Company Overview - DSG is a leading specialty industrial distribution platform with a focus on MRO, OEM, and Industrial Technologies [12] - The company's TTM Adjusted Revenue as of June 30, 2025, was $1.96 billion [13] - Adjusted EBITDA margin was approximately 9.6% [13] - The company has over 200,000 customers and offers over 740,000 unique SKUs [13] Financial Performance - Q2 2025 revenue reached $502 million, a $63 million or 14.3% increase year-over-year, with organic average sales growing 3.3% [51] - Q2 2025 adjusted EBITDA was $48.6 million, representing 9.7% of sales [51] - The company has authorized a $37.5 million share repurchase program, with $20 million repurchased YTD 2025 and $6.3 million still available under prior authorizations [53] Strategic Focus - The company has a dual-pronged growth strategy, focusing on end markets with long-term strong tailwinds and strategic acquisitions [23] - Since 2022, DSG has completed 11 strategic acquisitions with purchase price range from 4.6x – 9.4x (weighted 8.3x) [23] - The company serves a broad and diverse set of end markets, catering to over 200,000 customers [24]

Financial Performance - Q1 2025 adjusted revenue was $478 million, a $62 million or 14.9% increase year-over-year, primarily due to acquisitions, but down 0.5% sequentially[14] - Organic average daily sales grew 4.3% year-over-year (4.7% on a constant currency basis)[14] - Q1 2025 adjusted EBITDA was $42.8 million, or 9.0% of sales, compared to $36.1 million, or 8.7% in the prior year quarter[14] - Diluted income per share was $0.07, compared to a diluted loss per share of $0.11 in the year-ago quarter; Non-GAAP adjusted diluted earnings per share was $0.31 compared to $0.25 year-over-year[14] Segment Performance - Lawson Products' Q1 2025 revenue was $120.5 million, with adjusted EBITDA of $14.3 million or 11.9% of revenue[16, 18] - Canada Branch Division's Q1 2025 revenue was $50.5 million, with adjusted EBITDA of $2.6 million or 5.2% of revenue; Excluding Source Atlantic, adjusted EBITDA was 13.1% of revenue[22, 24, 25] - Gexpro Services' Q1 2025 organic revenue increased by $19.1 million or 19.4% year-over-year, with adjusted EBITDA of $15.0 million or 12.6% of revenue[30] - TestEquity's Q1 2025 adjusted EBITDA was $12.8 million or 6.8% of revenue[35] Strategic Initiatives - The company is focused on organic growth, M&A, and deleveraging via earnings growth and free cash flow generation[36] - A $37.5 million share repurchase program is in place, with $11.2 million repurchased in Q1 2025 and $15.2 million still available under prior authorizations[36]