Trading Companies and Distributors Sector Outlook — September 2026

Read the report

SlidesScroll

1 of 23

←→Full screen

INDUSTRIALS › CAPITAL GOODS › TRADING COMPANIES AND DISTRIBUTORS

Trading Companies and Distributors: The Premium Sits with Revenue Quality Rather than Scale

This report shows where operating model, revenue quality and execution separate market value across the sector.

September 2026 · Prepared by NeuraCap AI · Confidential

Market data as of 2026-09-28 · primary valuation basis EV / EBITDA (CY2027E)

Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice

Sources & methodology

1

← Previous

1 / 23 · INDUSTRIALS › CAPITAL GOODS › TRADING COMPANIES AND DISTRIBUTORS

Next →

What each page shows

The analyst’s walkthrough of the deck, page by page.

1. 01

   INDUSTRIALS › CAPITAL GOODS › TRADING COMPANIES AND DISTRIBUTORS

   This is the cover slide for the Trading Companies and Distributors sector outlook, dated September 2026.

   We open with the sector's core finding stripped down to a single line: pricing in this group tracks business quality more than sector membership alone. Everything that follows builds the evidence behind that framing.

   Everything on this page

   INDUSTRIALS › CAPITAL GOODS › TRADING COMPANIES AND DISTRIBUTORS Trading Companies and Distributors: The Premium Sits with Revenue Quality Rather than Scale This report shows where operating model, revenue quality and execution separate market value across the sector. September 2026 · Prepared by NeuraCap AI · Confidential Market data as of 2026-09-28 · primary valuation basis EV / EBITDA (CY2027E) Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 1

2. 02
   CONTENTS

   What This Report Covers

   This page lists the report's five sections plus the appendix.

   We've structured this report in five sections plus an appendix, starting with the bottom line and ending with strategic implications. We put the bottom line first on purpose, so a reader who only has time for one section still leaves with the full story. From there, the landscape, valuation, transactions and implications sections each add supporting evidence.

   Everything on this page

   CONTENTS What This Report Covers 01 The Bottom Line Industrial Breadth Holds the Higher Reference Point 02 The Landscape Business Mix Matters More than the Sector Label 03 Valuation & Situations The Premium End Reflects More than Forecast Growth 04 Precedent Transactions Precedent Transactions Put Real Benchmarks Behind Strategic Fit 05 Strategic Implications Strengthen the Operating Evidence Behind the Multiple 06 Appendix Comparables Detail, Methodology, Sources and Assumptions Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 2

3. 03
   01 · THE BOTTOM LINE

   Trading Companies and Distributors Price Industrial Breadth Above Technology and Adjacent Models

   This page states the report's core finding: industrial distribution prices above technology and adjacent models.

   We find that industrial distribution carries a materially higher valuation than technology or adjacent models, with industrial names priced at 12.5x against 8.1x for technology distribution and 8.2x for adjacent models. The premium end of the sector trades at 18.9x while the discount end sits at 7.0x, and because both are forward EV/EBITDA multiples, that spread persists even after expected growth and profit have been credited. Forward EBITDA estimates are available for 20 of 26 companies, giving us a cleaner basis for comparison than revenue alone. Even among names that clear both growth and margin hurdles, the middle multiple is 15.0x, close to the 14.9x among names that clear neither — so business quality, not just scale or screening, continues to explain where the market pays up.

   Everything on this page

   01 · THE BOTTOM LINE Trading Companies and Distributors Price Industrial Breadth Above Technology and Adjacent Models The full story on one page · figures on EV / EBITDA (CY2027E), market data as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Primary valuation basis: EV / EBITDA on CY2027E consensus (20 of 26 companies eligible; multiples failing the platform's plausibility gates are excluded, never plotted). Qualitative characterisations are NeuraCap views. Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 3 1 Industrial Breadth Holds the Higher Reference Point Broadline industrial distribution sits at 12.5x, against 8.1x for broadline technology distribution and 8.2x for adjacent models. The gap is associated with different gross-profit economics, service content and exposure to pass-through revenue. 2 The Two Ends Carry Very Different Expectations The premium end sits at 18.9x, while the discount end sits at 7.0x. Because these are forward EV / EBITDA multiples, the spread remains after forecast growth and profit have already been credited. 3 Forward Profit Compares the Set More Evenly than Revenue Does 20 of 26 companies carry a forward EV / EBITDA estimate, and 20 of the 20 companies with reported forward EBITDA carry a meaningful one. That makes profit the clearer lens for branch, fleet and distribution-centre economics than revenue alone. 4 Simple Screens Leave Room for Business Quality Among the 4 names clearing both growth and margin bars, the middle multiple is 15.0x; among the 3 clearing neither, it is 14.9x. Reorder streams, technical attachment, price/cost spread and working-capital quality remain relevant to the valuation conversation. 11.6x Sector median EV/EBITDA CY2027E consensus · 20 rated of 26 companies 18.9x Premium end EV/EBITDA vs 7.0x at the discount end top quartile (n=5) against bottom quartile (n=5) on EV/EBITDA — the spread the report explains 65 Transactions with disclosed terms 139 recorded in this tier · 3 told as case studies, the full list in the appendix

4. 04
   SECTION 02

   02

   This is a divider introducing Section 02 on how business mix shapes valuation.

   We turn next to the landscape: industrial, technology, specialty and adjacent models sit inside the same sector label but bring different economics to the table. Understanding that mix is the foundation for reading every multiple that follows.

   Everything on this page

   SECTION 02 02 THE LANDSCAPE Business Mix Matters More than the Sector Label Industrial, technology, specialty and adjacent models bring different economics to the same comparison set. 02 of 06 Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 4

5. 05
   02 · MARKET MAP

   Industrial Distribution Anchors the Set, but the Models Do Not Price Alike

   This page maps the approved companies by business segment and their median valuations.

   We group all 26 approved companies by business segment and find that industrial distribution anchors the set at a median of 12.5x, above the technology and adjacent groups. That gap tells us the sector label hides real differences in economics between segments. This segment view is the foundation for every valuation comparison in the report — so read multiples through this lens rather than as one blended sector.

   Everything on this page

   02 · MARKET MAP Industrial Distribution Anchors the Set, but the Models Do Not Price Alike 26 approved companies grouped by business segment · median EV / EBITDA (CY2027E) per group · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Segment grouping follows the platform's classification; group medians on rated names only. "Why it matters" lines are NeuraCap views. Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 5 BROADLINE INDUSTRIAL DISTRIBUTION 16 cos median 12.5x GWW FAST FERG WCC AIT QXO POOL MSM REZI SITE DXPE DNOW DSGR GIC TITN ALTG Branch density, technical selling and MRO consumables can support repeat demand and attached service. BROADLINE TECHNOLOGY DISTRIBUTION 4 cos median 8.1x SNX AVT SCSC CLMB Pass-through revenue and thin retained gross profit make revenue scale a less useful signal of value. BRANCH AND TRADE-COUNTER SPECIALTY SUPPLY 2 cos 15.9x · 1 rated GRWG ZKH Counter sales and same-day availability can matter, but the valuation reference rests on one name with an estimate. ADJACENT MODELS 4 cos median 8.2x INGM HLMN PLUS TNC Different channel, product and service economics make this group a useful boundary for the core peer set.

6. 06
   02 · LANDSCAPE

   The Sector Label Covers Four Distinct Economic Models

   This page describes the four distinct economic models covered by the sector label.

   We break the approved universe into four segments — industrial distribution, technology distribution, specialty distribution and adjacent models — each carrying its own median EV/EBITDA. The differences we see across these groups reflect gross-profit economics and service content more than sector labelling alone. Full company-level detail sits in the appendix for any name a client wants to trace. That means the sector label by itself is not enough to size an opportunity.

   Everything on this page

   02 · LANDSCAPE The Sector Label Covers Four Distinct Economic Models Segment view of the approved universe · EV / EBITDA (CY2027E) medians on rated names · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. "What they do / why it matters" is a NeuraCap view. Full company-level detail in the appendix and companion tables. Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 6 Segment n Share of universe Median EV/EBITDA Names to know What they do — and why it matters Broadline industrial distribution 16 62% 12.5x W.W. Grainger, Inc. (GWW) · Fastenal Company (FAST) · +14 more Industrial breadth sets the anchor. This group combines branch networks, stocked availability and technical coverage. Its value case rests on reorder demand, service attachment and disciplined inventory use. Broadline technology distribution 4 15% 8.1x TD Synnex Corp (SNX) · Avnet, Inc. (AVT) · +2 more Pass-through economics compress the lens. The group sits at 8.1x across 3 names with an estimate. Gross profit retained, supplier authorisation and channel position matter more than headline revenue scale. Branch and trade-counter specialty supply 2 8% 15.9x n=1 GrowGeneration Corp. (GRWG) · ZKH Group Limited (ZKH) Specialty supply needs context. The group sits at 15.9x, based on one name with an estimate. Counter availability, product focus and local customer access can distinguish the model, but the valuation reference is narrow. Adjacent models 4 15% 8.2x Ingram Micro Holding Corporation (INGM) · Hillman Solutions Corp. (HLMN) · +2 more Adjacent models widen the frame. The group sits at 8.2x across 2 names with an estimate. Its channel and product differences help test which economics belong in the core comparison.

7. 07
   SECTION 03

   03

   This is a divider introducing Section 03 on what the premium valuation tier reflects.

   We move now to valuation itself, and specifically to what the premium end of the sector is actually pricing in. Forward profit multiples leave room for revenue quality, technical attachment and execution to separate the two ends — that's what the next pages unpack.

   Everything on this page

   SECTION 03 03 VALUATION & SITUATIONS The Premium End Reflects More than Forecast Growth Forward profit multiples leave room for revenue quality, technical attachment and execution to separate the two ends. 03 of 06 Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 7

8. 08
   03 · PUBLIC MARKET VALUATION

   The Premium End Carries Expectations That Scale Alone Does Not Resolve

   This page ranks the rated companies by EV/EBITDA and shows the spread between the premium and discount ends.

   We rank all 20 rated companies in the sector by EV/EBITDA on CY2027E consensus, with the group's median sitting at 11.6x. The premium end of that ranking sits well above the median, while the discount end sits well below it — and scale alone does not explain the gap. Tier zones on this page split the rated set at its own quartiles, so the comparison is internally consistent. That's the setup for the next few pages, where we look at what actually separates the two ends.

   Everything on this page

   03 · PUBLIC MARKET VALUATION The Premium End Carries Expectations That Scale Alone Does Not Resolve EV / EBITDA (CY2027E) · all 20 rated companies, sorted descending · sector median 11.6x · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Primary valuation basis: EV / EBITDA on CY2027E consensus (20 of 26 companies eligible; multiples failing the platform's plausibility gates are excluded, never plotted). Tier zones are NeuraCap groupings cut at the rated set's quartiles; every multiple quoted on this page is a median on the same EV / EBITDA (CY2027E) basis. Panel commentary is a NeuraCap view. Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 8 PREMIUM · median 18.9x CORE · median 11.6x DISCOUNT · median 7.0x Sector median 11.6x WHAT SEPARATES THE TWO ENDS The spread stays wide. The premium end sits at 18.9x versus 7.0x at the discount end. That gap is observed after forecast profit has already entered the forward multiple. Growth does not order the list. Faster forecast growth appears at both ends of the ranking. Revenue quality, end-market exposure and confidence in forecast EBITDA remain part of the market’s distinction. Operating texture still matters. MRO consumables, integrated supply, technical service and private label penetration can support a different earnings profile from catalogue or pass-through distribution.

9. 09
   03 · VALUATION DRIVERS

   Profitability Separates the Two Ends: Names Above the 9% Margin Line Carry 12.5x Against 10.2x Below It

   This page shows how revenue growth and EBITDA margin cohorts split the valuation multiple.

   We split the rated set at its own margin median and find that companies above the 9% margin line carry a median of 12.5x, against 10.2x below it. That association holds alongside a similar cut on revenue growth, though we read it as association rather than proof that margin alone drives the multiple. This is a NeuraCap view built on the same cohort data shown throughout the report — so profitability, not just growth, deserves a seat in the valuation conversation.

   Everything on this page

   03 · VALUATION DRIVERS Profitability Separates the Two Ends: Names Above the 9% Margin Line Carry 12.5x Against 10.2x Below It Median EV / EBITDA (CY2027E) by revenue-growth cohort and by EBITDA-margin cohort (each split at its covered median) · rated names with estimates · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Cohort medians on rated names with the required estimates (faster n=10; slower n=10; higher-margin n=10; lower-margin n=9). Driver readings are NeuraCap views on the supplied data — association, not causation. Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 9 EV/EBITDA, median per cohort · growth split at 6% · EBITDA-margin split at 9% The Faster-Growing Half Carries the Lower Reference Point The 10 higher-growth names sit at 10.4x, while the 10 lower-growth names sit at 12.5x. The observed split does not support treating forecast growth alone as the valuation answer. Revenue Quality Changes the Growth Read Consumable reorder streams, vending and bin-stock programmes, and attached service can make similar growth rates economically different. Price and Mix Protect Gross Profit Price/cost spread, supplier rebate programmes and private label penetration shape how much revenue reaches EBITDA. Working Capital Tests Growth Quality Inventory turns, obsolete stock and cash conversion show whether expansion funds itself or increases the call on the balance sheet.

10. 10
    03 · SITUATION MAP

    The Same Growth Rate Can Support Very Different Valuation Conversations

    This page maps companies into a growth-versus-valuation situation grid.

    We cut the rated set on EV/EBITDA against the sector median of 11.6x and on revenue growth against the covered median, producing a simple two-by-two situation map. Each cell characterises where a company sits today; it is not a recommendation to buy or sell any name. The same growth rate can sit inside very different valuation conversations — so the situation, not just the growth number, is what a client should be reading.

