MSC Industrial Direct (MSM) Investor presentation summary

Business profile and financial scale

• Founded in 1941; 7,000+ associates, 37 warehouses, 8 regional inventory centers, 5 distribution centers and 5 manufacturing locations.

• Broad portfolio of 2.5M SKUs from 3,000+ suppliers, supported by metalworking expertise, supply chain management, e-commerce, productivity improvement and training.

• FY26 revenue $4.0B and adjusted operating margin 9.5%; 20-year sales CAGR 6% and EPS CAGR 4% through Aug. 29, 2026.

• Generated $1,050M+ in operating cash flow and returned $800M+ to shareholders over the three fiscal years ended Aug. 29, 2026.

Market position and customer value

• North American MRO market directly addressable: ~$215B; US distribution landscape includes ~145K distributors, with the top 50 representing ~33% of the market.

• Addressable market comprises ~19.5M potential customers; the serviceable metalworking segment includes ~750K customers, of which ~205K are larger and ~545K smaller.

• Value-added approach focuses on total cost of ownership, combining technical expertise and a broad product and service portfolio to support customer growth, productivity and profitability.

• Customer care center satisfaction mean was 4.4 on a 1–5 scale, versus 4.0 for other contact centers.

• Documentation program presented ~$500M in customer cost savings in FY24; examples include >$310K profit improvement from a milling operation reducing cycle time from 98 to 35 seconds.

Growth strategy and operating targets

• Mission Critical priorities include winning in metalworking, expanding share of wallet, maximizing large-account programs, reenergizing core customers and increasing cross-selling, including OEM fasteners.

• Digital roadmap emphasizes an improved e-commerce experience, personalization and pricing; cost initiatives target network productivity, automation, process improvements and streamlined order-to-cash and procure-to-pay workflows.

• Over the cycle, targets include at least 400 bps of market outgrowth, adjusted operating margin in the mid-teens and ROIC greater than 20%.

• Adjusted operating margin was 9.5% in FY26, with a mid-teens target; adjusted incremental margins expected at ~20% on mid-single-digit growth and stronger at higher growth.

• Growth plan targets 400 bps of market outgrowth; productivity efforts include automation and AI to address an estimated 1,000-headcount gap versus peers at comparable sales.