Global Industrial (NYSE:GIC) reported second-quarter revenue of $386.6 million, up 7.7% from a year earlier and 9.3% on an average daily sales basis, as the company cited broad-based growth across sales channels and customer verticals.
Chief Executive Officer Anesa Chaibi said the performance marked the company’s third consecutive quarter of high-single-digit average daily sales growth. She added that revenue momentum had continued into the third quarter at a similar pace.
Sales Growth Supported by Strategic Accounts and Larger Orders
Senior Vice President and Chief Financial Officer Tex Clark said sales growth was led by the retail wholesale vertical, while core industrial customers posted gains approaching 10%. Accounts managed by sales representatives grew at a low-double-digit rate, led by the company’s largest strategic accounts.
Pricing contributed roughly four percentage points of second-quarter growth, with the remaining growth attributed to volume and mix, Clark said. Average order value rose about 10%, primarily because of a greater mix of larger orders rather than pricing.
Management linked the stronger order profile to its effort to build more relationship-based B2B customer relationships, increase participation in projects and expand group purchasing organization, or GPO, activity.
Chaibi said Global Industrial is shifting its go-to-market strategy toward deeper customer engagement through inside and field sales resources, national-account support, vertical-market expertise and digital capabilities. The company is also expanding its product assortment, including national brands alongside its own brands.
“We’re kind of settling into a little bit of a different profile as we move forward,” Chaibi said, referring to the changing mix of customers and products. She characterized the company’s progress as early-stage but said the sales momentum supports continued investment to scale the business.
GPO and E-Procurement Efforts Expand
Global Industrial said its GPO business is on pace to reach $100 million in annualized sales this year. Chaibi described that level as a meaningful milestone for an organic initiative started several years ago.
The company said GPO relationships help it reach new customers through contractual arrangements in sectors including public sector, healthcare, hospitality and private-sector manufacturing. Those relationships can also provide a route into customers’ e-procurement systems, potentially making purchasing activity more recurring and integrated.
During the first half, Global Industrial implemented more than 50 new purchasing connections, bringing its total digital connections to more than 1,300 customers. Overall, digital business accounts for more than 60% of the company’s transaction volume, Chaibi said.
The company is developing punch-out integrations designed to provide customized purchasing experiences within customer procurement platforms. Management said these efforts are intended to improve ease of use, customer retention and the range of products customers purchase.
Tariff Refund Boosted GAAP Results; Adjusted Margin at 34.7%
Clark said Global Industrial recorded approximately $26 million tied to refunds of IEEPA tariffs during the quarter. The company recognized about $21 million of the benefit in cost of sales, reduced inventory by $4 million for tariffs paid on items not yet sold and recorded $1 million of interest income.
The company excluded the one-time tariff-related benefit from its non-GAAP measures, saying it did not represent underlying operating performance. On that adjusted basis, gross profit was $134.3 million and gross margin was 34.7%.
Adjusted gross margin was below the 37.1% recorded in the second quarter of 2025, when results included about 150 basis points of FIFO-related timing benefits from price increases associated with tariff changes. Clark said the current quarter’s margin was affected by higher transportation costs, including increased fuel surcharges in less-than-truckload and parcel networks, as well as product and channel mix.
A lower contribution from the seasonal cooling category also affected the comparison. In addition, larger orders carried lower gross-margin rates, though Clark said the orders remained profitable and accretive to the overall business.
Management said adjusted gross margin has been consistent over the past two quarters, at 34.7% and 34.8%, and indicated that current customer, sales and order mix could support similar levels going forward. However, Clark said trade policy changes, fuel costs and other external factors will continue to require monitoring.
Cash Position, Capital Allocation and Outlook
Second-quarter selling, general and administrative expense was $106.1 million, improving 30 basis points as a percentage of sales from the prior year. Excluding variable performance-based compensation, SG&A produced about 70 basis points of leverage, Clark said.
Non-GAAP operating income from continuing operations was $28.2 million, representing a 7.3% operating margin. Operating cash flow from continuing operations totaled $41.3 million.
- Cash as of June 30: $86.7 million
- Debt: None
- Excess availability under credit facility: More than $119 million
- Second-quarter share repurchases: Approximately 160,000 shares for $4.7 million
- Quarterly dividend declared: $0.28 per common share
- Expected 2026 capital expenditures: $3 million to $4 million
- Expected tax rate for the remainder of 2026: 26% to 26.5%
Clark said $15.3 million of tariff refunds were received during the second quarter, while another $10.9 million was received in early July and recorded as a receivable at quarter-end. He said the company expects any future IEEPA tariff refunds to be immaterial.
Chaibi said Global Industrial is also evaluating merger and acquisition opportunities and is building an M&A pipeline as a potential way to expand and accelerate its go-to-market strategy. The company plans to hold a national trade show in Dallas at the end of September, bringing together large customers and more than 175 supplier partners.
About Global Industrial (NYSE:GIC)
Global Industrial Company (NYSE: GIC) is a leading business-to-business distributor of industrial products and equipment. Headquartered in Port Washington, New York, the company provides a comprehensive range of products to support manufacturing, warehousing, and facility maintenance operations across North America. Through a digital-first platform, Global Industrial combines e-commerce, direct sales and catalog-based ordering channels to serve a diverse commercial customer base.
The company’s product portfolio encompasses material handling solutions (including conveyors, pallet racks and hoists), storage and shelving systems, janitorial and sanitation supplies, packaging and shipping materials, and office furniture.
