DXP Enterprises Inc (DXPE)

DXP Enterprises, Inc. Reports Fourth Quarter and Fiscal 2025 ResultsFebruary 25, 2026 5:28 PM
Business Wire

Fiscal 2025 sales of $2.0 billion, up 11.9 percent from fiscal 2024



Full year GAAP diluted EPS of $5.37



$225.3 million in adjusted earnings before interest, taxes, depreciation, amortization and other non-cash charges ("Adjusted EBITDA")



Net income of $88.7 million versus $70.5 million in fiscal 2024



Refinanced Senior Secured Term Loan B raising an incremental $205 million and reduced borrowing costs by 50 basis points



Repurchased 0.2 million shares for $17.0 million in fiscal 2025



$303.8 million in cash and restricted cash



Completed six acquisitions during the fiscal year



DXP Enterprises, Inc. (NASDAQ: DXPE) today announced financial results for the fourth quarter and fiscal year ended December 31, 2025. The following are results for the three and twelve months ended December 31, 2025, compared to the three and twelve months ended December 31, 2024. A reconciliation of the non-GAAP financial measures can be found in the back of this press release.


Fourth Quarter 2025 financial highlights:



Sales increased 12.0 percent to $527.4 million, compared to $470.9 million for the fourth quarter of 2024.



Net income increased 6.9 percent to $22.8 million, compared to $21.4 million for the fourth quarter of 2024.



Diluted earnings per share for the fourth quarter of 2025 was $1.39 based upon 16.4 million diluted shares, compared to $1.29 per share in the fourth quarter of 2024 based on 16.5 million diluted shares. Adjusted diluted earnings per shares was $1.39 per share compared to $1.38 per share for the fourth quarter of 2024.



Adjusted earnings before interest, taxes, depreciation and amortization and other non-cash charges ("Adjusted EBITDA") for the fourth quarter of 2025 was $59.0 million, compared to $50.3 million for the fourth quarter of 2024. Adjusted EBITDA as a percentage of sales was 11.2 percent and 10.7 percent, respectively.



Free cash flow (cash flow from operating activities less capital expenditures) for the fourth quarter was $34.5 million or 59.9 percent of EBITDA.



Fiscal Year 2025 financial highlights:



Sales increased 11.9 percent to $2.0 billion compared to $1.8 billion for fiscal 2024.



Net income increased 25.8 percent to $88.7 million, compared to $70.5 million for fiscal 2024.



Diluted earnings per share for 2025 was $5.37 based upon 16.5 million diluted shares, compared to $4.22 per share in 2024, based on 16.7 million basic shares. Adjusted diluted earnings per share was $5.42 per share compared to $4.51 per share in 2024.



Adjusted EBITDA for 2025 increased to $225.3 million or 17.8 percent, compared to $191.3 million for 2024. Adjusted EBITDA as a percentage of sales was 11.2 percent and 10.6 percent, respectively.



Free cash flow for fiscal 2025 was $54.0 million or 24.7 percent of EBITDA.



Business segment financial highlights:



Service Centers’ revenue for the fiscal year was $1.4 billion, an increase of 11.0 percent year-over-year with a 14.4 percent operating income margin.



Innovative Pumping Solutions’ revenue for the fiscal year was $390.3 million, an increase of 26.4 percent year over year with an 18.0 percent operating income margin.



Supply Chain Services’ revenue for the fiscal year was $252.9 million, a decrease of 1.4 percent year-over-year with a 8.7 percent operating margin.



David R. Little, Chairman and Chief Executive Officer, remarked, “DXP accomplished a lot in 2025, and we would like to thank all our 'DXPeople' for their efforts this year. We were focused on improving and managing our growth, culture, expenses, working capital, and ease of doing business, with our business segments and product divisions. DXPeople drove fourth quarter results well above expectations, with strong performance across DXP. Broad based business strength across the business helped us deliver 11.9 percent revenue growth on a year-over-year basis. This growth has fueled a healthy momentum coming into 2026. DXP’s Innovative Pumping Solutions sales were up 26.4 percent to $390.3 million, followed by Service Centers sales growing 11.0 percent to $1.4 billion and Supply Chain Services sales declining 1.4 percent to $252.9 million. Congratulations to all our DXPeople for their hard work and efforts to serve our customers."


