DXP posts 8.6% sales increase
DXP Enterprises Inc. reported third quarter sales of $513.7 million, an 8.6% year-over-year increase.
Sales increased 3% sequentially from $498.7 million for the second quarter of 2025. Net income increased 2.5% for the third quarter to $21.6 million, compared to $21.1 million for the third quarter of 2024.
Business segment financial highlights:
Service Centers’ revenue for the third quarter was $350.2 million, an increase of 10.5% year-over-year, with a 14.7% operating income margin.
Innovative Pumping Solutions’ revenue for the third quarter was $100.6 million, an increase of 11.9% year-over-year, with a 18.3% operating income margin.
Supply Chain Services’ revenue for the third quarter was $63.0 million, a decrease of 5% year-over-year, with a 8.4% operating income margin.
"The company posted excellent third quarter financial results, delivering solid sales, adjusted EBITDA, earnings per share and free cash flow, said Chairman and Chief Executive Officer David R. Little. "Third quarter results reflect the continued execution of our growth strategy. We continue to set new high watermarks as DXPeople. We are pleased with our sequential sales growth. This resulted in operating leverage that produced diluted earnings per share of $1.31. DXP’s fiscal year 2025 third quarter sales were $513.7 million, or an 8.6 percent growth over the same period in 2024. Adjusted EBITDA was $56.5 million in the quarter. During the third quarter of 2025, sales were $350.2 million for Service Centers, $100.6 million for Innovative Pumping Solutions, and $63.0 million for Supply Chain Services. Overall, we are very pleased with our performance and the progress DXP continues to make as a growth company."
Chief Financial Officer and Senior Vice President Kent Yee added, "DXP achieved yet another high watermark quarter with $513.7 million in sales. We have closed three acquisitions through the third quarter, and we have closed two acquisitions during the fourth quarter thus far with more to come. This quarters financial results reflect continued execution of our strategic goals and the impact of our diversification efforts, and a strong balance sheet to support our key initiatives. Total debt outstanding as of September 30, 2025, was $644.0 million. DXP’s secured leverage ratio or net debt to EBITDA ratio was 2.31:1.0 with a covenant EBITDA of $225.1 million for the last twelve months ending September 30, 2025. We expect to finish fiscal year 2025 strong with momentum going into fiscal year 2026."
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