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DISTRIBUTION SOLUTIONS GROUP INC - DSGR STOCK NEWS

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Overview of Distribution Solutions Group Inc. (DSGR)

Distribution Solutions Group Inc. (NASDAQ: DSGR) is a leading industrial distributor specializing in providing essential maintenance, repair, and operational (MRO) supplies, as well as test and measurement equipment, and supply chain solutions. With a history dating back to 1952, DSGR has established itself as a trusted partner for businesses across a wide range of industries, including technology, aerospace, defense, automotive, electronics, education, and medical. The company operates through three distinct segments: Lawson Products, TestEquity, and Gexpro Services, each bringing unique expertise and value to its customers.

Business Segments

Lawson Products

Lawson Products is a core segment of DSGR, focusing on the distribution of MRO supplies. This segment is dedicated to helping customers optimize their operations by ensuring the availability of critical parts and tools. Through a combination of personalized service and technical expertise, Lawson Products supports industries in maintaining productivity and minimizing downtime. Its offerings include fasteners, cutting tools, abrasives, and other essential industrial supplies tailored to meet specific operational requirements.

TestEquity

The TestEquity segment serves as a premier distributor of test and measurement equipment, electronic production supplies, and toolkits. Partnering with leading manufacturers, TestEquity provides advanced solutions to industries such as aerospace, defense, technology, and education. This segment's expertise in high-precision equipment and its ability to address complex technical needs make it a critical partner for organizations requiring reliable testing and production tools.

Gexpro Services

Gexpro Services focuses on providing comprehensive supply chain solutions for complex manufacturing processes. This segment specializes in vendor-managed inventory (VMI) programs, kitting services, and customized supply chain strategies. By streamlining procurement and inventory management, Gexpro Services helps manufacturers reduce costs, improve efficiency, and maintain a steady flow of essential components.

Industry Context and Market Position

DSGR operates within the highly competitive industrial distribution sector, where success hinges on operational efficiency, product diversity, and customer-centric solutions. The company's ability to serve diverse industries reduces its exposure to sector-specific economic fluctuations, providing a stable foundation for growth. Its segmented approach allows DSGR to address the unique needs of each customer base, from high-tech manufacturers to maintenance teams in industrial facilities. By leveraging its technical expertise and long-standing relationships with suppliers and customers, DSGR has carved out a strong position within its market.

Value Proposition

Distribution Solutions Group Inc. delivers significant value to its customers through its commitment to operational excellence, technical know-how, and tailored solutions. Whether it's ensuring the availability of critical MRO supplies, providing state-of-the-art testing equipment, or optimizing supply chains for complex manufacturing, DSGR enables businesses to operate more efficiently and effectively. Its focus on building long-term partnerships and addressing the unique challenges of each industry underscores its role as a trusted partner in the industrial distribution landscape.

Rhea-AI Summary
Distribution Solutions Group, Inc. (NASDAQ:DSGR) announces the acquisition of Safety Supply Illinois LLC, DBA Emergent Safety Supply (ESS), a national distributor of safety products based near Chicago. The acquisition is expected to accelerate Lawson Products' safety product expansion plans, expanding its safety product offering by over four times and strengthening its technical expertise. ESS generates annual sales of approximately $13 million and is expected to be accretive to DSG’s adjusted EBITDA margins.
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Distribution Solutions Group, Inc. (NASDAQ:DSGR) announced a $25 million common share repurchase authorization, in addition to $4.0 million available under previous authorizations. The company has repurchased $3.6 million of its common stock during fiscal year 2023. CEO Bryan King expressed confidence in the company's strategic plan, highlighting solid free cash flow generation, flexibility, and liquidity to invest in growth, pay down debt, and repurchase stock.
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Distribution Solutions Group (NASDAQ:DSGR) reported strong cash flows in Q3 2023, with total revenue increasing by $91.8 million (26.4%) to $438.9 million. However, consolidated organic revenue declined by 4.2% due to softness in the Industrial Technologies vertical. Operating income was $12.8 million, reflecting higher intangible amortization and non-recurring items. Adjusted EBITDA grew 26% to $43.7 million, with a margin of 10.0%. Diluted loss per share was $0.03 compared to diluted income per share of $0.42 in the year-ago quarter. The company generated $47 million of cash flows from operations and ended the quarter with $80.5 million of unrestricted cash on hand and $198.3 million of availability under its credit facility. Net debt leverage was 2.9x as of the end of the quarter.
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Distribution Solutions Group, Inc. to participate in upcoming conferences
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Distribution Solutions Group, Inc. (NASDAQ: DSGR) will report Q3 2023 results on November 2, 2023. Conference call with prepared remarks at 9:00 a.m. ET. Replay available until November 16, 2023.
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Distribution Solutions Group, Inc. will host an Investor Day on September 28, 2023, presenting its long-term vision, growth strategies, and capital deployment priorities. The event will showcase specialty distribution products and provide insights into revenue growth, profitability improvement, and cash flow generation.
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Distribution Solutions Group (DSGR) to host Investor Day on September 28, 2023, showcasing growth strategies and capital deployment priorities.
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DSG increases authorized shares and announces stock split.
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DSGR management to present at Jefferies Industrial Conference on September 6, 2023.
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Distribution Solutions Group, Inc. (Nasdaq: DSGR) has announced a two-for-one stock split of its common stock. Each stockholder of record as of August 25, 2023, will receive one additional share for each share held. The split-adjusted basis will result in 46,699,470 shares outstanding. The shares will begin trading on a split-adjusted basis on September 1, 2023.
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FAQ

What is the current stock price of DISTRIBUTION SOLUTIONS GROUP (DSGR)?

The current stock price of DISTRIBUTION SOLUTIONS GROUP (DSGR) is $28.45 as of March 3, 2025.

What is the market cap of DISTRIBUTION SOLUTIONS GROUP (DSGR)?

The market cap of DISTRIBUTION SOLUTIONS GROUP (DSGR) is approximately 1.4B.

What does Distribution Solutions Group Inc. (DSGR) do?

DSGR is an industrial distributor providing MRO supplies, test and measurement equipment, and supply chain solutions across diverse industries.

What are the main business segments of DSGR?

DSGR operates through three segments: Lawson Products (MRO supplies), TestEquity (test and measurement equipment), and Gexpro Services (supply chain solutions).

Which industries does DSGR serve?

DSGR serves industries such as technology, aerospace, defense, automotive, electronics, education, and medical.

How does DSGR differentiate itself from competitors?

DSGR differentiates itself through its segmented approach, technical expertise, and tailored solutions that address the unique needs of its diverse customer base.

What is the role of the Lawson Products segment in DSGR's operations?

Lawson Products focuses on distributing MRO supplies, helping customers maintain productivity by ensuring the availability of critical parts and tools.

What type of products does TestEquity provide?

TestEquity provides test and measurement equipment, electronic production supplies, and toolkits, catering to industries requiring high-precision solutions.

What services does Gexpro Services offer?

Gexpro Services specializes in supply chain solutions, including vendor-managed inventory programs, kitting services, and customized procurement strategies.

What is DSGR's value proposition?

DSGR enables businesses to operate efficiently by providing critical supplies, advanced testing equipment, and optimized supply chain solutions tailored to industry needs.
DISTRIBUTION SOLUTIONS GROUP INC

Nasdaq:DSGR

DSGR Rankings

DSGR Stock Data

1.38B
46.20M
1.29%
93.12%
0.69%
Industrial Distribution
Wholesale-machinery, Equipment & Supplies
Link
United States
FORT WORTH