Mark Brohan

The Wayne, Pennsylvania-based cooperative said member purchases from AD suppliers increased 28% during the quarter. The U.S. electrical and U.S. pipe, valves and fittings divisions led performance, each posting 13% growth.

For distributors, the impact is immediate. Many relied on First Brands as a sole source across multiple categories.

The specialty distributor said revenue rose 3.8% to $496.0 million for the quarter ended March 31, from $478.0 million a year earlier.

The ISM Manufacturing PMI registered 52.7% in April, unchanged from March and above the 50% level that indicates expansion. The reading suggests the broader economy continued to grow, extending an 18-month expansion streak.

CEO Paul Bay said the company has moved from adoption to performance on the platform, with AI-led sales increasing more than 60% year over year in its largest countries.

The transaction highlights continued investor interest in distributors that offer more than product fulfillment, particularly those with engineering expertise, automation capabilities, and service operations.

“The housing market remains weak as affordability challenges and muted consumer confidence continue to weigh on demand,” CEO Peter Jackson said on the company’s earnings call.

CEO Christopher Pappas said demand strengthened throughout the quarter despite external pressures.

SiteOne, the largest national wholesale distributor of landscape supplies in the U.S., reported a first-quarter loss of $26.6 million, compared with a loss of $27.3 million a year earlier.

For the first nine months of fiscal 2026, revenue rose 17% to $190.6 billion from $162.4 billion in the same period last year.