# DXP ENTERPRISES INC (DXPE)

Informational only - not investment advice.

CIK: 0001020710
SIC: 5084 Wholesale-Industrial Machinery & Equipment
SIC breadcrumb: [Wholesale Trade](/division/F/) > [SIC Major Group 50](/major-group/50/) > [SIC 5084 Wholesale-Industrial Machinery & Equipment](/industry/5084/)
Latest 10-K filed: 2026-02-26
SEC page: https://www.sec.gov/edgar/browse/?CIK=1020710
Filing source: https://www.sec.gov/Archives/edgar/data/1020710/000162828026012382/dxpe-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-26 · accession 0001628280-26-012382 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001020710.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 2,016,365,000 USD | 2025 | verified |
| Net income | 88,677,000 USD | 2025 | verified |
| Assets | 1,685,155,000 USD | 2025 | verified |
| Free cash flow | 53,978,000 USD | 2025 | computed |
| Net margin | 4.40% | 2025 | computed |
| Operating margin | 8.77% | 2025 | computed |
| Revenue YoY | +11.89% | 2025 | computed |
| ROE | 17.79% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | DXPE | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 4.4% | 2.8% | 63 | 39 |
| Operating margin | 8.8% | 5.0% | 81 | 37 |
| Revenue growth | 11.9% | 4.0% | 84 | 39 |
| FCF margin | 2.7% | 2.4% | 51 | 38 |
| ROE | 17.8% | 9.1% | 79 | 39 |
| ROA | 5.3% | 3.9% | 68 | 39 |
| Liabilities / equity | 2.38 | 1.51 | 79 | 39 |
| Current ratio | 3.34 | 2.21 | 78 | 38 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 50 SIC Major Group 50, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 2016365000 | USD | 2025 | 2026-02-26 |
| Net income | 88677000 | USD | 2025 | 2026-02-26 |
| Assets | 1685155000 | USD | 2025 | 2026-02-26 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001020710.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 962,092,000 | 1,006,782,000 | 1,218,709,000 | 1,264,851,000 | 1,005,266,000 | 1,113,921,000 | 1,480,832,000 | 1,678,600,000 | 1,802,040,000 | 2,016,365,000 |
| Net income | 7,702,000 | 16,888,000 | 38,345,000 | 37,025,000 | -29,269,000 | 16,496,000 | 48,155,000 | 68,812,000 | 70,489,000 | 88,677,000 |
| Operating income | 19,332,000 | 33,490,000 | 72,086,000 | 67,412,000 | -27,668,000 | 39,857,000 | 97,752,000 | 138,722,000 | 145,382,000 | 176,870,000 |
| Gross profit | 264,802,000 | 271,581,000 | 335,843,000 | 349,789,000 | 277,196,000 | 328,506,000 | 422,038,000 | 505,291,000 | 556,277,000 | 635,928,000 |
| Diluted EPS | 0.49 | 0.93 | 2.08 | 2.01 | -1.65 | 0.83 | 2.47 | 3.89 | 4.22 | 5.37 |
| Operating cash flow | 48,244,000 | 12,544,000 | 35,840,000 | 41,306,000 | 109,650,000 | 37,089,000 | 5,894,000 | 106,222,000 | 102,211,000 | 94,264,000 |
| Capital expenditures | 4,868,000 | 2,811,000 | 9,323,000 | 22,120,000 | 6,672,000 | 5,999,000 | 4,916,000 | 12,263,000 | 25,068,000 | 40,286,000 |
| Dividends paid | 90,000 | 90,000 | 90,000 | 90,000 | 90,000 | 90,000 | 90,000 | 90,000 | 90,000 | 90,000 |
| Share buybacks |  |  |  | 0.00 | 0.00 | 33,511,000 | 47,872,000 | 56,215,000 | 29,007,000 | 17,109,000 |
| Assets | 602,052,000 | 639,083,000 | 703,741,000 | 789,088,000 | 868,131,000 | 894,227,000 | 1,037,280,000 | 1,177,436,000 | 1,349,494,000 | 1,685,155,000 |
| Liabilities |  | 370,537,000 | 386,493,000 | 434,156,000 | 506,995,000 | 547,500,000 | 671,888,000 | 796,557,000 | 926,706,000 | 1,186,716,000 |
| Stockholders' equity | 251,623,000 | 267,979,000 | 306,848,000 | 353,786,000 | 360,338,000 | 346,674,000 | 365,392,000 | 380,879,000 | 422,788,000 | 498,439,000 |
| Cash and cash equivalents | 1,590,000 | 22,047,000 | 40,304,000 | 54,203,000 | 119,328,000 | 48,989,000 | 46,026,000 | 173,120,000 | 148,320,000 | 303,783,000 |
| Free cash flow | 43,376,000 | 9,733,000 | 26,517,000 | 19,186,000 | 102,978,000 | 31,090,000 | 978,000 | 93,959,000 | 77,143,000 | 53,978,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 0.80% | 1.68% | 3.15% | 2.93% | -2.91% | 1.48% | 3.25% | 4.10% | 3.91% | 4.40% |
| Operating margin | 2.01% | 3.33% | 5.91% | 5.33% | -2.75% | 3.58% | 6.60% | 8.26% | 8.07% | 8.77% |
| Return on equity | 3.06% | 6.30% | 12.50% | 10.47% | -8.12% | 4.76% | 13.18% | 18.07% | 16.67% | 17.79% |
| Return on assets | 1.28% | 2.64% | 5.45% | 4.69% | -3.37% | 1.84% | 4.64% | 5.84% | 5.22% | 5.26% |
| Liabilities / equity |  | 1.38 | 1.26 | 1.23 | 1.41 | 1.58 | 1.84 | 2.09 | 2.19 | 2.38 |
| Current ratio | 1.54 | 2.55 | 2.69 | 2.94 | 2.78 | 2.23 | 2.42 | 2.89 | 2.71 | 3.34 |

