DXP Enterprises (NASDAQ: DXPE) Q1 2026 sales climb 9.5%
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
DXP Enterprises, Inc. reported higher first quarter 2026 sales while earnings were roughly flat versus last year. Sales rose 9.5 percent to $521.7 million from $476.6 million, driven by growth across all three segments, especially Innovative Pumping Solutions.
Net income was $20.0 million compared to $20.6 million a year earlier, with diluted EPS of $1.22 versus $1.25. Adjusted EBITDA increased to $57.8 million, with an adjusted EBITDA margin of 11.1 percent. Operating cash flow improved sharply to $29.6 million, producing $26.3 million of free cash flow.
Service Centers generated $338.0 million of revenue, Innovative Pumping Solutions $118.7 million, and Supply Chain Services $65.0 million. The company completed three acquisitions through the quarter and ended March 31, 2026 with $213.4 million in cash and total debt of $844.7 million, implying a secured leverage ratio of 2.59:1.0 based on covenant EBITDA of $243.9 million for the last twelve months.
Positive
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Negative
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Insights
DXP shows solid top-line growth, stronger cash generation, and steady leverage, with EPS roughly flat.
DXP Enterprises delivered first quarter 2026 sales of $521.7 million, up 9.5% year-over-year, with broad-based segment growth, particularly in Innovative Pumping Solutions. Adjusted EBITDA rose to $57.8 million and margin held around 11 percent, indicating stable underlying profitability.
Despite higher sales, net income was $20.0 million versus $20.6 million a year earlier, and diluted EPS eased to $1.22. However, cash generation strengthened: operating cash flow reached $29.6 million and free cash flow improved to $26.3 million, a notable swing from negative free cash flow in the prior-year quarter.
Management completed three acquisitions through the quarter and reported total debt of $844.7 million and a secured leverage ratio of 2.59:1.0 based on covenant EBITDA of $243.9 million for the twelve months ended March 31, 2026. This suggests room to keep funding growth while maintaining covenant compliance, though future results will depend on integration of acquisitions and end-market conditions.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Sales: $521.7 million
Q1 2026 Net Income: $19.978 million
Q1 2026 Diluted EPS: $1.22 per share
+5 more
8 metrics
Q1 2026 Sales
$521.7 million
Three months ended March 31, 2026; up 9.5% year-over-year
Q1 2026 Net Income
$19.978 million
Three months ended March 31, 2026; slightly below prior year
Q1 2026 Diluted EPS
$1.22 per share
Compared to $1.25 diluted EPS in Q1 2025
Q1 2026 Adjusted EBITDA
$57.8 million
Three months ended March 31, 2026; margin 11.1%
Q1 2026 Free Cash Flow
$26.3 million
Free cash flow versus negative $16.9 million in Q1 2025
Cash Balance
$213.4 million
Cash as of March 31, 2026
Total Debt Outstanding
$844.7 million
Debt as of March 31, 2026; secured leverage ratio 2.59:1.0
Innovative Pumping Solutions Revenue
$118.7 million
Q1 2026 segment revenue; 37.7% year-over-year increase
Key Terms
Adjusted EBITDA, Free Cash Flow, Organic Sales, Sales per Business Day, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA for the first quarter was $57.8 million compared to $52.5 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free Cash Flow financial
"Free Cash Flow (cash flow from operating activities less capital expenditures) for the first quarter was $26.3 million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Organic Sales financial
"Organic Sales are sales from acquisitions that have been under our ownership for less than twelve months and are excluded"
Organic sales are the change in a company’s revenue that comes from its existing business operations, excluding effects of acquisitions, divestitures, and currency swings. Think of it like measuring how much a garden grows from the plants you already tended, rather than adding new pots; investors use organic sales to judge whether demand and core business performance are genuinely improving or if growth is driven by one‑time deals or accounting shifts.
Sales per Business Day financial
"We define and calculate Sales per Business Day as sales divided by the number of Business Days"
secured leverage ratio financial
"DXP’s secured leverage ratio or net debt to EBITDA ratio was 2.59:1.0"
A secured leverage ratio compares the amount of a company’s debt that is backed by collateral (secured debt) to its ability to pay that debt, usually measured against cash flow or the value of assets. Think of it as the share of mortgages on a house compared with the owner’s income or home value — a higher ratio signals more debt burden and greater risk of lender action, tighter borrowing terms, and potential pressure on equity returns, all of which matter to investors.
