Distribution Solutions Group saw higher revenue in its latest quarter but a dramatic decline in earnings, company officials reported Thursday.
The parent of Lawson Products and Gexpro Services — the no. 16 distributor on ID’s most recent Big 50 — posted nearly $496 million in overall revenue in the first quarter, an increase of 3.8% compared to the same quarter in 2025. Organic sales rose by 3.6% over that span, and DSG’s March acquisition of Eastern Valve & Control Specialties added $0.8 million to the quarterly total.
The company’s operating income, however, dropped by 32.2% year over year to $13.6 million, while net income plummeted by 88.3% to around $382,000.
DSG officials said that the company had anticipated “some margin pressures” in the quarter, and added that fewer selling days and “certain timing and isolated expenses” further eroded its adjusted EBITDA margin.
The Lawson segment saw $123.7 million in Q1 revenue, up from $120.5 million last year, but its operating income dropped by more than half to just over $3 million.
DSG’s majority stakeholder, private equity firm LKCM Headwater Investments, in March proposed buying the entirety of the company’s shares and taking the business private.