## As-reported value updates

14 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/DXPE/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001020710.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.71 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.95 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 1.06 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 419,249,000 | 16,150,000 | 0.93 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 407,044,000 | 15,983,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 412,635,000 | 11,309,000 | 0.67 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 445,556,000 | 16,671,000 | 1.00 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 472,935,000 | 21,078,000 | 1.27 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 470,914,000 | 21,341,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 476,569,000 | 20,566,000 | 1.25 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 498,682,000 | 23,590,000 | 1.43 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 513,724,000 | 21,608,000 | 1.31 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 527,390,000 | 22,823,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 521,658,000 | 19,955,000 | 1.22 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 576,461,000 | 28,686,000 | 1.76 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from DXPE's latest 10-K: [/company/DXPE/business/](/company/DXPE/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from DXPE's latest 10-K: [/company/DXPE/risk-factors/](/company/DXPE/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1020710/000162828026054179/dxpe-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-08-06
Report date: 2026-06-30

ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following management discussion and analysis ("MD&A") of the financial condition and results of operations of DXP Enterprises, Inc. together with its subsidiaries (collectively "DXP," "Company," "us," "we," or "our") for the six months ended June 30, 2026 should be read in conjunction with our previous Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, and the consolidated financial statements and notes thereto included in such reports. The Company's consolidated financial statements are prepared in accordance with U.S. GAAP.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this "Report") contains statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include without limitation those about the Company’s expectations regarding the Company’s business, the Company’s future profitability, cash flow, liquidity, and growth. Such forward-looking statements can be identified by the use of forward-looking terminology such as "believes", "expects", "may", "might", "estimates", "will", "should", "could", "would", "suspect", "potential", "current", "achieve", "plans" or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy. Any such forward-looking statements are not guarantees of future performance and may involve significant risks and uncertainties, and actual results may vary materially from those discussed in the forward-looking statements or historical performance as a result of various factors. These factors include, but are not limited to, the effectiveness of management's strategies and decisions; our ability to implement our internal growth and acquisition growth strategies; general economic and business conditions specific to our primary customers; changes in government regulations; our ability to effectively integrate businesses we may acquire; new or modified statutory or regulatory requirements; availability of materials and labor; inability to obtain or delay in obtaining government or third-party approvals and permits; non-performance by third parties of their contractual obligations; unforeseen hazards such as weather conditions, acts of war or terrorist acts and the governmental or military response thereto; cyber-attacks adversely affecting our operations; other geological, operating and economic considerations and declining prices and market conditions, including reduced oil and gas prices and supply or demand for maintenance, repair and operating products, equipment and service; decreases in oil and natural gas industry capital expenditure levels, which may result from decreased oil and natural gas prices or other factors; our ability to manage changes and the continued health or availability of management personnel; and our ability to obtain financing on favorable terms or amend our credit facilities, as needed. This Report identifies other factors that could cause such differences. We cannot assure that these are all of the factors that could cause actual results to vary materially from the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in "Risk Factors", in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 26, 2026. We assume no obligation and do not intend to update these forward-looking statements. Unless the context otherwise requires, references in this Report to the "Company", "DXP", "we" or "our" shall mean DXP Enterprises, Inc., a Texas corporation, together with its subsidiaries.

