Houston-based pumping solutions and industrial supplies distributor DXP Enterprises reported its fourth quarter and full-year financial results on Feb. 26, which showed continued strong sales gains powered by both organic and acquisitive strength.

4Q25

DXP posted 4Q sales of $527 million, up 12.0% year-over-year and up 2.7% sequentially from 3Q. Organic sales jumped by 12.7% YoY, while acquisitions contributed $96 million ($18M in 3Q).

By business segment during 4Q:

• Service Centers sales of $356 million (68% of total) increased 13.2% YoY and had operating margin of 13.9% (-80 bps sequentially)
• Innovative Pumping Solutions sales of $110 million (21% of total) increased 17.4% YoY and had operating margin of 18.0% (-30 bps sequentially)
• Supply Chain Services sales of $61 million (12% of total) decreased by 2.0% YoY and had operating margin of 9.5% (+110 bps sequentially)

DXP’s 4Q gross margin of 31.6% ticked up 10 bps YoY and 20 bps sequentially. Operating profit of $46.7 million topped the $39.3 million of a year earlier (and $43.7M in 3Q) while 4Q operating margin of 8.8% improved 50 bps YoY and 30 bps sequentially.

The company’s 4Q net profit of $22.8 million topped the $21.4 million of a year earlier and $21.6 million of 3Q, while 4Q adjusted EBITDA of $59 million on 11.2% margin topped the $50.3M/10.7% of a year earlier and $56.5M/11.0% in 3Q.

It’s been a very busy past five months for DXP. During 4Q and since, it made the following moves:

• Acquired pump manufacturer’s rep APSCO in Redmond, WA – October
• Acquired Triangle Pump & Equipment in Ridgefield, WA – November
• Acquired Pump Solutions, Inc. in New Caney, TX – December
• Refinanced Debt and raised $205 million for reinvestment – December
• Acquired PREMIERflow in Tulsa, OK and Mid Atlantic Storage Systems in Ohio, which added a combined $110M in revenue and 185 employees – January
• Acquired Manufacturer’s Rep Ambiente H20 in Sheridan, CO – early February

Overall, DXP completed six acquisitions during 4Q and closed on three since.

Full Year 2025

For the full year, DXP’s 2025 total sales of $2.02 billion jumped 11.9% vs. 2024. Gross margin of 31.5% improved 60 bps annually; operating profit of $177 million jumped 21.7% as operating margin of 8.8% improved 70 bps; net profit of $89 million jumped 25.8%; and adjusted EBITDA of $225 million on 11.2% margin topped the $191M/10.6% of a year earlier.

“Fiscal 2025 financial performance reflects the execution of our end market diversification efforts, our plans to grow both organically and through acquisitions, and continuous improvement in our operations and efficiency,” DXP CFO Kent Yee said in the company’s earnings statement.