Distribution Solutions Group (NASDAQ:DSGR) Issues Quarterly Earnings Results, Misses Estimates By $0.15 EPS

by · The Markets Daily

Distribution Solutions Group (NASDAQ:DSGR – Get Free Report) issued its earnings results on Thursday. The company reported $0.18 earnings per share for the quarter, missing analysts’ consensus estimates of $0.33 by ($0.15), FiscalAI reports. The company had revenue of $481.60 million during the quarter, compared to analyst estimates of $496.30 million. Distribution Solutions Group had a negative net margin of 0.57% and a positive return on equity of 10.79%.

Here are the key takeaways from Distribution Solutions Group’s conference call:

  • DSG reported full-year revenue of $1.98 billion (up 9.8%) and strong cash from operations of $84 million, but adjusted EBITDA of $175 million (8.9%) and Q4 margins (7.4%) fell short of expectations.
  • Management made significant, company-wide investments in leadership, technology (AI/ERP consolidation) and selling capabilities—including key hires at Lawson and a new head of M&A—positioning the company for longer-term margin and growth improvements despite near-term cost drag.
  • Gexpro Services was a standout, growing to about $497 million with organic ADS up ~12.3% and EBITDA margin expanding to 12.8%, and management views it as a primary growth/margin lever going forward.
  • Lawson and the TestEquity Group experienced margin compression from sales-mix shifts, higher healthcare and bad-debt costs, and transitional leadership/sales-force changes, with Lawson’s core local accounts still being re-lifted and TestEquity executing a J‑curve recovery plan.
  • Near-term outlook expects Q1 margin pressure as investments are digested, but management expects margin re-leveraging into Q2–Q3, plans continued tuck-in M&A, ~ $25–30M CapEx for 2026, and has ~ $33M remaining on its buyback authorization.

Distribution Solutions Group Stock Down 22.5%

Shares of DSGR traded down $6.67 during trading hours on Thursday, reaching $23.04. The stock had a trading volume of 110,310 shares, compared to its average volume of 80,809. The firm has a 50-day simple moving average of $29.55 and a 200 day simple moving average of $29.36. Distribution Solutions Group has a 12 month low of $21.27 and a 12 month high of $33.80. The company has a current ratio of 2.50, a quick ratio of 1.38 and a debt-to-equity ratio of 1.02. The company has a market capitalization of $1.07 billion, a price-to-earnings ratio of -100.17 and a beta of 0.51.

Institutional Investors Weigh In On Distribution Solutions Group

Several institutional investors have recently bought and sold shares of DSGR. BNP Paribas Financial Markets raised its holdings in shares of Distribution Solutions Group by 53.5% in the second quarter. BNP Paribas Financial Markets now owns 1,170 shares of the company’s stock valued at $32,000 after purchasing an additional 408 shares during the last quarter. Barclays PLC increased its stake in Distribution Solutions Group by 8.5% in the 4th quarter. Barclays PLC now owns 15,327 shares of the company’s stock valued at $420,000 after buying an additional 1,201 shares during the last quarter. Quarry LP bought a new position in shares of Distribution Solutions Group during the 3rd quarter worth approximately $42,000. Inspire Investing LLC lifted its position in shares of Distribution Solutions Group by 9.9% during the 4th quarter. Inspire Investing LLC now owns 16,917 shares of the company’s stock worth $463,000 after buying an additional 1,517 shares in the last quarter. Finally, Alliancebernstein L.P. boosted its stake in shares of Distribution Solutions Group by 23.3% in the 3rd quarter. Alliancebernstein L.P. now owns 14,822 shares of the company’s stock worth $446,000 after buying an additional 2,800 shares during the last quarter. Institutional investors own 91.64% of the company’s stock.

Distribution Solutions Group declared that its board has authorized a share repurchase program on Monday, November 17th that permits the company to buyback $30.00 million in outstanding shares. This buyback authorization permits the company to repurchase up to 2.5% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the company. Weiss Ratings restated a “sell (d)” rating on shares of Distribution Solutions Group in a research report on Monday, December 29th. Barrington Research reissued an “outperform” rating and set a $41.00 target price on shares of Distribution Solutions Group in a report on Monday. One investment analyst has rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $41.00.

Get Our Latest Stock Report on DSGR

About Distribution Solutions Group

(Get Free Report)

Distribution Solutions Group, Inc, a specialty distribution company, engages in the provision of value-added distribution solutions in North America, Europe, Asia, South America, and the Middle East. The company provides its solutions to the maintenance, repair, and operations (MRO); original equipment manufacturer (OEM); and industrial technology markets. It operates through three segments: Lawson, Gexpro Services, and TestEquity. The Lawson segment distributes of specialty products and services to the industrial, commercial, institutional, and government MRO market.

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