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

DXP Enterprises, Inc. Reports Fourth Quarter and Fiscal 2025 Results February 25, 2026 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 DXP Enterprises, Inc. Kent Yee, 713-996-4700 Senior Vice President, CFO www.dxpe.com Source: DXP Enterprises, Inc.