third quarter 2026
Filed Nov 3, 2026Sales Increased 10.2% to $389.5 Million and 8.5% on an Average Daily Sales Basis; Diluted EPS Increased 33.3% to $0.64; Board Declared $0.28 Dividend and Special Dividend of $1.00
Third-quarter sales, operating income from continuing operations and diluted EPS from continuing operations increased year over year, while gross margin and operating margin expanded. Reported profitability also benefited from tariff refunds.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net salesGAAP | $389.5M | – | 10.2% |
| Q3 2026 average daily sales growthother | 8.5% | – | 8.5% |
| Q3 2026 cost of salesGAAP | 250.6 | – | – |
| Q3 2026 gross profitGAAP | $138.9M | – | – |
| Q3 2026 gross marginGAAP | 35.7% | – | – |
| Q3 2026 selling, general and administrative expensesGAAP | 106.2 | – | – |
| Q3 2026 operating income from continuing operationsGAAP | $32.7M | – | 24.3% |
| Q3 2026 operating marginGAAP | 8.4% | – | – |
| Q3 2026 interest and other (income) expense, netGAAP | (0.4) | – | – |
| Q3 2026 income from continuing operations before income taxesGAAP | 33.1 | – | – |
| Q3 2026 provision for income taxesGAAP | 8.6 | – | – |
| Q3 2026 net income from continuing operationsGAAP | $24.5M | – | – |
| Q3 2026 net income from discontinued operationsGAAP | $100K | – | – |
| Q3 2026 net incomeGAAP | $24.6M | – | – |
| Q3 2026 net income per diluted share from continuing operationsGAAP | $0.64 | – | 33.3% |
| Q3 2026 net income per diluted share from discontinued operationsGAAP | $0.00 | – | – |
| Q3 2026 net income per diluted shareGAAP | $0.64 | – | – |
| Nine months 2026 net salesGAAP | $1.13B | – | 9.0% |
| Nine months 2026 average daily sales growthother | 8.5% | – | 8.5% |
| Nine months 2026 gross profitGAAP | $416.2M | – | – |
| Nine months 2026 gross marginGAAP | 36.9% | – | – |
| Nine months 2026 operating income from continuing operationsGAAP | $102.6M | – | 31.5% |
| Nine months 2026 operating marginGAAP | 9.1% | – | – |
| Nine months 2026 net income from continuing operationsGAAP | $76.9 | – | – |
| Nine months 2026 net incomeGAAP | $78.3 | – | – |
| Nine months 2026 net income per diluted share from continuing operationsGAAP | $2.00 | – | 35.1% |
| Nine months 2026 net income per diluted shareGAAP | $2.04 | – | – |
| Nine months 2026 net cash provided by operating activities from continuing operationsGAAP | 90.5 | – | – |
| Nine months 2026 net cash provided by operating activitiesGAAP | 92.1 | – | – |
| Nine months 2026 purchases of property, plant and equipmentGAAP | (2.7) | – | – |
| Nine months 2026 net cash used in investing activitiesGAAP | (2.7) | – | – |
| Nine months 2026 net cash used in financing activitiesGAAP | (37.5) | – | – |
| Nine months 2026 net increase in cashGAAP | 51.7 | – | – |
Capital returns
- The Board declared a cash dividend of $0.28 per share and a special cash dividend of $1.00 per share, payable on November 23, 2026, to common stock shareholders of record at the close of business on November 16, 2026.
- Nine months 2026 dividends paid: (32.3), compared to (30.2).
- Nine months 2026 purchase of treasury shares: (5.6), compared to 0.0.
What drove it
- Revenue growth was led by industrial and retail customer verticals and strong double-digit performance among the largest strategic accounts.
- Consolidated gross margin benefited by approximately 60 basis points from tariff refunds in the third quarter.
- Consolidated operating income from continuing operations benefited by approximately $2.0 million from tariff refunds in the third quarter.
- Net income per diluted share from continuing operations benefited by approximately $0.04 from tariff refunds in the third quarter.
- The company cited execution of its customer centric, relationship-driven B2B go-to-market strategy, vertical expertise and alignment of sales, marketing and merchandising teams.
