Companies: 10,761     total market cap: C$180.875 T
$USD๐Ÿ‡บ๐Ÿ‡ธโ‚ฌEUR๐Ÿ‡ช๐Ÿ‡บโ‚นINR๐Ÿ‡ฎ๐Ÿ‡ณยฃGBP๐Ÿ‡ฌ๐Ÿ‡ง$AUD๐Ÿ‡ฆ๐Ÿ‡บ$NZD๐Ÿ‡ณ๐Ÿ‡ฟ$HKD๐Ÿ‡ญ๐Ÿ‡ฐ$SGD๐Ÿ‡ธ๐Ÿ‡ฌ
MSC Industrial Direct
MSM
#3016
Rank
C$6.98 B
Marketcap
๐Ÿ‡บ๐Ÿ‡ธ United States
Country
C$125.12
Share price
-0.43%
Change (1 day)
15.04%
Change (1 year)
  1. MSC Industrial Direct
  2. Quarterly Reports (10-Q)
  3. Financial Year FY2026 Q1

MSC Industrial Direct - 10-Q quarterly report FY2026 Q1


Text size:
000100307808-292026Q1falsexbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:puremsm:facilitymsm:segment00010030782025-08-312025-11-2900010030782025-12-1900010030782025-11-2900010030782025-08-3000010030782024-09-012024-11-300001003078us-gaap:CommonClassAMemberus-gaap:CommonStockMember2025-08-300001003078us-gaap:CommonClassAMemberus-gaap:CommonStockMember2024-08-310001003078us-gaap:CommonClassAMemberus-gaap:CommonStockMember2025-11-290001003078us-gaap:CommonClassAMemberus-gaap:CommonStockMember2024-11-300001003078us-gaap:AdditionalPaidInCapitalMember2025-08-300001003078us-gaap:AdditionalPaidInCapitalMember2024-08-310001003078us-gaap:AdditionalPaidInCapitalMember2025-08-312025-11-290001003078us-gaap:AdditionalPaidInCapitalMember2024-09-012024-11-300001003078us-gaap:CommonClassAMemberus-gaap:AdditionalPaidInCapitalMember2025-08-312025-11-290001003078us-gaap:CommonClassAMemberus-gaap:AdditionalPaidInCapitalMember2024-09-012024-11-300001003078us-gaap:AdditionalPaidInCapitalMember2025-11-290001003078us-gaap:AdditionalPaidInCapitalMember2024-11-300001003078us-gaap:RetainedEarningsMember2025-08-300001003078us-gaap:RetainedEarningsMember2024-08-310001003078us-gaap:RetainedEarningsMember2025-08-312025-11-290001003078us-gaap:RetainedEarningsMember2024-09-012024-11-300001003078us-gaap:CommonClassAMemberus-gaap:RetainedEarningsMember2025-08-312025-11-290001003078us-gaap:CommonClassAMemberus-gaap:RetainedEarningsMember2024-09-012024-11-300001003078us-gaap:RetainedEarningsMember2025-11-290001003078us-gaap:RetainedEarningsMember2024-11-300001003078us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-08-300001003078us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-08-310001003078us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-08-312025-11-290001003078us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-012024-11-300001003078us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-11-290001003078us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-11-300001003078us-gaap:TreasuryStockCommonMember2025-08-300001003078us-gaap:TreasuryStockCommonMember2024-08-310001003078us-gaap:TreasuryStockCommonMember2025-08-312025-11-290001003078us-gaap:TreasuryStockCommonMember2024-09-012024-11-300001003078us-gaap:CommonClassAMemberus-gaap:TreasuryStockCommonMember2025-08-312025-11-290001003078us-gaap:CommonClassAMemberus-gaap:TreasuryStockCommonMember2024-09-012024-11-300001003078us-gaap:TreasuryStockCommonMember2025-11-290001003078us-gaap:TreasuryStockCommonMember2024-11-300001003078us-gaap:ParentMember2025-11-290001003078us-gaap:ParentMember2024-11-300001003078us-gaap:NoncontrollingInterestMember2025-08-300001003078us-gaap:NoncontrollingInterestMember2024-08-310001003078us-gaap:NoncontrollingInterestMember2025-08-312025-11-290001003078us-gaap:NoncontrollingInterestMember2024-09-012024-11-300001003078us-gaap:NoncontrollingInterestMember2025-11-290001003078us-gaap:NoncontrollingInterestMember2024-11-3000010030782024-11-300001003078us-gaap:CommonClassAMember2025-08-312025-11-290001003078us-gaap:CommonClassAMember2024-09-012024-11-3000010030782024-08-310001003078srt:MaximumMember2025-08-312025-11-2900010030782025-11-292025-11-2900010030782025-08-302025-08-300001003078msm:ManufacturingHeavyMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2025-08-312025-11-290001003078msm:ManufacturingHeavyMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-09-012024-11-300001003078msm:ManufacturingLightMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2025-08-312025-11-290001003078msm:ManufacturingLightMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-09-012024-11-300001003078msm:PublicSectorMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2025-08-312025-11-290001003078msm:PublicSectorMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-09-012024-11-300001003078msm:RetailWholesaleMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2025-08-312025-11-290001003078msm:RetailWholesaleMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-09-012024-11-300001003078msm:CommercialMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2025-08-312025-11-290001003078msm:CommercialMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-09-012024-11-300001003078msm:OtherCustomersMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2025-08-312025-11-290001003078msm:OtherCustomersMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-09-012024-11-300001003078us-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2025-08-312025-11-290001003078us-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-09-012024-11-300001003078msm:NationalAccountCustomersMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2025-08-312025-11-290001003078msm:NationalAccountCustomersMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-09-012024-11-300001003078msm:PublicSectorCustomersMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2025-08-312025-11-290001003078msm:PublicSectorCustomersMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-09-012024-11-300001003078msm:CoreAndOtherCustomersMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2025-08-312025-11-290001003078msm:CoreAndOtherCustomersMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-09-012024-11-300001003078country:USus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2025-08-312025-11-290001003078country:USus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-09-012024-11-300001003078country:MXus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2025-08-312025-11-290001003078country:MXus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-09-012024-11-300001003078country:CAus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2025-08-312025-11-290001003078country:CAus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-09-012024-11-300001003078srt:NorthAmericaMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2025-08-312025-11-290001003078srt:NorthAmericaMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-09-012024-11-300001003078msm:OtherForeignCountriesMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2025-08-312025-11-290001003078msm:OtherForeignCountriesMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-09-012024-11-300001003078us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2025-08-312025-11-290001003078us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-09-012024-11-300001003078srt:MinimumMemberus-gaap:RestrictedStockUnitsRSUMember2025-08-312025-11-290001003078srt:MaximumMemberus-gaap:RestrictedStockUnitsRSUMember2025-08-312025-11-290001003078us-gaap:PerformanceSharesMember2025-08-312025-11-290001003078srt:MinimumMemberus-gaap:PerformanceSharesMember2025-08-312025-11-290001003078srt:MaximumMemberus-gaap:PerformanceSharesMember2025-08-312025-11-290001003078us-gaap:RestrictedStockUnitsRSUMember2025-08-300001003078us-gaap:PerformanceSharesMember2025-08-300001003078us-gaap:RestrictedStockUnitsRSUMember2025-08-312025-11-290001003078us-gaap:RestrictedStockUnitsRSUMember2025-11-290001003078us-gaap:PerformanceSharesMember2025-11-290001003078msm:IncrementalDividendRightsRestrictedStockUnitsMember2025-11-290001003078msm:IncrementalDividendRightsPerformanceStockUnitsMember2025-11-290001003078us-gaap:SubsequentEventMember2025-12-310001003078msm:PurchasersMember2025-08-312025-11-290001003078msm:ReceivablesPurchaseAgreementMember2025-08-312025-11-290001003078msm:PurchasersMember2024-09-012025-08-300001003078msm:PurchasersMember2025-11-290001003078msm:PurchasersMember2025-08-300001003078msm:Wm.F.HurstCo.LLCMember2025-08-312025-11-290001003078srt:MinimumMembermsm:Wm.F.HurstCo.LLCMember2025-11-290001003078srt:MaximumMembermsm:Wm.F.HurstCo.LLCMember2025-11-290001003078msm:Wm.F.HurstCo.LLCMember2025-11-290001003078msm:CommittedCreditFacilityMember2025-11-290001003078msm:CommittedCreditFacilityMember2025-08-300001003078msm:UncommittedCreditFacilityMember2025-11-290001003078msm:UncommittedCreditFacilityMember2025-08-300001003078msm:SeniorNotesTwoMembermsm:PrivatePlacementDebtMember2025-11-290001003078msm:SeniorNotesTwoMembermsm:PrivatePlacementDebtMember2025-08-300001003078msm:SeniorNotesDueMarch52027Membermsm:PrivatePlacementDebtMember2025-11-290001003078msm:SeniorNotesDueMarch52027Membermsm:PrivatePlacementDebtMember2025-08-300001003078msm:SeniorNotesDueApril182027Membermsm:PrivatePlacementDebtMember2025-11-290001003078msm:SeniorNotesDueApril182027Membermsm:PrivatePlacementDebtMember2025-08-300001003078msm:FinancingArrangementMember2025-11-290001003078msm:FinancingArrangementMember2025-08-300001003078msm:AmendedRevolvingCreditFacilityMember2017-04-300001003078msm:AmendedRevolvingCreditFacilityMember2017-04-012017-04-300001003078us-gaap:LetterOfCreditMembermsm:AmendedRevolvingCreditFacilityMember2025-11-290001003078msm:CommittedCreditFacilityMembermsm:AmendedRevolvingCreditFacilityMember2025-11-290001003078us-gaap:LetterOfCreditMembermsm:AmendedRevolvingCreditFacilityMember2025-08-3000010030782024-09-012025-08-300001003078msm:AmendedUncommittedFacilitiesMember2024-09-012025-08-300001003078msm:AmendedUncommittedFacilitiesMember2025-08-300001003078msm:AmendedUncommittedFacilitiesMember2025-11-290001003078msm:AmendedUncommittedFacilitiesMember2025-08-312025-11-290001003078msm:SeniorNotesTwoMembermsm:PrivatePlacementDebtMember2016-07-310001003078msm:SeniorNotesDueMarch52027Membermsm:PrivatePlacementDebtMember2020-03-310001003078msm:SeniorNotesDueApril182027Memberus-gaap:SeniorNotesMember2024-04-300001003078msm:ShareRepurchasePlanMemberus-gaap:CommonClassAMember2021-06-300001003078msm:ShareRepurchasePlanMemberus-gaap:CommonClassAMember2025-11-290001003078us-gaap:CommonClassAMemberus-gaap:TreasuryStockCommonMember2025-11-292025-11-290001003078us-gaap:CommonClassAMemberus-gaap:TreasuryStockCommonMember2025-08-302025-08-300001003078us-gaap:SubsequentEventMember2025-12-182025-12-180001003078msm:ConsultingRelatedCostsMember2025-08-300001003078us-gaap:EmployeeSeveranceMember2025-08-300001003078msm:ConsultingRelatedCostsMember2025-08-312025-11-290001003078us-gaap:EmployeeSeveranceMember2025-08-312025-11-290001003078msm:ConsultingRelatedCostsMember2025-11-290001003078us-gaap:EmployeeSeveranceMember2025-11-290001003078msm:ReportableSegmentMember2025-08-312025-11-290001003078msm:ReportableSegmentMember2024-09-012024-11-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________

