EX-99.1 2 earningsrelease9302025.htm EX-99.1 Document
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NEWS RELEASE
CONTACT: Kent Yee
Senior Vice President, CFO
713-996-4700
www.dxpe.com

DXP ENTERPRISES, INC. REPORTS THIRD QUARTER 2025 RESULTS

•$123.8 million in cash
•$513.7 million in sales, an 8.6 percent year-over-year increase
•GAAP diluted EPS of $1.31
•$56.5 million in earnings before interest, taxes, depreciation & amortization and other non-cash charges ("Adjusted EBITDA")
•Completed three acquisitions through Q3 and two subsequent to quarter end

Houston, TX – November 6, 2025 – DXP Enterprises, Inc. ("DXP" or the "Company") (NASDAQ: DXPE) today announced financial results for the third quarter ended September 30, 2025. The following are results for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, and June 30, 2025, where appropriate. A reconciliation of the non-GAAP financial measures can be found in the back of this press release.

Third Quarter 2025 Financial Highlights:

•Sales increased 8.6 percent to $513.7 million compared to $472.9 million for the third quarter of 2024 and increased 3.0 percent sequentially from $498.7 million for the second quarter of 2025.
•Net income increased 2.5 percent for the third quarter to $21.6 million, compared to $21.1 million for the third quarter of 2024.
•Earnings per diluted share for the third quarter was $1.31 based upon 16.5 million diluted shares, compared to $1.27 earnings per diluted share in the third quarter of 2024, based on 16.6 million diluted shares.
•Adjusted EBITDA for the third quarter was $56.5 million compared to $52.4 million for the third quarter of 2024. Adjusted EBITDA as a percentage of sales, or Adjusted EBITDA margin, was 11.0 percent and 11.1 percent, respectively.
•Cash flow from operating activities increased 23.1 percent for the third quarter to $34.9 million, compared to $28.3 million for the third quarter of 2024.
•Free Cash Flow (cash flow from operating activities less capital expenditures) increased 15.4 percent for the third quarter to $28.1 million, compared to $24.4 million for third quarter of 2024.

Business segment financial highlights:

•Service Centers’ revenue for the third quarter was $350.2 million, an increase of 10.5 percent year-over-year, with a 14.7 percent operating income margin.
•Innovative Pumping Solutions’ revenue for the third quarter was $100.6 million, an increase of 11.9 percent year-over-year, with a 18.3 percent operating income margin.
•Supply Chain Services’ revenue for the third quarter was $63.0 million, a decrease of 5.0 percent year-over-year, with a 8.4 percent operating income margin.

David R. Little, Chairman and Chief Executive Officer commented, "The Company posted excellent third quarter financial results, delivering solid sales, adjusted EBITDA, earnings per share and free cash flow. Third quarter results reflect the continued execution of our growth strategy. We continue to set new high watermarks as DXPeople. We are pleased with our sequential sales growth. This resulted in operating leverage that produced diluted earnings per share of $1.31. DXP’s fiscal year 2025 third quarter sales were $513.7 million, or an 8.6 percent growth over the same period in 2024. Adjusted EBITDA was $56.5 million in the quarter. During the third quarter of 2025, sales were $350.2 million for Service Centers, $100.6 million for Innovative Pumping Solutions, and $63.0 million for Supply Chain Services. Overall, we are very pleased with our performance and the progress DXP continues to make as a growth company."

Kent Yee, Chief Financial Officer and Senior Vice President, remarked, "DXP achieved yet another high watermark quarter with $513.7 million in sales. We have closed three acquisitions through the third quarter, and we have closed two acquisitions during the fourth quarter thus far with more to come. This quarters financial results reflect continued execution of our strategic goals and the impact of our diversification efforts, and a strong balance sheet to support our key initiatives. Total debt outstanding as of September 30, 2025, was $644.0 million. DXP’s secured leverage ratio or net debt to EBITDA ratio was 2.31:1.0 with a covenant
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NEWS RELEASE
CONTACT: Kent Yee
Senior Vice President, CFO
713-996-4700
www.dxpe.com
EBITDA of $225.1 million for the last twelve months ending September 30, 2025. We expect to finish fiscal year 2025 strong with momentum going into fiscal year 2026."

