MSC Industrial Supply Co. reported stronger sales and profit in its fiscal first quarter, marking a return to earnings growth as the industrial distributor benefited from improved execution and cost discipline despite demand headwinds tied to a federal government shutdown.
The company said sales for the quarter ending Nov. 29 rose to $965.7 million, up 4.0% from $928.5 million in the same period a year earlier. Profits attributable to MSC climbed to $51.8 million, an 11.1% increase from $46.6 million in the prior year.
MSC said higher volumes and tighter cost control helped lift results even as the company faced a 100-basis-point sales impact from a government shutdown, which weighed on demand early in the quarter.
President and CEO Officer Martina McIsaac said the company built on momentum from recent growth initiatives while improving profitability.
“We began the fiscal year on solid footing,” McIsaac said, pointing to sales growth that outpaced overall U.S. industrial production during the quarter. She said improved execution and a sharper focus on costs helped the company return to profit growth.
Operating income rose to $76.2 million, up from $72.3 million a year earlier, while overall profitability improved modestly. On an adjusted basis, profit rose faster, with adjusted operating income increasing to $81.2 million from $74.6 million.
Interim Chief financial officer Greg Clark said the company’s performance came in near the high end of expectations.
“We delivered year-over-year improvement in profitability and double-digit growth in earnings per share,” Clark said.
Excluding restructuring and other one-time costs, MSC said adjusted net income rose to $55.5 million, up 14.8% from $48.4 million a year earlier. Adjusted earnings per share increased to $0.99, compared with $0.86 in the prior year.
The company said it continued to invest in inventory, fulfillment and digital capabilities while managing expenses more tightly, contributing to stronger bottom-line performance.
Looking ahead, MSC said it expects sales growth to continue in its fiscal second quarter, though the timing of holidays has led to a slower start than usual.
For the current quarter, the company expects year-over-year daily sales growth of 3.5% to 5.5%. MSC also reaffirmed its full-year outlook, including planned capital spending of $100 million to $110 million and free cash flow conversion of about 90%.
McIsaac said she remains confident the company can sustain profit growth through fiscal 2026 as recent initiatives continue to take hold.
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