FORM 10-Q
______________________________
(Mark One)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended November 29, 2025
OR
oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____
Commission File Number: 1-14130
__________________
MSC INDUSTRIAL DIRECT CO., INC.
(Exact name of registrant as specified in its charter)
__________________
New York
(State or other jurisdiction of
incorporation or organization)
11-3289165
(I.R.S. Employer Identification No.)
515 Broadhollow Road, Suite 1000, Melville, New York
(Address of principal executive offices)
11747
(Zip Code)
(516) 812-2000
(Registrant’s telephone number, including area code)
__________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading 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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer x
Accelerated
filer o
Non-accelerated filer o
Smaller reporting
company o
Emerging growth
company o
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. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
As of December 19, 2025, 55,803,307 shares of Class A Common Stock of the registrant were outstanding.


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this “Report”) contains forward‑looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Discussions containing such forward‑looking statements may be found in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Item 3, “Quantitative and Qualitative Disclosures About Market Risk” of Part I and Item 1, “Legal Proceedings” and Item 1A, “Risk Factors” of Part II of this Report, as well as within this Report generally. The words “will,” “may,” “believes,” “anticipates,” “thinks,” “expects,” “estimates,” “plans,” “intends” and similar expressions are intended to identify 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. MSC Industrial Direct Co., Inc. (together with its wholly owned subsidiaries and entities in which it maintains a controlling financial interest, “MSC,” “MSC Industrial,” the “Company,” “we,” “us” or “our”) expressly disclaims any obligation to publicly disclose any revisions to these forward‑looking statements to reflect events or circumstances occurring subsequent to filing this Report with the United States Securities and Exchange Commission (the “SEC”), except to the extent required by applicable law. These forward‑looking statements are subject to risks and uncertainties, including, without limitation, those discussed in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Item 3, “Quantitative and Qualitative Disclosures About Market Risk” of Part I and Item 1, “Legal Proceedings” and Item 1A, “Risk Factors” of Part II of this Report, as well as in Item 1A, “Risk Factors” of Part I and Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of Part II of our Annual Report on Form 10-K for the fiscal year ended August 30, 2025. 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 and the impact of any lapse in funding for the federal government;
•the credit risk of our customers;
•our ability to accurately forecast customer demand;
•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 (“CFCs”);
•our ability to estimate the cost of healthcare claims incurred under our self-insurance plan;
•interruption of operations at our headquarters or CFCs;
•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 to 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.


MSC INDUSTRIAL DIRECT CO., INC.
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 29, 2025
TABLE OF CONTENTS
Page
1
2
3
4
5
6
17
25
25
26
26
26
27
28
29
i

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
MSC INDUSTRIAL DIRECT CO., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
November 29,
2025		August 30,
2025
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $40,254 $56,228 
Accounts receivable, net of allowance for credit losses of $20,761 and $22,365, respectively
430,733 423,306 
Inventories 660,483 644,090 
Prepaid expenses and other current assets 128,052 102,930 
Total current assets 1,259,522 1,226,554 
Property, plant and equipment, net 346,776 346,706 
Goodwill 723,348 723,702 
Identifiable intangibles, net 81,518 85,455 
Operating lease assets48,509 52,464 
Other assets 27,393 27,183 
Total assets $2,487,066 $2,462,064 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Current portion of debt including obligations under finance leases$316,872 $316,868 
Current portion of operating lease liabilities21,667 22,236 
Accounts payable 220,113 225,150 
Accrued expenses and other current liabilities 167,649 165,092 
Total current liabilities 726,301 729,346 
Long-term debt including obligations under finance leases214,095 168,831 
Noncurrent operating lease liabilities27,393 30,872 
Deferred income taxes and tax uncertainties 136,450 136,513 
Total liabilities 1,104,239 1,065,562 
Commitments and Contingencies
Shareholders’ Equity:
MSC Industrial Shareholders’ Equity:
Preferred Stock; $0.001 par value; 5,000,000 shares authorized; none issued and outstanding
— — 
Class A Common Stock; $0.001 par value; 100,000,000 shares authorized; 57,127,200 and 57,086,377 shares issued, respectively
57 57 
Additional paid-in capital 1,097,059 1,093,630 
Retained earnings 426,719 432,622 
Accumulated other comprehensive loss (21,746)(20,736)
Class A treasury stock, at cost, 1,335,485 and 1,296,625 shares, respectively
(120,918)(117,363)
Total MSC Industrial shareholders’ equity 1,381,171 1,388,210 
Noncontrolling interest1,656 8,292 
Total shareholders’ equity1,382,827 1,396,502 
Total liabilities and shareholders’ equity $2,487,066 $2,462,064 
    
See accompanying Notes to Condensed Consolidated Financial Statements.
1

MSC INDUSTRIAL DIRECT CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Thirteen Weeks Ended
November 29,
2025		November 30,
2024
Net sales $965,684 $928,484 
Cost of goods sold 573,007 550,297 
Gross profit 392,677 378,187 
Operating expenses 311,568 303,563 
Restructuring and other costs4,870 2,344 
Income from operations 76,239 72,280 
Other income (expense):
Interest expense (5,416)(6,075)
Interest income 275 341 
Other expense, net (3,584)(5,944)
Total other expense(8,725)(11,678)
Income before provision for income taxes 67,514 60,602 
Provision for income taxes 16,406 14,908 
Net income 51,108 45,694 
Less: Net loss attributable to noncontrolling interest(696)(929)
Net income attributable to MSC Industrial$51,804 $46,623 
Per share data attributable to MSC Industrial:
Net income per common share:
Basic $0.93 $0.83 
Diluted $0.93 $0.83 
Weighted-average shares used in computing net income per common share:
Basic 55,80455,897
Diluted 55,97556,068
See accompanying Notes to Condensed Consolidated Financial Statements.
2

MSC INDUSTRIAL DIRECT CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)
Thirteen Weeks Ended
November 29,
2025		November 30,
2024
Net income, as reported $51,108 $45,694 
Other comprehensive income, net of tax:
Foreign currency translation adjustments (902)(4,066)
Comprehensive income(1)
50,206 41,628 
Comprehensive income attributable to noncontrolling interest:
Net loss696 929 
Foreign currency translation adjustments(108)234 
Comprehensive income attributable to MSC Industrial$50,794 $42,791 
(1)There were no material taxes associated with other comprehensive income during the thirteen-week periods ended November 29, 2025 and November 30, 2024.
See accompanying Notes to Condensed Consolidated Financial Statements.
3

MSC INDUSTRIAL DIRECT CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(In thousands, except per share data)
(Unaudited)

Thirteen Weeks Ended
November 29,
2025		November 30,
2024
Class A Common Stock
Beginning Balance$57 $57 
Ending Balance57 57 
Additional Paid-in Capital
Beginning Balance1,093,630 1,070,269 
Associate Incentive Plans5,593 5,617 
Repurchase and retirement of Class A Common Stock, including excise tax(17)(25)
Purchase of Noncontrolling Interest(2,147)— 
Ending Balance1,097,059 1,075,861 
Retained Earnings
Beginning Balance432,622 456,850 
Net Income51,804 46,623 
Repurchase and retirement of Class A Common Stock, including excise tax(8,572)(12,227)
Regular cash dividends declared on Class A Common Stock(48,626)(47,537)
Dividend equivalents declared, net of cancellations(509)(360)
Ending Balance426,719 443,349 
Accumulated Other Comprehensive Loss
Beginning Balance(20,736)(21,144)
Foreign Currency Translation Adjustment(1,010)(3,832)
Ending Balance(21,746)(24,976)
Treasury Stock
Beginning Balance(117,363)(114,235)
Associate Incentive Plans815 856 
Repurchase of Class A Common Stock, including excise tax(4,370)(5,828)
Ending Balance(120,918)(119,207)
Total Shareholders’ Equity Attributable to MSC Industrial1,381,171 1,375,084 
Noncontrolling Interest
Beginning Balance8,292 9,485 
Foreign Currency Translation Adjustment108 (234)
Net loss(696)(929)
Purchase of Noncontrolling Interest(6,048)— 
Ending Balance1,656 8,322 
Total Shareholders’ Equity$1,382,827 $1,383,406 
Dividends declared per Class A Common Share$0.87 $0.85 
    
See accompanying Notes to Condensed Consolidated Financial Statements.


