Distribution Solutions Group, Inc. recently released its 10-Q report. The company is a specialty distributor serving maintenance, repair and operations, original equipment manufacturer, and industrial technology customers. It operates through four segments: Lawson, TestEquity, Gexpro Services, and Canada Branch Division.
In Item 2, management said DSG is a multi-platform distributor with operations in the United States, Canada, Europe, the Pacific Rim, Latin America, and other international markets. Lawson sells specialty MRO products and services through sales representatives and an inside sales channel in the U.S. and Canada; TestEquity sells test and measurement equipment, industrial and electronic production supplies, and converting, fabrication, and adhesive solutions; Gexpro Services provides supply chain solutions for mission-critical production line management, aftermarket, and field installation programs; and Canada Branch Division sells industrial MRO supplies, safety products, fasteners, power tools, and related services through warehouse shipments and 38 branch locations.
DSG said its average monthly PMI was 53.0 in the six months ended June 30, 2026, compared with 49.4 a year earlier. The company said rising supplier costs, tariffs, transportation costs, and labor costs continued to affect results, and it raised prices during 2025 and 2026 in response.
For the second quarter, consolidated adjusted EBITDA was $53.9 million, up from $48.6 million a year earlier. Operating income was $27.9 million, compared with $26.8 million in the prior-year quarter. Net income was $8.5 million, versus $5.0 million.
By segment, second-quarter adjusted EBITDA was $11.9 million at Lawson, $20.0 million at TestEquity, $18.3 million at Gexpro Services, and $5.7 million at Canada Branch Division. In the prior-year quarter, those figures were $15.7 million, $13.5 million, $17.1 million, and $3.6 million, respectively.
For the first half of 2026, consolidated adjusted EBITDA was $91.8 million, up from $91.3 million in the first half of 2025. Operating income was $41.5 million, down from $46.9 million, while net income was $8.9 million, compared with $8.3 million.
First-half adjusted EBITDA by segment was $23.5 million at Lawson, $33.2 million at TestEquity, $30.3 million at Gexpro Services, and $8.5 million at Canada Branch Division. In the first half of 2025, the comparable figures were $30.0 million, $26.3 million, $32.1 million, and $6.2 million.
DSG also said it completed the acquisition of Eastern Valve & Control Specialties Ltd. on March 9, 2026, adding an Atlantic Canada industrial valve business to its Canadian footprint. On July 15, 2026, the company entered into a merger agreement under which shareholders would receive $35.00 in cash per share, and the company said the transaction would leave DSG privately held if completed. Today the company's shares have moved 0.09% to a price of $34.83. For the full picture, make sure to review Distribution Solutions's 10-Q report.
