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NASDAQ: DSGR Stephen’s Investment Conference November 18, 2025 Powerful Solutions. Proven Results.
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2 Disclaimers 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” provisions under the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. The terms "aim," "anticipate," "believe," "contemplates," "continues," "could," "ensure," "estimate," "expect," "forecasts," "if," "intend," "likely," "may," "might," "objective," "outlook," "plan," "positioned," "potential," "predict," "probable," "project," "shall," "should," "strategy," "will," "would," and variations of them and other words and terms of similar meaning and expression (and the negatives of such words and terms) are intended to identify forward-looking statements. Forward-looking statements can also be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on current expectations and involve inherent risks, uncertainties and assumptions, including factors that could delay, divert or change any of them, and could cause actual outcomes to differ materially from current expectations. DSG can give no assurance that any goal or plan set forth in forward-looking statements can be achieved and DSG cautions readers not to place undue reliance on such statements. DSG undertakes no obligation to release publicly any revisions to forward-looking statements as a result of new information, future events or otherwise. Each forward-looking statement speaks only as of the date on which such statement is made, and DSG undertakes no obligation to update any such statement to reflect events or circumstances arising after such date. Actual results may differ materially from those projected as a result of certain risks and uncertainties. Factors that could cause or contribute to such differences or that might otherwise impact DSG’s business, financial condition and results of operations include the risks that DSG may encounter difficulties integrating the business of DSG with the business of other companies that DSG has combined with or may otherwise combine with and that certain assumptions with respect to such business or transactions could prove to be inaccurate. Certain risks associated with DSG’s business are also discussed from time to time in the reports DSG files with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K or other reports the Company may file from time to time with the Securities and Exchange Commission, which should be reviewed carefully. Non-GAAP Financial Measures, SEC Regulation G GAAP Reconciliations Some of the financial information and data contained in this presentation, such as Adjusted Revenue, Pre-Acquisition Revenue and Adjusted EBITDA, have not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to DSG’s financial condition and results of operations. DSG does not consider non-GAAP measures an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is they may exclude significant expense and income items that are required by GAAP to be recognized in our consolidated financial statements. In addition, they reflect the exercise of management’s judgment about which expense and income items are excluded or included in determining these non-GAAP financial measures. Non- GAAP financial measures should not be relied upon, in whole or part, in evaluating the financial condition, results of operations or future prospects of DSG. A reconciliation of the non-GAAP financial measures to the nearest comparable GAAP financial measures is contained in the appendix.
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Presenters 3
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(1) TTM as of September 30, 2025. Adjusted Revenue and Adjusted EBITDA results are presented on an Adjusted (Non-GAAP) and continuing operations basis. Information inclusive of Other Acquisition results prior to the acquisition date. See appendix for reconciliations of all GAAP to Non-GAAP measures. (2) Defined as Reg G EBITDA less Reg G cash items, less capex, plus/minus change in inventory, accounts receivable & accounts payable divided by Reg G EBITDA. Leading Specialty Industrial Distribution Platform Leading vendor managed inventory provider of C-parts to the MRO market MRO Focus TTM Financial Highlights Fly-by Operating Stats $1.98Bn ∼9.3% ~$177M 50+ 200k+ 740k+ Adjusted Revenue(1) Adjusted EBITDA %(1) Adj. Free Cash Flow (2) Countries Served Customers Unique SKU's Canadian Branch Focus Leading wholesale distributor of MRO supplies, safety products, fasteners, and services to the Canadian MRO market OEM Focus Industrial Technologies Focus Leading global supply chain services and C-parts provider to OEM and aftermarket applications Leading supplier of electronic and specialty production supplies and T&M equipment across OEM and MRO markets VMI Focus ∼24% of Revenue (1) ∼11% of Revenue (1) ∼25% of Revenue (1) ∼40% of Revenue (1) 4
