MSC Industrial Supply posted an increase in sales in its fiscal fourth quarter, but its annual sales were still down compared to the previous year.
The Long Island-based MRO and metalworking distributor — no. 9 on ID’s 2025 Big 50 — reported $978.2 million in net sales in the quarter ended Aug. 30, up 2.7% compared to the same period last year.
Quarterly operating income fell 7.3% to $84.3 million year-over-year, but both gross profit and net income edged up over that span, from $390.6 million and $54 million, respectively, up to $395 million and $56.1 million.
The increase, however, failed to make up ground from declines in the first three quarters of the year. MSC posted $3.77 billion in net sales across its full fiscal year, down 1.3% compared to fiscal 2024. Gross profit fell from $1.57 billion to $1.54 billion, while net income dropped from nearly $256 million to $197.8 million.
CEO Erik Gershwind noted in the company’s earnings statement that MSC returned to growth on a daily average sales basis in the quarter both overall and among its “core customers” — a segment that contributed to an unexpected drop in sales more than a year ago following problems with a “web price realignment” initiative. Gershwind added that core customer growth came in ahead of the company’s average in the latest quarter.
"Our fourth-quarter results are evidence of the progress we are making through our ‘Mission Critical’ strategy,” Gershwind said.
Greg Clark, MSC’s interim CFO, added that both daily sales and its adjusted operating margin came in ahead of company expectations, while President and COO Martina McIsaac said that she was “encouraged by our performance exiting the fiscal year.”
The company again issued forecasts on a full-year basis for only certain metrics, such as capital expenditures and free cash flow, and outlined its sales expectations solely for the first quarter of fiscal 2026. MSC anticipates Q1 daily average sales growth of between 3.5% and 4.5%, and an adjusted operating margin of 8% and 8.6% for the quarter.
“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,” McIsaac said.
