DSGR

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Distribution Solutions Group (DSGR) released its second quarter 2026 earnings on August 6, giving investors fresh numbers on sales, profit and earnings per share that can inform views on the stock. See our latest analysis for Distribution Solutions Group. At a share price of $34.88, Distribution Solutions Group has seen a 27.30% 30-day share price return and a 24.39% year-to-date share price return. The 3-year total shareholder return of 36.46% points to steadier long-term progress. If this kind of earnings-driven move has your attention, it can be a useful moment to widen your watchlist and check out 19 top founder-led companies The earnings reaction put Distribution Solutions Group only a fraction below the average analyst target, yet well below some intrinsic value estimates. Is the current price near fair value, or is that wider intrinsic gap doing the real talking? The most followed narrative pegs Distribution Solutions Group's fair value at $34.50, which sits just below the latest close at $34.88. That small gap reflects a careful balance between its growth plans and the risks around execution and the go private proposal. Read the complete narrative. Want to see what sits behind that fair value call? The narrative leans heavily on rising margins, faster earnings and a lower future earnings multiple. The exact mix of those drivers matters if you are weighing the $34.50 fair value against the current $34.88 price. Result: Fair Value of $34.50 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Distribution Solutions Group still faces real pressure if acquisition integration drags, or if the US$29.50 go private proposal stalls and undercuts confidence in the story. Find out about the key risks to this Distribution Solutions Group narrative. While the crowd narrative has Distribution Solutions Group as about 1% overvalued at $34.50 per share, our DCF model produces a very different outcome. It suggests the stock is undervalued, with an estimated future cash flow value of $86.80 compared with the current $34.88 price. This gap is wide and points to a very different set of expectations for margins, cash flows and the go private outcome. Which version of the story do you feel more comfortable leaning on when you think about risk and potential reward over the next few years? Look into how the SWS DCF model arrives at its fair value. Mixed signals on Distribution Solutions Group's value and outlook can create uncertainty, so consider reviewing the details for yourself and weighing both sides of the situation with 4 key rewards and 2 important warning signs If you are weighing what to do after Distribution Solutions Group's latest move, it can pay to scan for other opportunities before the next earnings season hits. Target potential mispricings by running through 52 high quality undervalued stocks that combine reasonable valuations with solid underlying business profiles. Focus on resilience first and return second by checking companies highlighted in the 83 resilient stocks with low risk scores that score well on stability criteria. Spot tomorrow's potential standouts early by reviewing the screener containing 21 high quality undiscovered gems that pair quality fundamentals with lower market attention. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DSGR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

FORT WORTH, Texas, August 06, 2026--(BUSINESS WIRE)--Distribution Solutions Group, Inc. (NASDAQ:DSGR) ("DSG" or the "Company"), a premier specialty distribution company, today announced consolidated results for the second quarter ended June 30, 2026. This press release is supplemented by an earnings presentation at https://investor.distributionsolutionsgroup.com/news/events. Subsequent to the second quarter, on July 15, 2026, the Company entered into a definitive merger agreement (the "Merger Agreement") under which newly formed entities controlled by LKCM Headwater Investments, LLC (collectively, "LKCM Headwater"), already owner of approximately 79% of the Company's outstanding common shares, will acquire all of the outstanding shares of common stock of DSG not already owned by LKCM Headwater and its affiliates for $35.00 per share in cash. 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. 2026 Second Quarter Summary(1) Revenue increased $55.3 million or 11.0% to $557.7 million, primarily driven by organic sales growth of 10.2% and $4.1 million of incremental revenue from the acquisition closed in the first quarter of 2026. Sequentially, organic sales grew 12.4% with organic average daily sales growing 8.1% over the first quarter of 2026. Gross margin decreased from 33.9% to 32.3% primarily due to customer and vertical sales mix shifts and higher tariff rates on inbound shipments partially offset by pricing benefits realized. Operating income was $27.9 million, net of $11.1 million of non-cash acquired intangible amortization and $6.2 million of non-recurring severance and acquisition-related retention costs, stock-based compensation, acquisition-related costs and other non-recurring items. This compares to operating income of $26.8 million in the prior year quarter which was net of $11.7 million of intangible amortization and $1.4 million of non-recurring items. Adjusted operating income, excluding these non-cash and non-recurring items, was $45.2 million in the current quarter compared to $39.9 million in the year-ago quarter and $29.1 million