Mr. Little continued, "The sales momentum from the fourth quarter has positioned us for further success as we move into 2026. Additionally, we strengthened our balance sheet in the fourth quarter, raising an incremental $205 million under our Term Loan B. The strength of the balance sheet, the balanced end markets that we have delivered upon, and our ability to continue to execute on acquisitions have set the stage for 2026. We have a positive outlook for end markets like water & wastewater and see positive dynamics developing in the 2nd half of 2026 for our traditional end markets like energy. We are confident our growth strategy, coupled with a continued focus on improving margins and maintaining operational discipline will drive shareholder value."


Kent Yee, Chief Financial Officer commented, "Fiscal 2025 financial performance reflects the execution of our end market diversification efforts, our plans to grow both organically and through acquisitions, and continuous improvement in our operations and efficiency. Total sales and adjusted EBITDA grew 11.9 percent and 17.8 percent, respectively. We delivered strong sales growth, operating margin expansion, and thus, operating leverage of 1.5x. Our fiscal 2025 diluted earnings per share was $5.37. We are pleased with the fourth quarter, and year-end results. We positioned our balance sheet in the fourth quarter to support our growth plans in 2026. DXP ended the year with $303.8 million in cash on the balance sheet and net debt of $543.0 million. DXP’s secured leverage ratio or net debt to EBITDA was 2.3:1.0 with a covenant EBITDA of $241.4 million for fiscal 2025, which continues to remain significantly below our covenant of 5.75:1.0. We continue to have momentum going into fiscal 2026 and we expect to drive both organic and acquisition driven growth while driving shareholder and stakeholder value."


Conference Call Information


DXP Enterprises, Inc. management will host a conference call, February 26, 2026, at 10:30 a.m. Central Time, to discuss the Company’s financial results. The conference call may be accessed by going to https://ir.dxpe.com.


Interested investors and other parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of the Company's website at https://ir.dxpe.com. The online replay will be available on the same website immediately following the call. A slide presentation highlighting the Company’s results and key performance indicators will also be available on the Investor Relations section of the Company’s website.


To learn more about DXP Enterprises, Inc., please visit the Company's website at https://www.dxpe.com


Non-GAAP Financial Measures


DXP supplements reporting of net income with non-GAAP measurements, including EBITDA, adjusted EBITDA, free cash flow, Adjusted Net Income attributable to DXP Enterprises, Inc., and net debt. This supplemental information should not be considered in isolation or as a substitute for the unaudited GAAP measurements. Additional information regarding EBITDA, free cash flow and Adjusted Net Income attributable to DXP Enterprises, Inc. referred to in this press release are included below under "Unaudited Reconciliation of Non-GAAP Financial Information."


The Company believes EBITDA provides additional information about: (i) operating performance, because it assists in comparing the operating performance of the business, as it removes the impact of non-cash depreciation and amortization expense as well as items not directly resulting from core operations such as interest expense and income taxes and (ii) the performance and the effectiveness of operational strategies. Additionally, EBITDA performance is a component of a measure of the Company’s financial covenants under its credit facility. Furthermore, some investors use EBITDA as a supplemental measure to evaluate the overall operating performance of companies in the industry. Management believes that some investors’ understanding of performance is enhanced by including this non-GAAP financial measure as a reasonable basis for comparing ongoing results of operations. By providing this non-GAAP financial measure, together with a reconciliation from net income, the Company believes it is enhancing investors’ understanding of the business and results of operations, as well as assisting investors in evaluating how well the Company is executing strategic initiatives.


About DXP Enterprises, Inc.


