Earnings summaries and quarterly performance for Distribution Solutions Group.
Executive leadership at Distribution Solutions Group.
Barry Litwin
Detailed
Chief Executive Officer, TestEquity
CEO
Cesar A. Lanuza
Detailed
President and Chief Executive Officer, Lawson
CEO
J. Bryan King
Detailed
Chairman, President and Chief Executive Officer
CEO
Robert H. Connors
Detailed
President and Chief Executive Officer, Gexpro Services
CEO
Ronald J. Knutson
Detailed
Executive Vice President, Chief Financial Officer and Treasurer
Board of directors at Distribution Solutions Group.
Research analysts who have asked questions during Distribution Solutions Group earnings calls.
Kevin Steinke
Barrington Research
5 questions for DSGR
Also covers: ACCO, BEEP, CCRN +9 more
Kenneth Newman
KeyBanc Capital Markets
3 questions for DSGR
Also covers: AIT, BOOM, CGNX +10 more
Brad Hathaway
Fair View
2 questions for DSGR
Thomas Moll
Stephens Inc.
2 questions for DSGR
Also covers: CARR, CGNX, DGII +13 more
Tommy Moll
Stephens Inc.
2 questions for DSGR
Also covers: CGNX, DGII, ESE +9 more
Katie Fleischer
KeyBanc Capital Markets
1 question for DSGR
Also covers: CGNX, EMR, GWW +3 more
Zach Marriott
Stephens Inc.
1 question for DSGR
Also covers: DXPE
Recent press releases and 8-K filings for DSGR.
DSGR Highlights Strong Growth, M&A, and Capital Allocation
DSGR
Revenue Acceleration/Inflection
M&A
Share Buyback
- Distribution Solutions Group (DSGR) has significantly grown since its formation in early 2022, doubling its revenue to approximately $2 billion and EBITDA to about $190 million from 2021 levels.
- The company reported a 6% organic sales increase in Q3 2025, marking its fourth consecutive quarter of organic growth, and maintains an asset-light model with CapEx around 1% of revenues, generating strong free cash flow.
- DSGR has deployed approximately $550 million in nine acquisitions since its formation and actively manages capital with leverage at about 3.5 times, holding $80 million in cash, and a recent authorization for $30 million in additional share repurchases.
- Strategic initiatives include enhancing the go-to-market strategy for the TestEquity Group, which represents 40% of revenues, with a new CEO focused on improving its EBITDA margin from 9.5% to over 10%.
Nov 20, 2025, 8:40 PM
DSGR Discusses Doubled Revenue and EBITDA, Strategic Growth Initiatives
DSGR
M&A
Revenue Acceleration/Inflection
Management Change
- Distribution Solutions Group (DSGR) has significantly grown its business, doubling revenue to approximately $2 billion and EBITDA to $190 million since its formation in early 2022 from 2021 levels.
- The company operates through three diverse specialty distribution verticals: Lawson Products (MRO), Gexpro Services (OEM), and TestEquity Group (industrial technology), serving 200,000 customers across various end markets.
- DSGR has demonstrated consistent organic growth, reporting a 6% organic sales increase in Q3 2025, marking its fourth consecutive quarter of such growth.
- The company actively pursues M&A, having completed nine acquisitions since its formation, including five in 2024, deploying $550 million in capital. It also maintains a strong balance sheet with $80 million in cash, an undrawn $250 million revolver, and has authorized an additional $30 million for share repurchases after buying back approximately 780,000 shares in 2025.
- A new CEO was appointed for the TestEquity Group approximately 90 days prior to the conference, with a strategic focus on enhancing the go-to-market strategy and improving the segment's margin profile.
Nov 20, 2025, 8:40 PM
DSGR Reports Q3 2025 Financial Highlights and Strategic Overview
DSGR
Earnings
M&A
Share Buyback
- DSGR reported Q3 2025 revenue of $518.0 million and Adjusted EBITDA of $48.5 million, resulting in a 9.4% Adjusted EBITDA margin. For the trailing twelve months (TTM) ended September 30, 2025, the company achieved $1.98 billion in Adjusted Revenue and ~$177 million in Adjusted Free Cash Flow.
- The company's capital allocation strategy emphasizes deleveraging, with leverage at 3.5x as of September 30, 2025, and shareholder returns, including a $37.5 million share repurchase program with $20.0 million repurchased year-to-date 2025.
- DSGR operates a diversified specialty industrial distribution platform, with its largest segments by revenue contribution (TTM as of September 30, 2025) being Industrial Technologies Focus (~40%) and OEM Focus (~25%).
Nov 20, 2025, 8:40 PM
DSGR Highlights Significant Growth, Strategic M&A, and Capital Allocation Initiatives
DSGR
M&A
Share Buyback
Revenue Acceleration/Inflection
- Distribution Solutions Group (DSGR) has significantly grown its business, doubling its revenue to approximately $2 billion and EBITDA to $190 million in about three and a half years since its formation in early 2022.
- The company reported a 6% organic sales increase in Q3, marking its fourth consecutive quarter of organic growth despite a generally flat industrial market.
- DSGR actively pursues M&A, having deployed $550 million across nine acquisitions since its inception, and maintains a strong capital position with leverage at 3.5 times, $80 million in cash, and an undrawn $250 million revolver.
- The board recently authorized an additional $30 million for share repurchases, following the buyback of approximately 780,000 shares in 2025.
- Strategic initiatives are underway across its three verticals, including enhancing the go-to-market strategy for TestEquity (which accounts for 40% of revenues) with a new CEO, improving sales rep productivity for Lawson Products, and continuing investments in Gexpro Services, which achieved a record $17 million in EBITDA in Q3.