4

MSC INDUSTRIAL DIRECT CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Thirteen Weeks Ended
November 29,
2025		November 30,
2024
Cash Flows from Operating Activities:
Net income $51,108 $45,694 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 25,111 21,682 
Amortization of cloud computing arrangements254 504 
Non-cash operating lease cost5,944 6,070 
Stock-based compensation 4,378 3,562 
Loss on disposal of property, plant and equipment450 188 
Gain on sale of property (584)— 
Non-cash changes in fair value of estimated contingent consideration— 245 
Provision for credit losses 1,038 2,521 
Expenditures for cloud computing arrangements (737)(332)
Changes in operating assets and liabilities:
Accounts receivable (8,694)455 
Inventories (16,234)5,491 
Prepaid expenses and other current assets (24,648)(2,629)
Operating lease liabilities(6,038)(6,152)
Other assets51 (154)
Accounts payable and accrued liabilities(1,988)24,723 
Total adjustments (21,697)56,174 
Net cash provided by operating activities 29,411 101,868 
Cash Flows from Investing Activities:
Expenditures for property, plant and equipment (22,006)(20,168)
Cash used in acquisitions, net of cash acquired (240)(240)
Net proceeds from sale of property 1,057 — 
Net cash used in investing activities (21,189)(20,408)
Cash Flows from Financing Activities:
Repurchases of Class A Common Stock(12,959)(18,072)
Payments of regular cash dividends (48,626)(47,537)
Proceeds from sale of Class A Common Stock in connection with Associate Stock Purchase Plan 908 1,029 
Proceeds from exercise of Class A Common Stock options — 120 
Borrowings under credit facilities156,000 111,500 
Payments under credit facilities(111,000)(99,750)
Purchase of noncontrolling interest(8,195)— 
Other, net(64)(649)
Net cash used in financing activities (23,936)(53,359)
Effect of foreign exchange rate changes on cash and cash equivalents (260)(423)
Net (decrease) increase in cash and cash equivalents (15,974)27,678 
Cash and cash equivalents—beginning of period 56,228 29,588 
Cash and cash equivalents—end of period $40,254 $57,266 
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes $5,760 $13,500 
Cash paid for interest $5,610 $6,262 
See accompanying Notes to Condensed Consolidated Financial Statements.
5

MSC INDUSTRIAL DIRECT CO., INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollar amounts and shares in thousands, except per share data)
(Unaudited)
Note 1. Basis of Presentation
The unaudited Condensed Consolidated Financial Statements have been prepared by the management of MSC Industrial Direct Co., Inc. (together with its wholly owned subsidiaries and entities in which it maintains a controlling financial interest, “MSC Industrial” or the “Company”) and in the opinion of management include all normal recurring adjustments necessary to present fairly the Company’s financial position as of November 29, 2025 and August 30, 2025, results of operations for the thirteen weeks ended November 29, 2025 and November 30, 2024, and cash flows for the thirteen weeks ended November 29, 2025 and November 30, 2024. The financial information as of August 30, 2025 was derived from the Company’s audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 30, 2025.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the SEC. The Company, however, believes that the disclosures contained in this Report comply with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), for a Quarterly Report on Form 10-Q and are adequate to make the information presented not misleading. The unaudited Condensed Consolidated Financial Statements and these Notes to Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 30, 2025.
Fiscal Year
The Company operates on a 52/53-week fiscal year ending on the Saturday closest to August 31st of each year. References to “fiscal year 2026” refer to the period from August 31, 2025 to August 29, 2026, which is a 52-week fiscal year. References to “fiscal year 2025” refer to the period from September 1, 2024 to August 30, 2025, which is a 52-week fiscal year. The fiscal quarters ended November 29, 2025 and November 30, 2024 refer to the thirteen weeks ended as of those dates.
Principles of Consolidation
The unaudited Condensed Consolidated Financial Statements include the accounts of MSC Industrial Direct Co., Inc., its wholly owned subsidiaries and entities in which it maintains a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation.
Accounting Standards Not Yet Adopted
In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures. The ASU primarily enhances and expands both the income tax rate reconciliation disclosure and the income taxes paid disclosure. The ASU is effective for annual periods beginning after December 15, 2024 (MSC’s fiscal year 2026) on a prospective basis. The Company is currently evaluating the standard to determine the impact of adoption on its disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The ASU requires public entities to include more detailed disclosures about specific categories of expenses such as inventory purchases, employee compensation, depreciation, amortization and selling costs within the notes to the financial statements. The ASU is effective for fiscal year periods beginning after December 15, 2026 (MSC’s fiscal year 2028) and interim periods within fiscal years beginning after December 15, 2027 (MSC’s first quarter of fiscal year 2029), with early adoption permitted. The adoption of this guidance is not expected to affect the Company’s Consolidated Financial Statements and the Company is currently evaluating the standard to determine the impact of adoption on its disclosures.

In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350-40): Targeted Improvements to Accounting for Internal-Use Software. The ASU primarily amends guidance for
6

MSC INDUSTRIAL DIRECT CO., INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollar amounts and shares in thousands, except per share data)
(Unaudited)
accounting and disclosure of internal-use software, including clarifying the requirements for capitalizing costs and removal of references to the stage-based approach for capitalizing costs. The ASU is effective for annual periods beginning after December 15, 2027 (MSC’s fiscal year 2029) on a prospective, retrospective or modified prospective approach. The Company is currently evaluating the standard to determine the impact of adoption on its Consolidated Financial Statements and disclosures.

Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or are not expected to have a material impact on the Consolidated Financial Statements.
Note 2. Revenue
Revenue Recognition
Net sales include product revenue and shipping and handling charges, net of estimated sales returns and any related sales incentives. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies its performance obligations under the contract, which is determined to occur when the customer obtains control of the products, and invoicing occurs at approximately the same point in time. The Company’s product sales have standard payment terms that do not exceed one year. The Company considers shipping and handling as activities to fulfill its performance obligations. Substantially all of the Company’s contracts have a single performance obligation, to deliver products, and are short-term in nature. The Company estimates product returns based on historical return rates. Total accrued sales returns were $6,923 and $7,089 as of November 29, 2025 and August 30, 2025, respectively, and are reported as Accrued expenses and other current liabilities in the unaudited Condensed Consolidated Balance Sheets. Sales taxes and value-added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales.
Consideration Payable to Customers
The Company offers customers sales incentives, which primarily consist of volume rebates, and upfront sign-on payments. These volume rebates and sign-on payments are not in exchange for a distinct good or service and result in a reduction of net sales from the goods transferred to the customer at the later of when the related revenue is recognized or when the Company promises to pay the consideration. The Company estimates its volume rebate accruals and records its sign-on payments based on various factors, including contract terms, historical experience, and performance levels. Total accrued sales incentives, primarily related to volume rebates, were $27,999 and $22,948 as of November 29, 2025 and August 30, 2025, respectively, and are included in Accrued expenses and other current liabilities in the unaudited Condensed Consolidated Balance Sheets. Sign-on payments, not yet recognized as a reduction of net sales, are recorded in Prepaid expenses and other current assets in the unaudited Condensed Consolidated Balance Sheets and were $6,218 and $6,723 as of November 29, 2025 and August 30, 2025, respectively.
Contract Assets and Liabilities
The Company records a contract asset when it has a right to payment from a customer that is conditioned on events other than the passage of time. The Company records a contract liability when customers prepay but the Company has not yet satisfied its performance obligations. The Company did not have material contract assets or liabilities as of November 29, 2025 and August 30, 2025.
Disaggregation of Revenue
The Company serves a large number of customers of various types and in diverse industries, which are subject to different economic and industry factors. The Company’s presentation of net sales by customer end-market, customer type and geography most reasonably depicts how the nature, amount, timing and uncertainty of Company revenue and cash flows are affected by economic and industry factors. The Company does not disclose net sales information by product category as it is impracticable to do so as a result of its numerous product offerings and the way its business is managed.
7

MSC INDUSTRIAL DIRECT CO., INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollar amounts and shares in thousands, except per share data)
(Unaudited)
The following table presents the Company’s percentage of revenue by customer end-market for the thirteen-week period ended November 29, 2025 and November 30, 2024:
Thirteen Weeks Ended
November 29, 2025November 30, 2024
Manufacturing Heavy58 %57 %
Manufacturing Light9 %9 %
Public Sector9 %9 %
Retail/Wholesale8 %7 %
Commercial Services4 %4 %
Other (1)
12 %14 %
Total 100 %100 %

(1)The Other category primarily makes up specific industry classifications that do not individually exceed 3% of net sales.

The Company groups customers into three categories by type of customer: national account, public sector and core and other. National account customers include Fortune 1000 companies, large privately held companies, and international companies doing business in North America. Public sector customers are governments and their instrumentalities such as federal agencies, state governments, and public sector healthcare providers. Federal government customers include the United States General Services Administration, the United States Department of Defense, the United States Marine Corps, the United States Coast Guard, the United States Postal Service, the United States Department of Energy, large and small military bases, Veterans Affairs hospitals, and correctional facilities. The Company has individual state and local contracts, as well as contracts through partnerships with several state co-operatives. Core and other customers are those customers that are not national account customers or public sector customers.

The following table presents the Company’s percentage of revenue by customer type for the thirteen-week period ended November 29, 2025 and November 30, 2024:
Thirteen Weeks Ended
November 29, 2025November 30, 2024
National Account Customers37 %37 %
Public Sector Customers 9 %9 %
Core and Other Customers54 %54 %
Total100 %100 %
The Company’s revenue originating from the following geographic areas was as follows for the thirteen-week period ended November 29, 2025 and November 30, 2024:
Thirteen Weeks Ended
November 29, 2025November 30, 2024
United States95 %95 %
Mexico2 %2 %
Canada2 %2 %
North America 99 %99 %
Other foreign countries1 %1 %
Total 100 %100 %
8

MSC INDUSTRIAL DIRECT CO., INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollar amounts and shares in thousands, except per share data)
(Unaudited)
Note 3. Net Income per Share
Basic net income per share is computed by dividing net income by the weighted-average number of shares of the Company’s Class A Common Stock (“Class A Common Stock”) outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of shares of Class A Common Stock outstanding during the period, including potentially dilutive shares of Class A Common Stock equivalents outstanding during the period. The dilutive effect of potential shares of Class A Common Stock is determined using the treasury stock method. The following table sets forth the computation of basic and diluted net income per common share under the treasury stock method for the thirteen-week period ended November 29, 2025 and November 30, 2024:
Thirteen Weeks Ended
November 29,
2025		November 30,
2024
Numerator:
Net income attributable to MSC Industrial, as reported$51,804 $46,623 
Denominator:
Weighted-average shares outstanding for basic net income per share55,804 55,897 
Effect of dilutive securities171 171 
Weighted-average shares outstanding for diluted net income per share55,975 56,068 
Net income per share:
Basic$0.93 $0.83 
Diluted$0.93 $0.83 
Potentially dilutive securities—98
Potentially dilutive securities attributable to outstanding share-based awards are excluded from the calculation of diluted net income per share when the combined exercise price and average unamortized fair value are greater than the average market price of Class A Common Stock, and, therefore, their inclusion would be anti-dilutive.
Note 4. Stock-Based Compensation
The Company accounts for all stock-based payments in accordance with Accounting Standards Codification Topic 718, “Compensation—Stock Compensation,” as amended. Stock-based compensation expense included in Operating expenses for the thirteen-week period ended November 29, 2025 and November 30, 2024 was as follows:
Thirteen Weeks Ended
November 29,
2025		November 30,
2024
Stock-based compensation expense (1)
$4,378 $3,562 
Deferred income tax benefit(1,064)(876)
Stock-based compensation expense, net$3,314 $2,686 
(1)Includes equity award acceleration costs associated with associate severance and separation, which are included in Restructuring and other costs in the unaudited Condensed Consolidated Statements of Income for the thirteen-week period ended November 29, 2025. See Note 10, “Restructuring and Other Costs” for additional information.
Restricted Stock Units and Performance Share Units
The Company grants restricted stock units (“RSUs”) and performance share units (“PSUs”) as part of its long-term stock-based compensation program. RSUs vest over four-years or five-years, depending on the position of the associate, and PSUs cliff vest after a three-year performance period based on the achievement of specific performance
9

