Distribution Solutions Group on Thursday reported stronger third-quarter sales fueled by recent acquisitions, as well as a jump in earnings following a loss in the same quarter last year.
The North Texas-based distributor — the parent of operating companies Lawson Products, Gexpro and TestEquity — posted $468 million in revenue in the latest quarter, up 6.6% from nearly $439 million in the same quarter last year.
The latest quarterly total included more than $38 million in incremental revenue from a trio of acquisitions completed this year; without those additions, the company’s organic revenue was down by just over 2% compared to the third quarter of 2022. The Lawson subsidiary saw sales rise by 1.4% year-over-year on a daily average basis, while Gexpro Services increased by 12.5%. TestEquity, meanwhile, fell by 7.4%.
DSG, which posted a net loss of $1.5 million in the third quarter of 2023, reported net income of nearly $22 million in the latest three-month window. Adjusted EBITDA climbed from $43.7 million to $49.1 million over that span, while operating income jumped by more than 48% — from $12.8 million to $18.9 million.
"We remain focused on deploying our capital for the highest returns in acquisitions and organic investments,” DSG Chairman and CEO Bryan King said in a statement. “Our asset-light business model drives strong cash flow conversion, and our focus on capital returns positions us well to maximize long-term value for our shareholders.”
King noted that Thursday’s earnings report included, for the first time, a new segment — “Canada Branch Division” — reflecting its operations in the Canadian MRO sector. The addition followed Lawson’s acquisition of Source Atlantic, whose operations were combined with those of Lawson’s Bolt Supply House subsidiary.
DSG ranked at no. 18 on ID’s 2024 Big 50.
