Distribution Solutions Q4 revenue misses estimates

Reuters03-05
Distribution Solutions Q4 revenue misses estimates

Overview

  • Specialty distribution firm's Q4 revenue missed analyst expectations

  • Adjusted EPS for Q4 missed analyst expectations

  • Company generated $84 mln in operating cash flow for 2025

Outlook

  • Company sees backlog growth and improved sales momentum for 2026

  • Company focuses on building higher-margin businesses and strong free cash flow

Result Drivers

  • MARGIN PRESSURE - Margin pressure was driven by shifts in product and solutions mix, acquisition-related impacts, and timing of employee-related costs

  • ACQUISITIONS - Revenue growth was driven by acquisitions, contributing $121.5 mln to full-year revenue

Company press release: ID:nBw2ShP9Ja

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Miss

$481.60 mln

$496.30 mln (3 Analysts)

Q4 Adjusted EPS

Miss

$0.18

$0.32 (3 Analysts)

Q4 EPS

-$0.14

Q4 Adjusted EBITDA

$35.44 mln

Q4 Adjusted Operating Income

$26.52 mln

Q4 Operating Income

$7.72 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Distribution Solutions Group Inc is $38.50, about 29.6% above its March 4 closing price of $29.71

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment