MSC Industrial Direct (US:MSM)2025-07-01 11:05Financial Performance - Average daily sales decreased by 0.8% year-over-year, but showed a 7% quarter-over-quarter improvement, exceeding historical sequential averages[6, 36] - Gross margin increased by 10 bps year-over-year to 41.0%, primarily due to favorable price/cost dynamics[6, 36] - Reported and adjusted operating margins both decreased by 240 bps year-over-year, mainly due to lower revenues and higher operating expenses[6, 36] - The company generated $182 million in free cash flow year-to-date, representing 129% of net income[6, 36] - Net sales were $971.1 million in Q3 2025, compared to $979.4 million in Q3 2024[17] - Reported earnings per diluted share were $1.02 in Q3 2025, compared to $1.27 in Q3 2024[23] Sales & Customer - Core and Other Customer average daily sales showed improving year-over-year trends, with 8% quarter-over-quarter growth[6, 36] - Customers with an In-Plant program sales increased by 10%, representing 19% of sales[24] - Sales through vending machines increased by 8%, representing 19% of sales[24] Capital Allocation - Approximately 117 thousand shares were repurchased in Q3 2025[6] - Approximately $181 million was returned to shareholders year-to-date through dividends and share repurchases[6] Outlook - The company anticipates average daily sales to increase between -0.5% to 1.5% year-over-year in Q4 2025[35] - Adjusted operating margin is expected to be between 8.5% and 9.0% in Q4 2025[35]