MSC Industrial Direct (US:MSM)2026-01-07 13:30Fiscal 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]