Q3 2025 Distribution Solutions Group Inc Earnings Call Transcript

Oct 30, 2025 / 01:00 PM GMT

Release Date Price: $27.87 (-6.34%)

Transcript 10-Q8-K

Key Points

Positve

Distribution Solutions Group Inc (DSGR) reported a 10.7% revenue growth in Q3 2025, driven by strong organic momentum and contributions from 2024 acquisitions.
The company achieved an increase in adjusted earnings per share by 8.1% compared to the same period last year.
DSGR generated strong quarterly operating cash flow of more than $38 million with adjusted EBITDA of $48.5 million.
Jex Pro Services delivered record adjusted dollars in the third quarter on organic revenue expansion of 11.4%.
The company executed more than $20 million in share buybacks in the first nine months of 2025, reflecting confidence in its trajectory.

Negative

EBITDA margins for the quarter were 9.4%, impacted by product and customer mix, as well as strategic investments.
Test Equity Group faced downward pressure on gross margins due to product mix shifts and higher SG&A expenses.
Lawson's sales rep counts increased, but the lead time to profitability on new hires has not accelerated as expected.
The company anticipates a cautious outlook for Q4 2025 due to fewer selling days and potential holiday shutdowns by customers.
Higher employee-related costs, including healthcare, impacted margins, particularly at Lawson and Test Equity.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

DSGR.OQ - Distribution Solutions Group Inc
Q3 2025 Distribution Solutions Group Inc Earnings Call
Oct 30, 2025 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good day everyone. Welcome to the Distribution Solutions Group 3rd quarter 2025 earnings conference call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Sandy Martin. Please go ahead.

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Unidentified_2 [2]
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Good morning and welcome to the distribution Solu Group's 3rd quarter 2025 earnings call. Joining me on today's call are DSG's Chairman and Chief Executive Officer

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