NON-GAAP FINANCIAL MEASURES

In an effort to provide investors with additional information regarding our results of operations as determined by U.S. GAAP, we disclose non-GAAP financial measures. The non-GAAP financial measures we provide in this report should be viewed in addition to, and not as an alternative for, results prepared in accordance with U.S. GAAP.

Our primary non-GAAP financial measures are organic sales ("Organic Sales"), sales per business day ("Sales per Business Day"), organic sales per business day ("Organic Sales per Business Day"), free cash flow ("Free Cash Flow"), earnings before interest, taxes, depreciation and amortization ("EBITDA") adjusted EBITDA ("Adjusted EBITDA"), EBITDA Margin, and Adjusted EBITDA Margin. The non-GAAP financial measures presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures in the same way. These measures are not substitutes for their comparable U.S. GAAP financial measures.

23

Management uses these non-GAAP financial measures to assist in comparing our performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes do not directly reflect our underlying operations. Management believes that presenting our non-GAAP financial measures are useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating our results. We believe that the presentation of these non-GAAP financial measures, when considered together with the corresponding U.S. GAAP financial measures and the reconciliations to those measures, provides investors with additional understanding of the factors and trends affecting our business than could be obtained absent these disclosures.

Refer to the Non-GAAP Financial Measures and Reconciliation section below for detailed reconciliations of our non-GAAP financial measures.

GENERAL BUSINESS OVERVIEW

Overview

DXP Enterprises, Inc. is a business-to-business distributor of MRO products and services to a variety of customers in different end markets with operations primarily in North America. Additionally, we provide engineered solutions including, fabrication, remanufacturing, and assembling of custom pump packages along with manufacturing branded private label pumps.

CURRENT MARKET CONDITIONS AND OUTLOOK

The global economy continues to experience elevated levels of volatility and uncertainty, driven by a combination of geopolitical developments and macroeconomic factors. Recent imposition of new and expanded tariffs have further contributed to disruptions in the capital markets and global supply chains. These developments may impact the Company’s operations, financial condition, and results of operations.

The Company is actively monitoring economic conditions in the U.S. and internationally, including the potential ramifications of evolving trade policies, changes in interest rates, inflationary pressures, and the risk of a global or regional economic recession. In response to these factors, the Company is continuously reviewing various strategies designed to mitigate certain adverse effects of changing inflationary conditions and supply chain challenges, while continuing to maintain market price competitiveness.

Historically, the Company's broad and diverse customer base and the generally non-discretionary nature of its products have provided a degree of resilience during periods of economic contraction in the industrial MRO market. However, the ultimate impact of ongoing macroeconomic conditions, including recent tariff-related developments, remains uncertain and cannot be predicted at this time.

For further discussion of the Company's risks and uncertainties, see Part I, Item 1A: Risk Factors in the Company’s 2025 Form 10-K.

Service Centers and Innovative Pumping Solutions Segments

The replacement and mission-critical nature of our products and services within the Company's Service Centers and Innovative Pumping Solutions business segments and industrial and manufacturing environments and processes drives a demand and outlook that are correlated with global, national and regional industrial production, capacity utilization and long-term GDP growth. For the six months ended June 30, 2026, we had approximately $967.3 million in sales in our Service Centers and Innovative Pumping Solutions segments, an increase of approximately 14.3 percent compared to the six months ended June 30, 2025. Our performance has been strengthened by our ability to maintain strong margins despite price increases from vendors and suppliers. During the six months ended June 30, 2026, $8.6 million in sales in our Service Centers (SC) segment and $82.0 million in sales in our Innovative Pumping Solutions (IPS) segment were associated with recent acquisition.