MSC INDUSTRIAL DIRECT CO., INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollar amounts and shares in thousands, except per share data)
(Unaudited)
goals as set forth in the applicable award agreement. Based on the extent to which the performance goals are achieved, vested shares may range from 0% to 200% of the target award amount. If the performance conditions are not met or are not expected to be met, recognized compensation expense associated with the grant will be reversed.
The following table summarizes the Company’s non-vested RSU and PSU award activity under the MSC Industrial Direct Co., Inc. 2015 Omnibus Incentive Plan (the “2015 Omnibus Incentive Plan”) and the 2023 Omnibus Incentive Plan (the “2023 Omnibus Incentive Plan”) (based on target award amounts for PSUs) for the thirteen-week period ended November 29, 2025:
Restricted Stock UnitsPerformance Share Units
SharesWeighted-Average Grant Date Fair Value per ShareSharesWeighted-Average Grant Date Fair Value per Share
Non-vested at August 30, 2025
449$85.68 112$86.28 
Granted18684.79 6384.79 
Vested (128)85.17 —— 
Forfeited(9)84.34 (38)82.65 
Non-vested at November 29, 2025 (1)
498$85.50 137$86.61 

(1)Excludes approximately 26 and 3 shares of accrued incremental dividend equivalent rights on outstanding RSUs and PSUs, respectively, granted under the 2015 Omnibus Incentive Plan and the 2023 Omnibus Incentive Plan.     
The fair value of each RSU and PSU granted is the closing stock price on the New York Stock Exchange of Class A Common Stock on the date of grant. RSUs are expensed over the vesting period of each respective grant and PSUs are expensed over the three-year performance period of each respective grant. Forfeitures of share-based awards are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from estimated forfeitures. The Company uses historical data to estimate pre-vesting RSU and PSU forfeitures and records stock-based compensation expense only for RSU and PSU awards that are expected to vest. Upon vesting, and, in the case of the PSUs, subject to the achievement of specific performance goals, a portion of the RSU and PSU awards may be withheld to satisfy the statutory income tax withholding obligation, and the remaining RSUs and PSUs will be settled in shares of Class A Common Stock. These awards accrue dividend equivalents on the underlying RSUs and PSUs (in the form of additional stock units) based on dividends declared on Class A Common Stock, and these dividend equivalents are paid to the award recipient in the form of unrestricted shares of Class A Common Stock on the vesting dates of the underlying RSUs and PSUs, subject, in the case of the dividend equivalents on the underlying PSUs, to the same performance vesting requirements. The unrecognized stock-based compensation costs related to the RSUs and PSUs at November 29, 2025 were $37,185 and $7,472, respectively, which are expected to be recognized over a weighted-average period of 3.2 and 2.2 years, respectively.
Stock Options
Subsequent to the stock option grant in fiscal year 2019, the Company discontinued its grants of stock options. During the first quarter of fiscal year 2026, all remaining outstanding stock option awards were forfeited and there were no stock option awards outstanding as of November 29, 2025.
Note 5. Fair Value
Fair value accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The below fair value hierarchy prioritizes the inputs used to measure fair value into three levels, with Level 1 being of the highest priority. The three levels of inputs used to measure fair value are as follows:
Level 1—    Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2—    Include other inputs that are directly or indirectly observable in the marketplace.
Level 3—    Unobservable inputs which are supported by little or no market activity.
10

MSC INDUSTRIAL DIRECT CO., INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollar amounts and shares in thousands, except per share data)
(Unaudited)
The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable and outstanding indebtedness. Cash and cash equivalents include investments in a money market fund which are reported at fair value. The fair value of money market funds is determined using quoted prices for identical investments in active markets, which are considered to be Level 1 inputs within the fair value hierarchy. The Company uses a market approach to determine the fair value of its debt instruments, utilizing quoted prices in active markets, interest rates and other relevant information generated by market transactions involving similar instruments. Therefore, the inputs used to measure the fair value of the Company’s debt instruments are classified as Level 2 within the fair value hierarchy. The reported carrying amounts of the Company’s financial instruments approximated their fair values as of November 29, 2025 and November 30, 2024.
During the thirteen-week period ended November 29, 2025 and November 30, 2024, the Company had no material remeasurements of non-financial assets or liabilities at fair value on a non-recurring basis subsequent to their initial recognition.
Note 6. Accounts Receivable
Accounts receivables at November 29, 2025 and August 30, 2025 consisted of the following:
November 29,
2025		August 30,
2025
Accounts receivable$451,494 $445,671 
Less: allowance for credit losses20,761 22,365 
Accounts receivable, net$430,733 $423,306 

In the second quarter of fiscal year 2023, the Company entered into a Receivables Purchase Agreement (the “RPA”), by and among MSC A/R Holding Co., LLC, a wholly owned subsidiary of the Company (the “Receivables Subsidiary”), as seller, the Company, as master servicer, certain purchasers from time to time party thereto (collectively, the “Purchasers”), and Wells Fargo Bank, National Association, as administrative agent. Under the RPA, the Receivables Subsidiary may sell certain eligible receivables to the Purchasers. The RPA, which was scheduled to mature on December 19, 2025, was amended in December 2025. The amendment provided for, among other things, an extension of the scheduled termination date to December 8, 2028, the addition of a joining purchaser and an increase to the maximum aggregate commitment by $50,000 to a total of $350,000. The RPA continues to include customary representations and warranties for facilities of this type.

The Company continues to provide collection services for the receivables sold to the Purchasers. As cash is collected on sold receivables, the Receivables Subsidiary continuously sells new qualifying receivables to the Purchasers so that the total principal amount outstanding of receivables sold is approximately $300,000. During the thirteen-week period ended November 29, 2025, receivables sold and collected under the RPA was $306,452 . The total principal amount outstanding of receivables sold was approximately $300,000 as of November 29, 2025 and August 30, 2025. The amount of receivables retained and pledged as collateral by the Company as of November 29, 2025 and August 30, 2025 was $368,297 and $359,465, respectively.
The receivables sold incurred fees due to the Purchasers of $3,644 and $4,202 during the thirteen-week periods ended November 29, 2025 and November 30, 2024, respectively, which were recorded within Other expense, net in the unaudited Condensed Consolidated Statements of Income. The financial covenants under the RPA are substantially the same as those under the Credit Facilities (as defined below). See Note 8, “Debt” for more information about these financial covenants.
Note 7. Acquisitions
During the first fiscal quarter of 2026, the Company acquired the remaining interest of Wm. F. Hurst Co., LLC for $8,195, increasing the Company's ownership from 80% to 100%. As of the acquisition date, the balance of the noncontrolling interest was $6,048. The difference between acquisition price and the balance of the noncontrolling interest was recognized as an adjustment to additional paid-in capital of $2,147.
11

MSC INDUSTRIAL DIRECT CO., INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollar amounts and shares in thousands, except per share data)
(Unaudited)
Note 8. Debt
Debt at November 29, 2025 and August 30, 2025 consisted of the following:
November 29,
2025		August 30,
2025
Amended Revolving Credit Facility$110,000 $65,000 
Uncommitted Credit Facilities217,000 217,000 
Long-Term Note Payable4,750 4,750 
Private Placement Debt:
2.90% Senior Notes, Series B, due July 28, 2026
100,000 100,000 
2.60% Senior Notes, due March 5, 2027
50,000 50,000 
5.73% Senior Notes, due April 18, 2027
50,000 50,000 
Financing arrangements14 38 
Obligations under finance leases655 450 
Less: unamortized debt issuance costs(1,452)(1,539)
Total debt, including obligations under finance leases$530,967 $485,699 
Less: current portion(316,872)
(1)
(316,868)
(2)
Total long-term debt, including obligations under finance leases$214,095 $168,831 
(1)Consists of $217,000 from the Uncommitted Credit Facilities (as defined below), $100,000 from the 2.90% Senior Notes, Series B, due July 28, 2026, $14 from financing arrangements, $207 from obligations under finance leases and net of unamortized debt issuance costs of $349 expected to be amortized in the next 12 months.
(2)Consists of $217,000 from the Uncommitted Credit Facilities (as defined below), $100,000 from the 2.90% Senior Notes, Series B, due July 28, 2026, $17 from financing arrangements, $200 from obligations under finance leases and net of unamortized debt issuance costs of $349 expected to be amortized in the next 12 months.
In April 2017, the Company entered into a $600,000 revolving credit facility, which was subsequently amended (as amended, the “Amended Revolving Credit Facility”). The Amended Revolving Credit Facility, which matures on July 16, 2030, provides for a five-year unsecured revolving loan facility on a committed basis. The interest rate for borrowings under the Amended Revolving Credit Facility is based on either the Adjusted Term SOFR Rate (as defined in the Amended Revolving Credit Facility) or a base rate, plus a spread based on the Company’s consolidated net leverage ratio at the end of each fiscal reporting quarter. The Company currently elects to have loans under the Amended Revolving Credit Facility bear interest based on the Adjusted Term SOFR Rate with one-month interest periods.
The Amended Revolving Credit Facility permits up to $50,000 to be used to fund letters of credit. The Amended Revolving Credit Facility also permits the Company to initiate one or more incremental term loan facilities and/or to increase the revolving loan commitments in an aggregate amount not to exceed $300,000. Subject to certain limitations, each such incremental term loan facility or revolving loan commitment increase will be on terms as agreed to by the Company, the administrative agent and the lenders providing such financing. Outstanding letters of credit were $6,304 at November 29, 2025 and August 30, 2025, respectively.
Uncommitted Credit Facilities
During fiscal year 2025, the Company either extended or amended all three of its uncommitted credit facilities. These facilities (collectively, the “Uncommitted Credit Facilities” and, together with the Amended Revolving Credit Facility, the “Credit Facilities”) total $230,000 in aggregate maximum uncommitted availability, under which $217,000 was outstanding at each of November 29, 2025 and August 30, 2025, and are included in Current portion of debt including obligations under finance leases in the unaudited Condensed Consolidated Balance Sheets. The interest rate on the Uncommitted Credit Facilities is based on the Secured Overnight Financing Rate. Borrowings under the Uncommitted Credit Facilities are due at the end of the applicable interest period, which is typically one month but may be up to six months and may be rolled over to a new interest period at the option of the applicable lender. The Company’s lenders have,
12

MSC INDUSTRIAL DIRECT CO., INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollar amounts and shares in thousands, except per share data)
(Unaudited)
in the past, been willing to roll over the principal amount outstanding under the Uncommitted Credit Facilities at the end of each interest period but are not obligated to do so. Each Uncommitted Credit Facility matures within one year of entering into such Uncommitted Credit Facility and contains certain limited covenants which are substantially the same as the limited covenants contained in the Amended Revolving Credit Facility. All of the Uncommitted Credit Facilities are unsecured and rank equally in right of payment with the Company’s other unsecured indebtedness.
During the thirteen-week period ended November 29, 2025, the Company borrowed an aggregate $156,000 and repaid an aggregate $111,000 under the Credit Facilities. As of November 29, 2025 and August 30, 2025, the weighted-average interest rates on borrowings under the Credit Facilities were 4.89% and 5.19%, respectively.
Private Placement Debt
In July 2016, the Company completed the issuance and sale of $100,000 aggregate principal amount of 2.90% Senior Notes, Series B, due July 28, 2026; in March 2020, the Company completed the issuance and sale of $50,000 aggregate principal amount of 2.60% Senior Notes, due March 5, 2027; and, in April 2024, the Company completed the issuance and sale of $50,000 aggregate principal amount of 5.73% Senior Notes, due April 18, 2027 (collectively, the “Private Placement Debt”). Interest is payable semiannually at the fixed stated interest rates. All of the Private Placement Debt is unsecured.
Covenants
Each of the Credit Facilities and the Private Placement Debt imposes several restrictive covenants. As of November 29, 2025, the Company was in compliance with the operating and financial covenants of the Credit Facilities and the Private Placement Debt.
Note 9. Shareholders’ Equity
Common Stock Repurchases and Treasury Stock
In June 2021, the Board of Directors of the Company (the “Board”) terminated the existing share repurchase plan and authorized a new share repurchase plan (the “Share Repurchase Plan”) to purchase up to 5,000 shares of Class A Common Stock. There is no expiration date for the Share Repurchase Plan. As of November 29, 2025, the maximum number of shares of Class A Common Stock that were available for repurchase under the Share Repurchase Plan was 1,313 shares. The Share Repurchase Plan allows the Company to repurchase shares at any time and in any increments it deems appropriate in accordance with Rule 10b-18 under the Exchange Act.
During the thirteen-week period ended November 29, 2025, the Company repurchased 151 shares of Class A Common stock for $12,959. From this total, 51 shares were repurchased by the Company to satisfy the Company’s associates’ tax withholding liability associated with its stock-based compensation program and are reflected at cost as treasury stock in the unaudited Condensed Consolidated Financial Statements for the thirteen-week period ended November 29, 2025 and the remainder were immediately retired. During the thirteen-week period ended November 30, 2024, the Company repurchased 219 shares of Class A Common Stock for $18,072. From this total, 70 shares were repurchased by the Company to satisfy the Company’s associates’ tax withholding liability associated with its stock-based compensation program and are reflected at cost as treasury stock in the unaudited Condensed Consolidated Financial Statements for the thirteen-week period ended November 30, 2024 and the remainder were immediately retired.
As of November 29, 2025 and August 30, 2025, the Company also recorded accruals for excise tax on share repurchases of $71, which was included in Accrued expenses and other current liabilities in the unaudited Condensed Consolidated Balance Sheets.
The Company reissued 12 and 14 shares of treasury stock during the thirteen-week periods ended November 29, 2025 and November 30, 2024, respectively, to fund the MSC Industrial Direct Co., Inc. Amended and Restated Associate Stock Purchase Plan.
13

MSC INDUSTRIAL DIRECT CO., INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollar amounts and shares in thousands, except per share data)
(Unaudited)
Dividends on Common Stock
The Company paid aggregate regular cash dividends of $0.87 per share totaling $48,626 for the thirteen-week period ended November 29, 2025. For the thirteen-week period ended November 30, 2024, the Company paid aggregate regular cash dividends of $0.85 per share totaling $47,537.
On December 18, 2025, the Board declared a regular cash dividend of $0.87 per share, payable on January 28, 2026, to shareholders of record at the close of business on January 14, 2026. The dividend is expected to result in aggregate payments of $48,549 based on the number of shares outstanding on December 19, 2025.
Note 10. Restructuring and Other Costs
Optimization of Company Operations, Profitability Improvement and Growth Acceleration
The Company continues to identify opportunities for improvements in its workforce realignment, strategy and staffing, and its focus on performance management, to ensure it has the right skill sets and number of associates to execute its long-term vision. As such, from time to time the Company extends voluntary and involuntary severance and separation benefits to certain associates in order to facilitate its workforce realignment. During the thirteen weeks ended November 29, 2025, the Company reduced its headcount by eliminating various positions as part of its sales optimization efforts as the Company implements its refreshed go to market strategy. The Company expects this restructuring event to continue into its second fiscal quarter with additional severance and separation costs of approximately $1,500.
As part of the Company’s strategic realignment efforts to optimize its supply chain and distribution network and enhance operational efficiency, the Company engaged consultants beginning in fiscal year 2024 and ending in fiscal year 2025. As such, the Company incurred consulting-related costs in order to facilitate its network optimization and workforce realignment that qualify as exit and disposal costs under accounting principles generally accepted in the United States of America.
In addition, from time to time, the Company incurs certain expenses that are an integral component of, and directly contribute to, its restructuring activities, which do not qualify as exit and disposal costs under accounting principles generally accepted in the United States of America. These expenses include professional and consulting-related costs directly associated with the optimization of the Company’s operations and profitability improvement, which are also included in Restructuring and other costs in the unaudited Condensed Consolidated Statements of Income.
The following table summarizes Restructuring and other costs for the thirteen-week periods ended November 29, 2025 and November 30, 2024:
Thirteen Weeks Ended
November 29,
2025		November 30,
2024
Consulting-related costs$926 $2,344 
Associate severance and separation costs3,892 — 
Equity award acceleration costs associated with severance 52 — 
Total Restructuring and other costs$4,870 $2,344 
Liabilities associated with Restructuring and other costs are included in Accrued expenses and other current liabilities in the unaudited Condensed Consolidated Balance Sheet as of November 29, 2025. The following table
14

MSC INDUSTRIAL DIRECT CO., INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollar amounts and shares in thousands, except per share data)
(Unaudited)
summarizes activity related to liabilities associated with Restructuring and other costs for the thirteen-week period ended November 29, 2025:
Consulting-related costsAssociate severance and separation costsTotal
Balance at August 30, 2025$295 $3,397 $3,692 
Additions926 3,892 4,818 
Payments and other adjustments(631)(2,323)(2,954)
Balance at November 29, 2025$590 $4,966 $5,556 
Note 11. Income Taxes
During the thirteen-week period ended November 29, 2025, there were no material changes in unrecognized tax benefits.
The Company’s effective tax rate was 24.3% for the thirteen-week period ended November 29, 2025, as compared to 24.6% for the thirteen-week period ended November 30, 2024. The effective tax rate is higher than the federal statutory tax rate primarily due to state taxes.

In July 2025, the One Big Beautiful Bill Act (“OBBBA”) was passed in the United States. This act introduces significant changes to United States federal tax law, including making certain provisions of the Tax Cuts and Jobs Act of 2017 permanent and introducing new measures impacting corporate taxation. The OBBBA contains a number of tax provisions including, but not limited to, immediate expensing of domestic research and experimental expenditures and bonus depreciation modifications. These tax provisions apply to our fiscal year 2025 and future periods. The Company is in the process of analyzing its tax elections under the OBBBA however we do not expect these elections to have a material impact on the fiscal year 2026 effective tax rate.
Note 12. Legal Proceedings
In the ordinary course of business, there are various claims, lawsuits and pending actions against the Company incidental to the operation of its business. Although the outcome of these matters, both individually and in aggregate, is currently not determinable, the Company does not expect that the ultimate costs to resolve these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity.
On March 14, 2025, a complaint was filed in the Supreme Court of the State of New York, County of New York by Macomb County Retiree Health Care Fund (“MCRHC”) against the Company and certain officers, directors and shareholders of the Company (the “Macomb Litigation”). In June 2025, MCRHC filed an amended complaint. The amended complaint alleges, among other things, breaches of fiduciary duties for actions related to the Reclassification (as defined below) and seeks disgorgement, unspecified damages, costs and expenses and such other relief as the court may deem proper. On November 14, 2025, the Company's motion to dismiss the amended complaint was denied. As a result, the Macomb Litigation is continuing while the Company continues to vigorously defend itself. While at this time the ultimate cost to resolve this matter is not reasonably estimable, we have incurred, and may be required in the future to incur further, legal fees and other expenses related to the Macomb Litigation.
13. Segment Reporting
The Company operates in one operating and reportable segment which aligns with the Company’s go to market strategy as a leading North American distributor of a broad range of industrial products and services. The Company serves a large number of customers in diverse industries through the sale of products and services in categories such as metalworking, MRO, Class C Consumables and OEM. Substantially all of the Company's revenues and long-lived assets are from or in the United States. In accordance with FASB ASU 2023-07, operating segments are sections of the business with separate financial information that is regularly reviewed by the chief operating decision maker ("CODM") in assessing company performance and allocation of resources. As of November 29, 2025, The Company's CODM duties are shared by
15

