Distribution Solutions Group, Inc. (DSG) reported a significant increase in financial performance for the first quarter of 2025, with total revenue reaching $478.0 million, up 14.8% from $416.1 million in the same period last year. The growth was primarily driven by $50.8 million from acquisitions completed in 2024 and an organic revenue increase of $11.1 million, or 2.7%. The company also achieved a net income of $3.3 million, compared to a net loss of $5.2 million in the prior year, marking a notable turnaround in profitability.
The company's gross profit for the quarter was $164.0 million, representing a gross margin of 34.3%, slightly down from 34.5% in the previous year. Selling, general, and administrative expenses increased to $143.9 million from $140.6 million, largely due to the integration of acquired businesses. Operating income improved significantly to $20.1 million, compared to $2.8 million in the prior year, reflecting enhanced operational efficiency and cost management.
Strategically, DSG has been active in expanding its market presence through acquisitions. Notable transactions include the acquisition of Source Atlantic, which has strengthened its footprint in the Canadian market, and the acquisition of ConRes Test Equipment, enhancing its offerings in the test and measurement sector. The company has also realigned its reportable segments to better reflect its operational strategy, now comprising Lawson, TestEquity, Gexpro Services, and the Canada Branch Division.
Operationally, DSG reported a total of 46,438,341 shares outstanding as of April 25, 2025, with a focus on increasing its sales force and enhancing productivity across its segments. The company has also initiated a stock repurchase program, buying back 320,638 shares at an average cost of $34.94 per share, totaling $11.2 million. Looking ahead, DSG anticipates continued growth driven by its acquisition strategy and organic revenue initiatives, despite potential challenges from market conditions and inflationary pressures. The company remains committed to leveraging its expanded capabilities to enhance shareholder value and operational performance.
About Distribution Solutions Group, Inc.
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