DSGR
Distribution Solutions Group, Inc.28.71
-0.10-0.35%
Dec 16, 4:00:00 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Early sales up, Q1 margins soft
Q&A confirmed low single-digit Jan/Feb 2026 sales growth versus prior year, yet Q1 margins stay soft from payroll resets and incentives before Q2/Q3 rebound above 2025's 8.9% average. TestEquity sharpened focus on high-margin T&M, rentals, and chambers post-leadership adds, while Gexpro offsets U.S. renewables weakness with India ramp to $14M. Lawson detailed service reps freeing field sellers for local account revival, comprising 45% revenue. Tariffs too early to gauge; small M&A tuck-ins eyed H1 for margin lift. Answers fleshed out execution but largely reaffirmed script. Margins releveraging matters most.
Key Stats
Market Cap
1.33BP/E (TTM)
-Basic EPS (TTM)
-0.24Dividend Yield
0%Recent Filings
10-K
FY2025 results
Distribution Solutions Group drove FY2025 revenue up 9.8% to $1.98B, fueled by $121M from 2024 acquisitions like Source Atlantic while organic sales grew $54M amid PMI around 49. Gexpro Services surged 12.7% on renewables and aerospace strength, Canada Branch exploded 77% post-Source Atlantic, yet Lawson and TestEquity saw modest gains offset by military softness and mix shifts. Operating income climbed to $78M (4.0% margin) from $56M, with $84M operating cash flow funding $27M capex and $24M buybacks under the expanded $68M program. Q4 repurchases totaled 124K shares at ~$28 avg. Debt stands at $704M under the new $1.1B facility to 2030, with $394M revolver availability. Supply chain disruptions risk quarterly momentum.
8-K
9.8% revenue growth, cash flow up
Distribution Solutions Group posted 2025 revenue of $1.98B, up 9.8% despite one fewer selling day, with 3.6% organic growth, yet Q4 margins plunged to 1.6% from 4.2% amid mix shifts and investments. Operating cash flow soared to $84M, funding $23.5M share repurchases. Extended credit facility to 2030 with $700M term debt, $400M revolver. Cash flow remains robust.
8-K
DSG expands credit facility to $1.1B
Distribution Solutions Group entered a Second Amended and Restated Credit Agreement on December 18, 2025, replacing its prior facility with a $700M term loan and $400M revolving line maturing December 18, 2030. Proceeds repay $709M outstanding debt; rates tie to net leverage with initial SOFR+250bps and quarterly $8.75M amortization. Covenants cap leverage at 4.25x initially, dropping to 4.00x; expansion up to $500M allowed.
8-K
Boosts buyback by $30M
Distribution Solutions Group boosted its share repurchase program by $30 million on November 17, 2025, lifting total authorization to $67.5 million with $32.9 million remaining. After repurchasing $23.5 million through September 30, 2025, management eyes opportunistic buys amid strong free cash flow and a beefed balance sheet. Board can halt anytime. Capital deployment sharpens shareholder value.
10-Q
Q3 FY2025 results
Distribution Solutions Group hit $518M revenue in Q3 ended September 30, 2025, up 10.7% y/y from $468M while gross margin slipped to 32.9% from 33.9%; operating income climbed 24.6% y/y to $23.6M as SG&A leverage kicked in, though net income fell to $6.5M from $21.9M on tax normalization. YTD revenue surged 13.1% y/y to $1.50B with operating income nearly doubling to $70.5M, fueled by Canada Branch Division's 53% quarterly jump post-Source Atlantic buy (closed Aug 2024 for $103.5M net cash, $29.8M goodwill, customer relationships amortized over 17 years). Cash swelled to $69M, OCF hit $67M (FCF $48M derived), total debt $712M with $253M revolver availability and covenants met. Stock repurchases totaled $20M YTD. Tariffs threaten margins.
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