Company Leadership Changes - Kristen Actis-Grande, the Executive Vice President and Chief Financial Officer of MSC Industrial Supply Co., will step down effective August 8, 2025, to take a CFO position at another publicly traded company [1] - Greg Clark, the Vice President of Finance and Corporate Controller, will serve as the interim CFO following Actis-Grande's departure while a search for a permanent CFO is conducted [2][3] Financial Performance and Outlook - The company reported that average daily sales for June were up 2.5% year-over-year, indicating positive sales momentum [3] - The fiscal fourth quarter performance is trending towards the upper half of the average daily sales and adjusted operating margin ranges provided in the July 1, 2025 earnings release [3] - The guidance for average daily sales growth for the fourth quarter is projected to be between (0.5)% and 1.5% year-over-year [4] - The adjusted operating margin is expected to be in the range of 8.5% to 9.0% [5] Company Overview - MSC Industrial Supply Co. is a leading North American distributor of metalworking and maintenance, repair, and operations (MRO) products and services, with approximately 2.4 million products and a workforce of over 7,000 associates [7]

Core Insights - MSC Industrial Supply Co. reported a net sales of $971.1 million for Q3 FY25, a decrease of 0.8% compared to $979.4 million in Q3 FY24 [2][7] - The company experienced a significant decline in income from operations, which fell by 22.5% to $82.7 million from $106.8 million year-over-year [2][7] - Diluted earnings per share (EPS) decreased to $1.02 from $1.27, reflecting a 19.7% decline [2][7] Financial Performance - Net sales for the year-to-date (YTD) period were $2,791.3 million, down 2.7% from $2,868.7 million in the previous year [2] - Adjusted income from operations for Q3 FY25 was $87.2 million, a decrease of 21.8% from $111.5 million in Q3 FY24 [2][7] - The adjusted operating margin for Q3 FY25 was 9.0%, down from 11.4% in Q3 FY24 [2][7] Shareholder Returns - The company returned approximately $56 million to shareholders through dividends and share repurchases during the fiscal third quarter, totaling about $181 million returned YTD [4] - The strong free cash flow performance allowed the company to maintain shareholder returns despite declining sales [4] Strategic Focus - The CEO highlighted early signs of progress in three strategic areas: reenergizing core customers, maintaining momentum in high-touch solutions, and optimizing cost to serve [4] - The company aims to restore performance consistent with long-term objectives, targeting growth of 400 basis points or more above the Industrial Production (IP) Index and expanding operating margins to the mid-teens [4] Outlook - The company provided a fourth-quarter fiscal 2025 outlook, projecting average daily sales growth between -0.5% and 1.5% year-over-year [5] - The adjusted operating margin is expected to be between 8.5% and 9.0% for the upcoming quarter [5]