v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information
Note 14 – Segment Information

As a result of the Source Atlantic acquisition in the third quarter of 2024, discussed in Note 3 – Business and Asset Acquisitions, the Company realigned its reportable segments to align with its business strategy and the manner in which the CODM assesses performance and strategic execution and makes decisions regarding the allocation of resources. The Company’s CODM is the Chief Executive Officer of DSG. For each reportable segment, the CODM uses segment operating income (loss) to allocate resources (including employees and financial resources) in a way to manage and grow margins.

Beginning in the third quarter of 2024, the Company has four reporting segments: Lawson, TestEquity, Gexpro Services and Canada Branch Division. Canada Branch Division includes the results of the Bolt and Source Atlantic subsidiaries. No changes were made to the Lawson, TestEquity and Gexpro Services reportable segments. For additional details about our segment realignment in the third quarter of 2024, see Note 1 – Nature of Operations and Basis of Presentation.

The segment realignment had no impact on our financial condition or results of operations. Prior period segment results have been recast to reflect our new reportable segments. A description of our reportable segments is as follows:

Lawson is a distributor of specialty products and services to the industrial, commercial, institutional and governmental MRO marketplace. Lawson primarily distributes MRO products to its customers through a network of sales representatives and an inside sales channel throughout the United States and Canada.

TestEquity is a distributor of test and measurement equipment and solutions, industrial and electronic production supplies, vendor managed inventory programs, and converting, fabrication and adhesive solutions from its leading manufacturer partners supporting the aerospace and defense, wireless and communication, semiconductors, industrial electronics and automotive, and electronics manufacturing industries.

Gexpro Services is a global supply chain solutions provider, specializing in the development of mission critical production line management, aftermarket and field installation programs.

Canada Branch Division combines the operations of our Bolt and Source Atlantic subsidiaries, which distribute industrial MRO supplies, safety products, fasteners, power tools and related value-add services to the Canadian MRO market through the sale of products and services via warehouse shipments and to its walk-up customers through 37 branch locations.

The Company also has an “All Other” category which includes unallocated DSG holding company costs that are not directly attributable to the ongoing operating activities of our reportable segments. There is no revenue associated with the All Other category.
Financial information for the Company’s segments and reconciliations of that information to the unaudited condensed consolidated financial statements is presented below.
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Revenue
Lawson$124,313 $121,118 $244,775 $239,304 
TestEquity195,046 197,481 383,819 384,630 
Gexpro Services127,807 107,134 246,712 205,785 
Canada Branch Division55,852 14,471 106,395 26,966 
Intersegment revenue elimination(581)(668)(1,235)(1,063)
Total revenue$502,437 $439,536 $980,466 $855,622 
Cost of goods sold
Lawson$55,739 $54,717 $107,967 $107,841 
TestEquity152,473 151,702 299,489 296,650 
Gexpro Services87,847 73,952 169,646 141,847 
Canada Branch Division36,895 8,306 70,541 15,411 
Intersegment cost of goods sold elimination(601)(668)(1,241)(1,063)
Total cost of goods sold$332,353 $288,009 $646,402 $560,686 
Selling, general and administrative expenses
Lawson$60,599 $60,272 $122,517 $121,227 
TestEquity37,760 45,076 75,387 93,371 
Gexpro Services26,058 25,091 51,923 50,385 
Canada Branch Division17,206 4,702 33,452 9,232 
All Other1,635 2,228 3,862 3,780 
Total operating expenses$143,258 $137,369 $287,141 $277,995 
Operating income (loss)
Lawson$7,975 $6,129 $14,291 $10,236 
TestEquity4,813 703 8,943 (5,391)
Gexpro Services13,902 8,091 25,143 13,553 
Canada Branch Division1,751 1,463 2,402 2,323 
All Other(1,615)(2,228)(3,856)(3,780)
Total operating income (loss)$26,826 $14,158 $46,923 $16,941 
Reconciliation to income (loss) before income taxes
Interest expense$(14,238)$(12,793)$(28,453)$(24,620)
Change in fair value of earnout liabilities— (8)(1,000)(3)
Other income (expense), net(726)359 (94)97 
Income (loss) before income taxes$11,862 $1,716 $17,376 $(7,585)

Segment revenue includes revenue from sales to external customers and intersegment revenue from sales transactions between segments. The Company accounts for intersegment sales similar to third party transactions that are conducted on an arm’s-length basis and reflect current market prices. Intersegment revenue is eliminated in consolidation. Segment revenue and the elimination of intersegment revenue was as follows:
(in thousands)LawsonTestEquityGexpro ServicesCanada Branch DivisionEliminationTotal
Three Months Ended June 30, 2025
Revenue from external customers$124,287 $194,830 $127,474 $55,846 $— $502,437 
Intersegment revenue26 216 333 6 (581)— 
Revenue$124,313 $195,046 $127,807 $55,852 $(581)$502,437 
Three Months Ended June 30, 2024
Revenue from external customers$121,089 $197,446 $106,530 $14,471 $— $439,536 
Intersegment revenue29 35 604 — (668)— 
Revenue$121,118 $197,481 $107,134 $14,471 $(668)$439,536 
Six Months Ended June 30, 2025
Revenue from external customers$244,727 $383,286 $246,067 $106,386 $— $980,466 
Intersegment revenue48 533 645 9 (1,235)— 
Revenue$244,775 $383,819 $246,712 $106,395 $(1,235)$980,466 
Six Months Ended June 30, 2024
Revenue from external customers$239,251 $384,511 $204,894 $26,966 $855,622 
Intersegment revenue53 119 891 — (1,063)— 
Revenue$239,304 $384,630 $205,785 $26,966 $(1,063)$855,622 

Total assets by segment and long-lived assets by geographic area were as follows:
(in thousands)June 30, 2025December 31, 2024
Total assets by segment
Lawson$547,214 $524,077 
TestEquity631,678 654,315 
Gexpro Services350,498 331,811 
Canada Branch Division213,193 199,362 
All Other9,400 17,690 
Total$1,751,983 $1,727,255 
Long-lived assets by geographic area(1)
United States$806,353 $818,100 
Canada142,281 138,218 
Europe31,597 30,345 
Pacific Rim6,609 4,751 
Latin America3,486 3,615 
Other— — 
Total$990,326 $995,029 
(1)    Long-lived assets include property, plant and equipment, rental equipment, goodwill, intangibles, right of use operating lease assets, and other assets.

Refer to Note 4 – Revenue Recognition for disaggregated revenue by geographic area.
Capital expenditures and depreciation and amortization by segment were as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Capital expenditures
Lawson$852 $1,090 $4,828 $2,204 
TestEquity6,101 2,785 9,289 4,741 
Gexpro Services1,399 1,136 2,386 1,548 
Canada Branch Division607 108 963 550 
All Other— — — — 
Total$8,959 $5,119 $17,466 $9,043 
Depreciation and amortization
Lawson$6,808 $6,390 $13,360 $11,598 
TestEquity8,280 7,795 16,408 15,291 
Gexpro Services3,532 3,825 6,985 7,665 
Canada Branch Division1,718 525 3,564 1,033 
All Other— — — — 
Total$20,338 $18,535 $40,317 $35,587