Earnings Releases·Nov 5, 2026, 7:39 AM ET

Distribution Solutions Group — Q3 2026 Earnings Summary

Revenue increased 10.7% year-over-year to $573.6 million, driven by 9.2% organic growth and the American Fasteners acquisition, while net income rose 37.8% year-over-year to $8.9 million and Non-GAAP Adjusted diluted EPS reached $0.58.
Gross margin contracted to 32.0% from 32.9% due to customer sales mix shifts and higher tariff rates, though Non-GAAP Adjusted operating income grew 19.7% year-over-year to $47.9 million.
The Board unanimously approved a merger agreement with LKCM Headwater affiliates at $35.00 per share, an 81% premium, with LKCM beneficially owning approximately 79% of outstanding stock.
No specific forward financial guidance was provided; the company completed the American Fasteners acquisition in Q3 and closed the GradeEight Holdings acquisition subsequent to the quarter.