Distribution Solutions Group, Inc. has recently released its 10-K report, providing a detailed overview of its business operations and financial performance for the fiscal year ended December 31, 2024. The company operates through four segments: Lawson, Gexpro Services, TestEquity, and Canada Branch Division, offering value-added distribution solutions to the maintenance, repair and operations (MRO), original equipment manufacturer, and industrial technology markets.
In the fiscal year 2024, Distribution Solutions Group, Inc. reported consolidated revenue of $1.98 billion, representing a significant increase of $175.9 million compared to the previous year. This growth was primarily driven by $121.5 million in revenue from acquisitions completed in 2024, along with an organic revenue increase of $54.4 million.
The company's gross profit for the fiscal year 2024 amounted to $662.0 million, reflecting a notable increase compared to the previous year. However, selling, general and administrative expenses also rose, reaching $583.8 million, primarily due to the impact of acquisitions completed in 2024.
In terms of segment performance, the Lawson segment reported revenue of $481.1 million, representing a 24.3% share of the company's total revenue. The TestEquity segment contributed $783.2 million, accounting for 39.6% of the total revenue, while the Gexpro Services and Canada Branch Division segments generated revenues of $496.7 million and $221.4 million, respectively.
The company's adjusted EBITDA for the fiscal year 2024 was $175.2 million, with the Lawson segment contributing $51.6 million, TestEquity contributing $51.0 million, Gexpro Services contributing $63.7 million, and the Canada Branch Division contributing $15.6 million. The "All Other" category, which includes unallocated DSG holding company costs, reported a negative adjusted EBITDA of $6.7 million.
Distribution Solutions Group, Inc. highlighted the impact of supply chain disruptions, tariffs, inflation, and increased transportation and labor costs on its operations, leading to various price increases during 2023, 2024, and 2025 in an attempt to manage gross profit margins.
The company also emphasized the significance of non-GAAP financial measures, such as Adjusted EBITDA, in providing additional meaningful comparisons between current and prior operating periods. Adjusted EBITDA is considered an important measure of the company's operating performance, as it excludes certain non-operational or non-cash items that may impact overall comparability from period to period.
As a result of these announcements, the company's shares have moved 0.2% on the market, and are now trading at a price of $30.06. For more information, read the company's full 10-K submission here.