Conference Call Information
DXP Enterprises, Inc. management will host a conference call, November 6, 2025, at 3:30 p.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

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 North America and Dubai. 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.

Non-GAAP Financial Measures

DXP supplements reporting of net income with certain non-GAAP measurements, including EBITDA, Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Net Income, and Adjusted Diluted EPS. This supplemental information should not be considered in isolation or as a substitute for the unaudited GAAP measurements. Additional information regarding EBITDA, Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Net Income, Adjusted Diluted EPS, and net debt 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 facilities. 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 to its most directly comparable GAAP financial measure, 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. Free Cash Flow reconciles to the most directly comparable GAAP financial measure of cash flows from operations as provided below. We believe Free Cash Flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to fund acquisitions, make investments, repay debt obligations, repurchase shares of the Company's common stock, and for certain other activities. Adjusted Net Income reconciles to the most directly comparable GAAP financial measure of Net Income as provided below. We believe Adjusted Net Income is important because it provides the investor with further clarity around Net Income excluding the impact of unique or one-time items during the respective period.

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NEWS RELEASE
CONTACT: Kent Yee
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Information Related to Forward-Looking Statements

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 Company's expectations regarding the filing of the Form 10-Q; the description of the anticipated changes in the Company's consolidated balance sheet and the results of operations and the Company's assessment of the impact of such anticipated changes; 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: the effectiveness of management’s strategies and decisions; our ability to implement our internal growth and acquisition growth strategies; general economic and business conditions specific to our primary customers; changes in government regulations; our ability to effectively integrate businesses we may acquire; new or modified statutory or regulatory requirements; availability of materials and labor; inability to obtain or delay in obtaining government or third-party approvals and permits; non-performance by third parties of their contractual obligations; unforeseen hazards such as weather conditions, acts of war or terrorist acts and the governmental or military response thereto; cyber-attacks adversely affecting our operations; other geological, operating and economic considerations and declining prices and market conditions, including supply or demand for maintenance, repair and operating products, equipment and service; inability of the Company or its independent auditors to complete the work necessary in order to file the Form 10-Q in the expected time frame; unanticipated changes to the Company's operating results in the Form 10-Q as filed or in relation to prior periods, including as compared to the anticipated changes stated here; unanticipated impact of such changes and its materiality; ability to obtain needed capital, dependence on existing management, leverage and debt service, domestic or global economic conditions, 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. 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 Securities and Exchange Commission, 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.

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NEWS RELEASE
CONTACT: Kent Yee
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713-996-4700
www.dxpe.com

DXP ENTERPRISES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ thousands, except share amounts)

Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Sales$513,724 $472,935 $1,488,975 $1,331,126 
Cost of sales352,465 326,825 1,019,638 923,341 
Gross profit161,259 146,110 469,337 407,785 
Selling, general and administrative expenses117,561 106,502 339,138 301,694 
Income from operations43,698 39,608 130,199 106,091 
Interest expense
14,894 15,716 44,298 46,644 
Other (income) expense, net(648)160 (2,320)(2,844)
Income before income taxes29,452 23,732 88,221 62,291 
Provision for income taxes 7,821 2,631 22,389 13,165 
Net income 21,631 21,101 65,832 49,126 
Preferred stock dividend23 23 68 68 
Net income attributable to common shareholders$21,608 $21,078 $65,764 $49,058 
Net income$21,631 $21,101 $65,832 $49,126 
Foreign currency translation adjustments(709)380 1,940 (141)
Comprehensive income$20,922 $21,481 $67,772 $48,985 
Earnings per share:
Basic$1.38 $1.34 $4.19 $3.08 
Diluted$1.31 $1.27 $3.98 $2.93 
Weighted average common shares outstanding:
Basic15,686 15,750 15,693 15,915 
Diluted16,526 16,590 16,533 16,755 

