DXPE · DXP Enterprises, Inc.

DXP Enterprises reported solid first quarter 2026 results, with sales increasing 9.5% year-over-year to $521.7 million, driven by strong performance in the Innovative Pumping Solutions segment, which grew 37.7%. Service Centers and Supply Chain Services posted more modest growth of 3.3% and 2.7%, respectively. Despite higher revenue, GAAP net income declined slightly to $20.0 million from $20.6 million, and diluted EPS fell to $1.22 from $1.25, primarily due to higher interest expense ($16.4 million vs. $14.7 million) and increased SG&A costs. Adjusted EBITDA improved to $57.8 million, with margin expanding 10 basis points to 11.1%. Operating cash flow surged to $29.6 million from $3.0 million in the prior year, reflecting better working capital management. The company completed three acquisitions during the quarter, consistent with its growth strategy. Management expressed optimism about continued momentum, citing a strong balance sheet with $213.4 million in cash and a net debt to EBITDA ratio of 2.59:1.0. No forward guidance was provided beyond qualitative statements.