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DSG Q1 2025 Earnings Report
DSG reported its first quarter 2025 results, with revenues up 14.9% and consolidated organic average daily sales up 4.3%.
Key Takeaways
Distribution Solutions Group (DSG) announced strong first quarter 2025 results, with revenues increasing by 14.9% to $478.0 million and adjusted EBITDA growing by 18.6% to $42.8 million. The company also reported net income of $3.261 million and diluted EPS of $0.07, while expanding net margins across its three verticals.
Revenue increased by $61.9 million, or 14.9%, to $478.0 million, including $50.8 million from five acquisitions closed in 2024.
Adjusted EBITDA grew by $6.7 million to $42.8 million, or 9.0% of sales, compared to $36.1 million, or 8.7% of sales in the prior year quarter.
Operating income was $20.1 million, a significant increase from $2.8 million in the prior year quarter.
Diluted net income per share was $0.07 for the quarter, compared to a diluted net loss per share of $0.11 in the year-ago quarter.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
DSG is cautiously optimistic about 2025, expecting to leverage its industrial distribution platform for long-term value creation through organic growth and strategic M&A, while focusing on managing capital structure and generating high cash flow.
Positive Outlook
- Well-positioned to help customers navigate alternative sourcing and services as trade policies develop.
- Focus on long-term value creation through growth of industrial distribution platform.
- Building higher-margin businesses by strategically scaling platform through organic growth and M&A.
- Focus on managing capital structure and generating high cash flow conversion rates.
- Confident in plans to improve structural margins and achieve higher return goals.
Challenges Ahead
- Macro uncertainties affected all U.S. companies.
- Source Atlantic acquisition compressed Adjusted EBITDA as a percentage of sales by approximately 60bps over the year ago quarter.
- Sequentially, Adjusted EBITDA decreased by $2.1 million from the fourth quarter of 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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