DXP Enterprises, Inc. is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout the United States, Canada, Mexico and the U.A.E. DXP provides innovative pumping solutions, supply chain services and maintenance, repair, operating and production ("MROP") services that emphasize and utilize DXP’s vast product knowledge and technical expertise in rotating equipment, bearings, power transmission, metal working, industrial supplies and safety products and services. DXP's breadth of MROP products and service solutions allows DXP to be flexible and customer-driven, creating competitive advantages for our customers. DXP’s business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. For more information, go to www.dxpe.com.


The Private Securities Litigation Reform Act of 1995 provides a “safe-harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made by or to be made by the Company) contains statements that are forward-looking. These forward-looking statements include without limitation those about the Company’s expectations regarding the impact of the COVID-19 pandemic and the impact of low commodity prices of oil and gas; the Company’s business, the Company’s future profitability, cash flow, liquidity, and growth. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future; and accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the Company. These risks and uncertainties include, but are not limited to; decreases in oil and natural gas prices; decreases in oil and natural gas industry expenditure levels, which may result from decreased oil and natural gas prices or other factors; ability to obtain needed capital, dependence on existing management, leverage and debt service, domestic or global economic conditions, economic risks related to the impact of COVID-19, ability to manage changes and the continued health or availability of management personnel and changes in customer preferences and attitudes. In some cases, you can identify forward-looking statements by terminology such as, but not limited to, “may,” “will,” “should,” “intend,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “goal,” or “continue” or the negative of such terms or other comparable terminology. For more information, review the Company’s filings with the Securities and Exchange Commission. More information on these risks and other potential factors that could affect the Company’s business and financial results is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.




DXP ENTERPRISES, INC. AND SUBSIDIARIES




UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS




($ thousands, except per share amounts)










 



 






Three Months Ended December 31,






 






Twelve Months Ended December 31,








 






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








 






 






 






 






 






 






 






 








Sales






$






527,390






 






 






$






470,914






 






 






$






2,016,365






 






 






$






1,802,040






 








Cost of sales






 






360,799






 






 






 






322,422






 






 






 






1,380,437






 






 






 






1,245,763






 








Gross profit






 






166,591






 






 






 






148,492






 






 






 






635,928






 






 






 






556,277






 








Selling, general and administrative expenses






 






119,920






 






 






 






109,201






 






 






 






459,058






 






 






 






410,895






 








Income from operations






 






46,671






 






 






 






39,291






 






 






 






176,870






 






 






 






145,382






 








Interest expense






 






16,232






 






 






 






17,283






 






 






 






60,530






 






 






 






63,927






 








Other income, net






 






(562






)






 






 






(673






)






 






 






(2,882






)






 






 






(3,517






)








Income before income taxes






 






31,001






 






 






 






22,681






 






 






 






119,222






 






 






 






84,972






 








Provision for income taxes






 






8,156






 






 






 






1,318






 






 






 






30,545






 






 






 






14,483






 








Net income






 






22,845






 






 






 






21,363






 






 






 






88,677






 






 






 






70,489






 








Preferred stock dividend






 






22






 






 






 






22






 






 






 






90






 






 






 






90






 








Net income attributable to common shareholders






$






22,823






 






 






$






21,341






 






 






$






88,587






 






 






$






70,399






 








 






 






 






 






 






 






 






 








Net income






$






22,845






 






 






$






21,363






 






 






$






88,677






 






 






$






70,489






 








Foreign currency translation adjustments






 






1,063






 






 






 






(2,229






)






 






 






3,003






 






 






 






(2,370






)








Comprehensive income






$






23,908






 






 






$






19,134






 






 






$






91,680






 






 






$






68,119






 








 






 






 






 






 






 






 






 








Earnings per share:






 






 






 






 






 






 






 








Basic






$






1.46






 






 






$






1.36






 






 






$






5.65






 






 






$






4.44






 








Diluted






$






1.39






 