Adjusted Net Income financial
"The following table is a reconciliation of adjusted net income attributable to DXP Enterprises, Inc."
Adjusted net income is a company's reported profit after removing unusual, one-time, or non-operational items so the number reflects the business’s regular earning power. Investors use it like a cleaned-up scorecard — similar to judging a player’s season performance without a few fluke games — to compare companies or assess trends without being misled by rare gains or losses that won’t affect future cash flow.
Earnings Snapshot
Revenue: $521.7 million
Q1 2026
Revenue
$521.7 million
+9.5% YoY
Net income
$20.0 million
Diluted EPS
$1.22
Adjusted EBITDA
$57.8 million
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): May 7, 2026
Commission file number 0-21513
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | ||||
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| (Address of principal executive offices) | (Registrant’s telephone number, including area code) | ||||||||||||||||
_________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Exchange Act:
| Title of Each Class | Trading Symbol | Name of Exchange on which Registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ⃞
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
The following information is furnished pursuant to Regulation FD.
On May 7, 2026 , DXP Enterprises, Inc., issued a press release announcing financial results for the first quarter ended March 31, 2026. A copy of the release is furnished herewith as Exhibit 99.1, and incorporated herein by reference. Such exhibit (i) is furnished pursuant to Item 2.02 of Form 8-K, (ii) is not to be considered "filed" under the Securities Exchange Act of 1934, as amended (the "Exchange Act") and (iii) shall not be incorporated by reference into any previous or future filings made by or to be made by the Company with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits.
99.1 Press Release dated May 7, 2026 announcing the earnings results for the first quarter ended March 31, 2026.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| DXP ENTERPRISES, INC. | ||||||||
| (Registrant) | ||||||||
| By: | /s/ Kent Yee | |||||||
| Kent Yee | ||||||||
| Senior Vice President/Finance and Chief Financial Officer | ||||||||
| By: | /s/ David Molero Santos | |||||||
| David Molero Santos | ||||||||
| Vice President/Finance and Chief Accounting Officer | ||||||||
| Dated: | May 7, 2026 | |||||||
INDEX TO EXHIBITS
Introductory Note: The following exhibit is furnished pursuant to Item 2.02 of Form 8-K and is not to be considered “filed” under the Exchange Act and shall not be incorporated by reference into any of the Company’s previous or future filings under the Securities Act or the Exchange Act.
| Exhibit No. | Description | ||||
| 99.1 | Press Release dated May 7, 2025 announcing the earnings results for the first quarter ended March 31, 2026 | ||||
 | NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com | |||||||
DXP ENTERPRISES, INC. REPORTS FIRST QUARTER 2026 RESULTS
•$213.4 million in cash
•$521.7 million in sales, a 9.5 percent year-over-year increase
•GAAP diluted EPS of $1.22
•$57.8 million in earnings before interest, taxes, depreciation & amortization and other non-cash charges ("Adjusted EBITDA")
•Completed three acquisitions through Q1
Houston, TX – May 7, 2026 – DXP Enterprises, Inc. ("DXP" or the "Company") (NASDAQ: DXPE) today announced financial results for the first quarter ended March 31, 2026. The following are results for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. A reconciliation of the non-GAAP financial measures can be found in the back of this press release.
First Quarter 2026 Financial Highlights:
•Sales increased 9.5 percent to $521.7 million compared to $476.6 million for the first quarter of 2025.
•Net income for the first quarter was $20.0 million, compared to $20.6 million for the first quarter of 2025.
•Earnings per diluted share for the first quarter was $1.22 based upon 16.4 million diluted shares, compared to $1.25 earnings per diluted share in the first quarter of 2025, based on 16.5 million diluted shares.
•Adjusted EBITDA for the first quarter was $57.8 million compared to $52.5 million for the first quarter of 2025. Adjusted EBITDA as a percentage of sales, or Adjusted EBITDA margin, was 11.1 percent and 11.0 percent, respectively.
•Cash flow from operating activities for the first quarter was $29.6 million, compared to $3.0 million for the first quarter of 2025.
•Free Cash Flow (cash flow from operating activities less capital expenditures) for the first quarter was $26.3 million, compared to $(16.9) million for first quarter of 2025.
Business segment financial highlights:
•Service Centers’ revenue for the first quarter was $338.0 million, an increase of 3.3 percent year-over-year, with a 14.7 percent operating income margin.
•Innovative Pumping Solutions’ revenue for the first quarter was $118.7 million, an increase of 37.7 percent year-over-year, with a 18.3 percent operating income margin.
•Supply Chain Services’ revenue for the first quarter was $65.0 million, an increase of 2.7 percent year-over-year, with a 9.9 percent operating income margin.
David R. Little, Chairman and Chief Executive Officer commented, "The Company posted first quarter financial results, delivering solid sales, adjusted EBITDA, earnings per share and free cash flow. First quarter results reflect the continued execution of our growth strategy. This resulted in operating leverage that produced diluted earnings per share of $1.22. DXP’s fiscal year 2026 first quarter sales were $521.7 million, or an 9.5 percent growth over the same period in 2025. Adjusted EBITDA was $57.8 million in the quarter. During the first quarter of 2026, sales were $338.0 million for Service Centers, $118.7 million for Innovative Pumping Solutions, and $65.0 million for Supply Chain Services. Overall, we are pleased with our performance and the progress DXP continues to make as a growth company."
Kent Yee, Chief Financial Officer and Senior Vice President, remarked, "DXP performed well in the quarter with $521.7 million in sales. We closed three acquisitions through the first quarter. This quarter's financial results reflect continued execution of our strategic goals and the impact of our diversification efforts, and a strong balance sheet to support our key initiatives. Total debt outstanding as of March 31, 2026, was $844.7 million. DXP’s secured leverage ratio or net debt to EBITDA ratio was 2.59:1.0 with a covenant EBITDA of $243.9 million for the last twelve months ending March 31, 2026. We expect to continue fiscal year 2026 with strong momentum."
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| NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com | |||||||
Conference Call Information
DXP Enterprises, Inc. management will host a conference call, May 7, 2026, at 3:30 p.m. Central Time, to discuss the Company’s financial results. The conference call may be accessed by going to https://ir.dxpe.com.
Interested investors and other parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of the Company's website at https://ir.dxpe.com. The online replay will be available on the same website immediately following the call. A slide presentation highlighting the Company’s results and key performance indicators will also be available on the Investor Relations section of the Company’s website.
To learn more about DXP Enterprises, Inc., please visit the Company's website at https://www.dxpe.com
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout North America and Dubai. DXP provides innovative pumping solutions, supply chain services and maintenance, repair, operating and production ("MROP") services that emphasize and utilize DXP’s vast product knowledge and technical expertise in rotating equipment, bearings, power transmission, metal working, industrial supplies and safety products and services. DXP's breadth of MROP products and service solutions allows DXP to be flexible and customer-driven, creating competitive advantages for our customers. DXP’s business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. For more information, go to www.dxpe.com.
Non-GAAP Financial Measures
DXP supplements reporting of net income with certain non-GAAP measurements, including EBITDA, Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Net Income, and Adjusted Diluted EPS. This supplemental information should not be considered in isolation or as a substitute for the unaudited GAAP measurements. Additional information regarding EBITDA, Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Net Income, Adjusted Diluted EPS, and net debt referred to in this press release are included below under "Unaudited Reconciliation of Non-GAAP Financial Information".
The Company believes EBITDA provides additional information about: (i) operating performance, because it assists in comparing the operating performance of the business, as it removes the impact of non-cash depreciation and amortization expense as well as items not directly resulting from core operations such as interest expense and income taxes and (ii) the performance and the effectiveness of operational strategies. Additionally, EBITDA performance is a component of a measure of the Company’s financial covenants under its credit facilities. Furthermore, some investors use EBITDA as a supplemental measure to evaluate the overall operating performance of companies in the industry. Management believes that some investors’ understanding of performance is enhanced by including this non-GAAP financial measure as a reasonable basis for comparing ongoing results of operations. By providing this non-GAAP financial measure, together with a reconciliation to its most directly comparable GAAP financial measure, the Company believes it is enhancing investors’ understanding of the business and results of operations, as well as assisting investors in evaluating how well the Company is executing strategic initiatives. Free Cash Flow reconciles to the most directly comparable GAAP financial measure of cash flows from operations as provided below. We believe Free Cash Flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to fund acquisitions, make investments, repay debt obligations, repurchase shares of the Company's common stock, and for certain other activities. Adjusted Net Income reconciles to the most directly comparable GAAP financial measure of Net Income as provided below. We believe Adjusted Net Income is important because it provides the investor with further clarity around Net Income excluding the impact of unique or one-time items during the respective period.
