Key Highlights

  • Third-quarter 2026 sales rose 10.2% to USD 389.5 million from USD 353.6 million, while average daily sales grew 8.5% because the quarter had one extra U.S. selling day.
  • Diluted EPS from continuing operations rose 33.3% to USD 0.64 from USD 0.48, and about USD 0.04 of that came from recognized Tariff refunds.
  • Operating income rose 24.3% to USD 32.7 million, with an Operating Margin of 8.4% against 7.4%, and roughly USD 2.0 million came from tariff refunds.
  • Canadian sales increased 25.9% in the quarter, or 28.3% in local currency, while U.S. sales rose 9.3%.

Sales Growth of 10.2% and an EPS Beat Over Last Year

Global Industrial (NYSE:GIC), a North American value-added distributor of industrial equipment and maintenance, repair and operations supplies, filed its 10-Q for the quarter ended September 30, 2026 on November 3, 2026. Consolidated sales reached USD 389.5 million, led by its largest strategic accounts and the industrial and retail verticals. Net Income from continuing operations rose 30.3% to USD 24.5 million. Nine-month sales increased 9.0% to USD 1.13 billion, with diluted EPS of USD 2.00 against USD 1.48, and the company said nine-month sales benefited from both price and volume. The company sells products made by others, including its own exclusive brands such as Nexel, Paramount, Interion and Absocold.

How Much of the Gain Came From IEEPA Tariff Refunds

The U.S. Supreme Court held on February 20, 2026 that the International Emergency Economic Powers Act does not authorize tariffs. The company received USD 26.2 million in refunds of previously paid IEEPA tariffs. About USD 2.0 million benefited third-quarter cost of sales, about USD 23.1 million benefited the nine months, USD 1.1 million went to interest income, and USD 2.0 million sits in inventory until the goods sell through, expected during the rest of 2026 and into 2027. Excluding the roughly USD 0.04 refund benefit, quarterly EPS would be about USD 0.60, still up about 25% on simple arithmetic. Gross margin of 35.7% included 60 basis points from refunds, implying about 35.1% without them, below last year's 35.6%.

Freight, Tariff Exposure and Margin Pressure to Watch

Management flagged higher transportation costs and product and channel mix as offsets to gross margin, and named the Middle East conflict, Section 301 tariffs and other Volatility as risks to transport and Manufacturing costs. Selling, general and administrative costs improved 90 basis points to 27.3% of sales, which helped operating margin. Nine-month Operating Income rose 31.5% to USD 102.6 million, but about USD 23.1 million of that came from refunds, a benefit that is not repeatable at that scale. The digest holds no peer comparison. Watch the sell-through of the USD 2.0 million refund still in inventory, fourth-quarter gross margin without refund help, and growth in Canada.

Where Things Stand

The jump is real but partly flattered. Global Industrial (NYSE:GIC) grew sales 10.2%, or 8.5% per selling day, and cut SG&A as a share of sales, which points to operating leverage. Yet about USD 0.04 of the USD 0.64 EPS and 60 basis points of gross margin came from tariff refunds, and without them gross margin looks lower than last year. U.S. sales rose 9.3% and Canadian sales 25.9%. Next quarters will show whether sales momentum and cost control can carry results as refund benefits fade.