    Everything on this page

    03 · SITUATION MAP The Same Growth Rate Can Support Very Different Valuation Conversations Cut on EV / EBITDA vs the sector median (11.6x) (rows) and revenue growth vs the covered median (6%) (columns) · observations, not recommendations Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Situation boundaries are the cohort's own medians (Directional, NeuraCap view). This page characterises situations; it does not recommend buying or selling any security. Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 10 Higher Multiple, Higher Growth Above-median multiple · above-median revenue growth 4 names W.W. Grainger, Inc. (GWW) · Fastenal Company (FAST) · WESCO International, Inc. (WCC) · +1 more Among the 4 names in this group, growth and valuation both sit above the set’s reference points. The operating question is whether retention, service attachment and cash conversion can sustain that position. Higher Multiple, Lower Growth Above-median multiple · below-median revenue growth 6 names Applied Industrial Technologies, Inc. (AIT) · MSC Industrial Direct Co., Inc. (MSM) · Distribution Solutions Group, Inc. (DSGR) · +3 more Among the 6 names in this group, the higher multiple sits alongside lower growth. The market may be associating value with earnings durability, mix or confidence in forecast profit rather than growth alone. Lower Multiple, Higher Growth Below-median multiple · above-median revenue growth 6 names Avnet, Inc. (AVT) · QXO, Inc. (QXO) · Dnow Inc. (DNOW) · +3 more Among the 6 names in this group, higher growth has not translated into an above-reference multiple. The key questions are gross-profit quality, working-capital needs and the durability of forecast EBITDA. Lower Multiple, Lower Growth Below-median multiple · below-median revenue growth 4 names Pool Corporation (POOL) · Resideo Technologies, Inc. (REZI) · ePlus inc. (PLUS) · +1 more Among the 4 names in this group, both growth and valuation sit below the reference points. Improving price/cost spread, revenue mix and branch productivity would strengthen the operating case.

11. 11
    03 · GROWTH VS PROFITABILITY

    Growth and Margin Create Four Groups, but They Do Not Fully Order Value

    This page plots growth against margin in four quadrants and shows the median multiple in each.

    We plot revenue growth against EBITDA margin for the 19 companies with both estimates, cut at the covered medians, and take the median EV/EBITDA in each quadrant. Companies that clear both bars are not uniformly the highest-valued group, and companies that clear neither are not uniformly the lowest — the ordering is not as clean as a simple screen would suggest. That tells us growth and margin alone do not fully explain where the market pays up.

    Everything on this page

    03 · GROWTH VS PROFITABILITY Growth and Margin Create Four Groups, but They Do Not Fully Order Value Revenue growth (CY2027E, x-axis) vs EBITDA margin (CY2026E, y-axis) · 19 companies with both estimates · cuts at the covered medians (6% growth, 9% margin) · median EV/EBITDA per quadrant · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Quadrant cuts are the covered set's medians. Quadrant medians on names with a meaningful EV/EBITDA (balanced n=4; margin-only n=6; growth-only n=6; neither n=3). REZI, QXO plotted at the chart edge. Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 11 -20% 0% 20% 0% 5% 10% 15% 20% MARGIN ONLY median 11.6x BALANCED median 15.0x NEITHER median 14.9x GROWTH ONLY median 9.2x REZI TITN ALTG POOL AIT DSGR PLUS GIC MSM WCC SCSC DNOW GWW DXPE FAST CLMB AVT QXO x: revenue growth (CY2027E) · y: EBITDA margin (CY2026E) HOW TO READ THIS Among the 4 names above both bars, the middle multiple is 15.0x. Among the 6 margin-only names, it is 11.6x; among the 6 growth-only names, it is 9.2x. The 3 names below both bars sit at 14.9x, reinforcing that business mix and forecast confidence remain relevant beyond the two-axis screen. The neither median rests on 3 names and is lifted by TITN at 54.7x. Rule of 40 (revenue growth + EBITDA margin ≥ 40%): 1 of 19 names clear it (QXO).

12. 12
    03 · THE AGENDA

    Pricing, Product Mix and Inventory Turns Are the Moves in Play on Revenue Quality and Cash Conversion

    This page lists the operating questions on pricing, product mix and inventory turns for owners and acquirers to resolve.

    We frame this page as the questions an owner or acquirer should be resolving around pricing, product mix and inventory turns. These are the levers that sit behind revenue quality and cash conversion, and they are observations drawn from the cohort data rather than recommendations. Getting these right is what separates names that hold their multiple from names that don't.

    Everything on this page

    03 · THE AGENDA Pricing, Product Mix and Inventory Turns Are the Moves in Play on Revenue Quality and Cash Conversion NeuraCap view · framed as the questions an owner or acquirer should resolve · observations, not recommendations Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. All content on this page is Directional — NeuraCap advisory judgment grounded in the cohort data shown earlier. It does not constitute investment advice. Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 12 Deepen Recurring Customer Spend Expand integrated supply, vending and bin-stock where the customer economics support it. Focus on programmes that increase wallet share and planned reorder activity. What changes the answer: Retention, programme-level contribution and order frequency improve without weakening working capital. Increase Technical and Service Attachment Add repair, fabrication, application support or installed-base service where those capabilities protect the line card and customer relationship. What changes the answer: Attached service raises gross profit per account and reduces exposure to manufacturer-direct competition. Tighten Inventory and Branch Economics Align stocking depth, branch coverage and same-day availability with local demand. Reduce slow-moving inventory without compromising fill rate. What changes the answer: Inventory turns and branch contribution improve while service levels hold. Use Capital Where Adjacency Is Clear Test build-versus-buy choices against product adjacency, supplier access, territory density and integration capacity. What changes the answer: The adjacent model offers customer overlap, supplier fit and a credible path to cash conversion.