in the first quarter of 2026. Net income was $8.5 million for the quarter compared to net income of $5.0 million in the year-ago quarter. Diluted net earnings per share was $0.18 for the quarter compared to diluted net earnings per share of $0.11 in the year-ago quarter. Non-GAAP adjusted diluted earnings per share was $0.47 compared to $0.35 for the same period a year ago and $0.24 for the first quarter of 2026. Adjusted EBITDA was $53.9 million, or 9.7% of sales, compared to $48.6 million, or 9.7% of sales in the prior year quarter and $37.8 million or 7.6% of sales in the first quarter of 2026. Cash provided by operations was $22.0 million for the quarter. Uses of cash for the quarter included net capital expenditures of $7.7 million. The Company ended the quarter with total liquidity of $420.2 million, consisting of $75.5 million of cash (restricted and unrestricted) and $344.7 million available under its credit facility with net debt leverage of 3.4x. Additional Information on Proposed Merger Agreement LKCM Headwater and its affiliates currently own approximately 79% of DSG’s outstanding common stock. J. Bryan King, DSG’s Chairman and Chief Executive Officer, is the Managing Partner of LKCM Headwater. The $35.00 per share purchase price represents an increase of $5.50 per share over LKCM Headwater’s initial non-binding proposal of $29.50 per share submitted to the Company’s Board of Directors on March 14, 2026 (the "Initial Proposal"), and an approximately 81% premium to the Company’s closing share price of $19.31 on March 13, 2026, the last trading day prior to public disclosure of LKCM Headwater’s proposal. Upon completion of the transaction, the Company will become a privately held company 100% controlled by LKCM Headwater and its affiliates, and the Company’s common stock will no longer be listed on Nasdaq. Following LKCM Headwater’s delivery of the Initial Proposal and in light of LKCM Headwater’s existing ownership position and Mr. King’s roles with both LKCM Headwater and the Company, the board of directors of the Company (the "Board") formed a special committee consisting of disinterested directors (the "Special Committee") to evaluate the Initial Proposal and negotiate a potential transaction with LKCM Headwater. The Special Committee unanimously approved the transaction and recommended that the Board approve the transaction. The Board, upon the Special Committee’s unanimous recommendation, with certain directors recusing themselves from the vote, approved the transaction. In connection with the Merger Agreement, we amended our existing credit agreement to permit, subject to its terms and conditions, revolving loans to be used to finance the Merger and related amounts. The closing of the transaction is subject to customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the "HSR Act"), the absence of legal restraints prohibiting the transaction, and stockholder approvals (including the approval of a majority of the votes cast by holders of DSG common stock not owned by LKCM Headwater and its affiliates). The transaction is not subject to a financing condition; however, in connection with the execution of the merger agreement, the Company entered into an amendment to its existing credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, pursuant to which, subject to the applicable terms and conditions of the Company’s credit agreement, proceeds of revolving loans may be used to finance the transactions contemplated by the merger agreement. For additional information and defined terms, see our Current Report on Form 8-K filed with the SEC on July 16, 2026. Additional Information About the Merger and Where to Find It In connection with the proposed Merger, the Company intends to file with the U.S. Securities and Exchange Commission (the "SEC") a proxy statement on Schedule 14A (the "Proxy Statement"), and the Company, LKCM Headwater and certain of their respective affiliates intend to jointly file with the SEC a transaction statement on Schedule 13E-3 (the "Schedule 13E-3"). The definitive Proxy Statement will be sent or otherwise made available to stockholders of the Company. This communication is not a substitute for the Proxy Statement, the Schedule 13E-3 or any other document that the Company may file with the SEC in connection with the proposed Merger. BEFORE MAKING ANY VOTING DECISION, INVESTORS AND SECURITY HOLDERS OF THE COMPANY ARE URGED TO READ THE PROXY STATEMENT, THE SCHEDULE 13E-3 AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY AND THE PROPOSED MERGER. Investors and security holders will be able to obtain copies of the Proxy Statement, the Schedule 13E-3 and other documents filed with the SEC by the Company free of charge from the SEC’s website at www.sec.gov or from the Company’s website. Participants in the Solicitation The Company and certain of its directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the Company stockholders in connection with the proposed transaction. Information regarding the Company’s directors and executive officers is available in the Company’s proxy statement for its most recent annual meeting of stockholders and in other documents filed by the Company with the SEC. Additional information regarding the interests of those persons and other persons who may be deemed participants in the proposed transaction will be included in the Proxy Statement and Schedule 13E-3 when they are filed with the SEC. To the extent holdings of the Company’s securities by