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Get filing alertsMSC Industrial reports Q3 sales up 7.8% to $1.05B, EPS $1.44 vs $1.02 prior year
Filed July 1, 2026 · Period ending July 1, 2026 · ~1 min read
Key Changes
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high
Net sales grew 7.8% YoY to $1,047.1M with operating margin of 10.2% (10.6% adjusted); diluted EPS of $1.44 vs $1.02 prior year, up 41.2%.
Item 2.02 verify on EDGAR → -
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Q4 guidance projects average daily sales growth of 6.5%-8.5% YoY with adjusted operating margin of 10.0%-10.8%.
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Company recognized $5.1M Employee Retention Credit tax benefit in Q3, included in full-year interest and other expense guidance of ~$30M.
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MSC incurred $7.3M in restructuring costs and $4.5M in share reclassification litigation costs during the nine-month period.
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Company purchased remaining noncontrolling interest for $8.2M, eliminating minority stake in subsidiary.
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Summary
MSC Industrial Direct reported solid fiscal Q3 2026 results with net sales climbing 7.8% year-over-year to $1.05 billion and diluted EPS jumping 41% to $1.44. Management attributed the performance to strength in Core Customers, improvement in National Accounts, and benefits from pricing and returning volume growth.
Operating margin reached 10.2% on a GAAP basis and 10.6% adjusted, reflecting operational leverage as the business scales. The company provided Q4 guidance calling for continued momentum with average daily sales growth of 6.5%-8.5% and adjusted operating margin of 10.0%-10.8%.
MSC also recognized a $5.1 million Employee Retention Credit tax benefit in the quarter, a one-time COVID-era payroll tax credit that boosts near-term cash flow. The company incurred $7.3 million in restructuring costs and $4.5 million in share reclassification litigation expenses during the nine-month period, which are excluded from adjusted results. This is a routine quarterly earnings disclosure. The results show healthy top-line growth and margin expansion, with forward guidance suggesting the momentum continues into Q4. The noncontrolling interest buyout is a minor balance sheet cleanup with no operational impact.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
MSC Industrial Direct announced fiscal Q3 2026 financial results for the quarter ended May 30, 2026.
Added in current filing · verify on EDGAR →
On July 1, 2026, MSC Industrial Direct Co., Inc. issued a press release announcing financial results for its fiscal 2026 third quarter ended May 30, 2026.
The company disclosed its financial results for the fiscal third quarter ended May 30, 2026. The actual financial metrics are contained in the press release exhibit, which is furnished but not filed with the SEC.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Net sales of $1,047.1 million increased 7.8% YoY
•Operating income of $106.7 million, or $111.2 million on an adjusted basis ... •Operating margin of 10.2%, or 10.6% on an adjusted basis ... •Diluted EPS of $1.44 vs. $1.02 in the prior fiscal year quarter
•Adjusted diluted EPS of $1.43 vs. $1.08 in the prior fiscal year quarter
MSC Industrial disclosed fiscal 2026 third quarter results for the period ended May 30, 2026. Net sales grew 7.8% year-over-year to $1,047.1 million. Operating income was $106.7 million (10.2% margin) on a GAAP basis, or $111.2 million (10.6% margin) on an adjusted basis. Diluted EPS was $1.44 GAAP and $1.43 adjusted, up 41.2% and 32.4% respectively from the prior year quarter. Management attributed the performance to strength in Core Customers, improvement in National Accounts, and benefits from price and returning volume growth.
Added in current filing · view on EDGAR → · paraphrased
ADS Growth (YoY)6.5% - 8.5%
Adjusted Operating Margin 10.0% - 10.8%
The company provided fourth quarter fiscal 2026 guidance. Average daily sales (ADS) are expected to grow 6.5% to 8.5% year-over-year. Adjusted operating margin is projected at 10.0% to 10.8%. The company maintained its full-year outlook for depreciation and amortization (~$100M), interest and other expense (~$30M including a $5.1M ERC tax benefit), capital expenditures (~$90M), free cash flow conversion (~95%), and tax rate (24.5%-25.5%).
Added in current filing · view on EDGAR → · paraphrased
Restructuring and Other Costs 7,324 6,430 — 261,530
Operating Expenses 945,570 — 4,540 — 1,890 939,140
MSC incurred $7.3 million in restructuring and other costs during the thirty-nine weeks ended May 30, 2026, compared to $6.4 million in the prior year period. Additionally, the company recorded $4.5 million in share reclassification litigation costs and $1.9 million in property, plant and equipment asset impairment charges during the current period. These items are excluded from the company's adjusted operating results.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 3, 2026 · How we verify