Slide 1: Q2 2025 Financial Results
NASDAQ: DSGR Q2 2025 Financial Results July 31, 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement Cautionary Note Regarding Forward-Looking Statements This presentation contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the “safe-harbor
Slide 3: Earnings Call Agenda
Earnings Call Agenda Today’s Conference Call Will Discuss Results Primarily on an Adjusted (Non-GAAP) and Comparable Operations Basis. Agenda • 2025 Q2 Consolidated Highlights & Financial Results • Segment Highlights & Financial Results • Q&A Change in Reportable Segments: In the third quarter of 20
Slide 4: Key Takeaways for the Quarter
Key Takeaways for the Quarter Solid Operational Performance Macro & Demand Outlook • Total sales growth of 14.3%; organic sales grew 3.3% and 2.4% • Despite an uneven macro environment, momentum continues in key end sequentially over Q1 markets, including aerospace & defense, technology, renewables,
Slide 5: Leading Specialty Industrial Distribution Platform
Leading Specialty Industrial Distribution Platform MRO Focus OEM Focus Industrial Technologies Focus VMI Focus Canadian Branch Focus Leading vendor managed Leading wholesale distributor of Leading global supply chain services Leading supplier of electronic and inventory provider of C-parts to MRO su
Slide 6: 2025 Consolidated Financial Highlights
2025 Consolidated Financial Highlights • Q2 revenue of $502M; up $63M or 14.3% over a year ago primarily from five acquisitions closed in 2024; up 5.1% sequentially over Q1. Organic average sales grew 3.3% over a year ago and 2.4% sequentially. • Q2 adjusted EBITDA of $48.6M or 9.7% of sales compare
Slide 7: Lawson Products – MRO Focus
Lawson Products – MRO Focus Q2 2025 Highlights: Revenue (in millions) • Average daily sales (ADS) growth YoY (+2.6%) & sequentially (+1.6%): $121.1 $120.5 $124.3 ▪ YoY: Inorganic growth (S&S acquisition incremental revenue of $4.4M) offset by ~1.0% organic decline entirely driven by lower military s
Slide 8: Canada Branch Division – Canadian MRO Focus
Canada Branch Division – Canadian MRO Focus Q2 2025 Highlights: Revenue (in millions) • Continued market softness for projects and manufacturing $55.9 market amid tariff-related uncertainties, in particular in Eastern $50.5 Canada. • Q2 revenue up over year-ago quarter driven by the Source $14.5 Atl
Slide 9: Gexpro Services – OEM Focus
Gexpro Services – OEM Focus Q2 2025 Highlights: Revenue (in millions) • Q2 organic revenue up $19.5M or 18.2% from year-ago quarter $118.9 $127.8 on same number of days; organic average daily sales (ADS) up $107.1 2.4% sequentially. Improvements in the renewable energy, aerospace & defense and techn
Slide 10: TestEquity – Industrial Technologies Focus
TestEquity – Industrial Technologies Focus Q2 2025 Highlights: Revenue (in millions) • Q2 average daily sales (ADS) down 1.2% from year-ago quarter on softer electronic production supplies sales and lower T&M $197.5 $188.8 $195.0 sales; up 1.7% sequentially. Q2 acquired revenue of $1.9M from ConRes
Slide 11: Capital Allocation Strategy
Capital Allocation Strategy Focus on Deleveraging via Return Capital to Organic Growth M&A Robust Net Working Capital Earnings Growth and Free Cash Flow Shareholders Investment Generation • Adding scale, $490.5M 3.6x • Market share • Authorized $37.5M growth footprint, product share repurchase adjac
Slide 12: Appendix
5SG DISTRIBUTION 2 SOLUTIONS GROUP_/“ Appendix 12
Slide 13: 2025 Consolidated Financial Highlights
2025 Consolidated Financial Highlights Results Inclusive of Pre-Acquisition Results • Adjusted Revenue and adjusted EBITDA below include the reported GAAP results and the pre-acquisition results of other businesses that were acquired at any time during the Q2 2024-Q2 2025 period. Adjusted Revenue (i
Slide 14: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Q2 Revenue and Adjusted EBITDA Reconciliation ($000s) (Unaudited) Canada Branch Lawson Products Gexpro Services TestEquity Division All Other Eliminations Consolidated DSG Quarter Ended Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q
Slide 15: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Adjusted Revenue and Adjusted EBITDA Reconciliation ($000s) Results Inclusive of Acquisitions – Pre-Acquisition Date (Unaudited) Consolidated DSG Quarter Ended Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Revenue $ 439,536 $ 468,019 $ 480,463 $ 478,029 $ 502,437 Pre-acqui
Slide 16: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Adjusted Revenue and EBITDA Reconciliation – Table Footnotes (1) Represents additional revenue and operating income of acquisitions prior to their acquisition dates not in reported GAAP results. (2) Transaction and integration costs related to acquisitions. (3) Expen
Slide 17: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations GAAP Net Income (Loss) and GAAP Diluted EPS to Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Diluted EPS Reconciliation ($000s, except per share data) (Unaudited) Consolidated DSG Q2 2025 Q2 2024 Q1 2025 Diluted Diluted Diluted Amount EPS(2) Amount EPS(2) Amount