Distribution Solutions Group, Inc. ( (DSGR) ) has released its Q1 earnings. Here is a breakdown of the information Distribution Solutions Group, Inc. presented to its investors.
Distribution Solutions Group, Inc. is a leading specialty distribution company that provides value-added solutions to the maintenance, repair, and operations, original equipment manufacturer, and industrial technologies markets. The company operates through a strategic combination of Lawson Products, Gexpro Services, and TestEquity, serving approximately 200,000 customers across various global markets.
In the first quarter of 2025, Distribution Solutions Group reported a significant increase in revenues, achieving a 14.9% rise to $478 million. The company experienced growth in both organic and inorganic sales, with organic average daily sales increasing by 4.3%. The financial results met expectations despite macroeconomic uncertainties affecting the broader market.
Key financial highlights for the quarter include a 18.6% increase in adjusted EBITDA to $42.8 million, representing 9.0% of sales. The company also saw improvements in net margins across its three verticals, with notable expansions in Lawson, Gexpro Services, and TestEquity. The acquisition of Source Atlantic contributed to revenue growth but also compressed margins slightly. The company executed share repurchases worth $11.2 million as part of its capital allocation strategy.
Looking ahead, Distribution Solutions Group remains cautiously optimistic about 2025, focusing on long-term value creation through strategic growth and acquisitions. The company aims to enhance its industrial distribution platform and improve structural margins to achieve higher returns for shareholders.