DXP ENTERPRISES, INC. REPORTS THIRD QUARTER 2026 RESULTS
DXP ENTERPRISES INC (DXPE) filed an SEC Form 8-K — Results of Operations and Financial Condition. NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com DXP ENTERPRISES, INC. REPORTS THIRD QUARTER 2026 RESULTS • $218.8 million in cash • $587.2 million in sales, a 14.3 percent year-over-year increase • GAAP diluted EPS of $1.64 • $67.3 million in e
How this was made
The 30-second read
Why it matters
Earnings beat and strong cash flow suggest near-term upside, but leverage warrants monitoring.
Market read
The earnings release provides fresh data for traders to assess DXP's valuation and momentum.
What to watch
Debt level of $839.5M and leverage ratio may constrain future flexibility.
DXP ENTERPRISES, INC. REPORTS THIRD QUARTER 2026 RESULTS
Third-quarter sales increased 14.3 percent to $587.2 million, net income increased 24.2 percent to $26.9 million, and Adjusted EBITDA increased 19.0 percent to $67.3 million, while Adjusted EBITDA margin expanded to 11.5 percent from 11.0 percent.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Sales, three months ended September 30GAAP | $587.2M | – | 14.3 percent |
| Cost of sales, three months ended September 30GAAP | 406,672 | – | – |
| Gross profit, three months ended September 30GAAP | 180,508 | – | – |
| Selling, general and administrative expenses, three months ended September 30GAAP | 128,046 | – | – |
| Income from operations, three months ended September 30GAAP | $52.46M | – | – |
| Interest expense, three months ended September 30GAAP | 16,949 | – | – |
| Other (income) expense, net, three months ended September 30GAAP | (950) | – | – |
| Income before income taxes, three months ended September 30GAAP | $36.46M | – | – |
| Provision for income taxes, three months ended September 30GAAP | 9,593 | – | – |
| Net income, three months ended September 30GAAP | $26.87M | – | 24.2 percent |
| Net income attributable to common shareholders, three months ended September 30GAAP | $26.85M | – | – |
| Comprehensive income, three months ended September 30GAAP | $26.75M | – | – |
| Basic earnings per share, three months ended September 30GAAP | $ 1.73 | – | – |
| Diluted earnings per share, three months ended September 30GAAP | $ 1.64 | – | – |
| Weighted average common shares outstanding, basic, three months ended September 30GAAP | 15,513 | – | – |
| Weighted average common shares outstanding, diluted, three months ended September 30GAAP | 16,353 | – | – |
| EBITDA, three months ended September 30non-GAAP | $65.77M | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $67.26M | – | 19.0 percent |
| Operating Income Margin, three months ended September 30GAAP | 8.9 % | – | – |
| Net Income Margin, three months ended September 30GAAP | 4.6 % | – | – |
| EBITDA Margin, three months ended September 30non-GAAP | 11.2 % | – | – |
| Adjusted EBITDA Margin, three months ended September 30non-GAAP | 11.5 % | – | – |
| Acquisition Sales, three months ended September 30non-GAAP | $48.83M | – | – |
| Organic Sales, three months ended September 30non-GAAP | $538.3M | – | – |
| Business Days, three months ended September 30other | 64 | – | – |
| Sales per Business Day, three months ended September 30non-GAAP | $ 9,175 | – | – |
| Organic Sales per Business Day, three months ended September 30non-GAAP | $ 8,412 | – | – |
| Net cash from operating activities, three months ended September 30GAAP | $18.69M | – | – |
| Purchases of property and equipment, three months ended September 30GAAP | (4,238) | – | – |
| Free Cash Flow, three months ended September 30non-GAAP | $14.45M | – | – |
| Adjusted Net Income, three months ended September 30non-GAAP | $26.87M | – | – |
| Adjusted Diluted Earnings per Share, three months ended September 30non-GAAP | $ 1.64 | – | – |
| Sales, nine months ended September 30GAAP | $1.69B | – | – |
| Gross profit, nine months ended September 30GAAP | 532,181 | – | – |
| Income from operations, nine months ended September 30GAAP | $150.4M | – | – |
| Net income, nine months ended September 30GAAP | $75.56M | – | – |
| Diluted earnings per share, nine months ended September 30GAAP | $ 4.62 | – | – |
| Adjusted EBITDA, nine months ended September 30non-GAAP | $195.4M | – | – |
| Adjusted EBITDA Margin, nine months ended September 30non-GAAP | 11.6 % | – | – |
| Net cash from operating activities, nine months ended September 30GAAP | $80.64M | – | – |
| Free Cash Flow, nine months ended September 30non-GAAP | $70.49M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Service Centers, three months ended September 30Operating income was $ 55,614 and operating income margin was 14.8 percent. | $376.6M | – | 7.6 percent |
| Innovative Pumping Solutions, three months ended September 30Operating income was $ 23,444 and operating income margin was 16.3 percent. | $144.1M | – | 43.3 percent |
| Supply Chain Services, three months ended September 30Operating income was $ 5,998 and operating income margin was 9.0 percent. | $66.43M | – | 5.5 percent |
| Service Centers, nine months ended September 30Operating income was $ 159,454. | $1.08B | – | – |
| Innovative Pumping Solutions, nine months ended September 30Operating income was $ 71,777. | $405.5M | – | – |
| Supply Chain Services, nine months ended September 30Operating income was $ 18,896. | $197.3M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
What drove it
- Organic Sales were $ 538,348 for the three months ended September 30, 2026, compared to $ 495,321 for the three months ended September 30, 2025.
