Global Industrial Company reported record profitability for the second quarter ended June 30, 2025, on July 29, 2025. Net sales increased 3.2% year-over-year to $358.9 million, driven primarily by robust growth among its largest strategic accounts. This growth was partially offset by a reduction in sales to smaller, more transactional customers, reflecting an intentional effort to limit promotional activities.
Gross margin reached a quarterly record of 37.1%, a significant 190 basis point increase from 35.2% in Q2 2024. This expansion was attributed to proactive price capture, temporary favorability from FIFO inventory valuation, and improved freight management. Operating income from continuing operations surged 26.9% to a record $33.5 million, resulting in an operating margin of 9.3%, up from 7.6% in the prior year.
Net income per diluted share from continuing operations was $0.65, a notable increase from $0.52 in Q2 2024. For the first six months of 2025, net sales grew 1.3% to $679.9 million, with gross margin at 36.0% and operating income at $51.7 million, up 18.0% year-over-year. The Board declared a quarterly dividend of $0.26 per common share.
The company's strong financial position was highlighted by $55.1 million in cash and no debt as of June 30, 2025, along with $120 million of excess availability under its revolving credit facility. Management expects July 2025 sales to accelerate to mid-single digits, primarily driven by strategic accounts. This performance underscores the early success of the company's strategic reorientation towards higher-value customer segments and disciplined operational management.
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