DXP Enterprises Earnings Call Transcripts
Fiscal Year 2026
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Q3 delivered record sales of $587.2M, with 8.7% organic growth and 19% adjusted EBITDA growth, while mix reduced gross margin. Nine-month free cash flow reached $70.5M, and management prioritized margin gains, DXP Water growth, and disciplined acquisitions.
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Q2 2026 saw 15.6% sales growth, record adjusted EBITDA margins, and robust free cash flow, driven by strong organic and acquisition-led expansion, especially in water and wastewater. Backlog and segment performance support a positive outlook for the rest of 2026.
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Sales grew 9.5% year-over-year with strong margin expansion and robust free cash flow, driven by growth in water, energy, and engineered solutions. Three acquisitions closed in Q1, and bookings/backlog trends support a positive outlook for 2026.
Fiscal Year 2025
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Record sales and EBITDA were achieved in 2025, driven by strong organic growth, accretive acquisitions, and margin expansion. Diversification across end markets and disciplined capital allocation supported consistent performance, with a positive outlook for 2026.
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Record Q3 sales and sustained 11% EBITDA margin were driven by strong performance in water and service centers, with acquisitions contributing to growth and margin expansion. SG&A rose due to investments and acquisition activity, while free cash flow and ROIC improved.
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Record Q2 sales and profitability driven by 11.9% year-over-year growth and strong segment performance. Robust backlog, successful acquisitions, and high margins support a positive outlook for the remainder of 2025.
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Q1 2025 saw robust sales and margin growth, with strong performance across all segments and no significant impact from tariffs or macro uncertainty. The company remains focused on acquisitions, organic growth, and maintaining high liquidity, with a positive outlook for the remainder of 2025.
Fiscal Year 2024
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Record sales and profitability in 2024, with 7.4% sales growth, improved margins, and strong free cash flow. Seven acquisitions diversified end markets, and debt refinancing lowered costs. Outlook for 2025 is positive, targeting further growth and higher EBITDA margins.
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The business has transformed over the past decade, reducing oil and gas exposure and expanding into diversified end markets. Strong financial growth, robust acquisition activity, and a focus on efficiency and customer relationships position it for continued momentum into 2025.
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Record Q3 sales and EBITDA margins were driven by strong energy and water project demand, organic growth, and accretive acquisitions. Gross margin and EPS improved year-over-year, with continued investment in people and technology. Seven acquisitions closed YTD, with more expected.
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Record Q2 sales and profitability were driven by strong organic growth and accretive acquisitions, with adjusted EBITDA margins above 10% for the fifth time in six quarters. IPS led segment growth, while Service Centers and SCS showed resilience. ROIC reached 36% and the acquisition pipeline remains robust.