MSC Industrial Supply Co. is tightening its focus on digital commerce and embedded supply-chain solutions as it prepares for a leadership transition from long-time CEO Erik Gershwind to Martina McIsaac at the start of next year.
McIsaac is currently president and chief operating officer. She will succeed Gershwind on Jan 1. Gershwind will retire from day-to-day duties after 13 years as CEO but remain on the board as non-executive vice chair.
The company said the leadership transition comes as MSC accelerates investments in digital platforms, data-driven field coverage and on-site supply solutions — a strategy designed to strengthen margins and customer retention in a volatile industrial market.
“Our high-touch solutions, including vending and implant, continue the strong track record we’ve seen all year long,” Gershwind told analysts on the company’s fiscal fourth-quarter earnings call. “We’ve begun to see our core-customer average daily sales growth rate inflect and turn positive.”
MSC Industrial announces leadership transition after Q4
MSC Industrial, the distributor of metalworking and maintenance, repair and operations (MRO) supplies reported Q4 sales of $978.2 million. That’s a 2.7% increase from $952.3 million a year earlier. Net income rose 1.4% to $56.5 million, while operating income fell 7.3% to $84.3 million.
For the full fiscal year 2025, MSC Industrial reported net sales of $3.77 billion, down 1.3% from $3.82 billion in 2024. Net income declined 22.9% to $199.3 million, and operating income fell 22.8% to $301.6 million.
Gross margin in the fourth quarter decreased to 40.4%, a 60-basis-point drop from the prior year. Gershwind said higher import costs and new U.S. tariffs were the main factors.
“Tariffs have moved from a possibility to a reality as we’re now experiencing meaningful price inflation across many areas of the business,” he said.
McIsaac said MSC’s investments in its ecommerce platform and customer-integration programs are beginning to deliver measurable results.
“In the fourth quarter, average daily sales on the web turned positive year over year,” she said. “Our streamlined checkout experience drove lower abandonment rates, and enhancements to search are showing early positive signs.”
The company’s installed vending-machine count rose 10% year over year to more than 29,600 units, while in-plant (“implant”) programs expanded 20% to 411 locations. Together, those embedded solutions now account for about 40% of company sales.
MSC Industrial Q1 outlook
MSC expects first-quarter fiscal 2026 daily sales growth of 3.5% to 4.5%. Capital spending of $100 million to $110 million will target digital infrastructure, vending expansion, and supply-chain productivity improvements.
Gershwind, who joined MSC nearly 30 years ago, said the transition follows the company’s long-standing approach to leadership development.
“Succession planning and leadership development have been pillars of MSC’s values since its inception over eight decades ago,” he said.
McIsaac said she will focus on sustaining momentum in ecommerce, improving cost efficiency and strengthening the company’s service-led model.
“I’m energized by the opportunities ahead to accelerate growth, build on our foundation, and fulfill our mission to be the best industrial distributor for our associates, customers, suppliers, and shareholders,” she said.
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s article on MSC Industrial ecommerce sales.
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