DXP Enterprises Reports 11.9% Sales Growth to $498.7 Million in Q2 2025

DXP Enterprises, Inc. reported significant financial growth in its latest quarterly filing, with total sales reaching $498.7 million for the three months ended June 30, 2025, a rise of 11.9% from $445.6 million in the same period last year. For the first half of 2025, sales totaled $975.3 million, up 13.6% from $858.2 million in the prior year. The company attributed this increase to strong performance in its Service Centers and Innovative Pumping Solutions segments, which saw sales growth of $33.2 million and $20.2 million, respectively. Net income for the second quarter was $23.6 million, compared to $16.7 million in the previous year, resulting in earnings per share of $1.50, up from $1.05.

The company’s gross profit margin improved to 31.6% for the second quarter, compared to 30.9% in the prior year, driven by recent acquisitions and ongoing margin expansion initiatives. Selling, general, and administrative expenses increased by 11.3% to $111.8 million, primarily due to higher payroll costs and IT expenses. Operating income rose to $46.0 million, reflecting a 30.1% increase from the previous year, bolstered by the performance of the Service Centers and Innovative Pumping Solutions segments.

In terms of strategic developments, DXP completed two acquisitions during the first half of 2025, totaling $13.9 million, aimed at expanding its geographic coverage and enhancing its service offerings. The company also reported a significant increase in its cash position, with $112.9 million in cash and $106.3 million available under its asset-backed revolving credit facility as of June 30, 2025. This liquidity positions DXP well for future investments and operational needs.

Operationally, DXP's customer base and engagement metrics showed positive trends, with organic sales increasing by 12.3% in the second quarter. The Service Centers segment, which provides maintenance, repair, and operating products, reported a notable increase in sales, driven by demand in various regions, including Ohio and California. The company’s employee headcount remained stable, with no significant changes reported in staffing levels.

Looking ahead, DXP Enterprises anticipates continued growth, supported by its strategic acquisitions and a resilient customer base. The company is closely monitoring macroeconomic conditions, including inflation and supply chain challenges, while remaining optimistic about its ability to maintain market competitiveness. The management expects that the ongoing demand for its products and services will drive further sales growth in the coming quarters.