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NEWS RELEASE
CONTACT: Kent Yee
Senior Vice President, CFO
713-996-4700
www.dxpe.com
DXP ENTERPRISES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
($ thousands, except share amounts)

September 30, 2025December 31, 2024
ASSETS
Current assets:
Cash$123,829 $148,320 
Restricted cash— 91 
Accounts receivable, net of allowance of $4,175 and $5,172, respectively379,328 339,365 
Inventories109,055 103,113 
Costs and estimated profits in excess of billings57,696 50,735 
Prepaid expenses and other current assets57,020 20,250 
Total current assets726,928 661,874 
Property and equipment, net110,957 81,556 
Goodwill466,710 452,343 
Other intangible assets, net75,419 85,679 
Operating lease right of use assets, net59,936 46,569 
Other long-term assets4,504 21,473 
Total assets$1,444,454 $1,349,494 
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of debt$6,595 $6,595 
Trade accounts payable115,216 103,728 
Accrued wages and benefits47,693 41,650 
Customer advances15,864 13,655 
Billings in excess of costs and estimated profits17,060 12,662 
Short-term operating lease liabilities17,163 14,921 
Other current liabilities42,697 50,773 
Total current liabilities262,288 243,984 
Long-term debt, net of unamortized debt issuance costs and discounts619,396 621,684 
Long-term operating lease liabilities44,535 33,159 
Other long-term liabilities29,896 27,879 
Total long-term liabilities693,827 682,722 
Total liabilities956,115 926,706 
Commitments and Contingencies
Shareholders' equity:
Series A preferred stock, $1.00 par value; 1,000,000 shares authorized11
Series B preferred stock, $1.00 par value; 1,000,000 shares authorized15 15 
Common stock, $0.01 par value, 100,000,000 shares authorized; 20,404,367 issued and 15,677,406 outstanding at September 30, 2025 and 20,402,861 issued and 15,695,088 outstanding at December 31, 2024204 204 
Additional paid-in capital219,329 219,511 
Retained earnings455,434 389,670 
Accumulated other comprehensive loss(31,670)(33,610)
Treasury stock, at cost 4,726,961 and 4,707,773 shares, respectively(154,974)(153,003)
Total DXP Enterprises, Inc. equity488,339 422,788 
Total liabilities and equity$1,444,454 $1,349,494 
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NEWS RELEASE
CONTACT: Kent Yee
Senior Vice President, CFO
713-996-4700
www.dxpe.com
SEGMENT DATA
($ thousands, unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
Sales2025202420252024
Service Centers$350,179 $316,831 $1,016,985 $911,783 
Innovative Pumping Solutions100,551 89,825 280,273 225,417 
Supply Chain Services62,994 66,279 191,717 193,926 
Total Sales$513,724 $472,935 $1,488,975 $1,331,126 
Three Months Ended September 30,Nine Months Ended September 30,
Operating Income2025202420252024
Service Centers$51,346 $46,155 $148,561 $130,330 
Innovative Pumping Solutions18,399 18,207 50,448 38,543 
Supply Chain Services5,304 5,568 16,096 16,653 
Total Segments Operating Income
$75,049 $69,930 $215,105 $185,526 

RECONCILIATION OF OPERATING INCOME FOR REPORTABLE SEGMENTS
($ thousands, unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Income from operations for reportable segments$75,049 $69,930 $215,105 $185,526 
Adjustment for:
Amortization of intangibles
5,370 5,245 16,053 14,333 
Corporate expenses25,981 25,077 68,853 65,102 
Income from operations$43,698 $39,608 $130,199 $106,091 
Interest expense14,894 15,716 44,298 46,644 
Other (income) expense, net(648)160 (2,320)(2,844)
Income before income taxes$29,452 $23,732 $88,221 $62,291 
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NEWS RELEASE
CONTACT: Kent Yee
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713-996-4700
www.dxpe.com

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
($ thousands, unaudited)

We define and calculate EBITDA as Net income attributable to DXP Enterprises, Inc., plus interest, taxes, depreciation, and amortization. We define and calculate Adjusted EBITDA as Net income attributable to DXP Enterprises, Inc., plus interest, taxes, depreciation, and amortization minus stock-based compensation expense and all other non-cash charges, adjustments, and non-recurring items. We identify the impact of all other non-cash charges, adjustments and non-recurring items because we believe these items do not directly reflect our underlying operations.