its directors or executive officers have changed since the amounts set forth in such 2026 proxy statement, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC. About Distribution Solutions Group, Inc. Distribution Solutions Group ("DSG") is a premier multi-platform specialty distribution company providing high touch, value-added distribution solutions to the maintenance, repair & operations (MRO), the original equipment manufacturer (OEM) and the industrial technologies markets. DSG was formed through the strategic combination of Lawson Products, a leader in MRO distribution of C-parts, Gexpro Services, a leading global supply chain services provider to manufacturing customers, and TestEquity, a leader in electronic test & measurement solutions. Through its collective businesses, DSG is dedicated to helping customers lower their total cost of operation by increasing productivity and efficiency with the right products, expert technical support and fast, reliable delivery to be a one-stop solution provider. DSG serves approximately 220,000 customers in several diverse end markets supported by approximately 4,300 dedicated employees and strong vendor partnerships. DSG ships from strategically located distribution and service centers to customers in North America, Europe, Asia, South America and the Middle East. For more information on Distribution Solutions Group, please visit www.distributionsolutionsgroup.com. Cautionary Note Regarding Forward-Looking Statements This release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the "safe-harbor" provisions under the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. The Terms "aim," "anticipate," "believe," "contemplates," "continues," "could," "ensure," "estimate," "expect," "forecasts," "if," "intend," "likely," "may," "might," "objective," "outlook," "plan," "positioned," "potential," "predict," "probable," "project," "shall," "should," "strategy," "will," "would," and variations of them and other words and terms of similar meaning and expression (and the negatives of such words and terms) are intended to identify forward-looking statements. Forward-looking statements can also be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on current expectations and involve inherent risks, uncertainties and assumptions, including factors that could delay, divert or change any of them, and could cause actual outcomes to differ materially from current expectations. DSG can give no assurance that any goal or plan set forth in forward-looking statements can be achieved and DSG cautions readers not to place undue reliance on such statements. DSG undertakes no obligation to release publicly any revisions to forward-looking statements as a result of new information, future events or otherwise. Each forward-looking statement speaks only as of the date on which such statement is made, and DSG undertakes no obligation to update any such statement to reflect events or circumstances arising after such date. Actual results may differ materially from those projected as a result of certain risks and uncertainties. Factors that could cause or contribute to such differences or that might otherwise impact DSG's business, financial condition and results of operations include the risk that the proposed Merger may not be completed in a timely manner or at all, the failure to satisfy closing conditions, including receipt of the requisite stockholder approvals and expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Act, the risk that borrowings under the Company's credit agreement may not be available to finance the Merger consideration, the possibility that competing offers or acquisition proposals will be made, the occurrence of events giving rise to termination of the Merger Agreement, including in circumstances requiring payment of the termination fee, the effect of the pendency of the proposed Merger on the Company’s business relationships, operating results and business generally, the effect of the announcement or pendency of the proposed Merger on the Company’s business relationships, operating results, employees, customers, suppliers, financing sources and other business counterparties, risks related to diverting management’s attention from the Company’s ongoing business operations, the risk of litigation relating to the proposed Merger, the risks that DSG may encounter difficulties integrating the business of DSG with the business of other companies that DSG has combined with or may otherwise combine with and that certain assumptions with respect to such business or transactions could prove to be inaccurate. Certain risks associated with DSG's business are also discussed from time to time in the reports DSG files with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K or other reports the Company may file from time to time with the Securities and Exchange Commission, which should be reviewed carefully. No Offer or Solicitation This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote, consent or approval, in any jurisdiction pursuant to or in connection with the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. -TABLES FOLLOW- View source version on businesswire.com: https://www.businesswire.com/news/home/20260805630925/en/ Contacts Company: Distribution Solutions Group, Inc.Ronald J. KnutsonExecutive Vice President, Chief Financial Officer and Treasurer1-888-611-9888 Investor Relations: Three Part Advisors, LLCSteven Hooser / Sandy Martin214-872-2710 / 214-616-2207

Distribution Solutions Group (DSGR) came out with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +23.68%. A quarter ago, it was expected that this industrial products and tools maker would post earnings of $0.26 per share when it actually produced earnings of $0.24, delivering a surprise of -7.69%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Distribution Solutions, which belongs to the Zacks Industrial Services industry, posted revenues of $557.73 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.95%. This compares to year-ago revenues of $502.44 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Distribution Solutions shares have added about 27.1% since the beginning of the year versus the S&P 500's gain of 12.8%. While Distribution Solutions has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Distribution Solutions was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.44 on $536.6 million in revenues for the coming quarter and $1.35 on $2.06 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Industrial Services is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, ClearSign Technologies (CLIR), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 19. This combustion systems technology company is expected to post quarterly loss of $0.25 per share in its upcoming report, which represents a year-over-year change of +16.7%. The consensus EPS estimate for the quarter has been revised 6.8% higher over the last 30 days to the current level. ClearSign Technologies' revenues are expected to be $0.61 million, up 369.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Distribution Solutions Group, Inc. (DSGR) : Free Stock Analysis Report ClearSign Technologies Corporation (CLIR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Fastenal (FAST) came out with quarterly earnings of $0.33 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this maker of industrial and construction fasteners would post earnings of $0.3 per share when it actually produced earnings of $0.3, delivering no surprise. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Fastenal, which belongs to the Zacks Industrial Services industry, posted revenues of $2.39 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.87%. This compares to year-ago revenues of $2.08 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Fastenal shares have added about 17.2% since the beginning of the year versus the S&P 500's gain of 9.8%. While Fastenal has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Fastenal was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.33 on $2.37 billion in revenues for the coming quarter and $1.24 on $9.11 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Industrial Services is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Distribution Solutions Group (DSGR), has yet to report results for the quarter ended June 2026. This industrial products and tools maker is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of +8.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Distribution Solutions Group's revenues are expected to be $521.5 million, up 3.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fastenal Company (FAST) : Free Stock Analysis Report Distribution Solutions Group, Inc. (DSGR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Distribution Solutions Group (DSGR) has released its first quarter 2026 results, providing updated figures for review. Sales were US$496 million, while net income was US$0.382 million. See our latest analysis for Distribution Solutions Group. The first quarter results, with higher sales but weaker net income, arrived as the share price sits at US$27.49. The 30 day share price return is 3.42%, the 90 day share price return is 10.92% and the 1 year total shareholder return is 8.44%, suggesting recent momentum has cooled compared to the longer term picture. If DSGR’s mixed quarter has you thinking about other opportunities, it could be a good moment to widen your search with 19 top founder-led companies With annual sales close to US$2.0b, net income of US$5.47 million, and the stock trading at US$27.49, is DSGR quietly undervalued, or is the market already pricing in any future growth? Analysts who follow Distribution Solutions Group see a fair value of $35.50 per share, compared with the latest close at $27.49, and build a detailed long term earnings story around that gap. Read the complete narrative. Curious what kind of earnings ramp, margin lift, and valuation multiple need to come together to justify that higher fair value label? The full narrative lays out specific revenue trends, profitability targets, and a future earnings multiple that connect today’s share price to that $35.50 figure. Result: Fair Value of $35.50 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are still clear risks to that $35.50 fair value story, including acquisition integration setbacks and weaker MRO or service demand, particularly in Canada. Find out about the key risks to this Distribution Solutions Group narrative. If this mix of risks and upside potential feels finely balanced, do not wait on others to make the call for you. Review the 4 key rewards and 3 important warning signs If DSGR is on your radar, do not stop there. Broaden your watchlist with other stocks that might fit your goals and risk comfort. Target potential mispricing by scanning through 51 high quality undervalued stocks that combine solid fundamentals with room for a re rating. Strengthen your income stream by checking out 12 dividend fortresses that focus on higher yields with an eye on consistency. Keep risk in check by reviewing 72 resilient stocks with low risk scores built around resilient balance sheets and steadier return profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DSGR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Distribution Solutions Group (DSGR) came out with quarterly earnings of $0.24 per share, missing the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -7.69%. A quarter ago, it was expected that this industrial products and tools maker would post earnings of $0.32 per share when it actually produced earnings of $0.18, delivering a surprise of -43.75%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Distribution Solutions, which belongs to the Zacks Industrial Services industry, posted revenues of $496 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.23%. This compares to year-ago revenues of $478.03 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Distribution Solutions shares have lost about 1.6% since the beginning of the year versus the S&P 500's gain of 4.2%. While Distribution Solutions has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Distribution Solutions was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.43 on $520.65 million in revenues for the coming quarter and $1.46 on $2.06 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Industrial Services is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, LegalZoom (LZ), has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6. This online platform for legal services is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 13.3% higher over the last 30 days to the current level. LegalZoom's revenues are expected to be $202.39 million, up 10.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Distribution Solutions Group, Inc. (DSGR) : Free Stock Analysis Report LegalZoom.com, Inc. (LZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Company Achieved 3.8% First Quarter Revenue Growth FORT WORTH, Texas, April 30, 2026--(BUSINESS WIRE)--Distribution Solutions Group, Inc. (NASDAQ:DSGR) ("DSG" or the "Company"), a premier specialty distribution company, today announced consolidated results for the first quarter ended March 31, 2026. This press release is supplemented by an earnings presentation at https://investor.distributionsolutionsgroup.com/news/events. 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. Distribution Solutions Group delivered improved revenue and sequential profitability growth in the first quarter. Revenue increased 3.8% year-over-year to $496.0 million, driven by organic sales growth of 3.6% with daily sales improvement across all of the verticals. The first quarter acquisition of Eastern Valve contributed $0.8 million for the partial quarter. As signaled earlier, the first quarter was going to be under some margin pressures. Profitability improved sequentially on higher sales with positive momentum exiting the fourth quarter. Adjusted EBITDA margin as a percentage of sales was 7.6%, a sequential improvement of 20bps, while a sequential improvement in operating income to $13.6 million drove adjusted earnings per share by 6 cents to $0.24. The Company estimates that certain timing and isolated expenses, as well as fewer selling days in the quarter, negatively impacted adjusted EBITDA as a percent of revenues by approximately 70bps for the quarter. Excluding these items, adjusted EBITDA would have been 8.3% for the quarter. Total available liquidity was $415 million at quarter end. During the quarter, DSG closed on the acquisition of Eastern Valve & Control Specialties Ltd., a provider of industrial valve products and related services supporting customers across Atlantic Canada. Eastern Valve was acquired to scale and expand DSG’s operating footprint in the Canadian market. 2026 First Quarter Summary(1) Revenue increased $18.0 million or 3.8% to $496.0 million, primarily driven by organic sales growth of 3.6% and $0.8 million of incremental revenue from the acquisition closed in the first quarter of 2026. Sequentially, organic sales grew 2.8% with organic average daily sales growing 3.7% over the fourth quarter of 2025. Gross margin decreased from 34.3% to 32.9% primarily due to customer and vertical sales mix shifts and higher tariff rates on inbound shipments partially offset by pricing benefits realized. Operating income was $13.6 million, net of $11.0 million of non-cash acquired intangible amortization and $4.5 million of non-recurring severance and acquisition-related retention costs, stock-based compensation, acquisition-related costs and other non-recurring items. This compares to an operating income of $20.1 million in the prior year quarter which is net of $11.6 million of intangible amortization and $2.7 million of non-recurring items. Adjusted operating income, excluding these non-cash and non-recurring items, was $29.1 million in the current quarter compared to $34.4 million in the year-ago quarter and $26.5 million in the fourth quarter of 2025. Net income was $0.4 million for the quarter compared to net income of $3.3 million in the year-ago quarter. Adjusted EBITDA was $37.8 million, or 7.6% of sales, compared to $42.8 million, or 9.0% of sales in the prior year quarter and $35.4 million or 7.4% of sales in the fourth quarter of 2025. Diluted net earnings per share was $0.01 for the quarter compared to diluted net earnings per share of $0.07 in the