Global Industrial Co. reported second-quarter profitability on Tuesday, as higher sales margin to strategic accounts and tight cost control helped offset weaker demand from smaller customers and ongoing tariff pressures.
Revenue for the quarter ended June 30 rose 3.2% year over year to $358.9 million, up from $347.8 million a year earlier. Net income from continuing operations increased 24% to $25.1 million, compared to $20.2 million in Q2 2024.
Operating income jumped 26.9% to a record $33.5 million, with operating margin improving to 9.3%, up from 7.6% a year ago. Gross profit rose to $133 million, and the gross margin hit a company record of 37.1%, up from 35.2% in the prior year period.
“We delivered an excellent second quarter performance with record profitability,” CEO Anesa Chaibi told analysts during the earnings call. “I’m pleased with how the team executed, especially given the disruption and uncertainty from the current tariff environment.”
For the first half of 2025, sales reached $679.9 million, up 1.3% from $671.2 million in the same period last year. Net income from continuing operations rose 15.9% to $38.6 million, while operating income increased 18% to $51.7 million.
U.S. revenue grew 3% in the quarter, while Canada saw a 7.4% gain in local currency. The company’s largest strategic accounts continued to lead growth, while transactional and lower-retention customers saw a decline. Chief Financial Officer (CFO) Tex Clark said Global Industrial has intentionally reduced promotions aimed at lower-value buyers to focus on more profitable, long-term relationships.
“Sales grew each month during the quarter, and we’ve seen that momentum carry into July,” Clark said. “We’re focused on managing what we can control—pricing, supplier diversification, and inventory positioning—as tariffs continue to evolve.”
Global Industrial ended the quarter with $55.1 million in cash, no debt, and $120 million in available credit. Operating cash flow was $31.8 million. The company declared a quarterly dividend of $0.26 per share, payable August 18.
Looking ahead, Chaibi said the company is evolving its go-to-market strategy. “We’re becoming much more intentional in how we approach and attract new customers,” she said. “We need to make it easier for customers to do business with us—and we’re realigning the organization around that goal.”
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