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5 Why Invest in DSG? Specialty Distributor Value-added services managing complexities, embedded customer relationships, consistent cash flow and high returns on working capital with asset light model Strategic initiatives drive margins Best-in-class alignment Highly diverse platform Industry diversification Disciplined capital allocation strategy Connecting over 200,000+ customers, 10,000+ suppliers, largest customer < than 6% of sales Proven track record of consistent margin progression in platform businesses and driving margins higher in acquired businesses Broad exposure across industrial and electronic production markets for both MRO and OEM applications Robust capital re-deployment opportunities, business units compete for growth capital High insider ownership across management team and LKCM Headwater investments Our “Power of Three” Multi-platform leveraging one C-Suite, shared M&A team, sourcing and adjacent products, broad customer base and cross-selling, cash operating cost savings, cash generation, best practices
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6 Attractive Attributes of Specialty Distributors ✔ Business model repeatedly demonstrating a clear, differentiated value proposition for customers ✔ Fortified competitive moat of technical knowledge, service capabilities, sourcing of complex, scarce products ✔ Ability to rapidly and consistently scale through organic and inorganic investments ✔ Large consolidation opportunity driven by fragmentation of niche product & service offerings ✔ Diversification across various dimensions, including customers, suppliers, end markets, and geographies in a large multi-trillion dollar marketplace ✔ Resilient through business cycles via asset light model and working capital rationalization Kitting / Labeling / Packaging Vendor Managed Inventory (“VMI”) Fabrication / Repair / Service
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Highly Diverse Platform of Customers & Suppliers Customer Concentration 200,000+ customers Supplier Concentration 10,000+ suppliers 1. Customer and supplier concentration based on FY 2024 data and Management estimates. 7 Top 1, 5.6% Top 2-5, 4.7% Top 6-10, 3.8% All Other, 85.9% Top 1 Top 2-5 Top 6-10 All Other Top 1, 4.1% Top 2-5, 11.7% Top 6-10, 5.5% All Other, 78.7% Top 1 Top 2-5 Top 6-10 All Other Diverse customer base and end markets with product focus and reach fosters growth with both suppliers and customers Recognized value to suppliers through lead generation, engineered specification and best-in-class supply chain solutions Documented value to customers through product specification, technical support, local inventory of mission critical materials and outstanding customer service
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Case Study: Aerospace Production Plant Our “P ower of Three” 8 Main Assembly Fabrications Electrical Hardware Chemicals Safety Maintenance Shop Hydraulics Cutting & Abrasives Electronics Assembly Cases & Tools Benches & Workstations Solder Wire R&D Lab Environmental Chambers Oscilloscopes Electrical Analyzers Fasteners Shop Supplies Note: Illustrative Aerospace Production Plant Multi-platform benefits & opportunities ▪ One C-Suite ▪ Shared M&A team ▪ Broader customer base & cross-selling opportunities ▪ Shared operational best practices & culture ▪ LKCM operations team analytics & support ▪ Significant cash generation on asset-light base ▪ Sourcing advantages & adjacent products ▪ Cash operating cost savings
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9 DSG Serves a Broad & Diverse Set of End Markets Spotlight: Revenue and End Market Diversification A&D Industry – example of how DSG serves customers up and down the value chain within various end markets: R&D - TE | OEM - GS/TE/Hisco | MRO - Lawson/Hisco Note: Consolidated revenue percentages by customer end markets for DSG companies based on FY 2023. 1. Comprised of Industrial, Manufacturing, Construction, Equipment Rental and Consumer Products. (1) >200,000 customers in a robust set of end markets ✔ Sticky customer relationships ✔ Diverse demand drivers ✔ World class global supply chain capabilities across the platform ✔ Servicing the full life cycle of customers within various end markets
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Products ▪ Fasteners ▪ Chemicals ▪ Cutting tools ▪ Hydraulics ▪ Other broad offerings and C-Parts ▪ Safety Services ▪ Managed inventory ▪ Industrial vending ▪ Self-service inventory management ▪ Product recommendations ▪ Application advice Value to Customer ▪ “One-stop shop” ▪ Deep product knowledge ▪ Reducing supply chain costs ▪ Purchasing leverage / private label offering with consistent delivery End Markets ▪ Manufacturing ▪ Automotive ▪ Government / Military ▪ Construction ▪ Equipment rental ▪ Other industrial-related sectors Geography ▪ United States ▪ Canada 10 MRO Focus: Overview Business Unit Snapshot OEM Focus Industrial Technologies Focus MRO Focus 35% of Total Revenue (TTM $703.5M) (1) Current Strategic Initiatives ▪ Sales force investments and productivity improvements; channel expansion thru web & ISRs ▪ Acquisitions improving the selection of product adjacencies (safety, automotive) ▪ Source Atlantic/Canadian synergies with MRO expansion and margin enhancement opportunities 1. TTM as of September 30, 2025. Adjusted Revenue is presented on an Adjusted (Non-GAAP) and continuing operations basis. Information inclusive of Other Acquisition results prior to the acquisition date. See appendix for reconciliations of all GAAP to Non-GAAP measures.
