DXP Enterprises reports fiscal '25 sales up 11.9%
DXP Enterprises Inc. announced fiscal 2025 sales of $2.0 billion, up 11.9% from fiscal 2024. The company's fourth-quarter sales increased 12% to $527.4 million, compared to the same quarter of 2024.
Net income for the fourth quarter increased 6.9% to $22.8 million, compared to $21.4 million for the fourth quarter of 2024.
For fiscal 2025, net income increased 25.8 percent to $88.7 million, compared to $70.5 million for fiscal 2024.
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.
“DXP accomplished a lot in 2025, and we would like to thank all our 'DXPeople' for their efforts this year," said Chairman and Chief Executive Officer David R. Little. "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.
"The sales momentum from the fourth quarter has positioned us for further success as we move into 2026," Little continued. "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, added: "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."
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