Distribution Solutions Group (DSGR) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 10.7% to $573.6M, with organic growth of 9.2%; adjusted EBITDA increased 17.3% to $56.8M.

• A proposed $35-per-share take-private transaction with LKCM Headwater remains subject to stockholder approval and customary closing conditions.

Financial highlights

• Q3 net income was $8.9M versus $6.5M; diluted EPS was $0.19 versus $0.14, and adjusted diluted EPS was $0.58 versus $0.40.

• Q3 gross profit was $183.8M versus $170.3M; gross margin declined to 32.0% from 32.9%, while operating income rose to $25.2M from $23.6M.

• Nine-month revenue was $1.627B versus $1.498B; operating income was $66.7M versus $70.5M, and net income was $17.8M versus $14.7M.

• Nine-month Adjusted EBITDA was $148.6M versus $139.8M.

Outlook and guidance

• Organic sales grew 2.2% sequentially; organic average daily sales rose 2.8% versus Q2, with improvement across business units.

• FY2026 net capital expenditures were expected at $25M–$30M; required Credit Agreement principal payments over the next 12 months were $35.0M.

• Cash, revolving-credit availability and operating cash flows were expected to cover liquidity needs for the next 12 months.