Chicago-based industrial distributor Distribution Solutions Group on March 9 announced its 2022 fourth-quarter and total-year earnings, which showed major revenue increases compared with 2021.

During 4Q 2022, DSG reported adjustment revenue of $328.9 million, an increase of $97.6 million or 42.2% over 4Q 2021. That revenue figure included $60.2 million that came from Lawson Products prior to its April 1 merger with fellow distributors TestEquity and GexPro Services. The company’s 4Q adjusted EBITDA and margin was $34.0 million and 10.3%, following 3Q’s $34.7 million and 10.0%.

DSG’s 4Q adjusted operating profit was $12.7 million, compared to a $2.6 million loss a year earlier.

In May 2022, the combined company rebranded as Distribution Solutions Group, Inc.

DSG’s 4Q revenue breakdown by business unit was as follows:

• Lawson Products: $108.0 million, up 20.3% year-over-year
• Gexpro Services: $100.1 million,  up 52.8% year-over-year
• TestEquity: $$105.4 million, up 68.0% year-over-year
• Other: $15.3 million, up 25.0% year-over-year

DSG announced Dec. 7 that TestEquity acquired Instrumex, a distributor of test and measurement equipment in Munich, Germany.

“We are pleased with fourth quarter results that exceeded expectations,” said Bryan King, CEO and Chairman of the Board. “Our continued topline growth and sequential improvement in margins further supports our strategic decision to combine Lawson Products, Gexpro Services and TestEquity. While macroeconomic uncertainties remain, we are laser-focused on driving greater returns on cash flow through a combination of organic growth, strategic acquisitions and operational efficiencies. We believe that our disciplined approach to capital allocation through our asset light model coupled with our strengthening balance sheet positions us to further generate meaningful returns and cash flow in 2023.”

For all of 2022, DSG’s adjusted revenue was $1.27 billion, up 35.3% from 2021. That included $117.9 million of pre-merger revenue. The company’s full-year adjusted operating profit of $53.9 million nearly doubled the $23.4 million of a year earlier. The company’s 2022 adjusted EBITDA was $123.0 million, a 63.6% jump vs. 2021, while adjusted EBITDA margin likewise increased to 9.7% from 8.0%.

DSG’s total 2022 revenue breakdown by business unit was as follows:

• Lawson Products: $429.7 million (includes $104.9 million pre-merger), up 15.6% vs. 2021
• Gexpro Services: $385.3 million, up 50.4% vs. 2021
• TestEquity: $392.4 million, up 48.5% vs. 2021
• Other: $61.9 million (including $13.0 million pre-merger), up 34.4% vs. 2021