DSGR Stock Forecast & Price Target

Distribution Solutions Group Inc. demonstrated strong financial performance in Q2/25, with adjusted EBITDA rising 7.5% year-over-year to $48.6 million, surpassing both internal estimates and consensus expectations. Overall revenue for the same quarter increased by 14.3% year-over-year to $502.4 million, also exceeding projections, driven in part by the substantial revenue growth from the Canada Branch following the Source Atlantic acquisition. Additionally, the company's effective working capital management has enhanced operating cash flow generation, and the legacy Canada Branch experienced organic revenue growth of 6.5% year-over-year, indicating robust performance across its segments.

Distribution Solutions Group Inc. reported a slight decline in adjusted EBITDA for Q3/25, falling 1.3% year-over-year to $48.5 million, which was lower than both estimates and the consensus forecast. The TestEquity segment, which is critical to the company's revenue, experienced a downturn of 1.3% year-over-year due to soft sales trends and customer uncertainty, contributing to overall financial pressures. Additionally, the Lawson segment faced a 1.0% drop in revenue attributable to reduced military market sales influenced by government spending cuts, further exacerbating challenges in maintaining profitability.