13. 13
    SECTION 04

    04

    This is a divider introducing Section 04 on precedent transactions.

    We turn next to precedent transactions, which put real prices behind the strategic fit question. The transaction record shows what buyers have actually agreed to pay across different targets and operating models — so it grounds the valuation discussion in completed deals, not just public trading multiples.

    Everything on this page

    SECTION 04 04 PRECEDENT TRANSACTIONS Precedent Transactions Put Real Benchmarks Behind Strategic Fit The transaction record shows what buyers agreed to pay across different targets and operating models. 04 of 06 Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 13

14. 14
    04 · DEAL CASE STUDIES

    Precedent Transactions Set Different Benchmarks for Different Assets

    This page presents three precedent transaction case studies drawn from the full disclosed-terms list.

    We walk through 3 of the transactions with fully disclosed terms as case studies, out of a broader set of 65 transactions with disclosed terms; the complete list sits in the appendix. Multiples here are LTM at announcement, so they are not directly comparable to the CY2027E public basis used elsewhere in this report, and we don't claim a spread between the two. These case studies show why particular buyers paid what they paid — so use them to stress-test strategic rationale, not to reprice the public comparables.

    Everything on this page

    04 · DEAL CASE STUDIES Precedent Transactions Set Different Benchmarks for Different Assets 3 of 65 transactions with disclosed terms, told as case studies · multiples on LTM financials at announcement where disclosed · the complete list is in the appendix · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. 183 precedent record(s) carry data-quality flags (deal value unit unresolved; divestiture roles reassigned; duplicate filings collapsed); figures are shown as recorded in the filing. 74 recorded transactions with neither a disclosed value nor a multiple are omitted from the precedent list and the case studies (kept in the companion workbook). Deal multiples are LTM at announcement (Definitive, from filings); they are not directly comparable to the CY2027E public basis and no spread is claimed. "Why the deal happened" is a NeuraCap read of the recorded evidence. Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 14 Aug-2022 $191B DXP Enterprises, Inc. acquires Cisco Air Systems, Inc. EV / LTM revenue 3.7x EV / LTM EBITDA n/a WHY THE DEAL HAPPENED The transaction suggests that operating fit and channel position remain central to how buyers assess a distributor. HOW THE TARGET WAS VALUED Its valuation read sits within the wider Trading Companies and Distributors transaction benchmark. Jan-2025 $11.0B QXO, Inc. QXO, Inc. (QXO) Added Branch Density Through Beacon Roofing Supply, Inc. EV / LTM revenue 11.8x EV / LTM EBITDA 11.8x WHY THE DEAL HAPPENED The completed transaction suggests a strategic fit around branch coverage, product adjacency and local customer access. Those features align with the consolidation logic seen across building-products distribution. HOW THE TARGET WAS VALUED The transaction was recorded at $11.0B, with revenue and EBITDA both at 11.8x. The benchmark sits within the range of forward public-company profit multiples. Nov-2022 $7.3B Ritchie Bros. Auctioneers Incorporated acquires IAA, Inc. EV / LTM revenue 3.4x EV / LTM EBITDA n/a WHY THE DEAL HAPPENED The transaction suggests that buyer logic depends on the target’s operating model, customer access and product position. HOW THE TARGET WAS VALUED Its valuation read provides a qualitative reference within the wider transaction record.

15. 15
    SECTION 05

    05

    This is a divider introducing Section 05 on strengthening the operating evidence behind the multiple.

    We close the analysis by turning the data into questions for the next twelve months. Revenue quality, pricing discipline and cash conversion are what sharpen a company's standing beyond scale alone — so this section is where the report becomes actionable.

    Everything on this page

    SECTION 05 05 STRATEGIC IMPLICATIONS Strengthen the Operating Evidence Behind the Multiple Revenue quality, pricing discipline and cash conversion sharpen a company’s standing beyond scale. 05 of 06 Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 15

16. 16
    05 · STRATEGIC IMPLICATIONS

    Higher Valuations Sit with Operating Quality, Beyond Scale Alone

    This page sets out the strategic implications of pricing being tied to operating quality rather than scale.

    We find that higher valuations in this sector sit with operating quality — pricing discipline, technical attachment and cash conversion — more than with scale by itself. For owners, management teams and boards, that puts a premium on protecting the customer economics that support gross profit and on setting a clear capital-allocation test for branch investment and acquisitions. These are NeuraCap views drawn from the analysis in this report, framed as observations rather than recommendations. That's the standard we'd apply to any capital decision in this sector over the next year.

    Everything on this page

    05 · STRATEGIC IMPLICATIONS Higher Valuations Sit with Operating Quality, Beyond Scale Alone NeuraCap view · the questions this data puts on the table for the next twelve months Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. This page is Directional — NeuraCap views drawn from the analysis in this report. Observations, not recommendations. Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 16 FOR OWNERS Protect the Economics Customers Value Prioritise reorder streams, technical attachment and local availability where they deepen the customer relationship and support gross profit. FOR MANAGEMENT TEAMS Turn Growth into Cash-Backed Profit Manage price/cost spread, inventory turns and supplier rebates together. Growth carries more weight when it does not absorb cash faster than it creates earnings. FOR BOARDS Set a Clear Capital-Allocation Test Judge branch investment, service expansion and acquisitions against customer overlap, line-card fit, working-capital needs and contribution to forecast EBITDA.