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11 OEM Focus: Overview Business Unit Snapshot OEM Focus Industrial Technologies Focus MRO Focus 25% of Total Revenue (TTM $496.4M) (1) Comprehensive Supply Chain Solutions Kitting & Assembly TechnologyAftermarket / Installation Vendor Managed Inventory (VMI) Diverse End Markets Renewables Aerospace & Defense Technology Consumer & Industrial Industrial Power Transportation USA Canada Mexico Denmark Hungary Germany Turkey China Brazil Current Strategic Initiatives ▪ Value creation: cross-selling, acquisition synergies, VMI, kitting, manufacturing, e-commerce offerings ▪ Investments in sales growth teams to drive new business; leverage existing infrastructure ▪ Continue growth with industrial and technology customers in the Asia-Pacific region ▪ High customer retention model drives wallet expansion Serving Customers in 40 Countries and 6 Continents …and Many Others 1. TTM as of September 30, 2025. Adjusted Revenue is presented on an Adjusted (Non-GAAP) and continuing operations basis. Information inclusive of Other Acquisition results prior to the acquisition date. See appendix for reconciliations of all GAAP to Non-GAAP measures.
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Our Value Proposition 12 OEM Focus Industrial Technologies Focus MRO Focus 40% of Total Revenue (TTM $782.8M) (1) Current Strategic Initiatives ▪ New high-energy leadership, reworking go-to-market strategy ▪ Enhance value proposition across 3 core categories: Design & Test, Build & Assembly, Maintain & Repair ▪ Investments in teams, systems, e-commerce capabilities to unlock cross-sell and streamline business structure Industrial Technologies Focus: Overview Business Unit Snapshot 1. TTM as of September 30, 2025. Adjusted Revenue is presented on an Adjusted (Non-GAAP) and continuing operations basis. Information inclusive of Other Acquisition results prior to the acquisition date. See appendix for reconciliations of all GAAP to Non-GAAP measures.
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13 M&A Strategy OEM Focus Industrial Technologies Focus • Product offering expansion in safety, cutting tools, automotive, and fluid power categories • Leverage current VMI offering across acquired company’s customer base • Augment current go-to-market model with technical product/service specialists • Expand manufacturing customer presence especially in the US and Canada • Other focus areas include private label and eCommerce MRO Focus Acquisition Criteria • Expansion of fasteners, fabrication, electricals, mechanicals, & gasket/seals/o-ring products • Strengthen value proposition with strategic sourcing, VMI offering, specification engineering resources, and manufacturing capabilities • Complementary technology solutions including eCommerce, WMS, AI, etc. • End market focus: Aerospace & Defense, Industrial Power, Renewables, Technology in North America, Europe, and SE Asia • Distribution: EPS & T&M, with emphasis on acquiring companies with strong technical sales force • Calibration: Adding this capability to RFID asset management service offering provides very sticky customer relationships and “final brick in moat” • Used/Rental: Capital intensive, high margins, sticky customer relationships • Geographic expansion focus in US, Western Europe and Canada
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Capital Allocation Strategy 14 Robust Net Working Capital Investment $485.7M $295.5M Accounts Receivable $345.2M Inventory $(155.0)M Accounts Payable 9/30/2025 Trade NWC High returns realized on working capital investments Focus on Deleveraging via Earnings Growth and Free Cash Flow Generation 3.6x Leverage(1) at April 1, 2022 Merger Close 3.5x Leverage(1) as of September 30, 2025 • Generated cash flows from operations of $38M in Q3 • Inclusive of 9 acquisitions post-April 2022 merger with cash portion of purchase price of ~$450M Return Capital to Shareholders • Authorized $37.5M share repurchase program in place • Repurchased shares of $20.0M YTD 2025; $6.3M still available under prior authorizations (1) As defined under DSG’s credit agreement. (2) Inclusive of