Global Industrial Company Reports $1.32 Billion Revenue for Fiscal Year 2024, Driven by Indoff Acquisition

Global Industrial Company reported a consolidated revenue of $1.32 billion for the fiscal year ending December 31, 2024, marking a 3.3% increase from $1.27 billion in 2023. The growth was bolstered by the acquisition of Indoff LLC, which contributed to the overall sales figures. However, when excluding Indoff's contributions, the company experienced a slight decline of 0.6% in sales, indicating challenges in its core small and medium business customer base. The gross margin improved marginally to 34.3% from 34.2% in the previous year, while operating income from continuing operations fell by 16.6% to $80.5 million, reflecting increased costs and a softening demand environment.

The acquisition of Indoff, completed on May 19, 2023, for approximately $72.6 million, was a significant strategic move aimed at expanding Global Industrial's presence in the maintenance, repair, and operations (MRO) market. This acquisition is expected to enhance the company's product offerings and customer reach. The integration of Indoff's operations is ongoing, and the company is focused on realizing the anticipated benefits and synergies from this acquisition.

Operationally, Global Industrial employed approximately 1,845 associates as of December 31, 2024, with a diverse workforce comprising 41% female and 59% male, and 47% of employees identifying as minorities. The company operates six primary distribution centers across North America, totaling about 2.8 million square feet. The company reported that over 60% of its transaction count in the core Global Industrial business was conducted electronically, highlighting the effectiveness of its e-commerce strategy. However, the company faced challenges with rising selling, distribution, and administrative expenses, which increased to $371.5 million, primarily due to investments in sales and marketing initiatives and the full-year inclusion of Indoff's costs.

Looking ahead, Global Industrial anticipates that its strategic initiatives will strengthen its competitive position and drive operational efficiencies. The company is focused on enhancing customer experience through its "Accelerating the Customer Experience" (ACE) initiative, which aims to build customer loyalty and trust. Despite the challenges posed by economic conditions, including inflation and supply chain disruptions, the company believes it is well-positioned to capture market share and improve its financial performance in the coming year. The management remains cautious about potential impacts from geopolitical instability and market volatility but is committed to executing its growth strategies effectively.