Financial Data and Key Metrics Changes - Average daily sales increased by 4% year over year, reaching approximately $966 million for Q1 2026, primarily driven by a price increase of 4.2% [11][20] - Gross margin for the quarter was 40.7%, consistent with expectations and flat compared to the prior year [15][22] - Reported operating margin was 7.9%, while adjusted operating margin was 8.4%, slightly above the midpoint of expectations [16][23] - GAAP EPS was $0.93, up from $0.83 in the prior year, and adjusted EPS was $0.99, compared to $0.86, reflecting a 15% improvement [23] Business Line Data and Key Metrics Changes - Core customer sales grew approximately 6% year over year, while national accounts improved by 3%, and public sector sales declined by 5% due to the federal government shutdown [12][21] - Daily sales in vending increased by 9% year over year, representing 19% of total company sales, while sales to customers with an implant program grew by 13% [21] Market Data and Key Metrics Changes - Demand across primary markets was described as stable, with aerospace remaining strong, while automotive and heavy truck showed some softness [17] - Average daily sales for fiscal December improved approximately 2.5% year over year, despite a month-over-month decline of roughly 20% due to holiday timing and customer shutdowns [18][19] Company Strategy and Development Direction - The company is focused on reconnecting with core customers and optimizing its sales organization to enhance customer experience and cost structure [4][5] - A growth forum is planned to engage approximately 1,400 associates with suppliers, aimed at accelerating growth through collaboration [7][8] - The company aims to maintain a strong culture and improve financial visibility through technology enhancements [9][10] Management's Comments on Operating Environment and Future Outlook - Management described the operating environment as stable, with expectations for continued traction on growth initiatives and price stability [17][30] - Despite challenges in December, management remains confident in achieving mid-single-digit growth for the fiscal year, supported by ongoing productivity initiatives [30] Other Important Information - The company reaffirmed its commitment to reducing greenhouse gas emissions by 15% by 2030 and has been recognized as a best company to work for [10] - Free cash flow for the quarter was approximately $7.4 million, representing about 14% of net income, with expectations of 90% free cash flow conversion for the fiscal year [24] Q&A Session Summary Question: What drove the 4% price increase and expectations for 2Q? - Management indicated that the price increase was in line with expectations, driven by prior price actions and ongoing inflation, particularly in metalworking [32][34] Question: What is the impact of IEEPA tariffs if ruled invalid? - Management noted that there would be an initial hit from lower inventories, followed by benefits as lower-cost inventory is received [36] Question: Clarification on the mid-single-digit growth comment? - Management expressed confidence in outperforming historical seasonal trends due to price and growth initiatives, despite typical seasonality suggesting lower growth [38][40] Question: Insights on public sector sales normalization? - Management expects public sector sales to return to normal levels, with a 50 basis point benefit anticipated in 2Q if no further government shutdown occurs [42] Question: Details on cost measures and service model adjustments? - Management explained that recent cost measures were aimed at optimizing the service organization to align with sales optimization efforts [43][46] Question: Expectations for gross margin and operating expenses in 2Q? - Management anticipates gross margins to be around 40.8% with potential upside, while operating expenses are expected to be variable based on sales growth [48][49]

Fiscal First Quarter 2026 Performance - Average daily sales ("ADS") increased by 4% year-over-year, aligning with the midpoint of the company's outlook[6] - Gross margin was 40.7%, meeting the midpoint of the projected range[6] - Reported earnings per share (EPS) was $0.93, while adjusted EPS reached $0.99, representing year-over-year increases of 12% and 15%, respectively[6] - Reported operating margin increased by 10 bps year-over-year, and adjusted operating margin rose by 40 bps year-over-year, surpassing the midpoint of the outlook[6] - The company returned approximately $62 million to shareholders through dividends and share repurchases[6] Segment and Initiative Performance - Core Customers' ADS grew by approximately 6% year-over-year, outperforming the total company's growth for the second consecutive quarter[13] - National Accounts returned to growth, with ADS improving by approximately 3% year-over-year[13] - Sales from In-Plant programs increased by 13% year-over-year, accounting for 20% of total sales[29] - Sales through vending machines grew by 9% year-over-year, representing 19% of total sales[29] Balance Sheet and Cash Flow - Free cash flow decreased year-over-year, resulting in a free cash flow conversion of 14%[31] - Net debt increased by $28 million due to higher debt levels and lower cash on hand[31] - The company maintains a healthy balance sheet, with a net debt to EBITDA ratio of 1.2x[31] Second Quarter 2026 Outlook - The company expects ADS to increase by 3.5% to 5.5% year-over-year[40] - Adjusted operating margin is projected to be between 7.3% and 7.9%[40]

MSC INDUSTRIAL SUPPLY CO. INVESTOR PRESENTATION FISCAL 2026 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Statements in this presentation may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of present or historical fact, that address activities, events or developments that MSC expects, believes or anticipates will or may occur in the future, including statements about results of operations and financial conditio ...

