Distribution Solutions Group, Inc. (DSG) reported a significant increase in its financial performance for the fiscal year ending December 31, 2025, with total revenue reaching $1.98 billion, a 9.7% increase from $1.80 billion in 2024. The company achieved a net income of $8.35 million, compared to a net loss of $7.33 million in the previous year. This turnaround was primarily driven by acquisitions and organic growth, with $121.5 million of revenue attributed to acquisitions completed in 2024, alongside an organic revenue increase of $54.4 million.
The company underwent notable strategic developments, including the acquisition of several businesses, such as Source Atlantic and S&S Automotive, which contributed to its expanded market presence. DSG's workforce remained stable at approximately 4,300 employees, with a focus on enhancing sales force productivity and expanding its customer base. The company serves around 220,000 distinct customers across various sectors, including maintenance, repair, and operations (MRO), original equipment manufacturing (OEM), and industrial technology markets.
Operationally, DSG's segments showed varied performance. The Lawson segment reported revenue of $481.1 million, a modest increase of 2.6%, while TestEquity's revenue rose by 1.6% to $783.2 million. Gexpro Services experienced a more substantial growth of 12.7%, reaching $496.7 million, driven by increased sales in renewable energy and aerospace sectors. The Canada Branch Division saw a remarkable 77% increase in revenue, totaling $221.4 million, largely due to the Source Atlantic acquisition.
The company also made significant changes to its capital structure, amending its senior secured facility to include $700 million in term debt and a $400 million revolving credit arrangement, enhancing its liquidity position. Additionally, DSG's Board authorized a $30 million increase to its stock repurchase program, bringing the total authorization to $67.5 million, with $32.9 million remaining available for repurchases as of year-end. Looking ahead, DSG aims to continue its growth trajectory through both organic initiatives and strategic acquisitions, while navigating challenges such as inflationary pressures and supply chain constraints.
About Distribution Solutions Group, Inc.
Distribution Solutions Group, Inc. is a global specialty distributor serving the maintenance, repair, and operations (MRO), original equipment manufacturer (OEM), and industrial markets. It offers value-added distribution solutions, including technical support, inventory management, and fast delivery across diverse industries and regions. The company operates through multiple segments, focusing on organic growth and acquisitions to expand its product offerings, customer base, and geographic reach.
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