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| NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com | |||||||
Information Related to Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a “safe-harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made by or to be made by the Company) contains statements that are forward-looking. These forward-looking statements include, without limitation, those about the Company’s expectations regarding the Company's expectations regarding the filing of the Form 10-Q; the description of the anticipated changes in the Company's consolidated balance sheet and the results of operations and the Company's assessment of the impact of such anticipated changes; the Company’s business, the Company’s future profitability, cash flow, liquidity, and growth. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future; and accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the Company. These risks and uncertainties 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 supply or demand for maintenance, repair and operating products, equipment and service; inability of the Company or its independent auditors to complete the work necessary in order to file the Form 10-Q in the expected time frame; unanticipated changes to the Company's operating results in the Form 10-Q as filed or in relation to prior periods, including as compared to the anticipated changes stated here; unanticipated impact of such changes and its materiality; ability to obtain needed capital, dependence on existing management, leverage and debt service, domestic or global economic conditions, ability to manage changes and the continued health or availability of management personnel and changes in customer preferences and attitudes. In some cases, you can identify forward-looking statements by terminology such as, but not limited to, “may,” “will,” “should,” “intend,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “goal,” or “continue” or the negative of such terms or other comparable terminology. More information on these risks and other potential factors that could affect the Company’s business and financial results is included in the Company’s filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
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| NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com | |||||||
DXP ENTERPRISES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ thousands, except share amounts)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Sales | $ | 521,658 | $ | 476,569 | |||||||
| Cost of sales | 353,052 | 326,304 | |||||||||
| Gross profit | 168,606 | 150,265 | |||||||||
| Selling, general and administrative expenses | 126,132 | 109,750 | |||||||||
| Income from operations | 42,474 | 40,515 | |||||||||
Interest expense | 16,443 | 14,660 | |||||||||
| Other (income) expense, net | (594) | (1,318) | |||||||||
| Income before income taxes | 26,625 | 27,173 | |||||||||
| Provision for income taxes | 6,647 | 6,584 | |||||||||
| Net income | 19,978 | 20,589 | |||||||||
| Preferred stock dividend | 23 | 23 | |||||||||
| Net income attributable to common shareholders | $ | 19,955 | $ | 20,566 | |||||||
| Net income | $ | 19,978 | $ | 20,589 | |||||||
| Foreign currency translation adjustments | (1,464) | 86 | |||||||||
| Comprehensive income | $ | 18,514 | $ | 20,675 | |||||||
| Earnings per share: | |||||||||||
| Basic | $ | 1.28 | $ | 1.31 | |||||||
| Diluted | $ | 1.22 | $ | 1.25 | |||||||
| Weighted average common shares outstanding: | |||||||||||
| Basic | 15,531 | 15,698 | |||||||||
| Diluted | 16,371 | 16,538 | |||||||||
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| NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com | |||||||
DXP ENTERPRISES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
($ thousands, except share amounts)
| March 31, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash | $ | 213,381 | $ | 303,783 | |||||||
| Restricted cash | — | — | |||||||||
| Accounts receivable, net of allowance of $4,299 and $3,995, respectively | 420,246 | 397,502 | |||||||||
| Inventories | 117,991 | 108,144 | |||||||||
| Costs and estimated profits in excess of billings | 58,971 | 53,855 | |||||||||
| Prepaid expenses and other current assets | 40,064 | 47,033 | |||||||||
| Total current assets | 850,653 | 910,317 | |||||||||
| Property and equipment, net | 117,361 | 114,822 | |||||||||
| Goodwill | 550,758 | 494,561 | |||||||||
| Other intangible assets, net | 122,818 | 81,351 | |||||||||
| Operating lease right of use assets, net | 74,180 | 74,709 | |||||||||
| Other long-term assets | 9,012 | 9,395 | |||||||||
| Total assets | $ | 1,724,782 | $ | 1,685,155 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Current maturities of debt | $ | 8,580 | $ | 8,580 | |||||||
