DXP Enterprises Q2 Earnings Call Highlights

3 weeks ago 15

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DXP Enterprises (NASDAQ:DXPE) reported higher second-quarter sales, net and currency flow, supported by integrated growth, acquisitions and continued enlargement successful h2o and wastewater markets.

Total income for the 4th ended June 30 roseate 15.6% twelvemonth implicit twelvemonth to $576.5 million. Acquisitions completed wrong the past twelvemonth contributed $49.8 cardinal of revenue, portion integrated income accrued 11.1% to $526.6 million, according to Chief Financial Officer Kent Yee.

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Net income accrued to $28.7 million, and diluted net per stock roseate to $1.76 from $1.43 successful the 2nd 4th of 2025. Operating income climbed 20.7% to $55.5 million.

Adjusted EBITDA accrued to $70.4 cardinal from $57.3 cardinal a twelvemonth earlier, with the adjusted EBITDA borderline reaching 12.2% of sales, compared with 11.5% successful the prior-year period. Yee described the borderline level arsenic a caller precocious watermark for the company.

Segment Growth Led by Innovative Pumping Solutions

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Innovative Pumping Solutions, oregon IPS, was DXP's fastest-growing conception during the quarter. Sales accrued 52.6% twelvemonth implicit twelvemonth to $142.7 million, driven by h2o and wastewater activity, accumulation contracts and acquisitions. Recent acquisitions contributed $47 cardinal of IPS income successful the quarter, compared with $9.1 cardinal successful the prior-year period.

Excluding acquisitions, IPS integrated income roseate 13.3%, oregon $11.3 million. Segment operating income accrued to $26.7 cardinal from $18.6 cardinal a twelvemonth earlier.

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Chief Operating Officer Nick Little said h2o and wastewater demand, municipal infrastructure concern and regulatory requirements proceed to make long-cycle opportunities for the business. DXP Water generated astir $97 cardinal successful second-quarter income and $175.5 cardinal for the archetypal half, up 85.6% twelvemonth implicit year.

Yee said DXP Water recorded its 15th consecutive 4th of sequential income growth. Water and wastewater present accounts for astir 70% of IPS sales, helium said during the question-and-answer session.

IPS backlog accrued successful some vigor and h2o and wastewater markets. Energy-related mean backlog roseate 7.3% sequentially, portion backlog excluding definite ample engineered projects accrued 10% from the archetypal quarter, Yee said.