Distribution Solutions Q4 revenue misses estimates

Distribution Solutions

05/03/2026 12:39

Overview

Specialty distribution firm's Q4 revenue missed analyst expectations

Adjusted EPS for Q4 missed analyst expectations

Company generated $84 mln in operating cash flow for 2025

Outlook

Company sees backlog growth and improved sales momentum for 2026

Company focuses on building higher-margin businesses and strong free cash flow

Result Drivers

MARGIN PRESSURE - Margin pressure was driven by shifts in product and solutions mix, acquisition-related impacts, and timing of employee-related costs

ACQUISITIONS - Revenue growth was driven by acquisitions, contributing $121.5 mln to full-year revenue

Company press release: ID:nBw2ShP9Ja

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$481.60 mln
$496.30 mln (3 Analysts)
Q4 Adjusted EPS
Miss
$0.18
$0.32 (3 Analysts)
Q4 EPS
-$0.14
Q4 Adjusted EBITDA
$35.44 mln
Q4 Adjusted Operating Income
$26.52 mln
Q4 Operating Income
$7.72 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 29.6% above its March 4 closing price of $29.71

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 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.)