Global Industrial (NYSE:GIC) said it closed out fiscal 2025 with improving sales momentum, margin expansion, and continued shareholder returns, while also laying out a series of organizational and go-to-market changes intended to support more profitable growth.
On the company’s fourth-quarter earnings call, CEO Anesa Chaibi described 2025 as “a year of significant progress” that included “quite a bit of change to better position the company for organic growth.” CFO Tex Clark added that average daily sales growth accelerated in the fourth quarter and carried into the early part of the first quarter of 2026, aided in part by calendar timing.
Quarter and full-year sales showed acceleration
The company also reminded investors that fiscal Q4 2025 ended on Saturday, January 3, 2026, and included an additional week compared with the prior year. Management said the added week covered the period between Christmas and New Year’s, which it described as typically the lowest sales week of the year.
By geography, Clark said U.S. revenue rose 14% and Canada revenue improved 19.7% in local currency. Canada posted its third straight quarter of top-line growth, and for the full year Canada revenue increased 9.2% in local currency, according to management.
For the full year, Global Industrial reported revenue of $1.38 billion, representing growth of 4.8%.
On the pricing-versus-volume mix, Clark said pricing remained the majority of growth on an average daily sales basis at “mid-single digits,” while volume was “low single digits across the business” in the fourth quarter. In the Q&A session, management said sales were “pretty consistent throughout the quarter,” with steady growth in each month when viewed on an average daily basis.
Margins expanded as the company managed mix and freight
Gross profit for the quarter was $119.1 million and gross margin was 34.5%, up 70 basis points from the prior-year quarter. Clark said the company was “pleased with our margin performance,” while noting that gross margin declined sequentially from the third quarter due mainly to product mix and peak-season freight surcharges that the company chose not to pass through to customers.
Management reiterated a goal to manage margins to “price cost neutral” as it moves through the current cycle. Looking ahead, Clark said the company expected first-quarter margins to improve sequentially and be “in line with prior year results.”
The company also discussed tariffs. Clark noted that additional tariffs went into effect in early August, “including the doubling of duties on steel and aluminum,” and said Global Industrial took a pricing action in early January 2026. Chaibi said the company had become “more nimble,” including efforts to reframe and diversify countries of origin, but added that it was “a little too early to predict” the impact of the latest tariff headlines as details continued to change.
Expenses, profitability, and cash flow
Selling, general and administrative (SG&A) expense was $99.5 million in the quarter, improving by 20 basis points as a percentage of sales compared with the prior year, according to Clark. In absolute dollars, SG&A increased largely because of incremental salary and variable expenses tied to the additional week in the quarter. The company also recorded about $3 million of incremental variable bonus and commission expense versus the year-ago period due to improved financial results. Clark said SG&A reflected “strong general and discretionary cost control,” including improved leverage in marketing spend.
Operating income from continuing operations rose 35.2% to $19.6 million, and operating margin was 5.7%. Operating cash flow from continuing operations was $20.0 million in the quarter and $77.7 million for the full year.
Depreciation and amortization expense was $1.9 million in the quarter, including $0.8 million tied to amortization of intangible assets. Capital expenditures were $0.8 million in the quarter and $3.1 million for the full year. For 2026, Clark guided to capital expenditures of $3 million to $4 million, primarily for maintenance investments and distribution network equipment.
Balance sheet and shareholder returns
Global Industrial ended the year with $67.5 million in cash, no debt, and about $120 million of excess availability under its credit facility. Clark said the company had a current ratio of 2.2 to 1.
Management highlighted continued capital returns to shareholders:
- Dividend: The board declared a quarterly dividend of $0.28 per share, an increase of $0.02 per share. Chaibi said the company announced an increase in the quarterly recurring dividend for the eleventh consecutive year.
- Share repurchases: The company repurchased approximately 326,000 shares in Q4 for $9.3 million. Clark said year-to-date repurchases totaled $9.8 million, with roughly 1 million shares remaining under the existing 2 million-share authorization.
Strategic shift: customer-centric model, vertical focus, and sales realignment
Beyond the financial results, Chaibi devoted much of her remarks to changes made in 2025 to reposition the business for organic growth. She said the company began transforming its business model around two core objectives: becoming more customer-centric and refining its go-to-market strategy by realigning sales, marketing, and merchandising around industry verticals.
On customer-centric initiatives, Chaibi cited continuous improvement in damage reduction, quality, and distribution optimization, along with strong retention rates in managed accounts and expanded e-procurement capabilities. She also said the company completed the rollout of Salesforce across sales, marketing, and customer service teams, enabling a “single unified view of the customer” and supporting more personalized engagement.
On go-to-market changes, Chaibi said the company is realigning product assortment, strategic account focus, and sales organization to deliver refined value propositions across verticals. She described efforts to broaden national brand relationships and expand into maintenance, repair and operations (MRO) and consumable products, which management believes can increase share of wallet.
Chaibi also said Global Industrial deliberately shifted resources toward strategic enterprise accounts and group purchasing organizations (GPOs), citing higher average order values, stronger retention, and greater lifetime profitability. In Q&A, Clark said these strategic customers and GPOs represent “north of 20%” of volume today, while noting the company has not disclosed detailed segment breakouts. Management also said it has moved away from “non-recurring, lower profit, transactional web business,” though Clark added that web business volume returned to growth in Q4 for the first time in 2025, supported by what the company described as a more targeted approach.
As part of a sales realignment entering 2026, Chaibi said the inside sales team has been reorganized into defined customer verticals: industrial, commercial, retail, public sector, healthcare, hospitality, and multifamily. She also said the company piloted an outside sales approach in the second half of 2025 and is now building a dedicated team to expand relationships in existing accounts and pursue new customer acquisition.
In closing remarks, Chaibi said the company is “entering 2026 from a position of strength,” while emphasizing that the team will continue to “learn, test, and pivot” as it works to optimize performance.
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.
