DXP Enterprises, Inc. Reports Third Quarter 2025 Results
DXP Enterprises, Inc. reported its third quarter 2025 financial results, showing significant growth. Sales increased by 8.6% to $513.7 million, with net income rising by 2.5% to $21.6 million. GAAP diluted EPS was $1.31, and adjusted EBITDA reached $56.5 million. The company completed three acquisitions during the quarter, aiming to diversify its market presence. Management expressed optimism for fiscal year 2026, focusing on strategic initiatives and maintaining a strong balance sheet.
DXP Enterprises, Inc., a leading distributor of products and services to industrial customers across North America and Dubai, has released its financial results for the third quarter of 2025. The company reported significant growth in several key financial metrics, reflecting its ongoing strategic initiatives and operational efficiency.
Financial Highlights
For the third quarter ended September 30, 2025, DXP Enterprises reported:
- Sales increased by 8.6% year-over-year to $513.7 million, up from $472.9 million in the same period of 2024.
- Net income rose by 2.5% to $21.6 million, compared to $21.1 million in the third quarter of 2024.
- GAAP diluted earnings per share (EPS) were $1.31, up from $1.27 in the third quarter of 2024.
- Adjusted EBITDA was $56.5 million, representing an 11.0% margin, compared to $52.4 million and an 11.1% margin in the third quarter of 2024.
- Cash flow from operating activities increased by 23.1% to $34.9 million, compared to $28.3 million in the third quarter of 2024.
- Free cash flow increased by 15.4% to $28.1 million, compared to $24.4 million in the third quarter of 2024.
Business and Operational Highlights
DXP's business segments showed varied performance:
- Service Centers: Revenue increased by 10.5% year-over-year to $350.2 million, with an operating income margin of 14.7%.
- Innovative Pumping Solutions: Revenue grew by 11.9% year-over-year to $100.6 million, with an operating income margin of 18.3%.
- Supply Chain Services: Revenue decreased by 5.0% year-over-year to $63.0 million, with an operating income margin of 8.4%.
Strategic Initiatives and Corporate Developments
During the third quarter, DXP completed three acquisitions and two additional acquisitions subsequent to the quarter's end. These acquisitions are part of the company's strategy to diversify and expand its market presence. As of September 30, 2025, DXP's total debt stood at $644.0 million, with a secured leverage ratio of 2.31:1.0.
Management's Perspective
David R. Little, Chairman and CEO, commented on the results, stating, "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."
Kent Yee, CFO and Senior Vice President, added, "DXP achieved yet another high watermark quarter with $513.7 million in sales. This quarter's financial results reflect continued execution of our strategic goals and the impact of our diversification efforts."
Future Outlook
DXP Enterprises expects to finish fiscal year 2025 strong, with momentum carrying into fiscal year 2026. The company remains focused on executing its strategic initiatives and maintaining a strong balance sheet to support its growth objectives.
Original SEC Filing: DXP ENTERPRISES INC [ DXPE ] - 8-K - Nov. 06, 2025
