Distribution Solutions Q2 revenue up 14.3%, beats estimates
Overview
Distribution Solutions Q2 revenue rose 14.3% to $502.4 mln, beating estimates
Adjusted EPS was $0.35, exceeding analyst expectations, per LSEG data
Co repurchased $8.8 mln of stock in Q2, $20 mln in H1 2025
Outlook
Company remains cautiously optimistic about remainder of 2025 amid trade policy changes
Distribution Solutions sees strong vendor relationships as key amid market uncertainties
Company plans to enhance margins through initiatives and acquisitions
Distribution Solutions evaluating acquisition pipeline with liquidity and flexibility
Result Drivers
ACQUISITIONS - Revenue growth driven by $48.8 mln from five acquisitions closed in 2024
ORGANIC SALES - Organic sales increased by 3.3% year-over-year and 5.1% sequentially
MARGIN IMPROVEMENTS - Sequential margin expansion across operational teams due to strategic initiatives
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $502.44 mln | $484.40 mln (3 Analysts) |
Q2 Adjusted EPS | Beat | $0.35 | $0.33 (3 Analysts) |
Q2 EPS | $0.11 | ||
Q2 Adjusted EBITDA | $48.56 mln | ||
Q2 Adjusted Operating Income | $39.87 mln | ||
Q2 Operating Income | $26.83 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 $37.50, about 23.1% above its July 30 closing price of $28.84
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago
Press Release:
