DXP Enterprises Q2 CY2025 Results: Acquisitions and Segment Diversification Drive Growth Amid Margin Stability

DXP Enterprises met Q2 revenue expectations with sales up 11.9% YoY to $498.7 million, and non-GAAP profit of $1.43 per share, 2.9% above consensus estimates. The company attributed the performance to strong contributions from recent acquisitions and organic growth in the Innovative Pumping Solutions and Service Centers segments. Management highlighted continued momentum from its acquisition strategy and expanded presence in higher-margin segments, notably water and energy.

DXP Enterprises (NASDAQ: DXPE) has reported strong financial results for the second quarter of fiscal year 2025, meeting analysts' expectations with a 11.9% year-over-year (YoY) increase in revenue to $498.7 million. The company's non-GAAP earnings per share (EPS) came in at $1.43, 2.9% above consensus estimates. This performance was driven by robust contributions from recent acquisitions and organic growth in the Innovative Pumping Solutions and Service Centers segments.

The company's adjusted EBITDA rose 18.9% to $57.3 million, while free cash flow increased 40.7% to $8.3 million. 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. DXP'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. The company'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, supports its growth strategy.

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