Supply Chain Services Segment

For the six months ended June 30, 2026, we had approximately $130.8 million in sales in our Supply Chain Services (SCS) segment, an increase of approximately 1.6 percent compared to the six months ended June 30, 2025.

24

Matters Affecting Comparability

Our results of operations are not directly comparable on a year-over-year basis due to various prior acquisitions and the varying size and number of acquisitions in any comparable period. Accordingly, the results of acquisitions are included subsequent to their respective acquisition dates and the Company provides detail around Organic and Acquisition Sales as defined in our Key Business Metrics. During the six months ended June 30, 2026, acquisition sales were $90.6 million compared to $55.7 million for the six months ended June 30, 2025.

Key Business Metrics

We regularly monitor several financial and operating metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections and make strategic decisions. Our key non-GAAP business metrics may be calculated in a different manner than similarly titled metrics used by other companies. See “Non-GAAP Financial Measures and Reconciliations” for additional information on non-GAAP financial measures and a reconciliation to the most comparable U.S. GAAP measures.

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1020710/000162828026012382/dxpe-20251231.htm
Complete FY 2025 MD&A: /company/DXPE/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-02-26
Report date: 2025-12-31

ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the Consolidated Financial Statements and related notes contained within Item 8 - Financial Statements and Supplementary Data and the other financial information found elsewhere in this Report. Management’s Discussion and Analysis uses forward-looking statements that involve certain risks and uncertainties as described previously in our Disclosure Regarding Forward-looking Statements and Item 1A. Risk Factors.

31

Table of Contents

NON-GAAP FINANCIAL MEASURES

In an effort to provide investors with additional information regarding our results of operations as determined by U.S. GAAP, we disclose non-GAAP financial measures. The non-GAAP financial measures we provide in this report should be viewed in addition to, and not as an alternative for, results prepared in accordance with U.S. GAAP.

Our primary non-GAAP financial measures are organic sales ("Organic Sales"), sales per business day ("Sales per Business Day"), organic sales per business day ("Organic Sales per Business Day"), free cash flow ("Free Cash Flow"), earnings before interest, taxes, depreciation and amortization ("EBITDA") adjusted EBITDA ("Adjusted EBITDA"), EBITDA Margin, and Adjusted EBITDA Margin. The non-GAAP financial measures presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures in the same way. These measures are not substitutes for their comparable U.S. GAAP financial measures.

Management uses these non-GAAP financial measures to assist in comparing our performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes do not directly reflect our underlying operations. Management believes that presenting our non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating our results. We believe that the presentation of these non-GAAP financial measures, when considered together with the corresponding U.S. GAAP financial measures and the reconciliations to those measures, provides investors with additional understanding of the factors and trends affecting our business than could be obtained absent these disclosures.

Refer to the Non-GAAP Financial Measures and Reconciliation section below for detailed reconciliations of our non-GAAP financial measures.

Matters Affecting Comparability

Our results of operations are not directly comparable on a year-over-year basis due to various prior acquisitions and the varying size and number of acquisitions in any comparable period. Accordingly, the results of acquisitions are included subsequent to their respective acquisition dates and the Company provides detail around Organic and Acquisition Sales as defined in our Key Business Metrics. During the twelve months ended December 31, 2025, acquisition sales were $96.0 million compared to $98.5 million for the twelve months ended December 31, 2024.

General Overview

The Company is a leading North American distributor of technical products and services. Our comprehensive knowledge, specialized services and leading brands serve MRO, OEM and capital equipment end users in virtually all industrial markets through our multi-channel capabilities that provide choice, convenience, expertise, timely response and an overall ease of doing business.

