10-Q · May 5, 2026
Global Industrial Company (GIC) reported strong Q1 2026 results with revenue of $350.4 million, a 9.2% increase from $321 million in Q1 2025, and an EPS of $0.42, exceeding expectations. The company's operating income…
Earnings analysis · 10-Q
GIC earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Global Industrial delivered strong Q2 sales growth, with revenue up 7.7% to $386.6 million and continuing-operations EPS up 47.7% to $0.96. However, the earnings and margin step-up was predominantly driven by a $21.1…
Read full summary
Global Industrial delivered strong Q2 sales growth, with revenue up 7.7% to $386.6 million and continuing-operations EPS up 47.7% to $0.96. However, the earnings and margin step-up was predominantly driven by a $21.1 million tariff refund, equivalent to approximately 550 basis points of gross margin and $0.42 per diluted share after tax. Cash generation and liquidity improved, but management flagged elevated fuel costs, evolving tariffs and potential summer margin headwinds; no revenue or EPS guidance was provided.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.96
- Segment
- U.S. sales increased 6.3% year over year in Q2 2026.
- Segment
- Canada sales increased 34.1% year over year, or 33.7% in local currency, in Q2 2026.
What stood out
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Sales growth accelerated sequentially
Q2 net sales rose 7.7% year over year to $386.6 million, accelerating from $350.4 million in Q1 2026; average daily sales increased 9.3% despite one fewer U.S. selling day.
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Canadian sales grew more than 34%
Canada was the standout geographic contributor, with sales up 34.1% year over year (33.7% in local currency), while U.S. sales increased 6.3%.
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Reported margins expanded sharply
Gross margin expanded 310 basis points year over year to 40.2%, and operating margin expanded 350 basis points to 12.8%; operating income rose 47.2% to $49.3 million.
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EPS rose to $0.96
Diluted EPS from continuing operations increased 47.7% year over year to $0.96, versus $0.42 in Q1 2026. The filing quantifies the after-tax tariff-refund contribution at $0.42 per share.
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Operating cash generation improved
Six-month operating cash flow from continuing operations increased to $46.0 million from $35.1 million, while investing cash outflow was only $1.7 million, primarily for distribution equipment and technology-related assets.
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Cash and undrawn credit support liquidity
Liquidity strengthened: cash increased $19.2 million from year-end to $86.7 million, the company had no outstanding variable-rate debt, and excess revolver availability was $119.8 million.
What to watch
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Tariff refund materially inflated earnings
The $21.1 million IEEPA tariff refund recorded in cost of sales provided approximately 550 basis points of Q2 gross-margin benefit and $0.42 of after-tax diluted EPS benefit; this is a non-recurring driver of reported profitability.
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Fuel, tariffs and mix threaten margins
Management anticipates margin headwinds during the summer as fuel prices remain elevated. It also cited increased transportation costs and product/channel mix, including a lower seasonal cooling contribution, against the $21.1 million refund benefit.
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Indoff control weaknesses remain unresolved
Disclosure controls remained ineffective because of material weaknesses at Indoff, which represents approximately 12% of revenue. Management expects remediation during the second half of 2026, subject to design, testing, validation and deployment.
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Receivables increased with growth
Working capital rose $31.0 million to $249.0 million, with accounts receivable increasing $47.2 million to $186.8 million; receivable days increased to 39.7 from 39.0.
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No formal risk-factor updates
The company reported no material changes to its formal risk factors during Q2 2026, so there were no newly added or materially revised Item 1A risks versus the 2025 10-K.
Management's outlook
No revenue or EPS outlook was provided in the 10-Q. Management anticipates $3.0 million to $4.0 million of 2026 capital expenditures and expects the $4.0 million tariff-refund amount remaining in inventory to sell through during the remainder of 2026.
Earlier filings 4
10-K · February 27, 2026
Global Industrial (GIC) reported a full-year operating performance improvement in 2025 with consolidated revenue of $1,380,000,000 (sum of quarterly revenues) versus $1,315,000,000 in 2024, expanding gross margin and…
10-Q · October 28, 2025
Global Industrial Company reported Q3 2025 net sales of $353.6M, up $11.2M (+3.3%) year-over-year but down $5.4M versus Q2 2025. Gross profit improved to $126.0M (35.6% margin) and operating income rose to $26.3M, but…
10-Q · July 29, 2025
Global Industrial reported Q2 net sales of $358.9 million, up $11.1 million (+3.2%) versus Q2 2024 and up sharply versus Q1 2025 ($321.0M). Gross margin expanded to 37.1% and operating margin to 9.3%, driving diluted…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.