DSGR Stock Forecast & Price Target

Distribution Solutions Group Inc. has demonstrated positive momentum with a growing order backlog in early 2026, indicating a potential recovery in market conditions. The company achieved a significant year-over-year revenue increase of 53.3% in its Canada Branch, largely attributable to the Source Atlantic acquisition, while its legacy business also reported organic growth of 6.5%. Furthermore, the TestEquity segment, which constitutes 40% of total revenue, experienced a 5.7% increase driven by renewed sales of test and measurement equipment, and the overall forecast suggests an improvement in adjusted EBITDA margins for 2026.

Distribution Solutions Group Inc. has demonstrated a weakening financial performance, with Q4/25 adjusted EBITDA declining by 21% year-over-year, falling short of expectations, and a corresponding contraction of 190 basis points in the adjusted EBITDA margin. Both Q3/25 and full-year 2025 results have indicated stagnant growth, as full-year adjusted EBITDA remained flat year-over-year, accompanied by an 80 basis point decrease in the adjusted EBITDA margin. The company also faces significant challenges in its Canada Branch segment, driven by economic pressures and a detrimental mix shift in its TestEquity offerings, contributing to lower revenues and further margin pressure.