Distribution Solutions Q3 revenue beats estimates; maintains cautious outlook

Distribution Solutions

30/10/2025 11:44

Overview

Distribution Solutions Q3 revenue grows 10.7%, beating analyst expectations

Adjusted EPS for Q3 meets analyst expectations

Company repurchased over $20 mln in common stock, reflecting confidence in performance

Outlook

Company maintains cautious outlook due to tougher year-over-year comparisons

Company confident in leadership's ability to build higher-margin businesses

Result Drivers

ORGANIC SALES GROWTH - Organic daily sales increased by 6.0% year-over-year, contributing to overall revenue growth

ACQUISITIONS - Revenue growth was bolstered by $23.3 mln from acquisitions closed in the second half of 2024

SEGMENT PERFORMANCE - Strong sales growth in Gexpro Services and Canada Branch Division

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$517.96 mln
$501.50 mln (3 Analysts)
Q3 Adjusted EPS
Meet
$0.40
$0.40 (3 Analysts)
Q3 EPS
$0.14
Q3 Adjusted EBITDA
$48.45 mln
Q3 Adjusted Operating Income
$40.06 mln
Q3 Operating Income
$23.61 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 $38.50, about 22.7% above its October 29 closing price of $29.76

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw8ZMQRGa

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(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.)