Global Industrial Company

Good afternoon, ladies and gentlemen, and welcome to Global Industrial's Second Quarter 2025 Earnings Call. At this time, I would like to turn the call over to Mike Smarjasi of the Plunkett Group. Please go ahead.

Thank you, and welcome to the Global Industrial Second Quarter 2025 Earnings Call. Today's call will include formal remarks from Anissa Chibie, Chief Executive Officer, and Tex Clark, Senior Vice President and Chief Financial Officer. Formal remarks will be followed by a question and answer session. Today's discussion may include certain forward-looking statements. It should be understood that actual results could differ materially from those projected due to a number of factors, including those described under the forward-looking statements caption and under risk factors in a company's annual report on Form 10-K and quarterly reports on Form 10-Q. The press release is available on the company's website and has been filed with the SEC on a Form 8K. This call is the property of Global Industrial Company. I will now turn the call over to Anissa.

Thank you, Mike. Good afternoon, everyone, and thank you for joining us. We delivered an excellent second quarter performance with record profitability. I'm pleased with the execution of the entire organization, specifically considering the market disruption and uncertainty from the current tariff environment. The team has done a great job mitigating the risk, enabling us to continue to serve our customers. In the quarter, revenue increased 3.2% to $358.9 million. We grew the top line each month during the period and have seen growth continue into July. Performance was driven by our largest strategic accounts, partially offset by a reduction in our smallest and more transactional customers. Gross margin was a record 37.1% for the second quarter, an increase of 190 basis points over the second quarter of 2024, and 220 basis points over the first quarter of 2025. Operating income improved over 26% to 33.5 million, which represents a quarterly record for the company. Operating margin was 9.3%, and we also had strong cash flow generation in the quarter. Overall, our results reflect the benefits of modest price capture and the timing of FIFO inventory. While some of this margin expansion may be temporary, we believe it highlights our ability to proactively manage the business and focus on what we can control. This includes ensuring product availability, and providing the products our customers rely on us to deliver. As I noted on the last call, Global Industrial has an outstanding foundation for growth, with an exceptional platform and the ability to scale the business organically. We have an opportunity to broaden who we serve, expand existing account relationships, and accelerate our growth initiatives. During the past several months, we have gained alignment throughout the organization on how we can better position global industrial to grow and to pursue new opportunities. We will drive simplification in how we operate and create a sense of urgency within the organization to better serve the customer. We are empowering our teams to make real-time decisions and continually challenging the way we work. to find creative solutions to address customers' needs. Quarter our efforts will be the continued transformation of the business model to place the customer at the center of everything we do. Not just thinking about the customer and our actions, but realigning and building the organization and the solutions we provide around our customers. We need to make it easier for our customers to engage and do business with us. allowing us to deliver greater value to them and become an extension of their teams. Moving forward, our growth strategy will be anchored in specialization and expansion. On specialization, we will become more focused in the identification and targeting of key customers and align sales and the broader organization to serve the specific needs of each type of customer. We will reframe our go-to-market strategy to become much more intentional in how we approach and attract new customers. We see significant opportunity to deepen existing relationships, gain greater share of wallet, and acquire new customers. On expansion, we will broaden the product categories we offer and enhance our overall offerings to ultimately improve our customer stickiness. We will do this focused on driving profitable growth. In summary, we were very pleased with our second quarter performance. We have more work to do as we look to accelerate our success and mitigate the impacts of tariffs on our business and for our customers. As we become more intentional in how we go to market and operate the business, we believe we have the opportunity to open the aperture of the total addressable market that we pursue. There's a lot of positive activity across the company and I'm excited by what the future holds. We remain well-positioned to continue to invest in our growth initiatives and to evaluate strategic M&A. Finally, in September, we will host our ninth annual National Trade Show in Orlando, Florida. This event allows us to showcase our extensive product offering of national and proprietary brands, as well as the knowledge and solutions we bring to market. We look forward to connecting with our customers and vendor partners at the show. Now, I will turn the call over to Tex.