restricted & unrestricted cash position and availability under credit facility. (3) Defined as Reg G EBITDA less Reg G cash items, less capex, plus/minus change in inventory, accounts receivable & accounts payable divided by Reg G EBITDA. (4) Defined as adjusted net operating profit after tax (NOPAT) divided by invested capital (current assets plus property, plant and equipment (net), rental equipment (net), goodwill, intangible assets (net), and other assets less cash and cash equivalents, accounts payable, accrued expenses and other current liabilities and goodwill related to the April 2022 DSG merger). Organic Growth • Market share growth • Value-accretive initiatives • Wallet-share expansion • Cross-selling opportunities M&A • Adding scale, footprint, product adjacencies & services • Building structurally high margin value added industrial distribution businesses • Disciplined acquisition criteria • Total Liquidity at September 30, 2025 ∼$335M(2) • TTM Free Cash Flow Conversion of ~96%(3) • TTM ROIC of ~11%(4)
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Revenue and Adjusted EBITDA results are presented on an Adjusted (Non-GAAP) and continuing operations basis. See appendix for reconciliation of all GAAP to Non-GAAP measures. Q3 2025 Consolidated Financial Highlights 15 ✔ Q3 revenue of $518M; up $50M or 10.7% over a year ago primarily from organic daily sales growth of 6.0% and three acquisition s closed in the second half of 2024; organic daily sales up 3.1% sequentially over Q2. ✔ Q3 adjusted EBITDA of $48.5M or 9.4% of sales compared to $49.1M. The acquisition of Source Atlantic compressed margins by ~11bps in Q3 over a year ago quarter. Sequentially, Adjusted EBITDA was flat with the second quarter of 2025 primarily due to product and customer mix shifts and higher employee related costs. ✔ Diluted income per share was $0.14 for the quarter compared to diluted income per share of $0.46 in the year-ago quarter which benefitted from a substantial non-recurring tax benefit. Non-GAAP adjusted diluted earnings per share was $0.40 compared to $0.37 for the same period a year ago and $0.35 in the second quarter. ✔ Cash flows for quarter strong at $38.4M; no outstanding borrowings on revolver at quarter end; balance sheet continues to strengthen Adj EBITDA Margin 10.5% 9.3% 9.0% 9.7% 9.4%
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Highly Aligned Leadership / Governance 16 LAWSON PRODUCTS Cesar Lanuza CEO GEXPRO SERVICES Bob Connors CEO TESTEQUITY GROUP Barry Litwin CEO Supported by a base of over 4,400 employees J. Bryan King DSG Chairman & CEO LKCM HW Managing Partner Dedicated LKCM Headwater team investing significant time, resources and well aligned capital Ron Knutson EVP and CFO Lawson and DSG
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LKCM Headwater Introduction DSG Investor Presentation 17 • Private, employee-owned SEC-registered investment advisor • Founded in 1979 with over 75 investment and other professionals • $30.1 billion of assets under management (9/30/2025) • C-corp with 46 years of retained earnings • Primarily long-term, long-equity strategies for individuals and families • LKCM, investment team & affiliates are collectively the firm’s largest client • Private investment arm of LKCM • Over 100 years of collective experience & more than 100 businesses in the distribution space • LKCM, investment team and affiliates are collectively the largest investor (~1/3 of capital) • Engaged group of over 100 retired and active operating executives that are investors in the partnerships and willingness to lean into engagements to improve value within the portfolio • More than $2.1 billion of committed private capital SIGNIFICANT PRIVATE COMPANY DISTRIBUTION EXPERIENCE • LG - Leading distributor of fabricated hose, gaskets and belting for specialized and mission-critical applications • ESP - Value-added provider of mission-critical sealing solutions to diverse end markets • CNC - Leading provider of flow control solutions to the energy industry • Value-added distributor specializing in designing and implementing supply chain solutions / VMI for OEM