DXP Enterprises reported third‑quarter 2025 revenue of $513.7 million, up 8.6 % from $472.9 million in Q3 2024 and 3.5 % from $498.7 million in Q2 2025. The company’s adjusted earnings per share rose to $1.34, a $0.10 increase over the $1.24 consensus estimate and a $0.23 beat of the $1.11 estimate used by some analysts. The beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin Service Centers and Innovative Pumping Solutions, which together generated $450.8 million in revenue versus $410.2 million in the prior year.
Segment‑level results show Service Centers delivering $350.2 million, up 5.4 % from $332.5 million in Q3 2024, while Innovative Pumping Solutions grew 11.9 % to $100.6 million from $89.6 million. Supply Chain Services declined 5.0 % to $63.0 million, reflecting a temporary loss of a large contract that had been profitable in July. The mix shift toward Service Centers and Innovative Pumping Solutions helped offset the decline in Supply Chain Services and contributed to the 11.0 % adjusted EBITDA margin, a slight compression from 11.1 % in Q3 2024.
The company closed three acquisitions during the quarter, including the purchase of a mid‑size water‑treatment equipment supplier and a specialty chemicals distributor, and announced two additional deals slated for the fourth quarter. These transactions reinforce DXP’s strategy to diversify beyond oil and gas into water and wastewater markets, a move that management says is “critical to sustaining long‑term growth.” The acquisitions add complementary product lines and expand the company’s geographic footprint in the U.S. and Canada.
Debt remains at $644 million, with a secured leverage ratio of 2.31:1, an improvement from 2.45:1 in Q3 2024. Adjusted EBITDA of $56.5 million, or $11.0 million per share, reflects a 7.6 % increase over the $52.4 million reported in Q3 2024 and demonstrates the company’s ability to generate cash flow while maintaining a healthy debt coverage profile.
CEO David R. Little said the quarter “represents a high watermark for DXP, driven by strong demand in core segments and disciplined cost control.” CFO Kent Yee added that the company “continues to execute its growth strategy through acquisitions and organic expansion, positioning us well for the next fiscal year.” Management reiterated its confidence in maintaining adjusted EBITDA margins above 10 % and highlighted the expected impact of the new acquisitions on future cash‑flow generation.
Investors noted the revenue beat but were cautious about the adjusted EPS miss relative to the $1.57 consensus estimate. The market reaction was tempered by the company’s guidance, which maintained full‑year revenue expectations at $4.40 billion and adjusted operating income at $2.15 billion, signaling confidence in continued profitability while acknowledging potential headwinds in the supply‑chain segment.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.