year-ago quarter. Non-GAAP adjusted diluted earnings per share was $0.24 compared to $0.31 for the same period a year ago and $0.18 for the fourth quarter of 2025. Cash used in operations was $20.4 million for the quarter. Uses of cash for the quarter included net capital expenditures of $5.6 million. The Company ended the quarter with total liquidity of $415.2 million, consisting of $65.0 million of cash (restricted and unrestricted) and $350.2 million available under its credit facility with net debt leverage of 3.8x. Completed the acquisition of Eastern Valve & Control Specialties Ltd., a provider of industrial valve products and related services supporting customers across Atlantic Canada. About Distribution Solutions Group, Inc. Distribution Solutions Group ("DSG") is a premier multi-platform specialty distribution company providing high touch, value-added distribution solutions to the maintenance, repair & operations (MRO), the original equipment manufacturer (OEM) and the industrial technologies markets. DSG was formed through the strategic combination of Lawson Products, a leader in MRO distribution of C-parts, Gexpro Services, a leading global supply chain services provider to manufacturing customers, and TestEquity, a leader in electronic test & measurement solutions. Through its collective businesses, DSG is dedicated to helping customers lower their total cost of operation by increasing productivity and efficiency with the right products, expert technical support and fast, reliable delivery to be a one-stop solution provider. DSG serves approximately 220,000 customers in several diverse end markets supported by approximately 4,300 dedicated employees and strong vendor partnerships. DSG ships from strategically located distribution and service centers to customers in North America, Europe, Asia, South America and the Middle East. For more information on Distribution Solutions Group, please visit www.distributionsolutionsgroup.com. This release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the "safe-harbor" provisions under the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. The Terms "aim," "anticipate," "believe," "contemplates," "continues," "could," "ensure," "estimate," "expect," "forecasts," "if," "intend," "likely," "may," "might," "objective," "outlook," "plan," "positioned," "potential," "predict," "probable," "project," "shall," "should," "strategy," "will," "would," and variations of them and other words and terms of similar meaning and expression (and the negatives of such words and terms) are intended to identify forward-looking statements. Forward-looking statements can also be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on current expectations and involve inherent risks, uncertainties and assumptions, including factors that could delay, divert or change any of them, and could cause actual outcomes to differ materially from current expectations. DSG can give no assurance that any goal or plan set forth in forward-looking statements can be achieved and DSG cautions readers not to place undue reliance on such statements. DSG undertakes no obligation to release publicly any revisions to forward-looking statements as a result of new information, future events or otherwise. Each forward-looking statement speaks only as of the date on which such statement is made, and DSG undertakes no obligation to update any such statement to reflect events or circumstances arising after such date. Actual results may differ materially from those projected as a result of certain risks and uncertainties. Factors that could cause or contribute to such differences or that might otherwise impact DSG's business, financial condition and results of operations include the risks that DSG may encounter difficulties integrating the business of DSG with the business of other companies that DSG has combined with or may otherwise combine with and that certain assumptions with respect to such business or transactions could prove to be inaccurate. Certain risks associated with DSG's business are also discussed from time to time in the reports DSG files with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K or other reports the Company may file from time to time with the Securities and Exchange Commission, which should be reviewed carefully. -TABLES FOLLOW- View source version on businesswire.com: https://www.businesswire.com/news/home/20260429944074/en/ Contacts Company: Distribution Solutions Group, Inc. Ronald J. Knutson Executive Vice President, Chief Financial Officer and Treasurer 1-888-611-9888 Investor Relations: Three Part Advisors, LLC Steven Hooser / Sandy Martin 214-872-2710 / 214-616-2207

