Global Industrial Company (GIC) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 7.7% year-over-year to $386.6 million, with average daily sales up 9.3% and three consecutive quarters of high single-digit average daily sales growth.

• Net income from continuing operations rose 47.8% to $37.1 million, driven by price, volume, and a significant IEEPA tariff refund.

• Canadian operations delivered over 30% revenue growth in local currency, marking the fourth consecutive quarter of double-digit growth.

• Gross margin increased to 40.2% (GAAP), boosted by a $21.1 million IEEPA tariff refund; non-GAAP gross margin was 34.7%.

• Revenue momentum continued into Q3, supported by a shift to a relationship-led B2B model and deeper customer integration.

Financial highlights

• Q2 2026 net sales: $386.6 million (up 7.7%); U.S. revenue up 6.3%, Canada up 34.1% (33.7% in local currency) year-over-year.

• Q2 2026 gross profit: $155.4 million (GAAP), $134.3 million (non-GAAP, excluding tariff refunds); gross margin: 40.2% (GAAP), 34.7% (non-GAAP).

• Q2 2026 operating income: $49.3 million (GAAP), $28.2 million (non-GAAP); operating margin: 12.8% (GAAP), 7.3% (non-GAAP).

• Q2 2026 net income per diluted share: $0.96 (GAAP), $0.54 (non-GAAP); six-month net income per diluted share: $1.35 (GAAP), $0.93 (non-GAAP).

• Operating cash flow from continuing operations was $41.3 million in Q2; cash and cash equivalents at quarter end were $86.7 million.

Outlook and guidance

• Revenue growth rate remained consistent through Q2 and into Q3, with management focused on organic growth, customer relationship expansion, and digital initiatives.

• Gross margin expected to remain in line with recent quarters (34.7%-34.8% adjusted), with ongoing monitoring of trade policy and fuel costs.

• Management anticipates margin headwinds in the summer due to elevated fuel prices and evolving tariff landscape, but expects to mitigate disruptions through proactive price management and supply chain adjustments.

• Capital expenditures for 2026 are projected at $3.0–$4.0 million.

• Continued focus on scaling sales capabilities, expanding customer relationships, and increasing e-procurement adoption.