Distribution Solutions Group, Inc. Q1 FY26 Results

Summary

Distribution Solutions Group, Inc. announced consolidated results for the first quarter ended March 31, 2026, reporting revenue of $495,995 thousand, a 3.8% increase year-over-year, primarily driven by 3.6% organic sales growth. Despite the revenue growth, net income saw a significant decline of 88.3% to $382 thousand, and adjusted EBITDA decreased by 11.6% to $37,833 thousand, representing 7.6% of sales. The company noted sequential profitability improvement on higher sales, with adjusted EBITDA margin improving by 20 basis points quarter-over-quarter. Additionally, DSG enhanced its market presence by completing the acquisition of Eastern Valve & Control Specialties Ltd. to scale its Canadian operations.

Key Highlights

1. 1

   Distribution Solutions Group reported first quarter 2026 revenue of $495,995 thousand, an increase of 3.8% year-over-year, driven by 3.6% organic sales growth.

2. 2

   Net income for the first quarter of 2026 significantly decreased by 88.3% year-over-year to $382 thousand, down from $3,261 thousand in the prior year quarter.

3. 3

   Adjusted EBITDA for Q1 2026 was $37,833 thousand, representing 7.6% of sales, which is an 11.6% decrease compared to $42,786 thousand or 9.0% of sales in the prior year quarter.

4. 4

   Operating income for the quarter was $13,630 thousand, marking a 32.2% decline from $20,097 thousand in the first quarter of 2025.

5. 5

   Diluted net earnings per share stood at $0.01 for Q1 2026, a substantial drop from $0.07 in the year-ago quarter, while non-GAAP adjusted diluted earnings per share was $0.24.

6. 6

   The Company maintained strong liquidity, ending the quarter with total available liquidity of $415.2 million, including $65.0 million in cash.

7. 7

   During the quarter, Distribution Solutions Group completed the acquisition of Eastern Valve & Control Specialties Ltd., expanding its operating footprint in the Canadian market.