Distribution Solutions Group Q4 earnings beat expectations, but stock falls 13%

Published 06/03/2025, 13:42
Distribution Solutions Group Q4 earnings beat expectations, but stock falls 13%

FORT WORTH, Texas - Distribution Solutions Group (NASDAQ:DSGR) reported fourth quarter earnings that beat analyst estimates.

The company’s stock tumbled -13.48% in premarket trading following the release.

The specialty distribution company posted adjusted earnings per share of $0.42, surpassing the consensus estimate of $0.22. Revenue came in at $480.46 million, above expectations of $465.4 million and up 18.6% year-over-year.

For the full year 2024, Distribution Solutions Group’s revenue increased 14.9% to $1.80 billion. However, the company reported a net loss of $7.3 million for the year, compared to a net loss of $9.0 million in 2023.

CEO Bryan King said, "Despite the soft economic backdrop that existed for most of 2024, we are pleased with our full-year performance as revenues grew by 14.9% to $1.8 billion and Adjusted EBITDA expanded to $175.3 million, up 11.6%."

The company highlighted strong cash flow generation, with $45.7 million in cash from operations in Q4. It also noted completing five strategic acquisitions during 2024, deploying approximately $216 million in capital.

Despite the earnings beat, investors appeared to react negatively to the results, sending the stock down sharply. The company did not provide specific guidance for 2025 in its earnings release.

Distribution Solutions Group ended 2024 with total liquidity of $334.7 million and a net debt leverage ratio of 3.5x.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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