Distribution Solutions Q1 revenue rises 3.8%, beats estimates

Distribution Solutions

30/04/2026 12:44

Overview

US specialty distributor's Q1 revenue rose 3.8%, beating analyst expectations

Adjusted EPS for Q1 beat analyst expectations

Company completed acquisition of Eastern Valve & Control Specialties in Canada

Outlook

Company did not provide specific guidance for the current quarter or full year

Result Drivers

ORGANIC SALES GROWTH - Q1 revenue growth was primarily driven by 3.6% organic sales growth and daily sales improvement across all verticals

MARGIN PRESSURE - Gross margin decreased due to customer and vertical sales mix shifts and higher tariff rates on inbound shipments, partially offset by pricing benefits

ISOLATED EXPENSES & FEWER SELLING DAYS - Company said certain timing and isolated expenses, as well as fewer selling days, negatively impacted adjusted EBITDA margin by about 70bps

Company press release: ID:nBw7nMV5Na

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$496 mln
$489.30 mln (3 Analysts)
Q1 Adjusted EPS
Beat
$0.24
$0.22 (3 Analysts)
Q1 EPS
$0.01
Q1 Adjusted EBITDA
$37.83 mln
Q1 Adjusted Operating Income
$29.11 mln
Q1 Operating Income
$13.63 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

Wall Street's median 12-month price target for Distribution Solutions Group Inc is $35.50, about 31.7% above its April 29 closing price of $26.95

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)