Fort Worth, TX-based Distribution Solutions Group reported its 2025 first quarter financial results on May 1, showing a jump in revenue and EBITDA.

MRO, OEM and industrial technologies distributor posted 1Q25 total sales of $478 million, up 14.9%. The sales included $50.8 million from five acquisitions closed in 2024. Organic average daily sales grew 4.3% year-over-year but decreased 1.4% sequentially over the fourth quarter of 2024.

DSG’s 1Q adjusted EBITDA was up 18.6% to $42.8 million, on 9.0% of sales, compared to $36.1 million on 8.7% of sales YoY. Sequentially, adjusted EBITDA decreased by $2.1 million from 4Q24 and likewise decreased as a percentage of sales by 30 basis points.

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“We are cautiously optimistic about 2025 and are well-positioned to help our customers navigate alternative sourcing and services as trade policies develop,” Distribution Solutions Group CEO and Chairman Bryan King said in an earnings report. “We continue to focus on long-term value creation through the growth of our industrial distribution platform,” he added. “We are building higher-margin businesses by strategically scaling our platform through a combination of organic growth and highly strategic M&A.”

By DSG business unit in 1Q:

• Lawson Products logged sales of $120.5 million, up from $118.2 million YoY
• Gexpro Services’ sales of $118.9 million were up compared to $12.5 million of a year prior, driven by acquisitions
• Canada Branch Division sales of $50.5 million increased from 1Q24’s $12.5 million.
• TestEquity sales of $188.8 million increased from $187 million YoY

“As expected, Source Atlantic’s results compressed the Canada Branch Division and DSG’s net margins,”  King said. “Excluding the Source Atlantic impact from the consolidated results, Adjusted EBITDA margin for the first quarter would have been 9.6%. Initiatives to improve margins in each of our five 2024 acquisitions are in the early innings. We remain confident in our plan to improve DSG’s structural margins and achieve our higher return goals.”