DXP Enterprises Delivers 11.9% Sales Growth to $2B and Six Acquisitions
DXP Enterprises reported record 2025 sales of $2.0B, up 11.9%, with gross margin expanding 67 basis points to 31.5% and adjusted EBITDA of $225.3M (11.2% margin). The company closed six acquisitions adding $96M in sales and refinanced debt to lower borrowing costs while SG&A rose by $48.2M.
1. Record 2025 Financial Results
DXP Enterprises closed 2025 with sales of $2.0 billion, an 11.9% rise. Gross profit margin widened by 67 basis points to 31.5%, and adjusted EBITDA reached $225.3 million, representing an 11.2% margin.
2. Strategic Acquisitions and Segment Growth
The company completed six acquisitions that contributed $96 million in sales and expanded its service capabilities. The Innovative Pumping Solutions segment led growth with a 26.4% sales increase driven by energy and water projects.
3. Refinancing and Cost Pressures
A successful debt refinancing lowered borrowing costs and enhanced financial flexibility, but SG&A expenses climbed by $48.2 million due to business expansion and higher insurance premiums. Management highlighted ongoing margin discipline challenges during inflation and supply chain variability.
4. Operational Trends
Daily sales averaged $8.5 million in Q4 across October (7.5 million), November (8.2 million) and December (9.8 million), before dipping to $6.9 million in January, reflecting typical seasonal slowdown. Energy-related bookings and backlog eased in late 2025, indicating potential volatility.