MRO, OEM and industrial technology products supplier Distribution Solutions Group reported its fourth quarter and full-year 2025 results on March 5, showing a modest 4Q sales uptick while annual growth was more substantial, powered by bolt-on acquisitions alongside solid organic sales.

DSG was formed in April 2022 through a strategic merger of Lawson Products, Gexpro Services and TestEquity.

4Q25

The Fort Worth, TX-based company posted 4Q25 total revenue of $482 million, up 0.2% year-over-year after a 10.7% jump in 3Q and a tougher comparable for October-December. 4Q’s modest increase was driven by incremental revenue from two acquisitions closed during 4Q24 but not included in DSG’s full 4Q24’s financials. Meanwhile, 4Q25 organic average daily sales were flat.

• 4Q gross margin of 32.7% fell 69 basis points YoY
• 4Q operating profit of $8 million trailed the $20 million of a year earlier, with adjusted operating profit of $27 million likewise down from $37 million of a year earlier
• DSG took a 4Q25 net loss of $6 million vs. a $26 million loss a year earlier
• 4Q25 adjusted EBITDA of $35 million on 7.4% margin trailed the $45M/9.3% of a year earlier

By business unit in 4Q25

• Lawson Products (MRO, 35% of total business) revenue of $170 million was flat year-over-year
  • VMI-focused revenue of $115 million increased 2.7% YoY, with organic average daily sales up 2.7% (down 0.9% vs. 3Q). Operating profit of $19 million topped the $15 million of a year earlier.
  • Canada branch revenue of $55 million decreased 6.8% YoY, with organic average daily sales down 6.8% (+3.7% vs. 3Q). Operating profit of $8 million topped the $6 million of a year earlier
• Gexpro Services (OEM, 25% of total business) revenue of $119 million was flat YoY, with organic average daily sales down 1.0% (-11.3% vs. 3Q)
• TestEquity (Industrial Technologies, 40% of business) revenue of $193 million was up 0.9% YoY, with organic average daily sales up 0.9% (-3.5% vs. 3Q)

At the end of 4Q25, DSG announced it had amended and expanded its secured credit facility through 2030 to include $700 million ot term debt and a revolving credit arrangement of $400 million — a $225 million increase over the previous existing revolver. The amended facility also includes a $500 million uncommitted accordion feature — up from $300 million previously.

Full Year

For all of 2025, DSG’s total revenue of $1.98 billion was up 9.8% annually despite one fewer selling day, with 69% of the increase driven by five acquisitions only partially included in 2024. Meanwhile, organic average daily sales increased 3.6% annually in 2025.

• 2025 gross margin of 33.4% fell 60 bps vs. 2024
• 2025 operating profit of $78 million jumped 39.9%, with adjusted operating profit of $141 million down 5.1%
• 2025 net profit of $8 million reversed the $7 million loss of 2024
• 2025 adjusted EBITDA of $175 million on 8.9% margin trailed the $175 million/9.7% of 2024