MRO, OEM and industrial technology products supplier Distribution Solutions Group reported third-quarter 2025 results on Oct. 30 that delivered meaningful top-line momentum — driven by bolt-on acquisitions and modest organic improvement — while margin expansion remained challenged due to integration and mix shifts.

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The Fort Worth, TX-based company posted 3Q revenue of $518 million, up 10.7% year-over-year. Organic revenue grew 6.0%, with 3.1% sequential growth vs. 2Q. Gross margin of 32.9% fell 100 basis points.

DSG’s adjusted EBITDA of $48.5 million on 9.4% margin topped the $44.9 million/9.3% margin of a year earlier, while Q3 net profit of $14.7 million trailed the $18.6 million of a year earlier.

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By business unit in 3Q:

• Lawson Products (MRO, ~35% of total revenue), revenue of $181.5 million jumped 15.5%, driven by both acquisitions and organic growth.
  • At its VMI-focused unit (~69% of Lawson revenue), revenue increased 3.0% YoY, with organic growth across most customer segments, though down sequentially. Adjusted EBITDA was $14 million on 11.5% margin (-160 bps YoY, -90 bps vs. 2Q). DSG said Lawson’s sales rep expansion continues, ending September with 930 reps vs. 860 a year earlier.
  • At its Canadian Branch Division (~31% of Lawson revenue), revenue of $60 million jumped 53% YoY due to Lawson’s late 2024 acquisition of Source Atlantic that contributed $20 million of revenue during 3Q. Sequential revenue increased 7.4%. Adjusted EBITDA of $5.8 million on 9.6% margin topped the $4 million/ 9.6% of a year earlier.
• Gexpro Services (OEM, ~25% of total revenue), revenue of $130.5 million increased 12.4% year-over-year, with organic growth of 11.4%. Adjusted EBITDA was $17.8 million on 13.6% margin, vs. $16.4 million/14.1% of a year earlier.
• TestEquity (Industrial Technologies, ~40% of revenue), revenue of $206.5 million increased 5.8% year-over-year, driven by strength in test and measurement and rental activity. Adjusted EBITDA of $12.4 million on 6.0% margin trailed the $14.4 million/7.4% of a year earlier.

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“While industry-wide U.S. manufacturing softness and significant strategical investments in the business have pressured margins below 10% this year, we’re encouraged by the progress our teams are making,” DSG Chairman and CEO Bryan King said in the company’s earnings statement.

At the end of June, DSG announced the appointment of former Global Industrial CEO Barry Litwin as the new CEO of TestEquity, as of July 14.