| Trade accounts payable | 122,997 | 116,765 | |||||||||
| Accrued wages and benefits | 45,411 | 51,180 | |||||||||
| Customer advances | 13,110 | 15,460 | |||||||||
| Billings in excess of costs and estimated profits | 25,325 | 15,689 | |||||||||
| Short-term operating lease liabilities | 19,398 | 19,038 | |||||||||
| Other current liabilities | 50,875 | 45,769 | |||||||||
| Total current liabilities | 285,696 | 272,481 | |||||||||
| Long-term debt, net of unamortized debt issuance costs and discounts | 817,360 | 818,476 | |||||||||
| Long-term operating lease liabilities | 56,675 | 57,509 | |||||||||
| Other long-term liabilities | 52,854 | 38,250 | |||||||||
| Total long-term liabilities | 926,889 | 914,235 | |||||||||
| Total liabilities | 1,212,585 | 1,186,716 | |||||||||
Commitments and Contingencies | |||||||||||
| Shareholders' equity: | |||||||||||
| Series A preferred stock, $1.00 par value; 1,000,000 shares authorized | 1 | 1 | |||||||||
| Series B preferred stock, $1.00 par value; 1,000,000 shares authorized | 15 | 15 | |||||||||
| Common stock, $0.01 par value, 100,000,000 shares authorized; 20,395,996 issued and 15,505,939 outstanding at March 31, 2026 and 20,403,647 issued and 15,513,590 outstanding at December 31, 2025 | 204 | 204 | |||||||||
| Additional paid-in capital | 215,948 | 220,681 | |||||||||
| Retained earnings | 498,212 | 478,257 | |||||||||
| Accumulated other comprehensive loss | (32,071) | (30,607) | |||||||||
| Treasury stock, at cost 4,890,057 and 4,890,057 shares, respectively | (170,112) | (170,112) | |||||||||
| Total DXP Enterprises, Inc. equity | 512,197 | 498,439 | |||||||||
| Total liabilities and equity | $ | 1,724,782 | $ | 1,685,155 | |||||||
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| NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com | |||||||
SEGMENT DATA
($ thousands, unaudited)
| Three Months Ended March 31, | |||||||||||
| Sales | 2026 | 2025 | |||||||||
| Service Centers | $ | 337,976 | $ | 327,075 | |||||||
| Innovative Pumping Solutions | 118,660 | 86,182 | |||||||||
| Supply Chain Services | 65,022 | 63,312 | |||||||||
| Total Sales | $ | 521,658 | $ | 476,569 | |||||||
| Three Months Ended March 31, | |||||||||||
| Operating Income | 2026 | 2025 | |||||||||
| Service Centers | $ | 49,675 | $ | 47,045 | |||||||
| Innovative Pumping Solutions | 21,672 | 13,406 | |||||||||
| Supply Chain Services | 6,414 | 5,564 | |||||||||
Total Segments Operating Income | $ | 77,761 | $ | 66,015 | |||||||
RECONCILIATION OF OPERATING INCOME FOR REPORTABLE SEGMENTS
($ thousands, unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Income from operations for reportable segments | $ | 77,761 | $ | 66,015 | |||||||
| Adjustment for: | |||||||||||
Amortization of intangibles | 7,017 | 5,355 | |||||||||
| Corporate expenses | 28,270 | 20,145 | |||||||||
| Income from operations | $ | 42,474 | $ | 40,515 | |||||||
| Interest expense | 16,443 | 14,660 | |||||||||
| Other (income) expense, net | (594) | (1,318) | |||||||||
| Income before income taxes | $ | 26,625 | $ | 27,173 | |||||||
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| NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com | |||||||
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
($ thousands, unaudited)
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, and 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.
We define and calculate EBITDA Margin as EBITDA divided by sales. We define and calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by sales.
The following table sets forth the reconciliation of EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin to the most comparable U.S. GAAP financial measure (in thousands):
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
Income before income taxes | $ | 26,625 | $ | 27,173 | |||||||
Plus: Interest expense | 16,443 | 14,660 | |||||||||
Plus: Depreciation and amortization | 12,051 | 9,134 | |||||||||
| EBITDA | $ | 55,119 | $ | 50,967 | |||||||
| Plus: stock compensation expense | 1,802 | 1,317 | |||||||||
Plus: other non-recurring items(1) | 891 | 235 | |||||||||
| Adjusted EBITDA | $ | 57,812 | $ | 52,519 | |||||||
| Operating Income Margin | 8.1 | % | 8.5 | % | |||||||
Net Income Margin | 3.8 | % | 4.3 | % | |||||||
| EBITDA Margin | 10.6 | % | 10.7 | % | |||||||
| Adjusted EBITDA Margin | 11.1 | % | 11.0 | % | |||||||
(1) Other non-recurring items include non-recurring costs not related to continuing business operations. | |||||||||||
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| NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com | |||||||
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" 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.
