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Jun 30
DSG Q2 2025 Earnings Report
Distribution Solutions Group reported solid Q2 2025 results with double-digit revenue growth, higher operating income, and improved cash flow generation.
Key Takeaways
DSG achieved 14.3% revenue growth in Q2 2025, driven by acquisitions and organic sales, resulting in higher operating income and net income. Cash flow from operations was strong at $33.3 million, and adjusted EPS reached $0.35.
Revenue rose to $502.4 million, up from $439.5 million a year ago
Net income reached $5.0 million, more than doubling year-over-year
Adjusted EBITDA hit $48.6 million, or 9.7% of sales
Free cash flow supported $8.8 million in share repurchases during the quarter
DSG
DSG
DSG Revenue by Segment
DSG Revenue by Geographic Location
Revenue by Segment
Lawson Products Revenue
CapyFin.comCanada Branch Division Revenue
CapyFin.comGexpro Services Revenue
CapyFin.comTestEquity Revenue
CapyFin.comRevenue by Geographic Location
Canada Branch Division Revenue
CapyFin.com Forward Guidance
DSG remains cautiously optimistic for the rest of 2025, with continued focus on margin improvement and acquisition execution.
Positive Outlook
- Sequential margin expansion across all major segments
- Improved working capital management
- Strong vendor relationships supporting sourcing capabilities
- Active acquisition pipeline under evaluation
- Liquidity of $314.4 million positions DSG for flexibility
Challenges Ahead
- Adjusted EBITDA margin compressed YoY due to Source Atlantic acquisition
- Margin improvement initiatives in 2024 acquisitions still in early stages
- Ongoing macroeconomic uncertainty and trade policy shifts
- Seasonal nature of sales introduces variability
- Foreign currency exposure could impact results
Revenue & Expenses
Visualization of income flow from segment revenue to net income