Why This Matters to Distributors: DXP’s results point to continued demand for industrial maintenance, pumping systems and specialized service capabilities tied to infrastructure, energy, and production markets. The company’s acquisition activity and growth in pumping solutions also reflect how distributors are investing in technical services and engineered products to expand beyond traditional product distribution.
DXP Enterprises reported higher first quarter sales as growth in their pumping and industrial service businesses helped offset a slight decline in earnings.
The Houston-based distributor said first quarter sales increased 9.5% year over year to $521.7 million from $476.6 million in the same quarter last year. Net income decreased 3.0% to $20.0 million from $20.6 million a year earlier.
Gross profit increased 12.2% to $168.6 million from $150.3 million in the prior-year quarter. Operating income rose 4.8% to $42.5 million from $40.5 million.
Cash flow from operations increased to $29.6 million from $3.0 million a year earlier. Free cash flow improved to $26.3 million from negative $16.9 million in the first quarter of 2025.
“The Company posted first quarter financial results, delivering solid sales, adjusted EBITDA, earnings per share and free cash flow,” CEO David Little said. “First quarter results reflect the continued execution of our growth strategy.”
DXP completed three acquisitions during the quarter as part of its expansion strategy.
The company’s Innovative Pumping Solutions segment posted the strongest growth during the quarter. Sales in the segment increased 37.7% year over year to $118.7 million from $86.2 million, while operating income rose to $21.7 million from $13.4 million.
DXP’s Service Centers segment, its largest business unit, reported sales of $338.0 million, up 3.3% from $327.1 million a year earlier. Operating income for the segment increased to $49.7 million from $47.0 million.
Supply Chain Services sales increased 2.7% to $65.0 million from $63.3 million in the prior quarter. Operating income in the segment increased to $6.4 million from $5.6 million.
Chief financial officer Kent Yee said the company expects continued momentum through the remainder of 2026.
“This quarter’s financial results reflect continued execution of our strategic goals and the impact of our diversification efforts, and a strong balance sheet to support our key initiatives,” Yee said.
DXP ended the quarter with $213.4 million in cash and total debt of $844.7 million.
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