17. 17
    SECTION 06

    06

    This is a divider introducing Section 06, the full comparable universe and methodology.

    We close the deck with the full comparable universe, the methodology and the source index behind every figure. Every multiple and every transaction referenced earlier in this report is traceable from here — so a client can check any number before acting on it.

    Everything on this page

    SECTION 06 06 APPENDIX The Full Universe, Methodology and Sources Comparables detail behind every figure in the body, the valuation basis, and where each underlying disclosure lives. 06 of 06 Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 17

18. 18
    06 · PUBLIC COMPARABLES (1 OF 2)

    Public Comparables on EV / EBITDA (CY2027E), Grouped by Valuation Tier

    This page lists the first half of the rated public comparables grouped by valuation tier.

    We list all 20 rated companies with an eligible EV/EBITDA, shaded against the sector median of 11.6x, alongside the 6 names without an eligible multiple. Every ticker links back to its underlying source, and the companion workbook carries the complete field set. This is the full public dataset behind every multiple quoted earlier in the report.

    Everything on this page

    06 · PUBLIC COMPARABLES (1 OF 2) Public Comparables on EV / EBITDA (CY2027E), Grouped by Valuation Tier Teal shading marks a EV/EBITDA above the sector median (11.6x); amber marks below · 20 rated companies; 6 not rated (no eligible EV/EBITDA) · tickers link to the underlying source · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. All 20 rated rows are in this appendix and in the companion workbook, which carries the complete field set. Names without an eligible multiple are listed in the companion workbook. Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 18 Company Ticker Segment EV EV/EBITDA (CY2027E) Rev growth EBITDA margin Rule of 40 PREMIUM — ≥15.2x · median 18.9x · 5 companies Titan Machinery Inc. TITN Broadline industrial distribution $1.4B 54.7x 2% 1% 3 Fastenal Company FAST Broadline industrial distribution $58.1B 25.1x 9% 23% 32 Applied Industrial Technologies, Inc. AIT Broadline industrial distribution $12.8B 18.9x 5% 13% 17 W.W. Grainger, Inc. GWW Broadline industrial distribution $61.8B 16.9x 7% 17% 25 GrowGeneration Corp. GRWG Branch and trade-counter specialty supply $81M 15.9x 5% n/a 8 CORE — 8.6x–15.2x · median 11.6x · 10 companies Global Industrial Co GIC Broadline industrial distribution $1.7B 14.9x 5% 8% 12 MSC Industrial Direct Co., Inc. MSM Broadline industrial distribution $7.3B 13.2x 6% 12% 19 DXP Enterprises, Inc. DXPE Broadline industrial distribution $3.7B 13.1x 8% 11% 20 Distribution Solutions Group, Inc. DSGR Broadline industrial distribution $2.4B 11.9x 5% 9% 14 WESCO International, Inc. WCC Broadline industrial distribution $23.6B 11.9x 6% 7% 14 Resideo Technologies, Inc. REZI Broadline industrial distribution $7.2B 11.3x -33% 17% -12 Pool Corporation POOL Broadline industrial distribution $7.5B 10.8x 4% 12% 16 Climb Global Solutions, Inc. CLMB Broadline technology distribution $566M 10.7x 10% 7% 17 Dnow Inc. DNOW Broadline industrial distribution $3.5B 10.2x 7% 4% 14 ePlus inc. PLUS Adjacent: channel and distribution software $2.0B 8.8x 5% 8% 13

19. 19
    06 · PUBLIC COMPARABLES (2 OF 2)

    Public Comparables on EV / EBITDA (CY2027E), Grouped by Valuation Tier

    This page lists the second half of the rated public comparables grouped by valuation tier.

    This second page completes the rated comparable set, continuing the same 11.6x median shading and sourcing as the prior page. Together, both pages give a client the complete rated universe behind the report's public-market conclusions — so nothing in the earlier analysis rests on a hidden subset.

    Everything on this page

    06 · PUBLIC COMPARABLES (2 OF 2) Public Comparables on EV / EBITDA (CY2027E), Grouped by Valuation Tier Teal shading marks a EV/EBITDA above the sector median (11.6x); amber marks below · 20 rated companies; 6 not rated (no eligible EV/EBITDA) · tickers link to the underlying source · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. All 20 rated rows are in this appendix and in the companion workbook, which carries the complete field set. Names without an eligible multiple are listed in the companion workbook. Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 19 Company Ticker Segment EV EV/EBITDA (CY2027E) Rev growth EBITDA margin Rule of 40 DISCOUNT — <8.6x · median 7.0x · 5 companies Avnet, Inc. AVT Broadline technology distribution $11.3B 8.1x 11% 4% 14 Tennant Company TNC Engineered machinery and flow-control distribution $1.5B 7.5x 6% 12% 20 ScanSource, Inc. SCSC Broadline technology distribution $1.2B 7.0x 7% 5% 12 Alta Equipment Group Inc. ALTG Broadline industrial distribution $1.0B 5.5x 3% 9% 13 QXO, Inc. QXO Broadline industrial distribution $10.5B 5.3x 39% 8% 49

20. 20
    06 · PRECEDENT TRANSACTIONS (1 OF 2)

    All Precedent Transactions with Disclosed Terms, Newest First

    This page lists the first half of all precedent transactions with disclosed terms, newest first.

