EX-99.1 2 earningsrelease12312025.htm EX-99.1 Document
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NEWS RELEASE
CONTACT: Kent Yee
Senior Vice President, CFO
www.dxpe.com
THE INDUSTRIAL DISTRIBUTION EXPERTS

DXP ENTERPRISES, INC. REPORTS FOURTH QUARTER AND FISCAL 2025 RESULTS

•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

Houston, TX – February 25, 2026 – 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.







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NEWS RELEASE
CONTACT: Kent Yee
Senior Vice President, CFO
www.dxpe.com
THE INDUSTRIAL DISTRIBUTION EXPERTS
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."

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NEWS RELEASE
CONTACT: Kent Yee
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www.dxpe.com
THE INDUSTRIAL DISTRIBUTION EXPERTS
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.
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NEWS RELEASE
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THE INDUSTRIAL DISTRIBUTION EXPERTS

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,
2025202420252024
Sales$527,390 $470,914 $2,016,365 $1,802,040 
Cost of sales360,799 322,422 1,380,437 1,245,763 
Gross profit166,591 148,492 635,928 556,277 
Selling, general and administrative expenses119,920 109,201 459,058 410,895 
Income from operations46,671 39,291 176,870 145,382 
Interest expense16,232 17,283 60,530 63,927 
Other income, net
(562)(673)(2,882)(3,517)
Income before income taxes31,001 22,681 119,222 84,972 
Provision for income taxes8,156 1,318 30,545 14,483 
Net income22,845 21,363 88,677 70,489 
Preferred stock dividend22 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 adjustments1,063 (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:
    Basic15,595 15,695 15,667 15,861 
    Diluted16,435 16,535 16,507 16,701 












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NEWS RELEASE
CONTACT: Kent Yee
Senior Vice President, CFO
www.dxpe.com
THE INDUSTRIAL DISTRIBUTION EXPERTS
DXP ENTERPRISES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
($ thousands, except share amounts)
 December 31, 2025December 31, 2024
ASSETS  
Current assets:  
Cash$303,783 $148,320 
Restricted cash— 91 
Accounts receivable, net of allowance of $3,995 and $5,172, respectively397,502 339,365 
Inventories108,144 103,113 
Costs and estimated profits in excess of billings53,855 50,735 
Prepaid expenses and other current assets47,033 20,250 
Total current assets910,317 661,874 
Property and equipment, net114,822 81,556 
Goodwill494,561 452,343 
Other intangible assets, net81,351 85,679 
Operating lease right of use assets, net74,709 46,569 
Other long-term assets9,395 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 payable116,765 103,728 
Accrued wages and benefits51,180 41,650 
Customer advances15,460 13,655 
Billings in excess of costs and estimated profits 15,689 12,662 
Short-term operating lease liabilities19,038 14,921 
Other current liabilities45,769 50,773 
Total current liabilities272,481 243,984 
Long-term debt, net of unamortized debt issuance costs and discounts818,476 621,684 
Long-term operating lease liabilities57,509 33,159 
Other long-term liabilities38,250 27,879 
Total long-term liabilities914,235 682,722 
Total liabilities1,186,716 926,706 
Shareholders' Equity: 
Series A preferred stock, $1.00 par value; 1,000,000 shares authorized1 1 
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; 20,403,647 issued and 15,513,590 outstanding at December 31, 2025 and 20,402,861 issued and 15,695,088 outstanding at December 31, 2024204 204 
Additional paid-in capital220,681 219,511 
Retained earnings478,257 389,670 
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. equity498,439 422,788 
Total liabilities and equity$1,685,155 $1,349,494 

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NEWS RELEASE
CONTACT: Kent Yee
Senior Vice President, CFO
www.dxpe.com
THE INDUSTRIAL DISTRIBUTION EXPERTS
SEGMENT DATA
($ thousands, unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
Sales2025
2024(1)
2025
2024(1)
Service Centers$356,155 $314,673 $1,373,140 $1,236,775 
Innovative Pumping Solutions110,018 93,752 390,291 308,850 
Supply Chain Services61,217 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 Income2025
2024(1)
2025
2024(1)
Service Centers$49,605 $45,686 $198,166 $179,522 
Innovative Pumping Solutions19,775 14,529 70,223 51,063 
Supply Chain Services5,823 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,
2025202420252024
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 expense16,232 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.


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NEWS RELEASE
CONTACT: Kent Yee
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www.dxpe.com
THE INDUSTRIAL DISTRIBUTION EXPERTS
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,
2025202420252024
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 expense1,430 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 Solutions110,018 93,752 390,291 308,850 
Supply Chain Services61,217 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 Days6262252253
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.

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NEWS RELEASE
CONTACT: Kent Yee
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THE INDUSTRIAL DISTRIBUTION EXPERTS

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,
2025202420252024
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,
2025202420252024
Net Income
$22,845 $21,363 $88,677 $70,489 
One-time debt financing costs1,623 — 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
Diluted16,435 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 

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