MSC Industrial Revenue Climbs 3.5% to $1.88B in First Half of Fiscal 2026
MSC Industrial Direct Co., a distributor of metalworking and maintenance supplies, posted net income of $94.3 million for the six months ending February 28, up 9.7% from the prior-year period.
MSC Industrial Direct Co. (NYSE: MSC), a distributor of metalworking and maintenance supplies, reported revenue of $1.88 billion for the six months ending February 28, 2026, up 3.5% from $1.82 billion in the same period a year earlier. The company posted net income of $94.3 million, compared to $85.9 million in the prior-year period, a gain of 9.7%. Read more earnings reports.
For the second quarter alone, revenue rose 2.9% to $917.8 million from $891.7 million. Net income for the quarter increased 8.1% to $42.5 million from $39.3 million.
Operating income for the six-month period reached $141.0 million, up from $134.5 million a year earlier. The company's operating margin improved slightly as gross profit expanded 3.6% to $770.3 million while operating expenses rose 2.8% to $621.9 million.
Labor Costs Decline
Labor and related expenses for the first half totaled $345.7 million, down from $347.0 million in the prior-year period. The company reported operating income of $64.8 million for the second quarter, compared to $62.2 million a year earlier.
Diluted earnings per share for the six months reached $1.69, up from $1.54 in the same period last year. Second-quarter diluted EPS came in at $0.76 versus $0.70.
Cash Flow and Balance Sheet
Cash from operations for the six months totaled $123.8 million, down from $156.3 million in the prior-year period. The company generated $42.5 million in operating cash during the latest quarter. Cash used in investing activities was $42.5 million, primarily for capital expenditures, while financing activities consumed $91.3 million.
Total assets stood at $2.45 billion as of February 28, 2026, down slightly from $2.46 billion at the end of August 2025. Inventory increased to $677.4 million from $644.1 million at the prior fiscal year-end, while accounts receivable declined to $373.6 million from $423.3 million.
Cash and cash equivalents totaled $46.2 million at quarter-end, down from $56.2 million six months earlier. The company's stockholders' equity declined marginally to $1.38 billion from $1.39 billion.
Financial Summary
| Metric | Six Months Ended Feb 28, 2026 | Six Months Ended Mar 1, 2025 | Change |
|---|---|---|---|
| Revenue | $1,883.5 million | $1,820.2 million | +3.5% |
| Gross Profit | $770.3 million | $743.4 million | +3.6% |
| Operating Income | $141.0 million | $134.5 million | +4.8% |
| Net Income | $94.3 million | $85.9 million | +9.7% |
| Diluted EPS | $1.69 | $1.54 | +9.7% |
| Operating Cash Flow | $123.8 million | $156.3 million | -20.8% |
The company had 55.8 million shares outstanding as of February 28, 2026. Total liabilities remained essentially flat at $1.07 billion.