    We list the precedent transactions with disclosed terms, newest first, showing 18 of the 65 transactions with disclosed terms on this pair of pages; the remainder sit in the companion workbook. Deal multiples are LTM at announcement and are not directly comparable to the CY2027E public basis used elsewhere in the report. This is the underlying record behind the case studies shown earlier in the deck.

    Everything on this page

    06 · PRECEDENT TRANSACTIONS (1 OF 2) All Precedent Transactions with Disclosed Terms, Newest First 65 transactions with disclosed terms in this tier (139 recorded) · multiples on LTM financials at announcement where disclosed · deal values link to the underlying filing · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. 183 precedent record(s) carry data-quality flags (deal value unit unresolved; divestiture roles reassigned; duplicate filings collapsed); figures are shown as recorded in the filing. 74 recorded transactions with neither a disclosed value nor a multiple are omitted from the precedent list and the case studies (kept in the companion workbook). Deal multiples are LTM at announcement (Definitive, from filings); they are not directly comparable to the CY2027E public basis and no spread is claimed. 18 of 65 transactions shown; the rest are in the companion workbook. Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 20 Date Transaction EV EV/LTM Rev EV/LTM EBITDA Why it matters Jul-2026 LKCM Headwater Investments, LLC → Distribution Solutions Group, Inc. $2.4B 1.2x 13.5x LKCM Headwater Investments, LLC agreed to acquire Distribution Solutions Group, Inc. (DSGR) in an announced transaction recorded at $2.4B, 1.2x revenue and 13.5x EBITDA. May-2026 Undisclosed buyer → Cognex Corporation $9.2B 9.0x n/a An Undisclosed buyer agreed to acquire Cognex Corporation in an announced transaction recorded at $9.2B and 9.0x revenue. Dec-2025 n/a → WESCO International, Inc. $18.8B 0.8x 12.5x The announced WESCO International, Inc. (WCC) transaction was recorded at $18.8B and 0.8x revenue. Jun-2025 DNOW Inc. → MRC Global Inc. $1.7B 0.6x 9.5x DNOW Inc. (DNOW) completed its acquisition of MRC Global Inc. at a recorded $1.7B, 0.6x revenue and 9.5x EBITDA. Jun-2025 QXO, Inc. → GMS, Inc. $5.0B 0.9x 9.2x QXO, Inc. (QXO) agreed to acquire GMS, Inc. in an announced transaction recorded at $5.0B, 0.9x revenue and 9.2x EBITDA. Feb-2025 AstraZeneca → LANE Supply Inc. n/a 3.6x n/a AstraZeneca agreed to acquire LANE Supply Inc. in an announced transaction recorded at 3.6x revenue. Jan-2025 QXO, Inc. → Beacon Roofing Supply, Inc. $11.0B 11.8x 11.8x QXO, Inc. (QXO) completed its acquisition of Beacon Roofing Supply, Inc. at a recorded $11.0B, with revenue and EBITDA both recorded at 11.8x. Jan-2025 n/a → Custom Truck One Source, Inc. n/a n/a 10.3x The announced Custom Truck One Source, Inc. transaction was recorded at 10.3x EBITDA. Sep-2024 Tyco International Ltd. → Manitex International, Inc. n/a n/a 8.8x Tyco International Ltd. agreed to acquire Manitex International, Inc. in an announced transaction recorded at 8.8x EBITDA.

21. 21
    06 · PRECEDENT TRANSACTIONS (2 OF 2)

    All Precedent Transactions with Disclosed Terms, Newest First

    This page lists the second half of all precedent transactions with disclosed terms, newest first.

    This second page continues the same precedent list, newest first, on the same disclosed-terms and LTM-at-announcement basis as the prior page. Together, the two pages give a client the transactions behind every deal reference made earlier in the report — so the precedent evidence is fully traceable.

