Houston-based pumping solutions and MRO supplies distributor DXP Enterprises reported double-digit third-quarter sales and profit growth Nov. 5, two days after announcing its sixth acquisition of 2026.

3Q26 Results

DXP’s sales increased 14.3% year-over-year to $587.2 million, up 1.9% from the second quarter. Organic sales grew 8.7% year-over-year, while businesses acquired within the past 12 months contributed $48.8 million in quarterly sales. Total sales growth moderated from 15.6% in 2Q.

Net income increased 24.2% year-over-year to $26.9 million. Operating profit rose 20.1% to $52.5 million, with operating margin expanding to 8.9% from 8.5%.

Adjusted EBITDA increased 19.0% to $67.3 million, and adjusted EBITDA margin improved 50 basis points to 11.5%. Gross margin declined to 30.7%, compared with 31.4% a year earlier and 31.8% in 2Q26.

All three business segments posted year-over-year sales growth:

• Service Centers: Sales increased 7.6% to $376.6 million.
• Innovative Pumping Solutions: Sales jumped 43.3% to $144.1 million.
• Supply Chain Services: Sales increased 5.5% to $66.4 million.

Operating cash flow totaled $18.7 million, down from $34.9 million a year earlier, while free cash flow declined to $14.4 million from $28.1 million.

Through the first nine months of 2026, DXP’s sales increased 13.2% to $1.69 billion, while net income rose 14.8% to $75.6 million.

Sixth Acquisition of 2026

DXP announced Nov. 3 that it acquired MDS of Michigan, a Jenison, MI-based distributor of bearings, power transmission products and related services. The transaction closed Nov. 2 and was funded with cash from DXP’s balance sheet. Financial terms were not disclosed.

Founded in 1984, MDS serves customers in food and beverage, automotive, aggregates and waste and water treatment. Its product offering includes bearings, belts, chains, electric motors, drives and conveyor belting, supported by online ordering and inside and outside sales teams.

MDS generated approximately $19 million in sales and $1.6 million in pro forma adjusted EBITDA for the 12 months ended Oct. 31.

“This acquisition expands our Service Center presence in the Midwest and strengthens our bearing & power transmission offering,” DXP Chairman and CEO David Little said.

The deal follows five other acquisitions announced by DXP this year:

• PREMIERflow — January: Tulsa, OK-based provider of integrated fluid handling pump systems serving fire protection, water and wastewater, data center and HVAC applications.
• Mid Atlantic Storage Systems — January: Washington Court House, OH-based provider of liquid storage tanks and related services for water and wastewater, leachate, data center and fire suppression markets.
• Ambiente H2O — February: Sheridan, CO-based manufacturer representative specializing in pumps, process equipment, instrumentation and service for the water and wastewater industry, operating from three locations across five Western states.
• General Repair Service — June: Vadnais Heights, MN-based provider of pumps, blowers and related process equipment, adding service and repair capabilities to DXP’s water platform.
• Mequipco — August: Calgary, Alberta-based manufacturer representative for municipal and industrial water and wastewater equipment, extending DXP Water into Western Canada.