 






$






1.29






 






 






$






5.37






 






 






$






4.22






 








 






 






 






 






 






 






 






 








Weighted average common shares outstanding:






 






 






 






 






 






 






 








Basic






 






15,595






 






 






 






15,695






 






 






 






15,667






 






 






 






15,861






 








Diluted






 






16,435






 






 






 






16,535






 






 






 






16,507






 






 






 






16,701






 









DXP ENTERPRISES, INC. AND SUBSIDIARIES




UNAUDITED CONSOLIDATED BALANCE SHEETS




($ thousands, except share amounts)










 



 






December 31, 2025






 






December 31, 2024








ASSETS






 






 






 








Current assets:






 






 






 








Cash






$






303,783






 






 






$






148,320






 








Restricted cash






 






—






 






 






 






91






 








Accounts receivable, net of allowance of $3,995 and $5,172, respectively






 






397,502






 






 






 






339,365






 








Inventories






 






108,144






 






 






 






103,113






 








Costs and estimated profits in excess of billings






 






53,855






 






 






 






50,735






 








Prepaid expenses and other current assets






 






47,033






 






 






 






20,250






 








Total current assets






 






910,317






 






 






 






661,874






 








Property and equipment, net






 






114,822






 






 






 






81,556






 








Goodwill






 






494,561






 






 






 






452,343






 








Other intangible assets, net






 






81,351






 






 






 






85,679






 








Operating lease right of use assets, net






 






74,709






 






 






 






46,569






 








Other long-term assets






 






9,395






 






 






 






21,473






 








Total assets






$






1,685,155






 






 






$






1,349,494






 








 






 






 






 








LIABILITIES AND EQUITY






 






 






 








Current liabilities:






 






 






 








Current maturities of debt






$






8,580






 






 






$






6,595






 








Trade accounts payable






 






116,765






 






 






 






103,728






 








Accrued wages and benefits






 






51,180






 






 






 






41,650






 








Customer advances






 






15,460






 






 






 






13,655






 








Billings in excess of costs and estimated profits






 






15,689






 






 






 






12,662






 








Short-term operating lease liabilities






 






19,038






 






 






 






14,921






 








Other current liabilities






 






45,769






 






 






 






50,773






 








Total current liabilities






 






272,481






 






 






 






243,984






 








Long-term debt, net of unamortized debt issuance costs and discounts






 






818,476






 






 






 






621,684






 








Long-term operating lease liabilities






 






57,509






 






 






 






33,159






 








Other long-term liabilities






 






38,250






 






 






 






27,879






 








Total long-term liabilities






 






914,235






 






 






 






682,722






 








Total liabilities






 






1,186,716






 






 






 






926,706






 








Shareholders' Equity:






 






 






 








Series A preferred stock, $1.00 par value; 1,000,000 shares authorized






 






1






 






 






 






1






 








Series B preferred stock, $1.00 par value; 1,000,000 shares authorized






 






15






 






 






 






15






 








Common stock, $0.01 par value, 100,000,000 shares authorized; 20,403,647 issued and 15,513,590 outstanding at December 31, 2025 and 20,402,861 issued and 15,695,088 outstanding at December 31, 2024






 






204






 






 






 






204






 








Additional paid-in capital






 






220,681






 






 






 






219,511






 








Retained earnings






 






478,257






 






 






 






389,670






 








Accumulated other comprehensive loss






 






(30,607






)






 






 






(33,610






)








Treasury stock, at cost 4,890,057 and 4,707,773 shares, respectively






 






(170,112






)






 






 






(153,003






)








Total DXP Enterprises, Inc. equity






 






498,439






 






 






 






422,788






 








Total liabilities and equity






$






1,685,155






 






 






$






1,349,494






 









SEGMENT DATA




($ thousands, unaudited)










 



 






Three Months Ended December 31,






 






Twelve Months Ended December 31,








Sales






 






2025






 






 