We define and calculate EBITDA Margin as EBITDA divided by sales. We define and calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by sales.

The following table sets forth the 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 September 30,Nine Months Ended September 30,
2025202420252024
Income before income taxes
$29,452 $23,732 $88,221 $62,291 
Plus: Interest expense
14,894 15,716 44,298 46,644 
Plus: Depreciation and amortization
9,920 8,720 28,544 24,385 
EBITDA$54,266 $48,168 $161,063 $133,320 
Plus: other non-recurring items(1)
757 2,950 992 4,292 
Plus: stock compensation expense1,478 1,322 4,278 3,398 
Adjusted EBITDA$56,501 $52,440 $166,333 $141,010 
Operating Income Margin8.5 %8.4 %8.7 %8.0 %
Net Income Margin
4.2 %4.5 %4.4 %3.7 %
EBITDA Margin10.6 %10.2 %10.8 %10.0 %
Adjusted EBITDA Margin11.0 %11.1 %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.



















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CONTACT: Kent Yee
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We define and calculate organic sales to include locations and acquisitions under our ownership for at least twelve months. "Acquisition Sales" are sales from acquisitions that have been under our ownership for less than twelve months and are excluded in our calculation of Organic Sales.

"Business Days" are days of the week, excluding Saturdays, Sundays, and holidays, that our locations are open during the year. Depending on the location and the season, our branches may be open on Saturdays and Sundays; however, for consistency, those days have been excluded from the calculation of Business Days.

We define and calculate Sales per Business Day as sales divided by the number of Business Days in the relevant reporting period.

We define and calculate Organic Sales per Business Day as Organic Sales divided by the number of Business Days in the relevant reporting period.

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 September 30,Nine Months Ended September 30,
2025202420252024
Sales by Business Segment
Service Centers$350,179 $316,831 $1,016,985 $911,783 
Innovative Pumping Solutions100,551 89,825 280,273 225,417 
Supply Chain Services62,994 66,279 191,717 193,926 
Total DXP Sales$513,724 $472,935 $1,488,975 $1,331,126 
Acquisition Sales$18,403 $28,535 $74,120 $63,713 
Organic Sales$495,321 $444,400 $1,414,855 $1,267,413 
Business Days6464190191
Sales per Business Day$8,027 $7,390 $7,837 $6,969 
Organic Sales per Business Day$7,739 $6,944 $7,447 $6,636 

We define and calculate free cash flow as net cash (used in) provided by operating activities less purchases of property and equipment.

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

Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Net cash from operating activities$34,886 $28,344 $56,505 $70,068 
Less: purchases of property and equipment(6,740)(3,954)(37,000)(15,673)
Free Cash Flow$28,146 $24,390 $19,505 $54,395 

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NEWS RELEASE
CONTACT: Kent Yee
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713-996-4700
www.dxpe.com
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 September 30,Nine Months Ended September 30,
2025202420252024
Net Income
$21,631 $21,101 $65,832 $49,126 
One-time non-recurring costs
757 2,950 992 4,292 
Adjustment for taxes
(201)(327)(252)(907)
Adjusted Net Income
$22,187 $23,724 $66,572 $52,511 
Weighted average common shares outstanding
Diluted16,526 16,590 16,533 16,755 
Diluted Earnings per Share $1.31 $1.27 $3.98 $2.93 
Adjusted Diluted Earnings per Share$1.34 $1.43 $4.03 $3.13 
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