DSGR Stock Forecast & Price Target

Distribution Solutions Group Inc demonstrated strong financial performance in Q2/25, achieving an adjusted EBITDA of $48.6 million, which represented a 7.5% year-over-year increase that surpassed both internal estimates and consensus predictions. Additionally, the company reported a 14.3% year-over-year revenue growth, reaching $502.4 million, again exceeding estimates from both the company and market analysts. The significant revenue increase in the Canada Branch, bolstered by acquisitions, alongside organic growth in its legacy businesses, contributes to a robust outlook for the company.

Distribution Solutions Group Inc is facing headwinds as Q3/25 results reveal a slight decline in adjusted EBITDA by 1.3% year-over-year to $48.5 million, falling short of both internal estimates and consensus expectations. The company's TestEquity segment, which contributes 39% of total revenue, also experienced a 1.3% dip in sales due to ongoing challenges in electronic production supplies and customer hesitance stemming from economic uncertainties and tariff policies. Additionally, revenue from the Lawson Products segment decreased by 1.0% year-over-year, primarily due to reduced military sales linked to a tighter government spending environment, further straining the company's overall financial performance.