Distribution Solutions Group Inc. reported first-quarter 2025 revenue of $478.0 million, a 14.9% increase from $416.1 million in the same period last year, propelled by recent acquisitions and organic growth across its specialized distribution platforms. Net income rose to $3.3 million from a net loss of $5.2 million, or $0.11 per share, in the first quarter of 2024.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 18.6% year over year to $42.8 million, representing 9% of revenue—up from 8.7% in the prior-year period. Organic average daily sales (ADS), a key performance metric for the company, grew 4.3% year over year. The company credited the full-quarter contribution from its 2024 acquisition of Source Atlantic, a Canadian maintenance, repair, and operations (MRO) distributor, as a major factor behind the increase.
CEO Bryan King said the company delivered results in line with expectations despite persistent macroeconomic uncertainty. “We are pleased with first quarter sales of $478 million, up 14.9%, comprising inorganic revenue of $51 million and organic ADS growth of 4.3%,” King said. “Margins improved across all three of our core verticals, and we remain focused on building a high-return platform through operational improvements and strategic mergers and acquisitions (M&A).”
Segment Performance
- Lawson Products, a distributor of MRO supplies, generated $120.5 million in revenue, up 1.9% from $118.2 million in Q1 2024/
- Gexpro Services, which provides supply chain services for original equipment manufacturers (OEMs), posted $118.9 million in sales, a 20.6% increase from $98.7 million in the prior quarter.
- TestEquity, which supplies electronic test and measurement equipment, reported $188.8 million in revenue, compared with $187.1 million a year earlier.
- Canada Branch Division, which includes Source Atlantic and Bolt Supply House, reported $50.5 million in revenue, compared to $12.5 million in Q1 2024.
Wall Street analysts reacted positively to DSG’s performance, highlighting the company’s disciplined approach to cost management and integration of recent acquisitions.
“This was a strong quarter from a margin perspective,” said Michael Kent, senior equity analyst at Baird. “Even with modest organic growth, the company is extracting more value from each of its business units. Gexpro Services’ 21% year-over-year revenue growth is particularly impressive.”
Stifel analyst Nathan Jones said the Q1 results reflect “continued operational focus.” He added, “The 18.6% increase in adjusted EBITDA and 24% rise in adjusted earnings per share exceeded consensus expectations. We’re encouraged by DSG’s ability to balance growth investments with shareholder returns.”
King emphasized the company’s readiness to support customers facing global sourcing volatility. “We are well-positioned to help customers navigate supply disruptions, inflationary pressures, and changes in trade policy,” he said. “We believe our multi-brand model gives us flexibility and reach.”
Distribution Solutions Group was formed through the combination of three companies: Lawson Products, Gexpro Services, and TestEquity. Together, they serve more than 200,000 customers globally across the MRO, OEM, and electronic test equipment markets. The company employs approximately 4,400 people and operates in North America, Europe, Asia, South America, and the Middle East.
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