| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 557.73 | 12.4% | 11.0% |
| Total Income | 557.73 | 12.4% | 11.0% |
| Expenditure | 529.87 | 9.8% | 11.4% |
| PBT | 14.39 | 1793.4% | 21.3% |
| Net Profit | 8.49 | 2134.2% | 69.8% |
| OPM | 5.00% | 2.25pp | 0.34pp |
| NPM | 1.52% | 1.45pp | 0.53pp |
| EPS | 0.18 | 1700.0% | 63.6% |
Distribution Solutions Group Announces 2026 Second Quarter Results
06 Aug 2026 · 6 Aug, 5:11 pm
Summary
Distribution Solutions Group, Inc. announced its second quarter 2026 results, with revenue reaching $557.7 million, an 11.0% increase year-over-year, driven by organic sales growth and a recent acquisition. Profitability improved sequentially and year-over-year, with net income rising 69.8% to $8.5 million and adjusted EBITDA growing 11.1% to $53.9 million. The company highlighted improved profitability and working capital management, leading to cash flows from operations of $22.0 million for the quarter. Management also noted the proposed merger agreement under which LKCM Headwater Investments, LLC will acquire all outstanding shares not already owned by LKCM Headwater for $35.00 per share.
Key Highlights
- 1
Distribution Solutions Group, Inc. reported revenue of $557.7 million for the second quarter of 2026, an increase of 11.0% year-over-year.
- 2
The company's operating income for Q2 2026 was $27.9 million, a 3.9% increase compared to the prior year quarter.
- 3
Non-GAAP adjusted EBITDA for the second quarter of 2026 was $53.9 million, up 11.1% year-over-year.
- 4
Net income for the second quarter of 2026 was $8.5 million, a significant increase of 69.8% compared to $5.0 million in the prior year quarter.
- 5
Diluted net earnings per share was $0.18 for Q2 2026, compared to $0.11 in the year-ago quarter.
- 6
Non-GAAP adjusted diluted earnings per share reached $0.47 for Q2 2026, up from $0.35 in the prior year quarter.
- 7
The company ended the quarter with total liquidity of $420.2 million, including $75.5 million of cash.
Management Comments
Ronald J. Knutson
The following represents a summary of certain operating results (unaudited). See the reconciliations of GAAP to non-GAAP measures in Tables 2, 3 and 4. Revenue increased 11.0% year-over-year to $557.7 million, driven by organic sales growth of 10.2% with daily sales improvement across all of the verticals. The first quarter acquisition of Eastern Valve contributed approximately $4.1 million of revenue in the second quarter. Sequentially, revenue increased 12.4% over the first quarter on two additional selling days. Profitability improved sequentially on higher sales. Adjusted EBITDA margin as a percentage of sales was 9.7%, a sequential improvement of 210bps, while a sequential improvement in operating income to $27.9 million drove improved adjusted earnings per share from $0.24 to $0.47. Improved profitability and working capital management in the quarter drove cash flows from operations to $22.0 million for the quarter, an improvement over cash flows used in operations of $20.4 million in the first quarter of 2026.
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