We define and calculate Sales per Business Day as sales divided by the number of Business Days in the relevant reporting period.
We define and calculate Organic Sales per Business Day as Organic Sales divided by the number of Business Days in the relevant reporting period.
The following table sets forth the reconciliation of Acquisition Sales, Organic Sales and Organic Sales per Business Day to the most comparable U.S. GAAP financial measure (in thousands):
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Sales by Business Segment | |||||||||||
| Service Centers | $ | 337,976 | $ | 327,075 | |||||||
| Innovative Pumping Solutions | 118,660 | 86,182 | |||||||||
| Supply Chain Services | 65,022 | 63,312 | |||||||||
| Total DXP Sales | $ | 521,658 | $ | 476,569 | |||||||
| Acquisition Sales | $ | 40,745 | $ | 31,112 | |||||||
| Organic Sales | $ | 480,913 | $ | 445,457 | |||||||
| Business Days | 63 | 63 | |||||||||
| Sales per Business Day | $ | 8,280 | $ | 7,565 | |||||||
| Organic Sales per Business Day | $ | 7,634 | $ | 7,071 | |||||||
We define and calculate free cash flow as net cash (used in) provided by operating activities less purchases of property and equipment.
The following table sets forth the reconciliation of Free Cash Flow to the most comparable GAAP financial measure (in thousands):
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash from operating activities | $ | 29,569 | $ | 2,973 | |||||||
| Less: purchases of property and equipment | (3,294) | (19,914) | |||||||||
| Free Cash Flow | $ | 26,275 | $ | (16,941) | |||||||
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| NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com | |||||||
The following table is a reconciliation of adjusted net income attributable to DXP Enterprises, Inc., a non-GAAP financial measure, to net income, calculated and reported in accordance with U.S. GAAP (in thousands):
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
Net Income | $ | 19,978 | $ | 20,589 | |||||||
One-time non-recurring costs | 891 | 235 | |||||||||
Adjustment for taxes | (222) | (57) | |||||||||
Adjusted Net Income | $ | 20,647 | $ | 20,767 | |||||||
Weighted average common shares outstanding | |||||||||||
| Diluted | 16,371 | 16,538 | |||||||||
| Diluted Earnings per Share | $ | 1.22 | $ | 1.25 | |||||||
| Adjusted Diluted Earnings per Share | $ | 1.26 | $ | 1.26 | |||||||
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FAQ
How did DXP Enterprises (DXPE) perform in Q1 2026?
DXP Enterprises reported Q1 2026 sales of $521.7 million, up 9.5 percent year-over-year. Net income was $20.0 million and diluted EPS was $1.22, slightly below $1.25 a year earlier, with adjusted EBITDA increasing to $57.8 million.
What were DXP Enterprises (DXPE) segment results for Q1 2026?
DXP’s Q1 2026 segment revenues were $338.0 million for Service Centers, $118.7 million for Innovative Pumping Solutions, and $65.0 million for Supply Chain Services. Each segment grew year-over-year, led by a 37.7 percent increase in Innovative Pumping Solutions revenue.
How did DXP Enterprises (DXPE) cash flow and free cash flow trend in Q1 2026?
In Q1 2026, DXP generated $29.6 million of cash flow from operating activities, up sharply from $3.0 million a year earlier. Free cash flow improved to $26.3 million, compared to negative $16.9 million in the prior-year quarter, reflecting lower capital spending and stronger operations.
What was DXP Enterprises (DXPE) profitability and EBITDA in Q1 2026?
DXP posted Q1 2026 net income of $20.0 million and net income margin of 3.8 percent. EBITDA was $55.1 million, with adjusted EBITDA of $57.8 million. Adjusted EBITDA margin was 11.1 percent, slightly above 11.0 percent in Q1 2025.
What is DXP Enterprises (DXPE) leverage and debt position as of March 31, 2026?
As of March 31, 2026, DXP reported total debt outstanding of $844.7 million. The company cited a secured leverage ratio, or net debt to EBITDA ratio, of 2.59:1.0 based on covenant EBITDA of $243.9 million for the last twelve months.
Did DXP Enterprises (DXPE) complete any acquisitions in Q1 2026?
Yes. Management stated that DXP completed three acquisitions through the first quarter of 2026. These acquisitions contributed to reported acquisition sales of $40.7 million, which are excluded from the company’s calculation of organic sales in the period.