DXP Enterprises (DXPE) Q2 2024 earnings summary

Executive summary

• Q2 sales reached $445.6M, up 4.1% year over year and 8.0% sequentially, driven by organic growth and acquisitions.

• Adjusted EBITDA rose to $48.2M from $45.3M year over year, with a 10.8% margin versus 10.6%.

• Net income was $16.7M, down from $19.1M year over year; diluted EPS was $1.00 and adjusted diluted EPS was $1.02.

Financial highlights

• Gross profit was $137.8M, with a 30.9% margin versus 30.8% in Q2 2023.

• Operating income was $37.4M, nearly flat year over year, as higher SG&A offset gross profit gains.

• Q2 free cash flow was $5.9M versus negative $4.2M in Q2 2023; H1 free cash flow was $30.0M.

• Q2 sales per business day were $6,962 versus $6,688 in Q2 2023; organic sales per business day were $6,596 versus $6,575.

Segment performance

• Service Centers sales were $306.5M, down 2.3% year over year; operating margin was 14.3%.

• Innovative Pumping Solutions sales were $73.4M, up 52.7% year over year; operating margin was 18.2%.

• Supply Chain Services sales were $65.7M, down 0.8% year over year; operating margin was 8.9%.