Power Transmission/Motion Control
DXP’s Sales, Profit & EBITDA Jump in 1Q
The company reported strong first quarter results, with year-over-year sales and profit growth driven by acquisitions and organic momentum across its segments.
Houston-based pumping solutions and industrial supplies distributor DXP Enterprises reported its 2025 first quarter financial results on May 7, showing a jump in sales year-over-year, while profit likewise increased.
The company posted 1Q sales of $476.9 million, up 15.5% year-over-year and up from 4Q24’s $470.9 million. Gross margin of 31.5% ticked up 150 basis points year-over-year but remained unchanged month-over-month.
MDM’s 1Q25 MarketPulse Report (store link)
The sales increase was helped by DXP’s seven acquisitions completed during 2024 that contributed a combined $80.5 million in annual sales that year, but 1Q organic growth was also strong.
By DXP business segment during 1Q25:
- Service Center sales of $327.1 million were up 13.4% year-over-year with an operating margin of 14.4%.
- Innovative Pumping Solution sales of $86.2 million were up 38.5% year-over-year with an operating margin of 15.6%.
- Supply Chain Services sales of $63.3 million increased 2.1% year-over-year with an operating margin of 8.8%.
MDM Case Study: MSC Industrial Supply (Premium access here)
DXP’s operating profit of $40.5 million increased from $29.1 million a year earlier, while net profit of $150.2 million was likewise up from 1Q24’s $123.8 million.
1Q adjusted EBITDA of $52.5 million on 11.0% margin was up compared to the $40.3 million on 9.8% margin year-over-year.
“Our first quarter year-over-year increase of 15.5 percent was great to see,” DXP CFO and Senior VP Kent Yee said in the company’s financial release. “We continue to see bright spots in the market, and we currently anticipate the second half of the year to drive growth as we benefit from increases in our project backlog and the diversification of our end markets. DXP ended the quarter with $114.3 million in cash on the balance sheet. Specifically, this quarter reflects continued execution of our strategic goals and the confidence we have in our balanced mix of business, tremendous teams, and a strong balance sheet to support our key initiatives.”