2024(1)






 






 






 






2025






 






 






2024(1)






 








Service Centers






$






356,155






 






$






314,673






 






 






$






1,373,140






 






$






1,236,775






 








Innovative Pumping Solutions






 






110,018






 






 






93,752






 






 






 






390,291






 






 






308,850






 








Supply Chain Services






 






61,217






 






 






62,489






 






 






 






252,934






 






 






256,415






 








Total DXP Sales






$






527,390






 






$






470,914






 






 






$






2,016,365






 






$






1,802,040






 








 






 






 






 






 






 






 






 








 






 






 






 






 






 






 






 








 






Three Months Ended December 31,






 






Twelve Months Ended December 31,








Operating Income






 






2025






 






 






2024(1)






 






 






 






2025






 






 






2024(1)






 








Service Centers






$






49,605






 






$






45,686






 






 






$






198,166






 






$






179,522






 








Innovative Pumping Solutions






 






19,775






 






 






14,529






 






 






 






70,223






 






 






51,063






 








Supply Chain Services






 






5,823






 






 






5,088






 






 






 






21,919






 






 






21,742






 








Total segment operating income






$






75,203






 






$






65,303






 






 






$






290,308






 






$






252,327






 








(1) Prior period segment disclosures have been recast









RECONCILIATION OF OPERATING INCOME FOR REPORTABLE SEGMENTS




($ thousands, unaudited)










 



 






Three Months Ended December 31,






 






Twelve Months Ended December 31,








 






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Income from operations for reportable segments






$






75,203






 






 






$






65,303






 






 






$






290,308






 






 






$






252,327






 








Adjustment for:






 






 






 






 






 






 






 








Amortization of intangibles(1)






 






5,617






 






 






 






5,494






 






 






 






21,670






 






 






 






19,827






 








Corporate expenses, net






 






22,915






 






 






 






20,518






 






 






 






91,768






 






 






 






87,118






 








Income from operations






$






46,671






 






 






$






39,291






 






 






$






176,870






 






 






$






145,382






 








Interest expense






 






16,232






 






 






 






17,283






 






 






 






60,530






 






 






 






63,927






 








Other (income) expense, net






 






(562






)






 






 






(673






)






 






 






(2,882






)






 






 






(3,517






)








Income before income taxes






$






31,001






 






 






$






22,681






 






 






$






119,222






 






 






$






84,972






 








(1) Amortization of intangible assets is recorded at the corporate level.









RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION








($ thousands, unaudited)








 




The following table is a reconciliation of EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin to the most comparable U.S. GAAP financial measure (in thousands):










 





 



 






Three Months Ended December 31,






 






Twelve Months Ended December 31,








 






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Income before income taxes






$






31,001






 






 






$






22,681






 






 






$






119,222






 






 






$






84,972






 








Plus: Interest expense






 






16,232






 






 






 






17,283






 






 






 






60,530






 






 






 






63,927






 








Plus: Depreciation and amortization






 






10,306






 






 






 






9,020






 






 






 






38,850






 






 






 






33,405






 








EBITDA






$






57,539






 






 






$






48,984






 






 






$






218,602






 






 






$






182,304






 








Plus: stock compensation expense






 






1,430






 






 






 






1,316






 






 






 






5,708






 






 






 






4,714






 








Plus: other non-recurring items(1)






 






—






 






 






 






—






 






 






 






992






 






 






 






4,292






 








Adjusted EBITDA






$






58,969






 






 






$






50,300






 






 






$






225,302






 






 






$






191,310






 








 






 






 






 






 






 






 






 








Operating Income Margin






 






8.8






%






 






 






8.3






%






 






 






8.8






%






 






 






8.1






%








EBITDA Margin






 






10.9






%






 






 






10.4






%






 






 






10.8






%






 






 






10.1






%








Adjusted EBITDA Margin






 






11.2






%






 






 






10.7






%






 






 






11.2






%






 






 






10.6






%








(1) Other non-recurring items includes unique acquisition integration costs and other non-cash, non-recurring costs not related to continuing business operations.