The Company's products are marketed in the U.S., Canada, Mexico, U.A.E., India, and Saudi Arabia to customers that are engaged in a variety of industries, many of which may be counter cyclical to each other. Demand for our products generally is subject to changes in the U.S. and Canada, and global and macro-economic trends affecting our customers and the industries in which they compete. Certain of these industries, such as the oil and gas industry, are subject to volatility driven by a variety of factors, while others, such as the petrochemical industry and the construction industry, are cyclical and materially affected by changes in the U.S. and global economy. As a result, we may experience changes in demand within particular markets, segments and product categories as changes occur in our customers' respective markets.

Key Business Metrics

We regularly monitor several financial and operating metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections and make strategic decisions. Our key non-U.S. GAAP business metrics may be calculated in a different manner than similarly titled metrics used by other companies. See “Non-U.S. GAAP Financial Measures and Reconciliations” for additional information on non-U.S. GAAP financial measures and a reconciliation to the most comparable U.S. GAAP measures.

32

Table of Contents

[[GREPCENT_TABLE]]
[["","","","","Twelve Months Ended December 31,"],["","","","","","","","","2025","","2024(1)","","2023(1)"],["Sales by Business Segment","","","","","","","","(in thousands, except percentages and days)"],["Service Centers","","","","","","","","$","1,373,140","","","$","1,236,775","","","$","1,214,602"],["Innovative Pumping Solutions","","","","","","","","390,291","","","308,850","","","203,630"],["Supply Chain Services","","","","","","","","252,934","","","256,415","","","260,368"],["Total DXP Sales","","","","","","","","$","2,016,365","","","$","1,802,040","","","$","1,678,600"],["Acquisition Sales","","","","","","","","$","96,043","","","$","98,500","","","$","33,078"],["Organic Sales","","","","","","","","$","1,920,322","","","$","1,703,540","","","$","1,645,522"],["Business Days","","","","","","","","252","","","253","","","252"],["Sales per Business Day","","","","","","","","$","8,001","","","$","7,123","","","$","6,661"],["Organic Sales per Business Day","","","","","","","","$","7,620","","","$","6,733","","","$","6,530"],["Gross Profit","","","","","","","","$","635,928","","","$","556,277","","","$","505,291"],["Gross Profit Margin","","","","","","","","31.5","%","","30.9","%","","30.1","%"],["Income from Operations","","","","","","","","$","176,870","","","$","145,382","","","$","138,722"],["Income from Operations Margin","","","","","","","","8.8","%","","8.1","%","","8.3","%"],["Net Income","","","","","","","","$","88,677","","","$","70,489","","","$","68,812"],["Net Income Margin","","","","","","","","4.4","%","","3.9","%","","4.1","%"],["EBITDA","","","","","","","","$","218,602","","","$","182,304","","","$","170,182"],["EBITDA Margin","","","","","","","","10.8","%","","10.1","%","","10.1","%"],["Adjusted EBITDA","","","","","","","","$","225,302","","","$","191,310","","","$","174,305"],["Adjusted EBITDA Margin","","","","","","","","11.2","%","","10.6","%","","10.4","%"],["Net cash provided by operating activities","","","","","","","","$","94,264","","","$","102,211","","","$","106,222"],["Free Cash Flow","","","","","","","","$","53,978","","","$","77,143","","","$","93,959"],["(1) Prior period segment disclosures have been recast. For additional information, please refer to Note 20. Segment Reporting."]]
[[/GREPCENT_TABLE]]

Organic Sales and Acquisition Sales

We define and calculate organic sales to include locations and acquisitions under our ownership for at least twelve months. “Acquisition Sales” are sales from acquisitions that have been under our ownership for less than twelve months and are excluded in our calculation of Organic Sales.

Business Days

“Business Days” are days of the week, excluding Saturdays, Sundays, and holidays, that our locations are open during the year. Depending on the location and the season, our branches may be open on Saturdays and Sundays; however, for consistency, those days have been excluded from the calculation of Business Days.

Sales per Business Day

We define and calculate Sales per Business Day as sales divided by the number of Business Days in the relevant reporting period.

Organic Sales per Business Days

We define and calculate Organic Sales per Business Day as Organic Sales divided by the number of Business Days in the relevant reporting period.

