Distribution Solutions Group Inc
NASDAQ:DSGR

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Distribution Solutions Group Inc
NASDAQ:DSGR
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Price: 29.14 USD 0.07% Market Closed
Market Cap: 1.3B USD

Distribution Solutions Group Inc
Investor Relations

Distribution Solutions Group Inc. operates as a dynamic force within the industrial distribution sector, specializing in the delivery of vital goods and services that power countless industries. The company has carved a niche for itself by efficiently bridging the gap between manufacturers and end users, providing an extensive product portfolio that includes everything from general maintenance supplies to high-tech mechanical components. Through its strategic alliances with manufacturers, the firm offers broad and deep product lines, enabling customers to procure diverse items under a single roof. This consolidation not only simplifies procurement processes but also allows Distribution Solutions Group to leverage bulk buying, securing favorable terms and pricing which contributes positively to its margins.

The core strength of Distribution Solutions Group lies in its robust logistics and supply chain management capabilities. By harnessing cutting-edge technology and a network of efficient distribution centers, the company guarantees timely delivery, an unwavering commitment to customer satisfaction that drives repeat business. Furthermore, its value-added services, such as inventory management, technical support, and custom packaging, enhance its service offering, creating additional revenue streams and fostering customer loyalty. In essence, Distribution Solutions Group Inc. thrives on understanding and preemptively fulfilling the needs of its industrial clientele, thereby sustaining a profitable mixture of volume sales and service-driven income.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Oct 30, 2025
AI Summary
Q3 2025

Revenue Growth: DSG reported third quarter revenue of $518 million, up 10.7% year-over-year, driven by strong organic sales and contributions from 2024 acquisitions.

EPS & Profitability: Adjusted earnings per share rose 8.1% year-over-year to $0.40, and adjusted EBITDA reached $48.5 million, reflecting resilient business performance despite macro headwinds.

Cash Flow & Buybacks: The company generated $38.4 million in operating cash flow for the quarter and repurchased over $20 million in shares in the first nine months of 2025.

Margin Dynamics: EBITDA margin for the quarter was 9.4%, slightly lower due to product mix, investments, and higher employee-related costs, but improvement is expected in coming quarters.

Segment Highlights: Gexpro Services delivered record EBITDA and 11.4% revenue growth; TestEquity sales grew 5.8% but faced margin pressure; Lawson's sales rose 3% with ongoing sales force expansion.

Outlook: Management remains cautious for Q4 due to fewer selling days and tough comparisons, but no major sales or margin shifts are expected; strategic investments continue across divisions.

Key Financials
Revenue
$518 million
Organic Daily Sales
up 6%
Adjusted EBITDA
$48.5 million
Adjusted EBITDA Margin
9.4%
Operating Cash Flow
$38.4 million
Net Income Per Diluted Share
$0.14
Adjusted EPS
$0.40
Share Buybacks
$20 million in first 9 months of 2025
Sales Force (Lawson)
approximately 930 field sales reps
Free Cash Flow Conversion
96% trailing 12 months
Return on Invested Capital
approximately 11% TTM
Debt Leverage Ratio
3.5x
Liquidity
$335 million
CapEx (first 9 months)
$19.3 million
Lawson Segment Sales
$121.5 million
Lawson Adjusted EBITDA
$14 million
Lawson Adjusted EBITDA Margin
11.5%
Canadian Segment Sales
$60 million
Canadian Segment Adjusted EBITDA
$5.8 million
Canadian Segment Adjusted EBITDA Margin
9.6%
Gexpro Services Revenue
$130.5 million
Gexpro Services Adjusted EBITDA
$17.8 million
Gexpro Services Adjusted EBITDA Margin
13.6%
TestEquity Sales
$206.5 million
TestEquity Adjusted EBITDA
$12.4 million
TestEquity Adjusted EBITDA Margin
6%
Earnings Call Recording
Other Earnings Calls

Management

Mr. John Bryan King C.F.A.
President, CEO & Chairman
No Bio Available
Mr. Ronald J. Knutson CPA
Executive VP, CFO & Treasurer
No Bio Available
Mr. Cesar A. Lanuza
President & CEO of Lawson Products
No Bio Available
Mr. David S. Lambert
Chief Accounting Officer, VP & Controller
No Bio Available
Mr. Kevin Hoople
Chief Information Officer
No Bio Available
Mr. Richard D. Pufpaf
Senior VP, Secretary, General Counsel & Chief Compliance Officer
No Bio Available
Mr. Matthew J. Brown
Senior Vice President of Sales
No Bio Available
Mr. Ilan Rodzynek
Vice President of Product Management, Marketing & Pricing
No Bio Available
Mr. Matthew Boyce
Senior Vice President of Corporate Development
No Bio Available
Mr. Michael G. DeCata
Advisor
No Bio Available

Contacts

Address
ILLINOIS
Chicago
8770 W Bryn Mawr Ave Ste 900
Contacts