DXP Enterprises Inc., a Houston-based distributor of industrial products and maintenance services, reported first quarter 2025 sales of $476.6 million, up 15.5% from $412.6 million a year earlier. The company, which specializes in providing MROP (maintenance, repair, operating, and production) supplies and technical services, saw broad-based growth across its core business segments, driven by rising demand in energy, water treatment, and manufacturing markets.
Net income nearly doubled to $20.6 million from $11.3 million in the first quarter of 2024.
“Strong gross profit margins and disciplined execution helped us convert top-line growth into higher earnings,” said chairman and CEO David Little. “Our performance highlights the continued strength of DXP’s business model and the effectiveness of our acquisition strategy.”
Business Segment Performance:
- Service Centers, DXP’s largest segment, generated $327.1 million in revenue, a 13.4% increase year-over-year. The segment provides rotating equipment, bearings, power transmission products, and repair services to industrial customers across North America.
- Innovative Pumping Solutions, which designs and fabricates custom-engineered pump systems, posted the strongest growth with $86.2 million in revenue, up 38.5% from a year ago. Operating margins in this segment exceeded 15%.
- Supply Chain Services, which delivers integrated supply solutions and onsite inventory management for large industrial clients, reported a modest 2.1% revenue gain to $63.3 million.
DXP’s organic sales rose 11.1%, with acquisitions—most notably the recent purchase of Arroyo Process Equipment—contributing an additional $31.1 million in revenue.
Chief financial officer Kent Yee said the company is positioned for continued expansion in the second half of the year. “We’re seeing improving momentum in our project backlog and benefiting from diversification across multiple end markets,” Yee said.
Despite strong operational performance, shares of DXP fell 3.04% to close at $83.88 on Wednesday. Analysts attributed the dip to concerns about near-term cash flow after the company reported negative free cash flow of $16.9 million, primarily due to a spike in capital expenditures.
Still, the outlook remains positive. Analysts at Stephens called the results “encouraging,” noting solid execution across business lines. Baird added that DXP’s ability to expand margins while integrating acquisitions is a sign of “well-managed growth.”
Founded in 1908, DXP operates in more than 200 locations and serves a diverse set of industrial customers, including those in oil and gas, water, food and beverage, and general manufacturing. Its growing engineered solutions business is increasingly tied to infrastructure projects, energy transition, and modernization initiatives in water and wastewater systems.
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