MSC INDUSTRIAL DIRECT CO., INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollar amounts and shares in thousands, except per share data)
(Unaudited)
our Chief Executive Officer and President & Chief Operating Officer. Effective January 1, 2026, the Company's CODM is our President & Chief Executive Officer. The CODM regularly reviews consolidated operating margin and net income to assess Company performance, drive growth, and allocate resources to strategic priorities. The CODM reviews total assets at the consolidated level to make significant capital expenditure decisions for the Company.
The following table presents selected financial information regarding the Company's single reportable segment for the thirteen-week periods ended November 29, 2025 and November 30, 2024:

Thirteen Weeks Ended
November 29,
2025		November 30,
2024
Net sales$965,684$928,484
  Cost of goods sold573,007550,297
  Payroll and payroll-related costs174,508173,690
  Freight expense36,39437,485
  Depreciation and amortization24,62121,187
  Restructuring and other costs4,8702,344
  Other segment items (1)
76,04571,201
Income from operations76,23972,280
Operating Margin7.9%7.8%
Other Income (Expense)
  Interest expense(5,416)(6,075)
  Interest income275 341 
  Other expense, net (2)
(3,584)(5,944)
Income before provision for income taxes67,51460,602
Provision for income taxes16,40614,908
Net income$51,108$45,694
(1) Other segment items consists primarily of professional fees, software and hardware costs, auto expenses, advertising expenses, stock-based compensation and other selling, general, and administrative expenses
(2) Other expense, net is primarily composed of fees related to the Company's securitization agreement.















16

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The following is intended to update the information contained in MSC Industrial Direct Co., Inc.’s (together with its wholly owned subsidiaries and entities in which it maintains a controlling financial interest, “MSC,” “MSC Industrial,” the “Company,” “we,” “us” or “our”) Annual Report on Form 10-K for the fiscal year ended August 30, 2025 and presumes that readers have access to, and will have read, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of Part II of such Annual Report on Form 10-K.
Our Business

MSC is a leading North American distributor of a broad range of metalworking and maintenance, repair and operations (“MRO”) products and services. We help our customers drive greater productivity, profitability and growth with inventory management and other supply chain solutions and deep expertise from more than 80 years of working with customers across industries. We offer approximately 2.5 million active, saleable stock-keeping units through our E-commerce channels, including our website, www.mscdirect.com (the “MSC website”); our inventory management solutions; our catalogs; our brochures; and our customer care centers, customer fulfillment centers (“CFCs”), regional inventory centers and warehouses. We service our customers from five CFCs, nine regional inventory centers, 37 warehouses, and five manufacturing locations. We continue to implement our strategies to gain market share, generate new customers, increase sales to existing customers and diversify our customer base.

Our business model focuses on providing overall procurement cost reduction and just-in-time delivery to meet our customer’s needs. Many of our products are carried in stock, and orders for these in-stock products are typically fulfilled the day on which the order is received. We focus on offering inventory, process and procurement solutions that reduce supply chain costs and improve plant floor productivity for our customers. We aim to achieve ongoing cost reductions throughout our business by implementing cost-saving strategies and leveraging our existing infrastructure. Additionally, we provide our customers with further procurement cost-saving solutions through technologies such as our Vendor Managed Inventory (“VMI”), Customer Managed Inventory (“CMI”) and vending programs — helping reduce downtime and ensure critical products are available when and where they are needed. Our vending machines in service totaled 30,177 as of November 29, 2025, compared to 27,747 as of November 30, 2024, and our In-Plant programs totaled 418 locations as of November 29, 2025, compared to 369 as of November 30, 2024. Our sales force, which focuses on a more complex and high-touch role, drives value for our customers by enabling them to achieve higher levels of growth, profitability and productivity. Our field sales and service associate headcount was 2,631 as of November 29, 2025, compared to 2,723 as of November 30, 2024.
Highlights
Highlights during the thirteen weeks ended November 29, 2025 include:
•We generated $29.4 million of cash from operations, compared to $101.9 million for the same period in the prior fiscal year.
•We had net borrowings of $45.0 million on our credit facilities and private placement debt, compared to net borrowings of $11.8 million for the same period in the prior fiscal year.
•We paid out an aggregate $48.6 million in regular cash dividends, compared to an aggregate $47.5 million in regular cash dividends for the same period in the prior fiscal year.
•We repurchased $13.0 million of MSC’s Class A Common Stock, par value $0.001 per share (“Class A Common Stock”), excluding excise taxes, compared to $18.1 million for the same period in the prior fiscal year.
•We incurred $4.9 million in Restructuring and other costs, compared to $2.3 million for the same period in the prior fiscal year, consisting primarily of current year severance and separation costs associated with the Company’s sales optimization efforts as well as consulting-related costs in the current and prior fiscal year.
Our Strategy
The first phase of our Company-wide initiative, referred to as “Mission Critical,” focused on market share capture and improved profitability. We successfully executed on the first phase of Mission Critical initiatives at the end of fiscal year 2023, which included solidifying our market-leading metalworking business, with an emphasis on selling our product portfolio, expanding our solutions, improving our digital and E-commerce capabilities and diversifying our customers and end-markets. The next phase of our Mission Critical journey, which began in fiscal year 2024, is anchored in three pillars: (i) maintaining the momentum of the first phase of the Mission Critical program and our existing growth drivers, (ii) increasing our focus on both core customers and OEM fasteners, and (iii) driving productivity improvements and reducing operating expenses as a percentage of net sales. To accomplish the next phase of our Mission Critical journey, we intend to
17

leverage investments in advanced analytics to improve supply chain performance and upgrade our digital core to unlock productivity within our order-to-cash and procure-to-pay processes. In fiscal year 2024, we completed our web price realignment initiative. In fiscal year 2025, we launched our enhanced marketing efforts, rolled out several E-commerce enhancements and began our sales optimization initiative, which included investment in an enhanced, data-driven territory model to optimize field seller portfolios. The Company continued its sales optimization efforts in the first quarter of fiscal year 2026.
Our primary objective is to grow sales profitably while offering our customers highly technical and high-touch solutions to solve their most complex challenges on the plant floor. We have experienced success to date as measured by the growth rates of our high-touch programs, such as vending and in-plant programs, and the rate of new customer implementations. Our strategy is to position ourselves as a mission-critical partner to our customers. We intend to selectively pursue strategic acquisitions that expand or complement our business in new and existing markets or further enhance the value and offerings we provide.
Business Environment
The United States economy has experienced various macroeconomic pressures in recent years including pricing pressure from tariffs and inflation, sustained high interest rates and general economic and political uncertainty. The impact from tariffs was most significant in the latter half of the Company's fiscal year 2025 and has continued into the first quarter of fiscal year 2026. Furthermore, as a supplier to the United States federal government, the federal government shutdown, which lasted from October 1, 2025 through November 12, 2025, negatively impacted sales to our public sector end-market during the first quarter of fiscal year 2026. These pressures have impacted, and may continue to impact in the future, the Company’s business, financial condition and results of operations.
We utilize various indices when evaluating the level of our business activity, including the Industrial Production (“IP”) Index. Through statistical analysis, we have found that trends in our customers’ activity have correlated to changes in the IP Index. The IP Index measures short-term changes in industrial production. Growth in the IP Index compared to the prior quarter indicates growth in the manufacturing, mining and utilities industries. Approximately 67% of our revenues came from sales in the manufacturing sector during the thirteen-week period ended November 29, 2025. After giving effect to the annual technical revisions to calculations of the IP Index which occurred in November 2025, the IP Index over the three months ended November 2025 and the average for the three- and 12-month periods ended November 2025 were as follows:
PeriodIP Index
September101.7
October101.6
November101.8
Fiscal Year 2026 Q1 Average101.7
12-Month Average101.2

The average IP Index for the three months ended November 2025 was 101.7, flat compared to the prior quarter average of 101.7 and an increase from an average of 99.5 during the comparative quarter in the prior year.

During the first quarter of fiscal year 2026, the Company experienced a more stable demand environment compared to much of fiscal year 2025. The heavy manufacturing industry, which represented 58% of our revenues during the thirteen-week period ended November 29, 2025, showed signs of expansion. Several IP subindexes, in particular Aerospace, improved, while others, such as Automotive, signaled contraction. Non-manufacturing demand, in particular the Company’s public sector end-market, was hampered by the federal government shutdown which resulted in lower sales volumes in October and November. We will monitor the current economic conditions for the impact on our customers and markets and assess both risks and opportunities that may affect our business and operations.



18

Thirteen-Week Period Ended November 29, 2025 Compared to the Thirteen-Week Period Ended November 30, 2024
The table below summarizes the Company’s results of operations both in dollars (in thousands) and as a percentage of net sales for the periods indicated:
Thirteen Weeks Ended
November 29, 2025November 30, 2024Change
$%$%$%
Net sales $965,684 100.0 %$928,484 100.0 %$37,200 4.0 %
Cost of goods sold 573,007 59.3 %550,297 59.3 %22,710 4.1 %
Gross profit 392,677 40.7 %378,187 40.7 %14,490 3.8 %
Operating expenses 311,568 32.3 %303,563 32.7 %8,005 2.6 %
Restructuring and other costs4,870 0.5 %2,344 0.3 %2,526 107.8 %
Income from operations 76,239 7.9 %72,280 7.8 %3,959 5.5 %
Total other expense(8,725)(0.9)%(11,678)(1.3)%2,953 (25.3)%
Income before provision for income taxes 67,514 7.0 %60,602 6.5 %6,912 11.4 %
Provision for income taxes 16,406 1.7 %14,908 1.6 %1,498 10.0 %
Net income 51,108 5.3 %45,694 4.9 %5,414 11.8 %
Less: Net loss attributable to noncontrolling interest(696)(0.1)%(929)(0.1)%233 (25.1)%
Net income attributable to MSC Industrial$51,804 5.4 %$46,623 5.0 %$5,181 11.1 %
Net Sales
Net sales increased 4.0%, or $37.2 million, to $965.7 million for the thirteen-week period ended November 29, 2025, as compared to $928.5 million for the same period in the prior fiscal year. The $37.2 million increase in net sales was comprised of a positive impact from pricing of $39.0 million and favorable foreign exchange impact of $1.0 million, partially offset by $2.8 million of lower sales volume, which was primarily driven by the federal government shutdown. The positive pricing impact was inclusive of changes in customer and product mix, discounting, favorable tariff-related pricing actions and other items. Of the $37.2 million increase in net sales during the thirteen-week period ended November 29, 2025, sales to our core and other customers increased $31.9 million, sales to our national account customers increased $9.8 million and sales to our public sector customers decreased $4.5 million.
19