customers • Leading provider of building automation, controls and gas detection solutions for the commercial buildings market • Value-added instrumentation, controls, automation and rotating equipment distributor with engineering and service capabilities • Largest North American specialty distributor of electronic production supplies and T&M equipment • North America’s leading value-added distributor and service provider of mission-critical communication solutions • High growth value-added distributor, packager and re-packager of generic pharmaceuticals • Provider of supply chain solutions and distributor of indirect materials primarily to manufacturers • Leading value-added instrumentation and valve distributor based in the Gulf Coast CURRENTFORMER
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DSG Investor Presentation Questions? www.lkcmheadwater.com www.lawsonproducts.com www.testequity.com www.gexproservices.com Visit our websites for more information www.distributionsolutionsgroup.com
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DSG Investor Presentation 19 Three Part Advisors, LLC (214) 872-2710 Steven Hooser shooser@threepa.com Sandy Martin smartin@threepa.com Investor Contacts
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Appendix DSG Investor Presentation
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Adjusted Revenue and Adjusted EBITDA results are presented on an Adjusted (Non-GAAP) and continuing operations basis. Information inclusive of Other Acquisition results prior to the acquisition date. Q3 2025 Consolidated Financial Highlights 21 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 Q3 2024-Q3 2025 period. Adj EBITDA Margin 10.3% 9.3 % 9.0 % 9.7 % 9.4 %
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GAAP to Non-GAAP Reconciliations Results are presented on an Adjusted (Non-GAAP) and continuing operations basis 22 Q3 Revenue and Adjusted EBITDA Reconciliation ($000s) (Unaudited) Lawson Products Gexpro Services TestEquity Canada Branch Division All Other Eliminations Consolidated DSG Quarter Ended Q3 2025 Q3 2024 Q3 2025 Q3 2024 Q3 2025 Q3 2024 Q3 2025 Q3 2024 Q3 2025 Q3 2024 Q3 2025 Q3 2024 Q3 2025 Q3 2024 Revenue from external customers $ 121,541 $ 117,953 $ 130,192 $ 115,764 $ 206,310 $ 195,210 $ 59,915 $ 39,092 $ — $ — $ — $ — $ 517,958 $ 468,019 Intersegment revenue 8 4 333 377 169 34 62 — — — (572) (415) — — Revenue $ 121,549 $ 117,957 $ 130,525 $ 116,141 $ 206,479 $ 195,244 $ 59,977 $ 39,092 $ — $ — $ (572) $ (415) $ 517,958 $ 468,019 Operating income (loss) $ 5,385 $ 726 $ 13,880 $ 11,543 $ 2,635 $ 4,329 $ 3,494 $ 2,523 $ (1,775) $ (174) $ 23,619 $ 18,947 Depreciation and amortization 6,666 6,533 3,541 3,840 8,220 7,460 1,615 791 — — 20,042 18,624 Adjustments: Acquisition related costs(1) (17) 2,967 (2) 462 58 875 48 — — (1,403) 87 2,901 Stock-based compensation(2) 1,025 2,209 60 — 925 65 — — 390 158 2,400 2,432 Severance and acquisition related retention expenses(3) 840 2,269 276 13 486 1,275 492 11 — — 2,094 3,568 Inventory step-up(4) — 432 — — — — — 694 — — — 1,126 Other non-recurring(5) 60 337 — 538 27 380 128 — — 257 215 1,512 Non-GAAP adjusted EBITDA $ 13,959 $ 15,473 $ 17,755 $ 16,396 $ 12,351 $ 14,384 $ 5,777 $ 4,019 $ (1,385) $ (1,162) $ 48,457 $ 49,110 Operating income (loss) as a percent of revenue 4.4% 0.6% 10.6% 9.9% 1.3% 2.2% 5.8% 6.5% N/M N/M 4.6% 4.0% Adjusted EBITDA as a percent of revenue 11.5% 13.1% 13.6% 14.1% 6.0% 7.4% 9.6% 10.3% N/M N/M 9.4% 10.5% 1. Transaction and integration costs related to acquisitions. 2. Expense (benefit) primarily for stock-based compensation, of which a portion varies with the Company’s stock price. 3. Includes severance expense for actions taken not related to a formal restructuring plan and acquisition related retention expenses. 4. Inventory fair value step-up adjustment for acquisition accounting related to acquisitions completed. 5. Other non-recurring costs consist of certain non-recurring strategic projects and other non-recurring items. N/M - Not meaningful
