DXP Enterprises (DXPE) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales reached $576.5 million, up 15.6% year-over-year, with organic growth of 11.1% and $49.8 million from acquisitions.

• Net income increased 21.6% year-over-year to $28.7 million, with diluted EPS rising to $1.76 from $1.43.

• Adjusted EBITDA was $70.4 million (12.2% margin), up from $57.3 million last year.

• Four acquisitions completed in the first half of 2026 contributed to growth and expanded the water/wastewater platform and geographic reach.

• Gross profit margin improved to 31.8% from 31.6% last year.

Financial highlights

• Q2 sales: $576.5 million (+15.6% YoY); organic sales: $526.6 million (+11.1% YoY); acquisitions contributed $49.8 million.

• Adjusted EBITDA: $70.4 million (12.2% margin, up from 11.5% last year); EBITDA for the quarter: $68.8 million (11.9% margin).

• Net income: $28.7 million; diluted EPS: $1.76 (vs. $1.43 last year).

• Free cash flow for Q2: $29.8 million; first six months: $56 million (vs. -$8.6 million prior year period).

• Cash at quarter-end: $226.6 million; total liquidity: $374.5 million.

Outlook and guidance

• Backlog remains strong, supporting a positive outlook for the remainder of 2026 and continued growth into 2027.

• Management targets sustainable 12% EBITDA margins long-term and continued margin expansion.

• Focus on executing strategic initiatives, integrating acquisitions, and generating strong cash flow.

• Management is monitoring macroeconomic volatility, inflation, and supply chain risks, but expects resilience due to a diverse customer base.