Distribution Solutions Group on Thursday posted higher Q1 sales and more than $3 million in net income — reversing a loss in the first quarter of last year.
The Fort Worth-based company, which operates Lawson Products, Gexpro Services and TestEquity, reported $478 million in revenue in the first three months of the year, up nearly 15% over its previous Q1 total.
The Lawson business saw quarterly revenue edge up from $118 million to more than $120 million year-over-year, while Gexpro’s sales jumped from $98.7 million to nearly $119 million. TestEquity’s sales also edged up, while DSG’s Canadian division revenue spiked more than four-fold amid acquisitions of Source Atlantic and Bolt Supply House. In total, DSG’s five 2024 acquisitions contributed $50.8 million to quarterly revenue total.
The company’s gross profit increased from $143 million to $164 million in the latest quarter, while operating income rose from $2.7 million to $20 million over that. Net income of $3.3 million compared to a loss of $5.2 million in the first three months of 2024.
On a constant currency basis, the company said its organic average daily sales grew 4.7% year-over-year.
DSG Chairman and CEO Bryan King said that the results met expectations amid “macro uncertainties that affected all U.S. companies.” He also said that the company remains “cautiously optimistic about 2025” as a whole.
"We are pleased to report year-over-year net margin expansion in each of our three verticals on a comparable basis,” King said in a statement.
DSG ranked at no. 18 on ID's 2024 Big 50 list.