- Acquisition Sales were $ 48,832 for the three months ended September 30, 2026, compared to $ 18,403 for the three months ended September 30, 2025.
- DXP closed five acquisitions through the third quarter.
- Innovative Pumping Solutions revenue increased 43.3 percent year-over-year to $ 144,115.
- Adjusted EBITDA Margin was 11.5 % for the three months ended September 30, 2026, compared to 11.0 % for the three months ended September 30, 2025.
Concerns
- Net cash from operating activities was $ 18,686 for the third quarter of 2026, compared to $ 34,886 for the third quarter of 2025.
- Free Cash Flow was $ 14,448 for the third quarter of 2026, compared to $ 28,146 for the third quarter of 2025.
- Total debt outstanding as of September 30, 2026, was $839.5 million.
- Interest expense was 16,949 for the three months ended September 30, 2026, compared to 14,894 for the three months ended September 30, 2025.
- Cash was $ 218,834 at September 30, 2026, compared to $ 303,783 at December 31, 2025.
What to watch
- Organic Sales and Acquisition Sales.
- Integration and pursuit of acquisitions.
- Net cash from operating activities and Free Cash Flow.
- Total debt outstanding and the secured leverage ratio or net debt to EBITDA ratio.
- Service Centers, Innovative Pumping Solutions and Supply Chain Services operating income margins.
Balance sheet and cash flow
- Cash was $ 218,834 at September 30, 2026, compared to $ 303,783 at December 31, 2025.
- Total assets were $ 1,817,729 at September 30, 2026, compared to $ 1,685,155 at December 31, 2025.
- Current maturities of debt were $ 8,480 at September 30, 2026, compared to $ 8,580 at December 31, 2025.
- Long-term debt, net of unamortized debt issuance costs and discounts, was $ 814,736 at September 30, 2026, compared to $ 818,476 at December 31, 2025.
- Total debt outstanding as of September 30, 2026, was $839.5 million.
- DXP’s secured leverage ratio or net debt to EBITDA ratio was 2.30:1.0 with a covenant EBITDA of $270.0 million for the last twelve months ending September 30, 2026.
- Total liabilities were 1,247,315 at September 30, 2026, compared to 1,186,716 at December 31, 2025.
- Total DXP Enterprises, Inc. equity was 570,414 at September 30, 2026, compared to 498,439 at December 31, 2025.
- Net cash from operating activities was $ 18,686 for the three months ended September 30, 2026, compared to $ 34,886 for the three months ended September 30, 2025.
- Free Cash Flow was $ 14,448 for the three months ended September 30, 2026, compared to $ 28,146 for the three months ended September 30, 2025.
Analysis
DXP reported a strong third quarter, with sales increasing 14.3 percent to $587.2 million and net income increasing 24.2 percent to $26.9 million. GAAP diluted earnings per share was $1.64, compared with $1.31 in the prior-year quarter. Income from operations was $52.5 million, compared with $43.7 million, while gross profit was 180,508, compared with 161,259.
Management, verbatim
DXP delivered a strong third quarter, with sales of $587.2 million, diluted earnings per share of $1.64, Adjusted EBITDA of $67.3 million, and free cash flow of $14.4 million.
David R. Little, Chairman and Chief Executive Officer
Our results reflect continued execution of our growth strategy, solid organic performance, contribution from recent acquisitions, and sustained strength in EBITDA margins.
David R. Little, Chairman and Chief Executive Officer
DXP performed well in the third quarter with $587.2 million in sales. We closed five acquisitions through the third quarter. Total debt outstanding as of September 30, 2026, was $839.5 million.
Kent Yee, Chief Financial Officer and Senior Vice President
Not in the filing
stated, not guessed- Quantitative forward guidance for revenue, gross margin, operating expenses, tax rate, earnings, EBITDA, cash flow, acquisitions or leverage
- Previous-release outlook for comparison with actual results
- Prior-quarter comparisons for reported metrics
- GAAP gross margin
- Share repurchases
- Dividends
- Capital-return amounts
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
DXP Enterprises is a North American industrial products and services distributor.
Ticker impact
DXP Enterprises reported Q3 2026 results with 14.3% revenue growth and EPS $1.64, a material earnings release.
likely upward pressure as market prices in better-than-expected earnings and cash flow.
Revenue and EPS both rose year-over-year; adjusted EBITDA margin improved, indicating operational strength.
Market effects
Industrial distribution sector may see broader optimism from DXP's growth.
North American industrial services market could benefit from DXP's expansion.
Limited to sector; no broad macro impact.
Counterpoint
If the market has already priced in growth, the rally could be muted.
Key entities
- ExecutiveKent Yee
CFO who highlighted the results.
- ExecutiveDavid R. Little
CEO who commented on growth and acquisitions.
