MSC Industrial Supply Co. reported record fourth quarter net sales of $1,079.2 million and an adjusted operating margin of 10.9%, marking a strong close to fiscal 2026. The North American distributor of metalworking and maintenance, repair, and operations products stated that these results exceeded internal expectations, driven by core customer growth of approximately 10 percent, which the company identified as its strongest in more than three years.
For the full fiscal year ended August 29, 2026, MSC posted net sales of $4,009.7 million, a 6.4 percent increase year over year. Adjusted diluted earnings per share rose to $4.69 for the full year, compared with $3.76 in the prior fiscal year. The company generated operating cash flow conversion of 139 percent and free cash flow conversion of 102 percent of net income for the period.
Martina McIsaac, President and Chief Executive Officer, attributed the performance to accelerating growth in National Accounts and changes implemented to drive profitable growth. McIsaac noted that while the company remains mindful of inflationary headwinds and tougher comparisons, first-quarter sales trends for fiscal 2027 are showing low double-digit growth to date.
Rob Kuhns, Executive Vice President and Chief Financial Officer, added that average daily sales exceeded the high end of the guided range due to price benefits and stronger volumes. This resulted in year-over-year improvement of 8.6 percent on an average daily sales basis. Kuhns stated that progress on the cost structure contributed to an adjusted incremental operating margin of roughly 27 percent.
The company provided an outlook for the first quarter of fiscal 2027, guiding for average daily sales growth between 9.5 percent and 10.5 percent year over year. The adjusted operating margin is expected to fall between 9.5 percent and 10.1 percent for that quarter.
For the full fiscal year 2027, MSC outlined specific financial metrics, including depreciation and amortization expense of approximately $100 million to $105 million and interest and other expense of approximately $40 million to $45 million. Capital expenditures are projected at approximately $90 million to $100 million, with free cash flow conversion expected between 80 percent and 90 percent. The effective tax rate is guided at approximately 24.5 percent to 25.5 percent.
MSC will host a conference call at 8:30 a.m. EDT to review the results, with an online archive available until November 5, 2026. The next quarterly report is scheduled for January 6, 2027.