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GAAP to Non-GAAP Reconciliations Results are presented on an Adjusted (Non-GAAP) and continuing operations basis 23 Adjusted Revenue and Adjusted EBITDA Reconciliation ($000s) Results Inclusive of Acquisitions – Pre-Acquisition Date (Unaudited) Consolidated DSG Quarter Ended Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Revenue $ 468,019 $ 480,463 $ 478,029 $ 502,437 $ 517,958 Pre-acquisition revenue(1) 28,556 1,534 — — — Adjusted revenue $ 496,575 $ 481,997 $ 478,029 $ 502,437 $ 517,958 Operating income (loss) $ 18,947 $ 20,067 $ 20,097 $ 26,826 $ 23,619 Pre-acquisition operating Income (loss) (1) 447 (870) — — — Adjusted Operating Income (loss) 19,394 19,197 20,097 26,826 23,619 Depreciation and amortization 18,624 20,165 19,979 20,338 20,042 Adjustments: Acquisition related costs(2) 2,901 1,689 108 (208) 87 Stock-based compensation(3) 2,432 910 974 1,250 2,400 Severance and acquisition related retention expenses(4) 3,568 639 1,628 355 2,094 Inventory step-up(5) 1,126 1,122 — — — Other non-recurring(6) 1,512 307 — — 215 Pre-Acquisition add-backs(7) 1,603 935 — — — Adjusted EBITDA $ 51,160 $ 44,964 $ 42,786 $ 48,561 $ 48,457 Operating income (loss) as a percent of revenue 4.0% 4.2% 4.2% 5.3% 4.6% Adjusted EBITDA as a percent of adjusted revenue 10.3% 9.3% 9.0% 9.7% 9.4% References to table footnotes are on slide 24
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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. Expense (benefit) primarily for stock-based compensation, of which a portion varies with the Company’s stock price. 4. Includes severance expense for actions taken not related to a formal restructuring plan and acquisition related retention expenses. 5. Inventory fair value step-up adjustments resulting from the acquisition accounting related to acquisitions completed. 6. Other non-recurring costs consist of certain non-recurring strategic projects and other non-recurring items. 7. Represents additional EBITDA adjustments of other acquisitions prior to the respective acquisition dates. Adjusted Revenue and EBITDA Reconciliation – Table Footnotes 24 GAAP to Non-GAAP Reconciliations
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25 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 Q3 2025 Q3 2024 Q2 2025 Amount Diluted EPS(2) Amount Diluted EPS(2) Amount Diluted EPS(2) Net income (loss) $ 6,452 $ 0.14 $ 21,921 $ 0.46 $ 5,003 $ 0.11 Pretax adjustments: Stock-based compensation 2,400 0.05 2,432 0.05 1,250 0.03 Acquisition related costs 87 — 2,901 0.06 (208) — Amortization of intangible assets 11,650 0.25 11,972 0.25 11,650 0.25 Severance and acquisition related retention expenses 2,094 0.04 3,568 0.08 355 0.01 Change in fair value of earnout liabilities — — 858 0.02 — — Inventory step-up — — 1,126 0.02 — — Other non-recurring 215 — 1,512 0.03 — — Total pretax adjustments 16,446 0.34 24,369 0.51 13,047 0.29 Tax effect on adjustments(1)/(3) (4,307) (0.08) (11,210) (0.23) (3,135) (0.08) Deferred tax asset valuation allowance(3)/(4) 179 — (17,425) (0.37) 1,536 0.03 Non-GAAP adjusted net income $ 18,770 $ 0.40 $ 17,655 $ 0.37 $ 16,451 $ 0.35 Results are presented on an Adjusted (Non-GAAP) and continuing operations basis. 1. The adjustment to the income tax expense (benefit) is determined by excluding the non-GAAP adjustments by jurisdiction. 2. Pretax adjustments to diluted EPS calculated on 47.060 million, 47.560 million and 46.563 million diluted shares for the third quarter of 2025 and 2024,and the second quarter of 2025, respectively. 3. The quarter-to-date amounts are derived from the current period year-to-date amount less the previous quarter year-to-date amount. 4. The estimated impact to the deferred tax asset valuation allowance from interest expense limitations under Section 163(j) determined by including the non-GAAP adjustments by jurisdiction. GAAP to Non-GAAP Reconciliations
