Distribution Solutions Group’s recent acquisitions fueled a sharp increase in quarterly revenue despite a decline in organic sales, company officials announced Thursday.
The Fort Worth, Texas-based company, the parent of MRO distributor Lawson Products as well as TestEquity and Gexpro Services, posted nearly $440 million in second-quarter revenue, a 16.3% increase over the $378 million during the same window last year.
The company’s 2023 and 2024 acquisitions contributed $81.4 million to that total, overcoming a 5.7% drop in organic sales that DSG officials said was “expected.”
Operating income climbed 2.8% year-over-year — from $13.8 million up to $14.2 million — while adjusted EBITDA increased from $40.1 million to $45.2 million over that span. Income, however, fell from $0.07 per diluted share in the same quarter last year down to $0.04 amid greater amortization and depreciation expenses and costs related to acquisitions and “non-recurring severance.”
DSG Chairman and CEO Bryan King said the Lawson business saw a strong quarter and added investments in its sales operation, while TestEquity experienced better margins as its end markets recovered and amid the continued integration of Hisco following that acquisition last spring.
Company officials also highlighted the company’s other recent additions, including the July announcement of an agreement to acquire Canada’s Source Atlantic.
“Our teams executed well this quarter and sustainably moved us in the right direction on all critical initiatives, resulting in margin expansion within all three of our verticals,” King said in a statement.
DSG came in at no. 18 on ID's most recent Big 50.
