Usual Industries / Workforce and Talent

Usual Reports Third-Quarter Revenue Growth and Advances Enterprise Priorities

Acquired businesses support revenue growth; management maintains full-year outlook.

October 29, 2026 · Quarter ended September 30, 2026

CHICAGO · Usual Industries reported third-quarter revenue of $2.64 billion, an increase of 6.9% from the prior-year period, reflecting the contribution of acquired businesses and continued activity across its existing operations. Adjusted operating income increased 3.4% to $338 million. Operating income was $288 million, compared with $301 million a year earlier.

“We made substantial progress in the areas we identified as important,” said Clarence Biggs, Chairman and Chief Executive Officer. “Our integration program now has a common decision register, our growth agenda has designated owners and our leadership team has a clear schedule for the remainder of the year. These are meaningful advances for an enterprise of our scale.”

Third-quarter financial results

Acquired businesses, principally Bexler Corporation, contributed $145 million of the $170 million increase in revenue. Existing businesses contributed $18 million, equivalent to growth of approximately 0.7% on the prior-year revenue base. Currency movements contributed $7 million.

Operating income declined $13 million as restructuring and acquisition integration expenses increased to $50 million from $26 million. Adjusted operating income excludes those expenses. Cash from operations was $228 million, compared with $245 million, reflecting the timing of collections and higher cash payments associated with the integration program.

“The acquired portfolio is contributing as expected,” said Michael Waddams, Executive Vice President and Chief Financial Officer. “The next phase is to convert operating activity into stronger cash generation. Completing an integration milestone and releasing the related cost are separate steps in that process.”

Operating and leadership highlights

Bexler integration. The company established a shared decision register for cross-business matters, following the June acquisition. The register provides a common reference for decisions previously recorded in separate systems. Existing service channels remain in place while the operating teams evaluate consolidation requirements.

30by30. Usual added 220 net positions during the quarter, bringing total positions to 47,720. The quarter included 710 hires and 490 departures. The company also approved 1,140 requisitions, which remain subject to recruitment and are reported separately from occupied positions.

Enterprise AI standard. Usual introduced its enterprise AI use standard on September 25. Initial implementation establishes approved uses, required human review and escalation responsibilities across Internal Audit, Legal and IT Security. Completion of the policy rollout precedes the measurement of operating benefits.

Corporate terminology. The Enterprise Identity Council completed its review after 4,320 staff-hours. The review established approved contexts for company, firm and conglomerate. A subsequent communication confirmed that company remains the default description.

Developments following quarter-end

On October 1, Operations completed changes affecting 1,400 positions, with expected annualized compensation savings of $92 million and one-time separation costs of approximately $34 million. On October 2, the enterprise talent program welcomed 1,620 colleagues carrying $108 million of annualized compensation costs. The two movements added 220 net positions and increased the annualized compensation run rate by $16 million. These are fourth-quarter events and do not change the third-quarter figures.

The Board subsequently retained the leadership of both programs while revising compensation and purchasing authority following an executive-appointments review. The proposed Bellamy & Vale supplier agreement was withdrawn without payment.

The Chicago Loop Club named Biggs the recipient of its twenty-first annual 1% Award. The company is preparing 31 Days of Enterprise Alignment for December and Liquid January for the following month. The two programs will be supported by seasonal company-store editions.

Usual also introduced an expanded market-classification protocol covering intermediary relationships, departmental purchasing and opportunities progressing through procurement. Adoption of a new designation does not change the financial value assigned to an opportunity.

Outlook

Usual maintains its full-year revenue outlook of $10.4 billion to $10.6 billion and adjusted operating margin outlook of 12.5% to 13.0%. Management’s priorities for the fourth quarter include cash collection, Bexler integration costs and the conversion of approved requisitions into occupied roles.

Adjusted operating income reconciliation

Adjusted operating income is operating income before the expenses identified in the reconciliation. Adjusted operating margin is adjusted operating income divided by revenue. Free cash flow is cash from operations less capital expenditure: $228 million less $62 million in Q3 2026, and $245 million less $55 million in Q3 2025. Percentage changes use unrounded calculations; margins are shown to one decimal place.