The following table sets forth the reconciliation of Acquisition Sales, Organic Sales and Organic Sales per Business Day to the most comparable U.S. GAAP financial measure (in thousands):










 



 






Three Months Ended December 31,






 






Twelve Months Ended December 31,








 






 






2025






 






 






2024(1)







 






 






2025






 






 






2024(1)









Sales by Business Segment






 






 






 






 






 






 






 








Service Centers






$






356,155






 






$






314,673






 






 






$






1,373,140






 






$






1,236,775






 








Innovative Pumping Solutions






 






110,018






 






 






93,752






 






 






 






390,291






 






 






308,850






 








Supply Chain Services






 






61,217






 






 






62,489






 






 






 






252,934






 






 






256,415






 








Total DXP Sales






$






527,390






 






$






470,914






 






 






$






2,016,365






 






$






1,802,040






 








Acquisition Sales






$






21,923






 






$






34,787






 






 






$






96,043






 






$






98,500






 








Organic Sales






$






505,467






 






$






436,127






 






 






$






1,920,322






 






$






1,703,540






 








 






 






 






 






 






 






 






 








Business Days






 






62






 






 






62






 






 






 






252






 






 






253






 








Sales per Business Day






$






8,506






 






$






7,595






 






 






$






8,001






 






$






7,123






 








Organic Sales per Business Day






$






8,153






 






$






7,034






 






 






$






7,620






 






$






6,733






 








(1) Prior period segment disclosures have been recast.









RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION CONTINUED








($ thousands, unaudited)







 



The following table sets forth a reconciliation of Free Cash Flow to the most comparable U.S. GAAP financial measure (in thousands):










 



 






Three Months Ended December 31,






 






Twelve Months Ended December 31,








 






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Net cash from operating activities






$






37,759






 






 






$






32,143






 






 






$






94,264






 






 






$






102,211






 








Less: purchases of property and equipment, net






 






(3,286






)






 






 






(9,395






)






 






 






(40,286






)






 






 






(25,068






)








Free Cash Flow






$






34,473






 






 






$






22,748






 






 






$






53,978






 






 






$






77,143






 








 






 






 






 






 






 






 






 









The following table is a reconciliation of adjusted net income attributable to DXP Enterprises, Inc., a non-GAAP financial measure, to net income, calculated and reported in accordance with U.S. GAAP (in thousands):










 



 






Three Months Ended December 31,






 






Twelve Months Ended December 31,








 






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Net Income






$






22,845






 






 






$






21,363






 






 






$






88,677






 






 






$






70,489






 








One-time debt financing costs






 






 






 






1,623






 






 






 






—






 






 






 






1,623






 








Other non-cash items






 






—






 






 






 






—






 






 






 






992






 






 






 






4,292






 








Adjustment for taxes






 






(2






)






 






 






(101






)






 






 






(254






)






 






 






(1,008






)








Adjusted Net Income






$






22,843






 






 






$






22,885






 






 






$






89,415






 






 






$






75,396






 








 






 






 






 






 






 






 






 








Weighted average common shares and common equivalent shares outstanding






 






 






 






 






 






 






 








Diluted






 






16,435






 






 






 






16,535






 






 






 






16,507






 






 






 






16,701






 








 






 






 






 






 






 






 






 








Diluted Earnings per Share






$






1.39






 






 






$






1.29






 






 






$






5.37






 






 






$






4.22






 








Adjusted Diluted Earnings per Share






$






1.39






 






 






$






1.38






 






 






$






5.42






 






 






$






4.51






 







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260225639080/en/
DXP Enterprises, Inc.

Kent Yee, 713-996-4700

Senior Vice President, CFO

www.dxpe.com


Original: DXP Enterprises, Inc. Reports Fourth Quarter and Fiscal 2025 Results