DXP Enterprises Q1 Sales Rise 9.5% as Margins Improve

Management cites stronger bookings with a healthy deal pipeline as signs of continued momentum.

Overview

The company reported $521.7 million in first-quarter sales, up 9.5% from a year ago, with adjusted EBITDA of $57.8 million for an 11.1% margin.
Net income was $20.0 million, equal to $1.22 per diluted share on a GAAP basis, while management cited adjusted diluted EPS of $1.26.
Segment results showed Service Centers at $338.0 million in revenue, Innovative Pumping Solutions at $118.7 million after 37.7% growth, and Supply Chain Services at $65.0 million.
DXP generated $29.6 million in operating cash flow and $26.3 million in free cash flow, and it ended the quarter with $844.7 million of debt and secured leverage near 2.6 times.
Leaders said sales rebounded after a weak January, and that higher interest plus one-time health care, legal and audit costs weighed on earnings but should normalize.