
Distribution Solutions Group on Thursday reported higher sales, earnings and profit in the second quarter of the year, and said that it is “cautiously optimistic” about the remainder of 2025.
The Fort Worth, Texas-based parent of Lawson Products, Gexpro Services and Test Equity reported $502.4 million in revenue in the latest quarter, up 14.3% compared to the same quarter of 2024. The increase primarily stemmed from five acquisitions that closed last year — and contributed $48.8 million to the revenue total — but organic sales were also up 3.3% on a daily average basis.
The company’s gross profit rose from $151.5 million to $170.1 million year-over-year. Its operating income, meanwhile, climbed by nearly 90% over that span to $26.8 million, and net income more than doubled from $1.9 million up to $5 million.
DSG Chairman and CEO Bryan King added that the company's adjusted EBITDA rose by 7.5% to $48.6 million, but that its adjusted EBITDA margins slipped following its acquisition of Source Atlantic, which “slightly pressured” that percentage by about 60 basis points.
“Initiatives to improve margins in each of our five 2024 acquisitions are still in the early stages, and we remain confident in our plan to enhance margins further and achieve higher returns,” King said in the company’s earnings release.
The Lawson division saw revenue climb from $121.1 million in the previous second quarter up to $124.3 million in the latest three-month window, while its operating income rose from $6.1 million to just shy of $8 million over that span. Gexpro Services saw a sharp jump in revenue — from $107.1 million to up $127.8 million — but TestEquity edged down year-over-year.
King said that the company’s sourcing capabilities and vendor relationships grew “increasingly important amid ongoing trade policy changes,” and that it has seen “greater customer engagement” through discussions over sourcing options and alternative products.
“We remain cautiously optimistic about the remainder of 2025 given this uncertainty,” King said.