DXP Enterprises Reports 9.5% Revenue Growth to $521.7 Million in Q1 2026

DXP Enterprises, Inc. reported a revenue increase of 9.5% for the first quarter of 2026, reaching $521.7 million compared to $476.6 million in the same period of 2025. The growth was driven by contributions from recent acquisitions, which accounted for approximately $40.7 million of the total sales. The Service Centers segment saw a modest increase of 3.3% in sales, while the Innovative Pumping Solutions segment experienced a significant rise of 37.7%. However, net income for the quarter decreased slightly to $19.978 million, down from $20.589 million in the prior year, resulting in diluted earnings per share of $1.22, compared to $1.25 a year earlier.

The company's gross profit margin improved to 32.3% from 31.5% year-over-year, attributed to effective margin expansion strategies and the impact of acquisitions. Selling, general, and administrative expenses rose by 14.9% to $126.1 million, primarily due to increased payroll costs and professional fees. Operating income increased to $42.5 million, reflecting a $2 million rise from the previous year, while interest expenses also increased due to refinancing activities.

In terms of operational metrics, DXP's cash flow from operating activities significantly improved, generating $29.6 million compared to just $3 million in the same quarter of 2025. The company’s total assets increased to $1.725 billion, up from $1.685 billion at the end of 2025, with cash and cash equivalents at $213.4 million. The company also reported a total debt of $844.7 million, representing 62.3% of total capitalization.

Strategically, DXP completed three acquisitions during the quarter for a total of $126.3 million, aimed at enhancing its market position as a leading distributor of rotating equipment in North America. The acquisitions are expected to contribute positively to future revenue streams, although their immediate impact on financial results was not material. Looking ahead, DXP anticipates continued growth driven by its diverse customer base and the non-discretionary nature of its products, despite potential challenges from macroeconomic conditions and supply chain disruptions.