Distribution Solutions Group, Inc. ( (DSGR) ) has released its Q3 earnings. Here is a breakdown of the information Distribution Solutions Group, Inc. presented to its investors.
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Distribution Solutions Group, Inc. (DSG) is a specialty distribution company that provides high-touch, value-added distribution solutions to the maintenance, repair & operations (MRO), original equipment manufacturer (OEM), and industrial technologies markets. The company operates globally, serving a diverse range of customers with a focus on enhancing productivity and efficiency.
In the third quarter of 2025, Distribution Solutions Group reported a robust 10.7% increase in revenue, reaching $518 million. The company achieved this growth through strong organic sales and contributions from recent acquisitions. Despite challenges such as inflation and higher interest rates, DSG maintained strong operating cash flow and executed significant stock repurchases, reflecting confidence in its growth trajectory.
Key financial highlights include an operating income of $23.6 million, a 24.7% increase from the previous year, and an adjusted EBITDA of $48.5 million, representing 9.4% of sales. The company also reported a diluted net income per share of $0.14, with non-GAAP adjusted earnings per share at $0.40. DSG ended the quarter with a solid liquidity position, boasting over $335 million in total liquidity, and no outstanding revolver debt.
Looking ahead, Distribution Solutions Group remains cautiously optimistic about the fourth quarter, acknowledging tougher year-over-year comparisons and ongoing economic uncertainties. However, the company is confident in its leadership and strategic initiatives aimed at building higher-margin businesses and generating strong free cash flow to create long-term shareholder value.