The table below shows, among other things, the change in our average daily sales (“ADS”) by total Company, by customer end-market and by customer type for the thirteen-week periods ended November 29, 2025 and November 30, 2024, each as compared to the same period in the prior fiscal year:
ADS Percentage Change
(Unaudited)
Thirteen Weeks Ended
November 29, 2025November 30, 2024
Net Sales (in thousands)$965,684 $928,484 
Sales Days62 62 
ADS (1) (in millions)
$15.6 $15.0 
Total Company ADS Percent Change (2)
4.0 %(2.7)%
Customer End-Market:
Manufacturing Customers ADS Percent Change (2)
5.4 %(4.9)%
Manufacturing Customers Percent of Total Net Sales67 %66 %
Non-Manufacturing Customers ADS Percent Change (2)
1.3 %2.0 %
Non-Manufacturing Customers Percent of Total Net Sales33 %34 %
Customer Type:
National Account Customers ADS Percent Change (2)
2.9 %(1.6)%
National Account Customers Percent of Total Net Sales 37 %37 %
Public Sector Customers ADS Percent Change (2)
(5.2)%9.8 %
Public Sector Customers Percent of Total Net Sales 9 %9 %
Core and Other Customers ADS Percent Change (2)
6.4 %(5.3)%
Core and Other Customers Percent of Total Net Sales 54 %54 %

(1)ADS is calculated using the number of business days in the United States for the periods indicated. The Company believes ADS is a key performance indicator because it shows the effectiveness of the Company’s selling performance on a consistent basis between periods.
(2)Percent reflects the change from the 2025 fiscal period to the 2026 fiscal period and the change from the 2024 fiscal period to the 2025 fiscal period, respectively.
We believe that our ability to transact business with our customers directly through the MSC website as well as through various other electronic portals gives us a competitive advantage over smaller suppliers. Sales made through our E-commerce platforms, including sales made through Electronic Data Interchange (“EDI”) systems, VMI systems, Extensible Markup Language ordering-based systems, vending, hosted systems and other electronic portals, represented 64.2% of consolidated net sales for the thirteen-week period ended November 29, 2025, as compared to 63.7% of consolidated net sales for the same period in the prior fiscal year.
Gross Profit
Gross profit of $392.7 million for the thirteen-week period ended November 29, 2025 increased $14.5 million, or 3.8%, compared to the same period in the prior fiscal year. Gross profit margin was 40.7% for the thirteen-week period ended November 29, 2025, which was flat to the same period in the prior fiscal year. The increase in gross profit was
20

primarily a result of an increase in net sales, as described above, while gross profit margin remained comparable to the prior year period.
Operating Expenses
Operating expenses increased 2.6%, or $8.0 million, to $311.6 million for the thirteen-week period ended November 29, 2025, as compared to $303.6 million for the same period in the prior fiscal year. Operating expenses were 32.3% of net sales for the thirteen-week period ended November 29, 2025, as compared to 32.7% for the same period in the prior fiscal year. The increase in Operating expenses was primarily a result of advertising expense and higher depreciation and amortization expense. The decrease in operating expenses as a percentage of net sales was primarily due to growth in net sales outpacing the increase in Operating expenses.
Payroll and payroll-related costs, which include salary, incentive compensation, sales commission and fringe benefit costs, were $174.5 million, or 56.0% of total Operating expenses, for the thirteen-week period ended November 29, 2025, as compared to $173.7 million, or 57.2% of total Operating expenses, for the same period in the prior fiscal year.
Freight expense was $36.4 million for the thirteen-week period ended November 29, 2025, as compared to $37.5 million for the same period in the prior fiscal year. The primary driver of the decrease was favorable third-party shipping rates achieved through our network optimization initiatives.
Depreciation and amortization was $24.6 million for the thirteen-week period ended November 29, 2025, as compared to $21.2 million for the same period in the prior fiscal year. The primary drivers of the increase in depreciation and amortization were increased capital expenditures related to E-commerce and digital initiatives.
Advertising expense was $14.2 million for the thirteen-week period ended November 29, 2025, as compared to $10.9 million for the same period in the prior fiscal year. The primary driver of the increase was higher search engine marketing spend as part of the Company's enhanced marketing efforts which began in fiscal year 2025.
Restructuring and Other Costs

We incurred $4.9 million in Restructuring and other costs for the thirteen-week period ended November 29, 2025, as compared to $2.3 million for the same period in the prior fiscal year. The increase was primarily related to higher severance and separation benefits related to headcount reduction actions during the period. See Note 10, “Restructuring and Other Costs” in the Notes to Condensed Consolidated Financial Statements for additional information.

Income from Operations
Income from operations increased 5.5%, or $4.0 million, to $76.2 million for the thirteen-week period ended November 29, 2025, as compared to $72.3 million for the same period in the prior fiscal year. Income from operations as a percentage of net sales increased to 7.9% for the thirteen-week period ended November 29, 2025, as compared to 7.8% for the same period in the prior fiscal year. The increase in income from operations as a percentage of net sales was primarily attributable to, as described above, a decrease in Operating expenses as a percentage of net sales during the thirteen-week period ended November 29, 2025.
Total Other Expense

Total other expense decreased 25.3%, or $3.0 million, to $8.7 million for the thirteen-week period ended November 29, 2025, as compared to $11.7 million for the same period in the prior fiscal year. The decrease was primarily due to the impact of prior year realized and unrealized losses on foreign exchange as well as lower interest costs on our Credit Facilities and lower fees incurred associated with the Receivables Purchase Agreement.
Provision for Income Taxes
The Company’s effective tax rate for the thirteen-week period ended November 29, 2025 was 24.3%, as compared to 24.6% for the same period in the prior fiscal year.
21

Net Income
The factors which affected net income for the thirteen-week period ended November 29, 2025, as compared to the same period in the prior fiscal year, have been discussed above.
Liquidity and Capital Resources
November 29,
2025		August 30,
2025		$ Change
(In thousands)
Total debt$530,967 $485,699 $45,268 
Less: Cash and cash equivalents40,254 56,228 (15,974)
Net debt$490,713 $429,471 $61,242 
Total shareholders’ equity$1,382,827 $1,396,502 $(13,675)
As of November 29, 2025, we had $40.3 million in cash and cash equivalents, substantially all with well-known financial institutions. Historically, our primary financing needs have been to fund our working capital requirements necessitated by our sales growth and the costs of acquisitions, new products, new facilities, facility expansions, investments in vending solutions, technology investments, and productivity investments. Cash generated from operations, together with borrowings under our credit facilities and net proceeds from the private placement notes, have been used to fund these needs, to repurchase shares of Class A Common Stock from time to time, and to pay dividends to our shareholders.

As of November 29, 2025, total borrowings outstanding, representing amounts due under our credit facilities and notes, as well as all finance leases and financing arrangements, were $531.0 million, net of unamortized debt issuance costs of $1.5 million, as compared to total borrowings outstanding of $485.7 million, net of unamortized debt issuance costs of $1.5 million, as of the end of fiscal year 2025. The increase in total borrowings outstanding was driven by higher net borrowings under our credit facilities. See Note 8, “Debt” in the Notes to Condensed Consolidated Financial Statements for more information about these balances.
We believe, based on our current business plan, that our existing cash, financial resources and cash flow from operations will be sufficient to fund anticipated capital expenditures and operating cash requirements for at least the next 12 months. We will continue to evaluate our financial position in light of future developments and to take appropriate action as it is warranted.
The table below summarizes certain information regarding the Company’s cash flows for the periods indicated:
Thirteen Weeks Ended
November 29,
2025		November 30,
2024
(In thousands)
Net cash provided by operating activities $29,411 $101,868 
Net cash used in investing activities (21,189)(20,408)
Net cash used in financing activities (23,936)(53,359)
Effect of foreign exchange rate changes on cash and cash equivalents (260)(423)
Net (decrease) increase in cash and cash equivalents $(15,974)$27,678 
Cash Flows from Operating Activities
Net cash provided by operating activities was $29.4 million for the thirteen weeks ended November 29, 2025, compared to $101.9 million for the thirteen weeks ended November 30, 2024. The decrease was primarily due to the following:
•an increase in prepaid expenses and other current assets in the current fiscal year due primarily to an increase in vendor rebate receivables and IT-related prepayments;
•an increase in the balances of accounts receivable and inventories in the current fiscal year relative to the prior year. The higher balance of inventories is due to inventory management countermeasures in response to tariffs and the higher accounts receivable balance is due to higher sales levels;
22

