DXP Enterprises, Inc. completed the acquisition of Pump Solutions, Inc. on December 1, 2025, and announced the transaction on December 3, 2025. The Texas‑based distributor, which operates four locations and specializes in pumps, controls, and related service and repair solutions for the water and wastewater industry, will bring approximately $36.8 million in annual sales to DXP’s portfolio. The deal strengthens DXP’s presence in Texas, a key market for its Water and Wastewater platform, and marks the fifteenth acquisition under that strategy.
The transaction is fully funded with cash from DXP’s balance sheet, reinforcing the company’s focus on a service‑centric model that delivers integrated solutions and expanded geographic coverage. Pump Solutions’ technical sales expertise and service capabilities complement DXP’s existing product lines, allowing the company to offer a full‑line, service‑focused platform to municipal and industrial customers. The acquisition also provides DXP with additional talent and a stronger foothold in a region where demand for water infrastructure upgrades is rising.
In its most recent quarterly report, DXP reported Q3 2025 revenue of $513.7 million, up 8.6% year‑over‑year, and GAAP diluted earnings per share of $1.31. The company beat revenue expectations but missed EPS estimates by $0.10, reporting $1.31 versus the consensus of $1.44. The miss was driven by a 5% decline in the Supply Chain Services segment, offsetting gains in Service Centers (+10.5%) and Innovative Pumping Solutions (+11.9%). The mix shift toward higher‑margin service centers helped keep revenue growth strong, but the lower‑margin supply chain segment weighed on profitability.
CEO David Little said the acquisition “adds another great company to our water and wastewater platform” and highlighted Pump Solutions’ service leadership and technical expertise as key assets. CFO Kent Yee noted that the deal “further accelerates our mission to build a full‑line products and service‑focused platform” and that it “completes our fifteenth acquisition under the DXP Water strategy.” The comments underscore DXP’s confidence that the added sales volume and service capabilities will enhance margins and support continued growth in the high‑margin water and wastewater segment.
Market reaction to the earnings report was largely negative, driven by the EPS miss. Investors focused on the shortfall in earnings per share, which outweighed the positive news of the acquisition and the revenue beat. The EPS miss signals that, while revenue growth remains solid, profitability pressures—particularly in lower‑margin segments—are a concern for the company’s management and investors.
Overall, the acquisition strengthens DXP’s Texas footprint and service offering, while the Q3 earnings highlight ongoing margin challenges. The combination of a strategic expansion and a modest earnings miss provides a nuanced view of the company’s trajectory, offering both growth opportunities and areas for improvement.
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