    Everything on this page

    06 · PRECEDENT TRANSACTIONS (2 OF 2) All Precedent Transactions with Disclosed Terms, Newest First 65 transactions with disclosed terms in this tier (139 recorded) · multiples on LTM financials at announcement where disclosed · deal values link to the underlying filing · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. 183 precedent record(s) carry data-quality flags (deal value unit unresolved; divestiture roles reassigned; duplicate filings collapsed); figures are shown as recorded in the filing. 74 recorded transactions with neither a disclosed value nor a multiple are omitted from the precedent list and the case studies (kept in the companion workbook). Deal multiples are LTM at announcement (Definitive, from filings); they are not directly comparable to the CY2027E public basis and no spread is claimed. 18 of 65 transactions shown; the rest are in the companion workbook. Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 21 Date Transaction EV EV/LTM Rev EV/LTM EBITDA Why it matters Mar-2024 The Home Depot, Inc. → SRS Distribution Inc. n/a 16.1x 16.1x May-2023 Wasco Holding B.V. → Reeb Millwork Corporation n/a n/a 9.2x May-2023 Rexel S.A. → Reeb Millwork Corporation n/a n/a 9.2x Nov-2022 Ritchie Bros. Auctioneers Incorporated → IAA, Inc. $7.3B 3.4x n/a Nov-2022 Alta Equipment → Ecoverse Industries, LTD n/a n/a 6.6x Value shown as recorded in the filing; deal value unit unresolved. Aug-2022 DXP Enterprises, Inc. → Cisco Air Systems, Inc. $191B 3.7x n/a Value shown as recorded in the filing; deal value unit unresolved. Jul-2022 Alta Equipment Group Inc. → Yale Industrial Trucks, Inc. $34M 0.7x 3.6x May-2022 American Tire Distributors, Inc. → wholesale tire and internal tire distribution operations (unit of wholesale tire operations and internal tire distribution operations) n/a n/a 9.9x Value shown as recorded in the filing; deal value unit unresolved, divestiture roles reassigned. Sep-2021 Alta Equipment Group Inc. → Gibson Machinery, LLC $14M 0.8x 4.5x Value shown as recorded in the filing; deal value unit unresolved.

22. 22
    06 · METHODOLOGY

    Sources, Assumptions and Data Quality

    This page explains the report's sources, assumptions and data-quality treatment.

    We set out here how this report was built: the valuation basis, what was excluded and why, and where every underlying disclosure lives. Every figure in the report links to the record it was taken from, or the appendix names its source directly. This is the page to check before relying on any number in the deck.

    Everything on this page

    06 · METHODOLOGY Sources, Assumptions and Data Quality How this report was built, what was excluded, and where every underlying disclosure lives · as of 2026-09-28 Every figure in this report links to the record it was taken from. Where a figure has no link, the appendix names its source and the basis on which it was read. Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice 22 VALUATION BASIS Primary valuation basis: EV / EBITDA on CY2027E consensus (20 of 26 companies eligible; multiples failing the platform's plausibility gates are excluded, never plotted). EV / EBITDA on CY2027E is the lead convention: it is the sector-appropriate prior for Trading Companies and Distributors and it clears the coverage gate with 20 of 26 companies (77%). EV / Revenue, P / E are carried as a cross-check. The set earns: 20 of the 20 companies with a reported forward EBITDA carry a meaningful one, so the profit multiple leads and a revenue multiple would understate what the market is pricing. DATA QUALITY & EXCLUSIONS 19 records were excluded or quarantined by the platform's validation gates (unit errors, implausible ratios, ineligible securities and classification failures); the full ledger ships in the companion tables and never feeds a statistic in this report. DEFINITIVE VS DIRECTIONAL Definitive content is disclosed or consensus data passed through stated arithmetic. Directional content — tier boundaries, situation cuts, "why it matters" commentary, the agenda pages — is NeuraCap analyst judgment and is labeled as such where it appears. WHAT THIS REPORT IS NOT This report characterises a sector. It does not recommend buying, selling or holding any security, and no statement in it should be read as investment advice or a price target. WHERE THE DATA LIVES 1366 registered source documents stand behind the figures in this report. Metric hyperlinks throughout the deck open the specific filing or data record; by publisher: sec.gov (1365) · home.treasury.gov (1). The companion workbook beside this deck carries the complete source index.

23. 23

    In This Sample, Higher Prices Sit with Business Quality Beyond Scale Alone.

    This is the closing slide restating that higher prices sit with business quality beyond scale.

    In this sample, higher prices sit with business quality beyond scale alone. The companion tables beside this deck carry the full universe, the exclusion ledger and the complete source index for any figure a client wants to trace.

    Everything on this page

    In This Sample, Higher Prices Sit with Business Quality Beyond Scale Alone. NeuraCap AI — Trading Companies and Distributors Coverage September 2026 · Prepared by NeuraCap AI · Confidential Trading Companies and Distributors Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 23

More coverage in Industrials

• Bi-Weekly Update · Sep 28, 2026Trading Companies and Distributors Bi-Weekly Industry Events & M&A Update — September 14–28, 2026
• Sector Report · Sep 28, 2026Office Services and Supplies Sector Outlook — September 2026
• Bi-Weekly Update · Sep 28, 2026Offshore Support and Marine Services Bi-Weekly Industry Events & M&A Update — September 14–28, 2026
• Sector Report · Sep 28, 2026Marketing and Data Services Sector Outlook — September 2026