Core Viewpoint - DXP Enterprises, Inc. has completed the acquisitions of PREMIERflow, LLC and Mid Atlantic Storage Systems Inc., enhancing its project capabilities and market presence in various sectors [1][4]. Company Acquisitions - DXP funded the acquisitions using cash from its balance sheet, with financial terms not disclosed [1]. - The signing of definitive agreements occurred on January 1, 2026, with PREMIERflow and Mid Atlantic contributing approximately $93.7 million in sales and $20.9 million in adjusted EBITDA for the eleven months ending November 30, 2025 [5]. Strategic Importance - The acquisitions align with DXP's growth strategy, aiming to expand into varied end markets and maintain its position as the largest distributor of rotating equipment in North America [4]. - Both companies provide exceptional project capabilities that will enhance DXP's ability to serve customers and grow existing platforms [2][4]. Market Focus - PREMIERflow specializes in integrated fluid handling pump systems for fire protection, water & wastewater supply, data centers, and HVAC process industries [2]. - Mid Atlantic Storage Systems offers liquid storage tank products and services, focusing on water & wastewater, leachate, data center, and fire suppression markets [3]. Leadership Insights - DXP's CEO, David Little, expressed enthusiasm about the acquisitions, highlighting their potential to enhance DXP's offerings and market share [4][6]. - The President of PREMIERflow noted that joining DXP will allow for better customer service and competitive positioning in the market [6]. - The President of Mid Atlantic Storage Systems emphasized the complementary nature of their expertise with DXP's approach to building the DXP Water platform [7]. Employee and Market Impact - The acquisitions will add over 185 employees to DXP, diversifying its products, services, and end market exposure [8]. - DXP anticipates that these acquisitions will be accretive to earnings and provide momentum going into 2026 [8].

Core Viewpoint - MSC Industrial Supply Co. has declared a cash dividend of $0.87 per share, reflecting its commitment to returning value to shareholders [1] Company Announcement - The dividend of $0.87 is scheduled to be paid on January 28, 2026 [1] - Shareholders must be on record by the close of business on January 14, 2026, to receive the dividend [1]

Core Viewpoint - Global Industrial Company (GIC) was rated a 'Buy' in late 2023 due to its above-average dividend yield and strong financial metrics [1] Group 1: Company Performance - GIC is recognized as an industrial, operational, and repair item distributor [1] - The company has a strong balance sheet with minimal debt, making it attractive for income-focused investors [1] Group 2: Investment Strategy - The investment approach involves buying undervalued profitable stocks and writing calls against positions to generate additional income [1] - Risk management is emphasized through position sizing and the use of trailing stop losses over time [1]

Core Points - MSC Industrial Supply Co. is a leading distributor of Metalworking and Maintenance, Repair and Operations (MRO) products and services in North America [1] - The company will hold a conference call to discuss its fiscal year 2026 first quarter results and current operations [1] - The conference call is scheduled for January 7, 2026, at 8:30 a.m. and will be broadcast online live [1]

Group 1 - The current year has been challenging for short-cycle industrial end-markets and the distributors serving them [1] - A negative macroeconomic outlook for the first half of 2025 has influenced the overall market sentiment [1]

Group 1 - Major earnings reports are scheduled for next week, including Broadcom and Costco on Thursday, and Adobe and Synopsys on Wednesday [1] - Tuesday is expected to be the busiest day with over 10 companies reporting, including AutoZone and Ferguson Enterprises [1]

Core Insights - W.W. Grainger, Inc. (GWW) is valued at $44.9 billion and serves over 4.5 million customers across various sectors, including manufacturing and healthcare [1][2] - The company has a strong brand reputation and a hybrid business model that combines traditional service with e-commerce platforms, providing a competitive edge in the industrial distribution industry [2] Financial Performance - GWW's stock has declined 20% from its 52-week high of $1,201.68, with a 5.5% decrease over the past three months, underperforming the Industrial Select Sector SPDR Fund's (XLI) 1.5% gain [3] - Year-to-date, GWW shares are down 8.8% and 19.5% over the past 52 weeks, while XLI has seen YTD gains of 15.9% and 6.9% returns over the last year [4] - On October 31, GWW reported third-quarter results with adjusted EPS of $10.21, exceeding expectations of $9.93, and revenue of $4.7 billion, slightly above the consensus estimate of $4.6 billion [5]