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COMPANY FOCUS STRATEGIC RATIONALE CLOSING DATE REVENUE (1) PURCHASE PRICE 2017 Industrial Technologies • Expanded geographic coverage and expanded customer base with an additional ~22,000 customer locations • Complementary value-added products / services (kitting, VMI) January 2017 $45.1 $25.0 Industrial Technologies • Adds scale to highly complementary Lab & Production supplies offering • Bolsters stocked inventory and value-add capabilities (VMI, vending, etc.) July 2017 $77.8 $35.0 MRO • Complementary products in fasteners, power tools and MRO supplies • Provides sales/regional fulfillment expansion opportunity in W Canada October 2017 $34.4 $32.0 2020 MRO • Sizable “DNA match” acquisition for MRO segment • Highly accretive with significant cost synergies August 2020 $64.2 $35.3 2021 OEM • Complementary value-added fabrication capabilities • Highly accretive with significant synergies June 2021 $5.3 $6.5 Industrial Technologies • European beachhead for Industrial Technologies segment • Supplier expansion and further penetration into Telecom/5G market July 2021 $9.7 $14.4 OEM • Strategic expansion into Canada & Mexico for OEM segment • Loyal customer base with high service levels in new and existing markets November 2021 $28.3 $18.9 OEM • Highly accretive “DNA match” with diversified end markets • Natural tuck-in with value-add product offering and strong management December 2021 $9.6 $11.8 Historical Acquisitions Note: $ figures in millions. List includes highlighted acquisitions executed under LKCM Headwater stewardship. 1. Represents trailing twelve-month measurement period at close. 26
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COMPANY FOCUS STRATEGIC RATIONALE CLOSING DATE REVENUE (1) PURCHASE PRICE 2022 OEM • Leading global renewables supplier within the OEM segment • Opened new strategic markets in Europe, the Middle East, and Asia January 2022 $31.9 $38.0 OEM • Enhances B & C-class product and service offering to Renewables market • Significant commercial synergies and delivers manufacturing capabilities March 2022 $21.9 $30.0 Industrial Technologies • Adds complementary product lines (handhelds), brands and customers • Digital go-to-market supplements Industrial Technology’s sales model April 2022 $113.0 $55.0 Industrial Technologies • Adds complementary product lines with reconditioned equipment • Strong focus on rental and leasing purchase options June 2022 $9.0 $7.8 Industrial Technologies • Adds complementary product lines with reconditioned equipment • Natural tuck-in with expanded markets in Europe December 2022 $7.0 $3.9 2023 Industrial Technologies • Adds complementary product lines, including adhesives, chemicals and tapes as well as specialty materials such as electrostatic discharge, thermal management materials and static shielding bags. June 2023 $422.6 $269.1 2024 MRO • Adds complementary product lines in the safety category, which accelerates Lawson’s safety product category by over four times. January 2024 $13.0 $10.0 MRO • Extends Lawson’s automotive product category and expands market reach with automotive dealers May 2024 $40.0 $80.0 MRO • Extends Lawson’s MRO supplies, safety products, fasteners, and related value-add services and operating footprint in the Canadian market August 2024 $185.0 $105.0 OEM • A distributor of fasteners, mechanical components, and other industrial products in Southeast Asia • Supports our existing large OEM customers’ expansion plans while providing us with a strategic foothold in this growing region October 2024 $4.5 $5.9 Industrial Technologies • Expands Test & Measurement leasing and calibration offerings, deepens national customer relationships • Expands resources in the Northeast November 2024 $12.0 $17.0 HIGHLIGHTED TOTAL ~$1,134 ~$801 Note: $ figures in millions. List includes highlighted acquisitions executed under LKCM Headwater stewardship. 1. Represents trailing twelve-month measurement period at close. Historical Acquisitions (Continued) 27
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28 DSG is a best-in-class specialty distribution company providing high-touch, value-added distribution solutions to the MRO, OEM, and Industrial Technologies verticals in a diversified set of end markets. We take a solutions-based approach to serving our customers the way they want to be served. DSG operates under three distinct verticals with many benefits of a scaled, integrated platform. Who We Are