•a decrease in accounts payable and accrued liabilities as compared to the prior year period due primarily to the change in accrued payroll and payroll related costs due in turn to the larger fiscal year 2025 annual incentive compensation payment paid in fiscal year 2026 than prior years; partially offset by
•an increase in net income
The table below summarizes certain information regarding the Company’s operations as of the periods indicated:
November 29,
2025		August 30,
2025		November 30,
2024
(Dollars in thousands)
Working Capital (1)
$533,221 $497,208 $580,104 
Current Ratio (2)
1.71.71.9
Days’ Sales Outstanding (3)
41.5 37.8 40.5 
Inventory Turnover (4)
3.5 3.4 3.3 
(1)Working Capital is calculated as current assets less current liabilities.
(2)Current Ratio is calculated as total current assets divided by total current liabilities.
(3)Days’ Sales Outstanding is calculated as accounts receivable divided by net sales, using trailing two months sales data.
(4)Inventory Turnover is calculated as total cost of goods sold divided by inventory, using a 13-month trailing average inventory.
Working capital and current ratio decreased as of November 29, 2025 compared to November 30, 2024 primarily due to higher Current portion of debt including obligations under finance leases partially offset by higher Inventories and Accounts receivable balances. Working capital increased as of November 29, 2025 compared to August 30, 2025 primarily due to higher Inventories and higher Prepaid expenses and other current assets, partially offset by a lower balance in Cash and cash equivalents.
Days’ sales outstanding as of November 29, 2025 increased compared to both August 30, 2025 and November 30, 2024. The increase in days’ sales outstanding was driven by longer payment term requirements from certain national account customers.
Inventory turnover as of November 29, 2025 increased compared to both August 30, 2025 and November 30, 2024. Inventory turnover continues to improve due to category management efforts and supply chain efficiencies to optimize inventory levels.
Cash Flows from Investing Activities
Net cash used in investing activities for the thirteen weeks ended November 29, 2025 and November 30, 2024 was $21.2 million and $20.4 million, respectively. The use of cash for both the thirteen weeks ended November 29, 2025 and November 30, 2024 was primarily due to expenditures for property, plant and equipment mainly related to vending programs and other infrastructure and technology investments.
Cash Flows from Financing Activities
Net cash used in financing activities was $23.9 million for the thirteen weeks ended November 29, 2025, compared to $53.4 million for the thirteen weeks ended November 30, 2024, primarily due to the following:     
•$13.0 million in aggregate repurchases of Class A Common Stock during the thirteen weeks ended November 29, 2025, compared to $18.1 million in aggregate repurchases of Class A Common Stock during the thirteen weeks ended November 30, 2024;
•$48.6 million of regular cash dividends paid during the thirteen weeks ended November 29, 2025, compared to $47.5 million of regular cash dividends paid during the thirteen weeks ended November 30, 2024;
•net borrowings of $45.0 million under our credit facilities and private placement debt during the thirteen weeks ended November 29, 2025, compared to net borrowings of $11.8 million during the thirteen weeks ended November 30, 2024; and
•acquisition of the remaining interest of Wm. F. Hurst Co., LLC for $8.2 million during the thirteen weeks ended November 29, 2025, which increased the Company's ownership from 80% to 100%.
23

Capital Expenditures
We continue to invest in E-commerce and vending platforms, CFCs and distribution network, and other infrastructure and technology.
Long-Term Debt
Credit Facilities
In April 2017, the Company entered into a $600.0 million revolving credit facility, which was subsequently amended. Subsequent to the fiscal quarter ended November 29, 2025, the Company made additional net payments through December 19, 2025 of $38.0 million on its revolving credit facility which were funded through the $50.0 million proceeds received in relation to the amendment to our Receivables Purchase Agreement entered into during the second quarter of fiscal year 2026. See Note 6, "Accounts Receivable" in the Notes to Condensed Consolidated Financial Statements for more information about the amendment. The current unused balance of $521.7 million from the revolving credit facility, which is reduced by outstanding letters of credit, is available for working capital purposes if necessary. As of November 29, 2025, the Company also had three uncommitted credit facilities, totaling $230.0 million in aggregate maximum uncommitted availability. As of November 29, 2025, we were in compliance with the operating and financial covenants of our credit facilities. See Note 8, “Debt” in the Notes to Condensed Consolidated Financial Statements for more information about these balances.
Private Placement Debt
In July 2016, we completed the issuance and sale of unsecured senior notes. In June 2018 and March 2020, we entered into additional note purchase agreements. In April 2024, the Company completed the issuance and sale of senior notes. See Note 8, “Debt” in the Notes to Condensed Consolidated Financial Statements for more information about these transactions.
Leases and Financing Arrangements
As of November 29, 2025, certain of our operations were conducted on leased premises. These leases are for varying periods, the longest extending to fiscal year 2032. In addition, we are obligated under certain equipment and automobile operating and finance leases, which expire on varying dates through fiscal year 2029.
From time to time, we enter into financing arrangements with vendors to purchase certain information technology equipment or software.
Critical Accounting Estimates
On an ongoing basis, we evaluate our critical accounting policies and estimates, including those related to revenue recognition, inventory valuation, allowance for credit losses, warranty reserves, contingencies and litigation, income taxes, and accounting for goodwill and long-lived assets. We make estimates, judgments and assumptions in determining the amounts reported in the unaudited Condensed Consolidated Financial Statements and accompanying Notes. Estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. The estimates are used to form the basis for making judgments about the carrying values of assets and liabilities and the amount of revenues and expenses reported that are not readily apparent from other sources. Actual results may differ from these estimates.
There have been no material changes outside the ordinary course of business in the Company’s critical accounting policies, as disclosed in its Annual Report on Form 10-K for the fiscal year ended August 30, 2025.
Recently Adopted Accounting Standards
See Note 1, “Basis of Presentation” in the Notes to Condensed Consolidated Financial Statements.
24

Item 3. Quantitative and Qualitative Disclosures About Market Risk.
For information regarding our exposure to certain market risks, see Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Interest Rate Risks” under Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of Part II of our Annual Report on Form 10-K for the fiscal year ended August 30, 2025. Except as described in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained elsewhere in this Report, there have been no significant changes in our financial instrument portfolio or interest rate risk since our August 30, 2025 fiscal year-end.
Item 4. Controls and Procedures.
Our senior management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
In accordance with Exchange Act Rules 13a-15 and 15d-15, we carried out an evaluation, with the participation of our Chief Executive Officer and our Chief Financial Officer, as well as other key members of our management, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Report. Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were effective, as of the end of the period covered by this Report, to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is (i) accumulated and communicated to management as appropriate to allow timely decisions regarding required disclosure and (ii) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and Rule 15d-15(f) promulgated under the Exchange Act) during the fiscal quarter ended November 29, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

25

PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
In the ordinary course of business, there are various claims, lawsuits and pending actions against the Company incidental to the operation of its business. Although the outcome of these matters, both individually and in aggregate, is currently not determinable, the Company does not expect that the ultimate costs to resolve these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity.

In addition to the matters referred to above, on March 14, 2025, a complaint was filed in the Supreme Court of the State of New York, County of New York by Macomb County Retiree Health Care Fund (“MCRHC”) against the Company and certain officers, directors and shareholders of the Company (the “Macomb Litigation”). In June 2025, the MCRHC filed an amended complaint. The action is purportedly brought by MCRHC individually, and on behalf of others similarly situated, as a class action or in the alternative, as a derivative action on behalf of the Company. The amended complaint also asserts a breach of contract claim against the Company. The amended complaint alleges, among other things, breaches of fiduciary duties for actions related to the Reclassification and seeks disgorgement, unspecified damages, costs and expenses and such other relief as the court may deem proper. On November 14, 2025, the Company’s motion to dismiss the amended complaint was denied. As a result, the Macomb Litigation is continuing while the Company continues to vigorously defend itself. While at this time the ultimate cost to resolve this matter is not reasonably estimable, we have incurred, and may be required in future to incur further, legal fees and other expenses related to the Macomb Litigation.
Item 1A. Risk Factors.

In addition to the other information set forth in this Report, you should carefully consider the risks and the uncertainties discussed in Item 1A, “Risk Factors” of Part I of our Annual Report on Form 10-K for the fiscal year ended August 30, 2025, which could materially affect our business, financial condition and/or operating results. There have been no material changes in the Company’s risk factors from those disclosed in our Annual Report on Form 10-K. The risks described in our Annual Report on Form 10-K are not the only risks facing the Company. Additional risks and uncertainties not currently known to us or that we currently deem to be not material also may materially and adversely affect our business, financial condition and/or operating results.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
The following table sets forth repurchases by the Company of its outstanding shares of Class A Common Stock, which are listed on the New York Stock Exchange, during the thirteen-week period ended November 29, 2025:
Issuer Purchases of Equity Securities
Period
Total Number of Shares Purchased(1)
Average Price Paid Per Share(2)
Total Number of Shares Purchased as Part of Publicly Announced
Plans or Programs
Maximum Number of Shares that May Yet Be Purchased Under the
Plans or Programs(3)
8/31/25-9/30/25159$91.33 —1,413,423
10/1/25-10/30/25319$91.99 —1,413,423
10/31/25-11/29/25150,261$85.94 100,0001,313,423
Total 150,739100,000
(1)During the thirteen weeks ended November 29, 2025, 50,739 shares of Class A Common Stock were withheld by the Company as payment to satisfy our associates’ tax withholding liability associated with our stock-based compensation program and are included in the total number of shares purchased.
(2)Activity is reported on a trade date basis. Average price paid per share excludes excise tax levied by the Inflation Reduction Act of 2022.
(3)In June 2021, the Board of Directors of the Company terminated the existing share repurchase plan and authorized a new share repurchase plan (the “Share Repurchase Plan”) to purchase up to 5,000,000 shares of Class A Common Stock. There is no expiration date for the Share Repurchase Plan. As of November 29, 2025, the maximum number of shares of Class A Common Stock that may yet be repurchased under the Share Repurchase Plan was 1,313,423 shares.
26

Item 5. Other Information.
Insider Trading Arrangements
During the quarter ended November 29, 2025 none of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted, modified or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” (as each term is defined in Item 408 of Regulation S-K).
27

Item 6. Exhibits.
EXHIBIT INDEX
Exhibit No.
Description
101.INSInline XBRL Instance Document.*
101.SCHInline XBRL Taxonomy Extension Schema Document.*
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document.*
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document.*
101.LABInline XBRL Taxonomy Extension Label Linkbase Document.*
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document.*
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).*
*
Filed herewith.
**Furnished herewith.
†Indicates a management contract or compensatory plan or arrangement.
28

SIGNATURES
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 thereunto duly authorized.
MSC INDUSTRIAL DIRECT CO., INC.
(Registrant)
Dated: January 7, 2026
By:/s/ MARTINA MCISAAC
Martina McIsaac
President and Chief Executive Officer
(Principal Executive Officer)
Dated: January 7, 2026
By:/s/ GREG CLARK
Greg Clark
Vice President and Interim Chief Financial Officer
(Principal Financial Officer and
 Principal Accounting Officer)
29

What is the market capitalization of a company?

The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company.
In most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares.

DISCLAIMER

CompaniesMarketCap is not associated in any way with CoinMarketCap.com
Stock prices are delayed, the delay can range from a few minutes to several hours.
Company logos are from the CompaniesLogo.com logo database and belong to their respective copyright holders. Companies Marketcap displays them for editorial purposes only.

Contact

For inquiries or if you want to report a problem write to hello@8marketcap.com

Links

- Privacy policy

- Terms and conditions

© 2025 CompaniesMarketcap.com