DXP Enterprises (DXPE) Q4 2025 earnings summary

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.