Distribution Solutions Group, Inc. (DSGR) experienced a sharp pre-market plunge of 9.12% on Thursday following the release of its fourth-quarter financial results.
The specialty distributor reported adjusted earnings per share of $0.18 for the quarter, which fell short of the analyst consensus estimate of $0.32. Quarterly revenue of $481.6 million also missed expectations of $496.3 million. The company cited margin pressure driven by shifts in product and solutions mix, acquisition-related impacts, and the timing of employee-related costs as factors affecting its performance.
Despite the quarterly miss, the company noted it generated strong operating cash flow for the full year and is seeing backlogs build with improved sales momentum heading into 2026.
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