Distribution Solutions Q3 revenue beats estimates; maintains cautious outlook

Reuters
Oct 30, 2025
Distribution Solutions Q3 revenue beats estimates; maintains cautious outlook

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.)

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