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

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