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• Like Grainger, but with a primary focus on packaging, facility solutions, and print products for businesses.
• Uline, but expanded to offer comprehensive facility supplies and print products for companies.
• Amazon Business, but specialized in distribution of packaging, facility, and print products for companies.

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• Parking Management Services: Provides comprehensive management, operation, and technology solutions for parking facilities across various sectors, including commercial, healthcare, and aviation.
• Ground Transportation Services: Offers shuttle bus services, valet parking, and other mobility solutions, often integrated with parking operations for clients like airports and hospitals.

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For Distribution Solutions Group (symbol: DSGR), the company primarily sells to other companies (B2B model), providing products and services to the electronic, electrical, and test and measurement markets.

DSGR emphasizes that it serves a highly diverse customer base. As a result, its public financial filings (such as the 10-K report) do not disclose any single customer as accounting for 10% or more of its annual revenue. Therefore, there are no specific "major customer" companies identified by name in its financial reports.

However, based on its business description, DSGR's customer base generally includes the following categories of organizations:

• Large multinational manufacturers
• Government agencies
• Universities
• Small- and medium-sized businesses

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The key risks to Distribution Solutions (symbol: DSGR) are primarily associated with its growth strategy and market conditions.

1. Acquisition Integration Risk: Distribution Solutions Group has expanded significantly through strategic acquisitions, including TestEquity, Gexpro Services, Hisco, Source Atlantic, and ConRes. The company faces a material risk that delays or challenges in successfully integrating these acquired businesses could slow or reduce anticipated margin improvements and overall profitability. Difficulties in capturing expected cost savings and operational challenges from integrating new businesses could keep expenses elevated and affect net earnings growth.
2. Economic Fluctuations and Market Volatility: DSGR's performance is closely tied to the health of the manufacturing sector and the broader economy. Economic downturns, geopolitical uncertainty, and volatility in technology markets can lead to reduced demand for DSGR's products and services, project deferrals, and customers reducing their inventory levels. For instance, volatility in the technology market has delayed customer projects into 2024, impacting the company's EBITDA.
3. Customer Concentration: Within its Gexpro Services segment, Distribution Solutions Group faces a notable risk from customer concentration. In 2022, one customer accounted for approximately 19% of Gexpro's total revenue, and the top 20 customers represented about 63% of Gexpro Services' total revenue. This concentration gives large customers significant negotiating power, which can lead to lower gross margins for the segment. A reduction in business from these key customers could materially impact the segment's revenue and profitability.

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Autonomous Trucks: The rapid development and testing of autonomous vehicle technology in the trucking sector poses a significant emerging threat. While specialized and open-deck transportation, Daseke's core business, presents unique challenges for full autonomy, the continuous advancements in perception, planning, and control systems by companies like Waymo Via and Aurora indicate a future where autonomous trucks could handle an increasing array of long-haul and potentially more complex specialized routes over time. Should autonomous technology mature and become economically viable for portions of the specialized freight market, it could drastically alter operational costs by reducing reliance on human drivers, a major expense for Daseke. This shift could lead to new competitors with significantly lower operating expenses or force existing carriers to make substantial investments in new technology and fleet transformation, potentially eroding market share and profitability if not adapted to proactively.

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• Strategic Acquisitions: DSGR has a history of strategic acquisitions, such as Source Atlantic in 2024 and Tech Component Resources in Southeast Asia in 2025, which have significantly contributed to revenue growth. The company is positioned for continued accretive acquisitions in fragmented markets.
• Organic Growth Initiatives: The company is focused on internal strategies including sales force transformation, expanded CRM adoption, and the growth of its 24/7 web platform. Additionally, targeted investments in digital and e-commerce capabilities are anticipated to boost sales productivity and unlock growth. Cross-selling synergies across its businesses are also expected to contribute to revenue expansion.
• Expansion in Key End Markets and Geographies: DSGR's Gexpro Services segment is experiencing strong growth in end markets such as renewable energy, aerospace and defense, industrial power, and technology. The company is also focusing on diversifying across multiple verticals and expanding its investments in personnel and locations, particularly in Europe and Southeast Asia. Customer interest in domestic manufacturing capabilities to mitigate tariff impacts also supports growth in these areas.
• Realization of Operational Synergies: While primarily impacting profitability, the successful execution of operational synergies, including facility consolidations and improved sourcing, is expected to lead to margin expansion. This enhanced profitability can then enable further investment in growth-driving initiatives, indirectly supporting revenue growth.

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Share Repurchases

• In December 2023, the Board of Directors authorized an additional $25 million for common share repurchases, with approximately $4 million remaining under previous authorizations.
• Distribution Solutions Group repurchased approximately $3.6 million of its common stock during fiscal year 2023.
• During the first nine months of 2025, the company repurchased approximately $20 million in shares, with about $6 million still available under the authorized program.

Share Issuance

• In May 2023, the company completed a rights offering that raised approximately $100 million in gross proceeds through the issuance of 2,222,222 shares of common stock at a subscription price of $45.00 per share.
• As part of the TestEquity merger in April 2022, Distribution Solutions Group issued 3,300,000 shares of common stock to TestEquity equity holders.

Outbound Investments

• In June 2023, Distribution Solutions Group acquired HIS Company, Inc. (Hisco) for a total purchase consideration of $267.3 million, net of cash acquired. This acquisition was partly funded by proceeds from a rights offering.
• The company deployed approximately $216.0 million to complete five strategic acquisitions during 2024, expanding its scale, customer base, and product offerings.
• Since its formation in April 2022 through the strategic combination of Lawson Products, Gexpro Services, and TestEquity, the company has invested nearly $450 million in cash and debt across nine acquired businesses.

Capital Expenditures

• Net capital expenditures for 2024 were $14.4 million.
• The expected net capital expenditures for 2025 are in the range of $22 million to $25 million.
• Capital expenditures are primarily focused on strategic growth initiatives, efficiency improvements, digital transformation, and logistics infrastructure.