc Industrial Direct Company (MSM)
NYSE:MSM
Earnings Data
Report Date
Jul 07, 2026Before Open (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
1.26Last Year’s EPS
1.08Same Quarter Last Year
Based on 5 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call communicated a cautiously positive tone. Management emphasized margin expansion, strong cash conversion, solutions momentum (vending/In-Plant), and an encouraging Q3 outlook with implied acceleration in sales and margins. However, near-term volume pressure resulted from a deliberate sales reorganization, weather and government shutdown impacts, and significant input-cost inflation (notably tungsten/carbide). The company presented tangible productivity and pricing actions to offset cost headwinds and reiterated targets for free cash flow and margin improvement. Overall, positives around profitability, cash flow and forward-looking guidance modestly outweigh transitional operational challenges and macro/input-cost risks.Company Guidance
Revenue and Sales Performance
Fiscal Q2 sales of $918 million, up 2.9% year-over-year (ADS growth 2.9%). Price contributed ~6.5% (company cited 6.6% price benefit), while volumes declined ~4% YoY.
Margin Expansion and Profitability
Gross margin improved to 41.1% (up 10 basis points YoY, roughly +40 bps sequential). Adjusted operating margin was 7.5%, a 40 basis point YoY improvement and within outlook. Adjusted incremental margins for the quarter were 21%.
Earnings and EPS Improvement
GAAP EPS of $0.76 vs $0.70 prior year. Adjusted EPS of $0.82 vs $0.72 prior year, an improvement of 14% YoY.
Strong Cash Flow and Balance Sheet
Net debt of approximately $466 million (~1.2x EBITDA). Operating cash flow conversion of 224% for the quarter and free cash flow conversion of ~173% for the quarter (86% YTD), keeping full-year free cash flow target of ≈90% of net income on track.
Solutions Momentum — Vending and In-Plant Growth
Vending machines installed grew 8% YoY to ~30,400 machines. In-Plant programs increased 9% YoY to 423 programs. Sales through vending and In-Plant programs grew ~8% YoY and each represented ~20% of total net sales.
Q3 Outlook Shows Acceleration
Company expects average daily sales growth of 5%–7% in fiscal Q3 and adjusted operating margin of 9.7%–10.3%, implying ~25% adjusted incremental margin at the midpoint and consistent path to full-year mid-single-digit growth ambition.
Operational Productivity and Inventory Improvements
Adjusted operating expenses improved 20 basis points as a percentage of sales YoY driven by headcount and network optimization. Planning/procurement and distribution center productivity improvements and AI adoption led to better inventory metrics and lower DC headcount/compensation trends.
Capital Return and Capital Allocation Discipline
Returned ~$49 million to shareholders in Q2 and $110 million YTD via dividends and buybacks; capex in Q2 was ~$21 million (down ~$9M YoY) and full-year capex guidance is $100M–$110M (including cloud).
MSM Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
MSM Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 01, 2026 | $91.39 | $90.67 | -0.78% |
Jan 07, 2026 | $83.25 | $79.47 | -4.54% |
Oct 23, 2025 | $84.48 | $87.09 | +3.09% |
Jul 01, 2025 | $81.75 | $86.84 | +6.23% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Msc Industrial Direct Company (MSM) report earnings?
Msc Industrial Direct Company (MSM) is schdueled to report earning on Jul 07, 2026, Before Open (Confirmed).
What is Msc Industrial Direct Company (MSM) earnings time?
Msc Industrial Direct Company (MSM) earnings time is at Jul 07, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is MSM EPS forecast?
MSM EPS forecast for the fiscal quarter 2026 (Q3) is 1.26.