10-K · March 5, 2026
DSG presents a strategy of combined specialty distribution through Lawson, TestEquity and Gexpro Services, pursuing organic growth (cross-selling, digital) and accretive acquisitions. Recent corporate actions in the…
Earnings analysis · 10-Q
DSGR earnings analysis
Filed April 30, 2026 · Our reading of the company's report
The latest report
Distribution Solutions Group, Inc. reported Q1 2026 revenues of $496 million, up 3.8% compared to Q1 2025 but below analyst estimates. The company faced a significant decline in profitability with diluted EPS at $0.24,…
Read full summary
Distribution Solutions Group, Inc. reported Q1 2026 revenues of $496 million, up 3.8% compared to Q1 2025 but below analyst estimates. The company faced a significant decline in profitability with diluted EPS at $0.24, down from $0.46 year-over-year. Total operating income dropped from $20.1 million to $13.6 million, indicating heavier margin pressures.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.24
- Segment
- Lawson
- Segment
- TestEquity
- Segment
- Gexpro Services
- Segment
- Canada Branch Division
What stood out
-
Revenue Growth of 3.8% YoY
Revenue increased to $496 million in Q1 2026 from $478 million in Q1 2025.
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Declining Operating Income
Operating income fell to $13.6 million, a 32% drop from $20.1 million in Q1 2025.
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Significant EPS Decline
Diluted EPS reported at $0.24, down from $0.46 in Q1 2025.
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Higher SG&A Expenses
Selling, general and administrative expenses increased to $149.7 million, compared to $143.9 million a year prior.
-
TestEquity Segment Strong Growth
TestEquity revenue rose 8.2% to $204.2 million, driven by increased sales across key product categories.
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Gexpro Services Segment Decline
Gexpro Services segment revenue decreased by 1.1% to $117.6 million primarily due to lower demand in aerospace and renewables.
What to watch
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Increased Debt Levels
Interest expense for Q1 2026 was $12.2 million, slightly reduced from $14.2 million in the previous year but remains a concern given the floating rate debt.
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Profit Margin Pressures
Gross profit margin declined to 32.9% from 34.3% in Q1 2025, driven by increased costs and a shift towards lower-margin sales.
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Rising Supplier Costs
Continued inflation and increased transport costs have pressured margins and may continue to impact future profitability.
Management's outlook
No specific forward guidance provided for future periods.
Earlier filings 4
10-Q · October 30, 2025
DSG reported Q3 revenue of $517,958,000, up 10.7% versus prior-year Q3 revenue of $468,019,000, driving higher operating income of $23,619,000 (operating margin 4.6%). Gross margin compressed to 32.9% from 33.9% a year…
10-Q · July 31, 2025
DSG reported Q2 2025 revenue of $502,437,000, up $62,901,000 (14.3%) versus Q2 2024 and up ~$24M (5.0%) sequentially. Gross margin narrowed to 33.9% from 34.5% a year ago, but operating income rose to $26,826,000 (5.3%…
10-K · March 7, 2024
DSG completed several strategic moves in 2023 including the $267.3 million Hisco acquisition (net of $12.2M cash) and issuance of earnout shares for TestEquity and Gexpro Services; management emphasizes a dual growth…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.