DXP Enterprises Posts 11.9% Revenue Growth in Q2 2025

DXP Enterprises reported Q2 FY25 revenue of $498.7 million, up 11.9% YoY, and EPS of $1.43, a 43% increase YoY. The company's GAAP revenue beat estimates by $0.3 million, while EPS exceeded expectations by $0.04. DXP's adjusted EBITDA rose 18.9% to $57.3 million, and free cash flow increased 40.7% to $8.3 million. The company's strong performance was driven by growth in core business segments and cost discipline.

Title: DXP Enterprises Reports Strong Q2 FY25 Financial Performance

DXP Enterprises (NASDAQ: DXPE) has reported robust financial results for the second quarter of fiscal year 2025, demonstrating significant growth and operational efficiency. The company's revenue reached $498.7 million, representing an 11.9% year-over-year (YoY) increase, which slightly missed analysts' expectations by $0.3 million. Earnings per share (EPS) surged to $1.43, surpassing consensus estimates by $0.04, reflecting a 43% YoY increase. This strong performance was driven by growth in core business segments and cost discipline.

DXP's adjusted EBITDA rose 18.9% to $57.3 million, and free cash flow increased 40.7% to $8.3 million. The company's operating margin and free cash flow margin were 9.2% and 1.7%, respectively, indicating efficient cost management and strong cash flow generation. The Innovative Pumping Solutions segment led the growth with a 27.5% YoY revenue increase, while Service Centers and Supply Chain Services also contributed to overall growth.

The company's strategic initiatives, including acquisitions and organic growth, played a significant role in its Q2 performance. DXP plans to close 3-4 more acquisitions in the second half of 2025 to further bolster its revenue and market position. Investors should note DXP's strong balance sheet, with a net debt-to-EBITDA ratio of 2.4:1.0 and a covenant EBITDA of $221.1 million for the last twelve months ending June 30, 2025.

The company's stock recently traded at 20 times the next 12-month earnings, compared to a P/E of 16 three months ago, reflecting investor optimism about the company's growth prospects. DXP Enterprises' market capitalization stands at $1.76 billion, reflecting its strong performance and potential for future growth.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX934010:0-dxp-enterprises-q2-eps-beat-estimates/
[2] https://www.morningstar.com/news/business-wire/20250806825530/dxp-enterprises-inc-reports-second-quarter-2025-results