FORT WORTH, Texas, April 28, 2026--(BUSINESS WIRE)--Distribution Solutions Group, Inc. (NASDAQ: DSGR) ("DSG" or the "Company"), a premier, multi-platform distribution company, today announced that it will release its financial results for the first quarter ended March 31, 2026, on Thursday, April 30, 2026, pre-market. On March 14, 2026, the Company received an unsolicited preliminary, non-binding proposal from LKCM Headwater Investments, LLC, together with its affiliates and related parties which includes LKCM (the "LKCM Group"), to acquire all of the outstanding shares of the Company’s common stock not currently owned by LKCM Group for $29.50 per share in cash (the "Take-Private Proposal"). As of the date of such filing, LKCM Group, together with its affiliates, beneficially owned approximately 78.7% of the Company’s outstanding shares of common stock. Given the Take-Private Proposal, the Company will not host a conference call to discuss first quarter 2026 results. The earnings release and accompanying financial information will be available on the Company’s investor relations website at Investor Relations | Distribution Solutions Group. Consistent with its practice, the Company does not comment on market rumors or speculation, including those regarding potential strategic alternatives. About Distribution Solutions Group, Inc. Distribution Solutions Group ("DSG") is a leading multi-platform specialty distribution company providing high-touch, value-added distribution solutions to the Maintenance, Repair & Operations (MRO), Original Equipment Manufacturer (OEM) and industrial technologies markets. DSG was formed through the strategic combination of Lawson Products, a leader in MRO distribution of C-parts, Gexpro Services, a leading global supply chain services provider to manufacturing customers, and TestEquity, a leader in electronic test & measurement solutions. Through its collective businesses, DSG is dedicated to helping customers reduce total costs of operation by improving productivity and efficiency with the right products, expert technical support and fast, reliable delivery to be a one-stop solution provider. DSG serves approximately 200,000 customers across diverse end markets, supported by approximately 4,400 dedicated employees and strong vendor partnerships. DSG ships from strategically located distribution and service centers to customers in North America, Europe, Asia, South America and the Middle East. For more information on Distribution Solutions Group, please visit www.distributionsolutionsgroup.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260428298964/en/ Contacts Company: Distribution Solutions Group, Inc. Ronald J. Knutson Executive Vice President and Chief Financial Officer 1-888-611-9888 Investor Relations: Three Part Advisors, Inc. Steven Hooser / Sandy Martin 214-872-2710 / 214-616-2207

Distribution Solutions’ fourth quarter was marked by margin pressures and flat sales, leading to a significant negative market reaction. Management attributed the shortfall to a combination of one-time cost increases—including higher health care and bad debt expenses—and ongoing strategic investments in leadership and operational capabilities. CEO Brian King stated, “Our financial results fell short of our expectations in the fourth quarter and for the year, and we own that.” Challenges in demand, especially in North American renewables and Canadian industrial markets, also weighed on results, while operational improvements in certain business verticals were noted. Is now the time to buy DSGR? Find out in our full research report (it’s free). Revenue: $481.6 million vs analyst estimates of $496.3 million (flat year on year, 3% miss) Adjusted EPS: $0.18 vs analyst expectations of $0.32 (43.2% miss) Adjusted EBITDA: $35.44 million vs analyst estimates of $43.9 million (7.4% margin, 19.3% miss) Operating Margin: 1.9%, down from 4.9% in the same quarter last year Market Capitalization: $951.9 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Thomas Allen Moll (Stephens): Asked about year-to-date sales pacing and margin expectations. CFO Ronald J. Knutson shared that early 2026 sales were up low-single digits over last year, with margin improvement expected by midyear as one-time costs normalize. CEO Brian King noted, “January’s not indicating to me that we’re going to get to the level you said.” Katie Fleischer (KeyBanc): Inquired about future tariff impacts and price/cost dynamics. Knutson acknowledged uncertainty around recent tariff developments, stating that the company is monitoring the situation and expects to manage costs through sourcing and pricing adjustments, but that it is too early to quantify the impact. Katie Fleischer (KeyBanc): Followed up on segment trends and Lawson’s customer mix. King detailed renewed focus on ramping up value-added installations and regaining traction in local accounts, while Knutson noted efforts to improve sales rep productivity and customer service, especially for core local business. Kevin Steinke (Barrington Research): Asked about the outlook for adjusted EBITDA margin cadence across the year. King and Knutson reaffirmed that the first quarter will see continued pressure before margins rise above last year’s average in the second and third quarters, supported by seasonal operating leverage. Kevin Steinke (Barrington Research): Questioned progress in serving smaller Lawson customers and M&A pipeline. King outlined the shift to inside sales and ecommerce for smaller accounts, as well as renewed field sales efforts. He also highlighted a strengthened M&A pipeline with the addition of a new leader and focus on tuck-in acquisitions that enhance vertical margins. In the coming quarters, the StockStory team will watch (1) whether margin recovery materializes as operational investments are absorbed and seasonal patterns return, (2) the pace of growth in global end markets such as aerospace, defense, and renewables outside North America, and (3) execution on digital, AI, and cross-selling initiatives to drive customer retention and operating efficiency. The impact of tariff developments and ongoing cost discipline will also be key factors to monitor. Distribution Solutions currently trades at $21.11, down from $29.71 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.