33

Table of Contents

EBITDA and Adjusted EBITDA

We define and calculate EBITDA as Net income attributable to DXP Enterprises, Inc., plus interest, taxes, depreciation, and amortization. We define and calculate Adjusted EBITDA as Net income attributable to DXP Enterprises, Inc., plus interest, taxes, depreciation, amortization plus stock-based compensation expense and all other non-cash charges, adjustments, and non-recurring items. We identify the impact of all other non-cash charges, adjustments and non-recurring items because we believe these items do not directly reflect our underlying operations.

EBITDA Margin and Adjusted EBITDA Margin

We define and calculate EBITDA Margin as EBITDA divided by sales. We define and calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by sales.

Free Cash Flow

We define and calculate free cash flow as net cash provided by operating activities less net purchases of property and equipment.

CURRENT MARKET CONDITIONS AND OUTLOOK

Economic Indices

The Company monitors several economic indices that have been key indicators for industrial and oil & gas economic activity in the U.S. These include the Industrial Production (IP) and Manufacturing Capacity Utilization (MCU) indices published by the Federal Reserve Board and the Purchasing Managers Index (PMI) published by the Institute for Supply Management (ISM). Additionally, we track the Metalworking Business Index (MBI). A reading above 50 generally indicates expansion. The Company also monitors various oil & gas indicators including active drilling rigs.

Below are readings for the fourth quarter versus the full year average:

[[GREPCENT_TABLE]]
[["","Index Reading"],["Period","MCU","PMI","IP","MBI","","Active Drilling Rigs(1)"],["October","75.8","48.7","101.5","49.2","","1,800"],["November","76.1","48.2","102.0","48.1","","1,813"],["December","76.3","47.9","102.3","48.5","","1,783"],["Fiscal 2025 Q4 average","76.1","48.3","101.9","48.6","","1,799"],["Fiscal 2025 average","76.4","48.9","102.0","48.6","","1,819"],["Fiscal 2024 average","77.6","48.3","102.6","45.7","","1,735"],["Fiscal 2023 average","79.3","47.1","102.8","46.5","","1,814"]]
[[/GREPCENT_TABLE]]

(1) From Baker Hughes’ Worldwide Rig Counts - Current Data

The continued disruption in economic markets due to inflation, changing interest rates, tariffs, trade disputes, business interruptions due to natural disasters and changes in weather patterns, employee shortages, and supply chain issues, all pose challenges which may adversely affect our future performance. The Company continues to execute various strategies previously implemented to help mitigate the impact of these economic disruptors. Sales for the year ended December 31, 2025 increased $214.3 million, or 11.9%, to approximately $2.0 billion from $1.8 billion for the prior corresponding period. Customer demand was generally healthy throughout fiscal 2025, resulting in industry expected volume growth. Some of the 2025 sales increase was the result of our ability to maintain margins and focus on profitability as well as the contribution from accretive acquisitions over time.

However, the Company cannot reasonably estimate whether these strategies will help mitigate the impact of these economic disruptors in the future.

The Company’s consolidated financial statements reflect estimates and

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/DXPE/mda/fy2025/
All MD&A years: /company/DXPE/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/DXPE/mda/fy2024/): filed 2025-03-10; accession 0001020710-25-000036 (https://www.sec.gov/Archives/edgar/data/1020710/000102071025000036/dxpe-20241231.htm)
- [FY 2023 MD&A](/company/DXPE/mda/fy2023/): filed 2024-03-11; accession 0001020710-24-000026 (https://www.sec.gov/Archives/edgar/data/1020710/000102071024000026/dxpe-20231231.htm)
- [FY 2022 MD&A](/company/DXPE/mda/fy2022/): filed 2023-04-17; accession 0001020710-23-000044 (https://www.sec.gov/Archives/edgar/data/1020710/000102071023000044/dxpe-20221231.htm)
- [FY 2021 MD&A](/company/DXPE/mda/fy2021/): filed 2022-04-05; accession 0001020710-22-000033 (https://www.sec.gov/Archives/edgar/data/1020710/000102071022000033/dxpe-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 5084 Wholesale-Industrial Machinery & Equipment) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade
- [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/DXPE.md · JSON record: /company/DXPE.json · verified financials: /company/DXPE/financials.json / /company/DXPE/financials.csv · machine TOC for the whole site: /llms.txt