Concerns
- Third-quarter gross margin, operating income from continuing operations and net income per diluted share from continuing operations benefited from tariff refunds.
- No forward financial guidance was provided in the filing.
What to watch
- Whether high-single digit average daily sales growth continues after the fourth consecutive quarter of such growth.
- Revenue trends in industrial and retail customer verticals and among the largest strategic accounts.
- The effect of tariff refunds on gross margin, operating income and net income per diluted share from continuing operations.
- Execution of the go-to-market strategy and its stated goal of winning larger opportunities and greater share of wallet.
- Deployment of cash and excess availability following the declared regular and special dividends.
Balance sheet and cash flow
- At September 30, 2026, total working capital was $266.2 million.
- Cash and cash equivalents were $119.2 million at September 30, 2026, compared to $67.5 million at December 31, 2025.
- Excess availability under the credit facility was approximately $119.8 million at September 30, 2026.
- Accounts receivable, net were 176.2 at September 30, 2026, compared to 139.6 at December 31, 2025.
- Inventories were 153.1 at September 30, 2026, compared to 174.6 at December 31, 2025.
- Total assets were $634.7 at September 30, 2026, compared to $580.8 at December 31, 2025.
- Shareholders' equity was 358.3 at September 30, 2026, compared to 313.2 at December 31, 2025.
- Operating cash flow provided by continuing operations in the quarter was $44.5 million.
Analysis
Global Industrial reported a strong third quarter, with net sales of $389.5 compared with $353.6 in the prior-year quarter and average daily sales growth of 8.5%. Management identified industrial and retail customer verticals, along with strong double-digit performance among its largest strategic accounts, as the principal revenue drivers. The quarter had 64 selling days in the U.S. and 63 selling days in Canada, compared with 63 and 62, respectively, in the prior-year quarter.
Profitability improved faster than sales. Gross profit was $138.9 versus $126.0, while gross margin was 35.7% versus 35.6%. Operating income from continuing operations increased 24.3% to $32.7 from $26.3, and operating margin rose to 8.4% from 7.4%. Net income from continuing operations was $24.5 versus $18.8, and diluted EPS from continuing operations rose 33.3% to $0.64 from $0.48.
Tariff refunds were a material contributor to reported profit metrics. The company said tariff refunds benefited third-quarter consolidated gross margin by approximately 60 basis points, operating income from continuing operations by approximately $2.0 million, and diluted EPS from continuing operations by approximately $0.04. For the first nine months, tariff refunds benefited gross margin by approximately 200 basis points, operating income from continuing operations by approximately $23.1 million, and diluted EPS from continuing operations by approximately $0.46.
Cash generation and liquidity strengthened. Operating cash flow provided by continuing operations was $44.5 million in the quarter, while nine-month net cash provided by operating activities from continuing operations was 90.5 compared with 57.7. Cash and cash equivalents were $119.2 at September 30, 2026, and excess availability under the credit facility was approximately $119.8 million. The board declared a $0.28 per-share cash dividend and a $1.00 per-share special cash dividend. The release did not provide forward financial guidance.
Management, verbatim
Sustained sales momentum, improved profitability and continued execution of our go-to-market strategy drove another strong quarter for Global Industrial. Third quarter revenue increased 10.2% and we delivered our fourth consecutive quarter of high-single digit average daily sales growth, up 8.5%. Revenue growth was led by our industrial and retail customer verticals and strong double-digit performance among our largest strategic accounts.
Anesa Chaibi, Chief Executive Officer
Our go-to-market strategy is strengthening customer relationships, enabling us to win larger opportunities and to capture greater share of wallet. Over the past year, we have continued to advance our customer centric, relationship-driven B2B approach, with a focus on developing a deeper understanding of our customers, enhancing our vertical expertise and better aligning our sales, marketing and merchandising teams. We believe this progress, supported by our strong balance sheet, positions Global Industrial for continued profitable growth and long-term value creation.
Anesa Chaibi, Chief Executive Officer
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross margin guidance
- Forward operating expense guidance
- Forward tax rate guidance
- Prior outlook for comparison
- Segment revenue disclosure
- Debt balance
- Free cash flow
- Reported income tax rate
- Non-GAAP financial metrics
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.