MSC Industrial Supply Co. announced net sales of $965.7 million for its fiscal 2026 first quarter, representing a 4.0% year-over-year increase driven by growth in the tooling and metalworking segments. Operating income reached $76.2 million, or $81.2 million on an adjusted basis, delivering an adjusted operating margin of 8.4%. The company achieved diluted earnings per share of $0.93, up from $0.83 in the prior-year quarter, and adjusted diluted EPS of $0.99, marking a 19% improvement. Sequentially, service center sales grew 3.5%, reflecting sustained contributions from strategic account expansions and e-commerce channel enhancements. Cash flow from operations totaled $120 million, bolstering MSC’s balance sheet and supporting the repurchase of $50 million of common shares during the quarter.

MSC Income Fund completed a $12.7 million financing package for UBM ParentCo, LLC to support its merger with Mystic Logistics Holdings, generating a $6.0 million realized gain on the exit of its equity investment in Mystic. The new investment comprises first-lien, senior secured term debt and a direct minority equity stake alongside Main Street Capital and existing management. Since its initial $3.2 million commitment to Mystic in August 2014, MSC Income Fund realized cumulative dividends of $5.5 million and achieved a 32.9% annual IRR and 17.9x money-multiple on the equity portion. Including both debt and equity, the Fund recorded a 22.9% IRR and 5.1x money-multiple over the investment life. This transaction positions MSC Income Fund as a strategic lender and equity partner in a combined marketing-mail logistics platform projected to generate annual revenue exceeding $200 million.

MSC Income Fund continues to deploy capital in lower middle market companies, targeting secured debt investments that support leveraged buyouts, recapitalizations and growth financings. The Fund’s private loan portfolio spans companies with annual revenues between $25 million and $500 million, while its customized co-investment strategy with Main Street focuses on businesses generating $10 million to $150 million in revenue. Since inception, MSC Income Fund has realized multiple exits with an average equity IRR of 28% and an average debt yield of 10.5%. The Fund’s disciplined underwriting and partnership approach have resulted in a portfolio weighted average life of 4.2 years and a current weighted average yield of 9.8% on total investments.