DXP Enterprises
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DXP Enterprises (DXPE) investor relations material

DXP Enterprises Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary26 Feb, 2026

Executive summary

  • Fiscal 2025 sales rose 11.9% year-over-year to $2.0 billion, with organic sales up 12.7% and $96 million from acquisitions, achieving record adjusted EBITDA of $225.3 million (11.2% margin) and net income of $88.7 million, up 25.8%.

  • Diluted EPS improved to $5.37 from $4.22 in 2024; adjusted diluted EPS was $5.42 versus $4.51.

  • Six acquisitions were completed during the year, with three more closed after year-end, supporting growth and diversification.

  • Returned $17 million to shareholders via share repurchases (182,000–200,000 shares).

  • Refinanced Senior Secured Term Loan B, raising $205 million and reducing borrowing costs by 50 basis points.

Financial highlights

  • Q4 2025 sales were $527.4 million, up 12.0% year-over-year; full-year sales reached $2.0 billion.

  • Adjusted EBITDA for 2025 was $225.3 million (11.2% margin), up from $191.3 million (10.6%) in 2024.

  • Free cash flow for 2025 was $54.0 million, representing 24.7% of EBITDA, with $94.3 million in cash from operations.

  • Cash and restricted cash at year-end totaled $303.8 million; net debt was $543.0 million.

  • Operating income rose 21.7% to $176.9 million (8.8% of sales); annual gross margin improved to 31.5%.

Outlook and guidance

  • Focus for 2026 remains on margin discipline, organic and acquisition-driven growth, and operational efficiency.

  • Management expects continued improvement in ROIC and constructive demand across energy, water, and industrial markets.

  • Anticipate closing 1–3 additional acquisitions by mid-2026.

  • CapEx expected to decrease in 2026 after elevated growth-oriented investments in 2025.

  • Positive outlook for water & wastewater markets and improving energy market dynamics in the second half of 2026.

What drove Supply Chain Services revenue decline?
2025 acquisition sales impact and 2026 strategy
Capital deployment for 2026 growth plans
Energy market 2026 booking trends
Working capital impact from future acquisitions
Key drivers for 2026 margin expansion
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Frequently asked questions

DXP Enterprises Inc. is a distributor of industrial products and services, catering to a wide range of industries including manufacturing, oil and gas, food and beverage, and chemical processing. The company specializes in providing solutions across three main areas: Service Centers, Supply Chain Services, and Innovative Pumping Solutions. Its offerings include industrial equipment, maintenance, repair, and operating (MRO) supplies, along with integrated services designed to enhance operational efficiency for its clients. DXP Enterprises also provides custom-engineered fluid-handling systems and related services, focusing on delivering tailored solutions to meet customer-specific needs. The company is headquartered in Houston, Texas, and its shares are listed on the NASDAQ.

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