MSM — what changed in the latest 10-K

Text added vs the prior filing · source: 10-K · 2026-10-22

• MSC is a leading North American distributor of a broad range of metalworking, maintenance, repair and operations (“MRO”) and production fastener and hardware products and services. With more than 80 years of experience, we help customers improve productivity, profitability, and operational performan…

• We offer approximately 2.5 million active, saleable stock-keeping units (“SKUs”). The expansive number of SKUs makes us an increasingly valuable partner to our customers as they look to rationalize their supplier base. Our broad range of metalworking and MRO products includes cutting tools, abrasive…

• Our extensive network of supplier partnerships provides us with access to technical applications, safety training certifications and many other value-added services for our customers. The majority of the products we sell are third-party manufactured products which we source directly from more than 3…

• MSC operates in a large, fragmented industrial distribution market serving customers’ metalworking, MRO, production fastener and hardware product needs. Nearly every industrial business has an ongoing need for these products to support operations and maintain productivity. The market includes nation…

• In the industrial products market, customer purchasing decisions are based primarily on one or more of the following criteria: price, product selection, product availability, technical support relationship, level of service and convenience. We believe we compete effectively on all such criteria. Man…

Text removed vs the prior filing · source: 10-K · 2025-10-23

• MSC is a leading North American distributor of a broad range of metalworking and maintenance, repair and operations (“MRO”) products and services. With a history of driving innovation in industrial product distribution for more than 80 years, we help solve our manufacturing customers’ metalworking a…

• We serve a broad range of customers throughout the United States, Canada, Mexico and the United Kingdom, from individual machine shops to Fortune 1000 manufacturing companies to government agencies such as the United States General Services Administration and the United States Department of Defense.…

• We offer approximately 2.5 million active, saleable stock-keeping units (“SKUs”) through our E-commerce channels, including our website, https://www.mscdirect.com (the “MSC website”); our inventory management solutions; our catalogs; our brochures; and our customer care centers, customer fulfillment…

• We believe our value-added solutions approach to driving our customers’ success differentiates MSC from traditional transaction-focused distributors. We are committed to saving our customers money by providing comprehensive support for their metalworking, MRO, Class C Consumables and original equipm…

• •our experienced team includes inventory management specialists, in-plant and technical support teams, metalworking specialists, abrasives specialists, fluid connector specialists, industrial safety consultants, customer care representatives and experienced sales associates focused on driving our cu…

Text added vs the prior filing · source: 10-K · 2026-10-22

• carriers have also been volatile. Our suppliers and independent freight carriers typically look to pass increased costs along to us through price increases. When we are forced to accept these price increases, we may not be able to pass them along to our customers, resulting in lower margins.

• these specific laws and regulations, as well as others, could result in the imposition of fines and penalties, the termination of our public sector contracts or harm to our reputation, all of which would cause our business to suffer.

• In addition, public sector contracts often impose terms and conditions regarding indemnification obligations and liability that are less protective of us than the terms of our agreements with other types of customers. Should an event occur that gives rise to an indemnity claim or other claim for dam…

• We generally do not require collateral from our customers, which exposes us to credit risk. We evaluate the collectability of accounts receivable based on numerous factors, including past transaction history with customers and their creditworthiness based on our periodic reviews, and we establish a …

• Changes in customer demand, strategic inventory investments and supplier performance can lead to excess inventories or inventory shortages, which could result in decreased operating margins, reduced cash flows and harm to our business.

Text removed vs the prior filing · source: 10-K · 2025-10-23

• We generally do not require collateral from our customers, which exposes us to credit risk. We evaluate the collectability of accounts receivable based on numerous factors, including past transaction history with customers and their

• creditworthiness based on our periodic reviews, and a reserve for accounts that we believe to be uncollectible. A significant deterioration in the economy or the financial condition of our customers, including as a result of higher inflation and fluctuations in interest rates, geopolitical events or…

• Failure to accurately forecast customer demand and timely purchase inventory could lead to excess inventories or inventory shortages, which could result in decreased operating margins, reduced cash flows and harm to our business.

• To meet anticipated demand for our products, we may purchase products from manufacturers outside of our typical programs, including payment terms, and in advance of customer orders, which we hold in inventory and resell to customers. We are subject to the risk that we may be unable to sell all of th…

• In 2025, the U.S. announced a variety of additional tariffs on goods from multiple nations and trading blocks and has been targeted with reciprocal tariffs and other retaliatory actions in response. Although the implementation of many of these tariffs and retaliatory measures have been paused or del…

Text added vs the prior filing · source: 10-K · 2026-10-22

• Our business model centers on delivering value-added services that address complex procurement challenges for our customers, with a focus on reducing total procurement costs and enabling just-in-time delivery through integrated solutions. We focus on offering inventory, process and procurement solut…

• Our strategy is to position ourselves as a mission-critical partner to our customers. We focus on our existing growth drivers including our market-leading metalworking business and providing customers highly technical and high-touch solutions to solve their most complex challenges on the plant floor…

• We intend to complement our foundational strengths with investments in capabilities that support future growth. In fiscal year 2026, we invested in our dedicated customer experience organization, expanded our marketing programs, rolled out several E-commerce enhancements and completed our sales opti…

• •We generated $306.5 million of cash from operations compared to $333.7 million in fiscal year 2025.

• •We had net payments of $5.0 million on our credit facilities and private placement debt compared to net payments of $21.5 million in fiscal year 2025.

Text removed vs the prior filing · source: 10-K · 2025-10-23

• Our business model centers on delivering value-added services that address complex procurement challenges for our customers, with a focus on reducing total procurement costs and enabling just-in-time delivery through integrated solutions. We focus on offering inventory, process and procurement solut…

• The chart below displays a comparison of our net sales from fiscal year 2024 through fiscal year 2025:

• •We generated $333.7 million of cash from operations compared to $410.7 million in fiscal year 2024. The decrease was primarily from lower net income and a decline in inventories in the prior year period.

• •We had net payments of $21.5 million on our credit facilities and private placement debt compared to net borrowings of $53.5 million in fiscal year 2024.

• •We repurchased $39.3 million of Class A Common Stock compared to $187.7 million in fiscal year 2024, excluding excise taxes in both years. The higher share repurchase volume in the prior year included shares purchased to offset the share dilution resulting from the Reclassification.