DXP Enterprises reported fourth‑quarter and full‑year 2025 results that exceeded analyst expectations, with total revenue of $527.4 million, up 12.0% from $496.5 million a year earlier. Diluted earnings per share rose to $1.39, beating the consensus estimate of $1.30 by $0.09, while full‑year adjusted earnings per share reached $5.37, a $0.07 increase over the $5.30 forecast. Adjusted EBITDA for the year was $225.3 million, giving an adjusted EBITDA margin of 11.2%, up from 10.6% in 2024. The margin expansion was driven by a favorable product mix and disciplined cost management, allowing the company to maintain profitability despite modest price pressure in some segments.
The company’s three operating segments delivered a mixed but overall positive performance. Innovative Pumping Solutions grew 26.4% in the quarter, reflecting strong demand for high‑margin equipment and services. Service Centers increased 11.0% in the quarter, supported by higher utilization and pricing power. Supply Chain Services, however, slipped 1.4% in the quarter, a result of lower demand for logistics support in certain markets. DXP also completed six acquisitions during fiscal 2025, adding complementary capabilities and customer bases that are expected to accelerate future growth.
Cash on hand rose to $303.8 million, and the company’s secured leverage ratio improved to 2.3:1.0, reflecting a stronger balance sheet. DXP refinanced its Senior Secured Term Loan B, raising an additional $205 million and reducing borrowing costs by 50 basis points, further improving its capital structure and freeing up capital for future investments.
Management projected a 3.8% revenue growth for the next 12 months, a slight deceleration from the 5.5% growth seen in the prior year. The guidance signals confidence in continued demand for the company’s core services while acknowledging a more modest pace of expansion. The company reiterated its strategy of pursuing both organic growth and acquisition‑driven expansion, aiming to deepen its market presence and broaden its product portfolio.
Investors reacted cautiously to the results, noting that the projected revenue growth rate is lower than the previous year’s pace. While the earnings beat and margin expansion were welcomed, the modest outlook tempered enthusiasm, leading to a muted market response. Nonetheless, the company’s strong execution, robust cash position, and disciplined cost management position it well for sustained performance.
Overall, DXP Enterprises delivered a solid earnings season, with revenue and earnings surpassing expectations and margins improving. The company’s acquisition strategy, combined with a healthy balance sheet and disciplined cost control, underpins its outlook for continued growth and value creation for stakeholders.
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