Distribution Solutions Group (DSGR) increased its share‑repurchase authorization by $30 million, raising the total available buyback capacity to $32.9 million. The new authorization follows the company’s prior $25 million program, which expired in December 2023 and left $2.9 million of unused authority at the time of the announcement.
During the first nine months of 2025, DSGR repurchased approximately $23.5 million of common stock, reducing the outstanding share count by roughly 1.2 million shares. With the expanded authorization, the company can repurchase an additional 1.1 million shares at current market prices, further tightening the equity base and potentially increasing earnings per share if the buybacks are executed at a valuation below the intrinsic value implied by recent earnings growth.
DSGR’s liquidity position—$335.4 million in cash and short‑term investments as of September 30, 2025—provides ample cushion for the expanded program. The company’s net debt‑to‑EBITDA ratio of 3.5×, unchanged from the prior quarter, indicates that the buyback can be funded without compromising its ability to invest in technology, sales force development, or strategic acquisitions. The decision follows a strong Q3 2025 earnings report, in which revenue rose 10.7% to $518 million and adjusted EPS of $0.40 beat consensus of $0.27 by $0.13, a 48% upside. The earnings beat was driven by a 12% increase in core MRO sales and disciplined cost management that offset a 0.7% decline in adjusted EBITDA margin, which fell to 9.4% from 10.5% due to the Source Atlantic acquisition and higher employee‑related expenses.
CEO Bryan King said the company’s “strength of business prospects and ability to generate strong free cash flow” give it confidence to deploy capital in ways that enhance long‑term shareholder value. King emphasized that the balance sheet continues to strengthen, and that the expanded buyback authorization provides flexibility to repurchase shares when the market price is perceived to be undervalued. The move signals management’s belief that the stock is trading below its intrinsic value, especially after a 23.8% year‑to‑date decline and a 30.3% decline over the past year.
The buyback expansion also serves as a strategic counter‑measure to the recent stock price decline. By reducing the share count and demonstrating a commitment to returning capital, DSGR aims to support its share price and reassure investors that the company is focused on long‑term value creation rather than short‑term earnings manipulation. The announcement aligns with DSGR’s broader capital allocation policy, which has consistently combined share buybacks with dividend payments to reward shareholders while preserving growth capital.
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