DXP Enterprises Announces Q1 2025 Financial Results
DXP Enterprises, Inc., a leading provider of maintenance, repair, and operating (MRO) products, solutions, and services for industrial customers, today announced its financial results for the first quarter ended March 31, 2025. The company delivered a strong start to the year, demonstrating both top-line growth and margin improvement across its core business segments.
The results for the first quarter of 2025 highlight the resilience and scalability of DXP’s operating model, as well as the company’s ongoing commitment to profitable growth through a combination of organic expansion and strategic acquisitions.
Financial Highlights for Q1 2025
DXP Enterprises reported first-quarter sales of $476.6 million, marking a significant 15.5% increase compared to $412.6 million in the first quarter of 2024. This double-digit growth reflects robust market demand across key industrial sectors, as well as the positive impact of DXP’s ongoing acquisition strategy.
Net income for the period reached $20.6 million, representing a 82.3% increase compared to the $11.3 million reported during the same period in 2024. While this was slightly below the $21.4 million net income recorded in the fourth quarter of 2024, the result remains strong given the seasonality that typically affects Q1 performance.
Diluted earnings per share (EPS) came in at $1.25, a notable improvement from $0.67 in Q1 2024. Adjusted diluted EPS was slightly higher at $1.26, compared to $0.70 in the prior-year quarter. The EPS growth underscores improved operational efficiency and leverage within the business.
Adjusted EBITDA, a key non-GAAP performance metric, rose to $52.5 million, up from $40.3 million a year ago and $50.3 million in Q4 2024. This represents a 30.2% increase year-over-year, highlighting the company’s ability to convert revenue into profit while managing costs effectively. The adjusted EBITDA margin expanded to 11.0%, compared to 9.8% in Q1 2024 and 10.7% in Q4 2024.
Segment Performance Overview
DXP operates through three main business segments: Service Centers, Innovative Pumping Solutions, and Supply Chain Services. Each of these divisions contributed positively to the company’s first-quarter growth.
Service Centers
The Service Centers segment, which offers a wide range of MRO products and value-added services, remains the backbone of DXP’s operations. In the first quarter of 2025, this segment generated $327.1 million in revenue, a 13.4% increase over the same period last year. Operating income margin for the segment stood at an impressive 14.4%, reflecting improved productivity and demand across key geographies.
Innovative Pumping Solutions (IPS)
The IPS segment continues to be a key growth driver for DXP. Revenues from this division surged to $86.2 million, representing a 38.5% year-over-year increase. The strong performance was driven by robust project activity, new customer wins, and expansion into higher-margin engineered systems. IPS posted an operating income margin of 15.6%, the highest among all segments, reflecting the value-added nature of its offerings and the increasing importance of engineered solutions in the industrial market.
Supply Chain Services (SCS)
The Supply Chain Services segment recorded $63.3 million in revenue, showing modest growth of 2.1% compared to Q1 2024. While the growth was slower than other divisions, SCS maintained a healthy 8.8% operating income margin, benefiting from its efficiency-focused model and ongoing contract wins in key verticals such as manufacturing and energy.
Management Commentary
David R. Little, Chairman and Chief Executive Officer of DXP Enterprises, expressed optimism about the company’s momentum heading into the remainder of the year.
“Our first quarter results reflect the resilience and durability of DXP’s business model. We’re very pleased with our continued sales growth and the improvement in our gross profit margins. This enabled us to achieve an EPS of $1.25 and an adjusted EBITDA margin of 11.0%. Importantly, our organic growth reached 11.1%, while acquisitions contributed an additional $31.1 million in revenue, highlighting our successful integration and execution strategy,” Little stated.
He further added that the company’s performance across all segments showcases the effectiveness of DXP’s diversified industrial platform.
“Sales growth was broad-based, led by our Service Centers and Innovative Pumping Solutions segments. Our continued progress as a growth company reaffirms our long-term strategy. We’re optimistic about the rest of 2025 and confident that we can continue to deliver strong top- and bottom-line results.”
Strategic Outlook and Financial Position
Kent Yee, Chief Financial Officer and Senior Vice President, highlighted the financial strength and strategic flexibility of the company.
“It was great to see a 15.5% year-over-year sales increase, especially as we continue to diversify our end markets and increase our project backlog. We believe the second half of 2025 will provide additional growth opportunities,” Yee said.
Yee also emphasized DXP’s solid liquidity and manageable debt profile. The company ended the first quarter with $114.3 million in cash on its balance sheet, providing ample financial flexibility to fund ongoing operations, pursue M&A, and support capital investments.
As of March 31, 2025, total debt outstanding was $647.3 million, and DXP’s secured leverage ratio (net debt to EBITDA) stood at 2.50x, indicating a healthy level of leverage. The company reported a covenant EBITDA of $212.8 million for the trailing twelve-month period ending March 31, 2025.
“Our strong balance sheet and disciplined financial management continue to support our growth objectives. We remain committed to maintaining a balanced mix of businesses and driving operational excellence across all divisions,” Yee added.
Growth Strategy and Market Positioning
DXP’s performance in Q1 2025 affirms its position as a leading player in the industrial distribution space. The company’s long-term strategy is centered around three pillars: organic growth, strategic acquisitions, and operational efficiency.
The 11.1% organic growth during the quarter illustrates the effectiveness of DXP’s sales execution and customer engagement. The company has also remained active on the acquisition front, with recently acquired businesses contributing meaningfully to top-line growth.
Furthermore, DXP is capitalizing on favorable macroeconomic trends, including increased industrial production, infrastructure investment, and a resurgence in energy-related projects. The company’s diverse end-market exposure—ranging from manufacturing and utilities to oil & gas and food processing—provides a natural hedge against sector-specific volatility.
DXP Enterprises has started 2025 with strong momentum, delivering double-digit sales and earnings growth in the first quarter. The company’s performance across all business segments, combined with disciplined financial management, positions it well for sustained growth in the quarters ahead.
With a solid pipeline of projects, a robust acquisition strategy, and continued focus on delivering value to customers and shareholders, DXP remains confident in achieving its full-year objectives.
Investors and stakeholders can expect continued execution on strategic initiatives, as the company leverages its scalable platform to navigate evolving market conditions and capitalize on emerging opportunities in the industrial sector.