MSC Industrial Supply Co. (NYSE:MSM) reported fiscal second-quarter 2026 results on Wednesday that came in below analyst forecasts, sending the company’s stock lower in pre-market trading.
Shares of the industrial distributor fell 4.36% before the opening bell following the release.
The company posted adjusted earnings per share of $0.82, missing the consensus estimate of $0.84 by $0.02.
Quarterly revenue totaled $917.8 million, also below expectations of $931.56 million, although it still marked a 2.9% year-over-year increase compared with $891.7 million in the same period last year. MSC reported an adjusted operating margin of 7.5%, which fell within its previously issued guidance and represented an improvement of 40 basis points from a year earlier.
“I am encouraged by our performance which resulted in year-over-year operating margin expansion for the second consecutive quarter,” said Martina McIsaac, President and Chief Executive Officer. “While we have not yet seen volumes return to a positive trend, our Core Customer daily sales outperformed total company for the third consecutive quarter, and we expect our volume performance to improve throughout the remainder of the fiscal year.”
On a GAAP basis, the company reported diluted earnings per share of $0.76, compared with $0.70 in the same quarter last year. Operating income reached $64.8 million, or $69.1 million on an adjusted basis, translating to an operating margin of 7.1%, or 7.5% adjusted.
Looking ahead, MSC Industrial projected average daily sales growth of 5.0% to 7.0% for the third quarter of fiscal 2026, along with an adjusted operating margin between 9.7% and 10.3%, implying a midpoint of 10.0%.
The company also reaffirmed its full-year fiscal 2026 outlook, which includes free cash flow conversion of about 90% and capital expenditures ranging from $100 million to $110 million.