Nov 20, 2025, 8:40 PM
DSG Reports Strong Q3 2025 Revenue Growth and TTM Financial Highlights
DSGR
Earnings
M&A
Share Buyback
- DSG reported Q3 2025 revenue of $518 Million, marking a 10.7% increase over the prior year, with adjusted EBITDA of $48.5 Million (9.4% of sales) and Non-GAAP adjusted diluted EPS of $0.40.
- For the trailing twelve months (TTM) ended September 30, 2025, the company achieved $1.98 Billion in Adjusted Revenue and generated approximately $177 Million in Adjusted Free Cash Flow.
- The company operates a diversified specialty industrial distribution platform, with its largest segments being TE TestEquity Group (~40% of Revenue) and Gexpro Services (~25% of Revenue).
- DSG maintains a disciplined capital allocation strategy, focusing on deleveraging (leverage at 3.5x as of September 30, 2025) and returning capital to shareholders, having repurchased $20.0 Million in shares year-to-date 2025.
- The company's growth strategy includes M&A, with 9 acquisitions completed since April 2022, involving a cash outlay of approximately $450 Million.
Nov 18, 2025, 2:00 PM
Distribution Solutions Group (DSGR) Discusses Long-Term Strategy, Financial Progress, and Capital Allocation
DSGR
M&A
Share Buyback
Guidance Update
- LKCM holds a 78% ownership stake in DSGR, indicating a long-term compounding strategy rather than a traditional private equity approach.
- The company is progressing towards its 2023 investor day targets of $3.3 billion in revenue and 13.5% EBITDA, with current trailing twelve-month revenue at approximately $2 billion and EBITDA between 9% and 10%. Organic growth has ranged from 2.5% to 6% over the last four quarters despite a sluggish industrial backdrop.
- DSGR has deployed $550 million across nine acquisitions over the past three years, with M&A being a core growth strategy. The company maintains a healthy balance sheet with 3.5 times leverage at the end of Q3, over $80 million in cash, and an undrawn $250 million revolver.
- The board recently authorized an additional $30 million for share repurchases, providing flexibility for shareholder returns.
- Operational focus includes optimizing the Lawson sales force (currently 930 reps, targeting 1,000) and enhancing TestEquity's go-to-market strategy, including improving e-commerce conversion rates.
Nov 18, 2025, 2:00 PM
DSGR Discusses Business Verticals, Financial Performance, and M&A Strategy
DSGR
M&A
Guidance Update
Demand Weakening
- Distribution Solutions Group (DSGR) operates through three main verticals: Lawson Products (vendor-managed inventory for MRO), Gexpro Services (OEM Class C parts supply chain solutions), and TestEquity Group (electronic production supplies and test & measurement equipment).
- LKCM (Luther King Capital Management) is the majority owner, holding approximately 78% of DSGR's shares, and provides significant M&A support, emphasizing a long-term compounding strategy.
- The company's trailing twelve-month (TTM) revenue is about $2 billion, with EBITDA close to $200 million, and it previously set a five-year target of $3.3 billion in revenue and 13.5% EBITDA.
- DSGR has deployed $550 million across nine acquisitions over the past three years, with leverage at approximately 3.5 times at the end of Q3, and recently authorized an additional $30 million for share repurchases.
- Management characterizes the broader demand environment as "sluggish" but notes positive trends such as unit volume increases in Lawson Products and growth in specific Gexpro Services end markets, while remaining cautious for 2026.
Nov 18, 2025, 2:00 PM
DSGR Discusses Financials, M&A, and Market Outlook
DSGR
Guidance Update
M&A
Share Buyback
- Distribution Solutions Group (DSG) reported a trailing twelve-month (TTM) revenue of about $2 billion and an EBITDA run rate close to $200 million (9-10% margin) as of the document's publication date. Organic growth was 6% in the most recent quarter, with a low of 2.5% over the last four quarters.
- The company has deployed approximately $550 million in capital across nine acquisitions over the past three years, with M&A being a significant part of its growth strategy.
- As of the end of Q3, DSG's leverage was about 3.5x, within their comfortable 3x-4x range, and they held over $80 million in cash with no draws on their $250 million revolver.
- The board recently authorized an additional $30 million for share repurchases, viewing it as a flexible instrument for shareholder return.
- Despite a "sluggish" macro environment, with the ISM below 50 for 30 out of the last 33 months, DSG is seeing some positive trends, such as positive unit volumes for Lawson and upward trends in some Gexpro Services end markets, though they remain cautious going into 2026.
Nov 18, 2025, 2:00 PM
DSGR Announces $30 Million Increase to Share Repurchase Program
DSGR
Share Buyback
- Distribution Solutions Group, Inc. (DSGR) announced on November 17, 2025, that its Board of Directors approved an additional $30 million for its common share repurchase authorization.
- This increase brings the total aggregate authorization under the Company's repurchase program to $67.5 million, up from $37.5 million previously authorized.
- Including this additional authorization, approximately $32.9 million remains available under the current Board-authorized share repurchase plan.
- The company had already repurchased approximately $23.5 million of its common stock during the first nine months through September 30, 2025.
Nov 17, 2025, 10:33 PM
DSGR Increases Share Buyback Authorization
DSGR
Share Buyback
- Distribution Solutions Group (DSGR) has approved an additional $30 million share repurchase authorization, bringing its total repurchase capacity to nearly $33 million.
- The company has already repurchased approximately $23.5 million of its common stock during the first nine months through September 30, 2025.
- This decision is supported by strong business prospects and $59.7 million in levered free cash flow over the last twelve months, alongside a healthy current ratio of 2.5.
- Despite the buyback activity, DSGR's stock has declined 23.8% year-to-date and 30.3% over the past year.
Nov 17, 2025, 12:36 PM
Quarterly earnings call transcripts for Distribution Solutions Group.
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