Financial Performance - Total sales increased to $2.016 billion in 2025, up from $1.802 billion in 2024, representing a growth of 11.9%[19] - Service Centers segment sales reached $1.373 billion in 2025, a 11% increase from $1.237 billion in 2024[34] - Innovative Pumping Solutions segment sales grew to $390 million in 2025, up 26.3% from $309 million in 2024[42] - Supply Chain Services segment sales were $253 million in 2025, slightly down from $256 million in 2024[52] - Income from operations for the company was $177 million in 2025, reflecting a margin of 8.8% compared to 8.1% in 2024[31] - EBITDA increased to $219 million in 2025, with a margin of 10.8%, up from 10.1% in 2024[31] - The average sales per Service Center facility increased to $8.2 million in 2025 from $7.7 million in 2024[19] - Income from operations remained stable at $22 million for 2023, 2024, and 2025, with a margin of 8.5% in 2025[53] - EBITDA for 2025 was $22 million, maintaining a margin of 8.7%, up from 8.6% in 2024[53] - Gross Profit for 2025 was $635,928, with a Gross Profit Margin of 31.5%, an increase from 30.9% in 2024[205] - Net Income for 2025 reached $88,677, resulting in a Net Income Margin of 4.4%, compared to 3.9% in 2024[205] Operational Metrics - The company operated 293 locations as of December 31, 2025, an increase from 279 locations in 2024[21] - The company employed 3,286 individuals as of December 31, 2025, an increase from 3,028 in 2024[31] - The SCS segment employed 465 full-time employees as of December 31, 2025, an increase from 397 in 2024[60] - The SCS segment operated supply chain installations at 89 customer sites, with approximately 7.1% of revenues generated in Canada[59] - As of December 31, 2025, the company operated 204 facilities, including 164 service centers, 4 distribution centers, 19 fabrication facilities, and 17 wastewater locations[174] Acquisitions and Growth Strategy - In 2025, the company completed six acquisitions for a total consideration of $79.2 million[73] - The company expects fiscal 2026 growth to be comparable to 2025, driven by continued acquisition activity and a supportive macroeconomic environment[211] - The Company aims to leverage existing customer relationships and expand product offerings to drive internal growth and acquisitions[213] Market and Competitive Environment - The company faces substantial competition that could adversely affect its results, along with risks related to the loss of key personnel and suppliers[111] - The company is subject to various risks that could significantly impact its financial condition, including potential decreases in demand for products if manufacturers sell directly to end users[110] - Changes in customer and product mix could lead to fluctuations in gross margins, with historical margins potentially not being maintained[112] - The company’s future results depend on successfully implementing its internal growth strategy, including expanding geographic areas and acquiring new customers[126] Financial Risks and Challenges - The company may experience unexpected supply shortages that could adversely affect its product and service offerings[119] - Geopolitical events and inflationary pressures could negatively impact operating and administrative expenses, affecting overall profitability[114] - A general economic slowdown could negatively impact the Company's sales growth and profitability, influenced by factors such as interest rates, inflation, and unemployment rates[141] - Low oil prices and volatility in the energy industry may decrease capital expenditures, adversely affecting customer demand for the Company's products and services[142] - Delays and additional costs associated with project execution could significantly impact the company's financial results and cash flows[116] - Compliance with financial covenants is critical; failure to meet these could result in default and hinder the Company's financial condition[146][148] Tax and Regulatory Matters - The company recognized a total of $29.8 million in federal income tax credits for research activities from 2015 through 2025, with $3.8 million related to an ongoing IRS audit of the 2018 tax year[138] - The company has recorded a $5.1 million reserve for uncertain tax positions related to these credits, including $993,000 from the ongoing IRS audit[138] - The Company is subject to various legal and regulatory risks, including potential claims and lawsuits that may not be fully covered by insurance[150][151] Shareholder Information - The company does not anticipate paying cash dividends on its common stock in the foreseeable future, with future dividends dependent on various financial conditions[182] - The company has approximately $68.0 million worth of shares remaining under its $85.0 million share repurchase program as of December 31, 2025[187] - The company has 262 holders of record for outstanding shares of common stock as of February 20, 2026[182] Cybersecurity and Operational Resilience - The Company has established a comprehensive cybersecurity framework, including risk assessment, training programs, and a Cybersecurity Committee for oversight[159][165] - The company maintains a Business Continuity and Disaster Recovery Plan to manage and recover from potential crises, including cybersecurity incidents[170]

Core Insights - DXP Enterprises reported record sales and margin expansion in fiscal 2025, driven by both organic growth and acquisitions [4][3] - The company achieved a 11.9% year-over-year sales increase to $2.0 billion, with gross profit margin expanding by 67 basis points to 31.5% [3][6] - Average sales per business day rose to $8.51 million in Q4, reflecting a strong upward trend throughout the year [6][7] Financial Performance - Fourth-quarter sales reached $527.4 million, an 11.9% increase year-over-year, attributed to higher average daily sales and acquisitions [1] - Operating income increased by 21.7% year-over-year to $176.9 million, with diluted earnings per share rising to $5.37 from $4.22 [2] - Adjusted EBITDA for the year was $225.3 million, representing an 11.2% margin [6][3] Growth Drivers - The Innovative Pumping Solutions (IPS) segment led growth with a 26.4% increase to $390.3 million, primarily driven by energy and water-related projects [5][8] - Service Centers experienced an 11% total sales growth, with 9.8% organic growth, supported by end-market diversity and new growth initiatives [12] - Supply Chain Services (SCS) saw a slight decline of 1.4% in sales, attributed to customer facility closures and reduced activity in certain sectors [13] Acquisitions and Financial Strategy - DXP completed six acquisitions in 2025, contributing $96 million in sales, and repurchased 182,000 shares, returning $17 million to shareholders [17] - The company refinanced its term loan, reducing borrowing costs and raising an additional $205 million for future acquisitions and investments [18] - As of December 31, DXP reported $303.8 million in cash and $846.8 million in total debt, with liquidity of $457.3 million [18] Market Outlook - Management noted that the energy-related backlog remained above long-term averages, despite a decline in Q3 and Q4 [20] - The company anticipates further growth in 2026, with expectations of closing additional acquisitions and improved performance in the energy sector [19][20]

Financial Performance - Fiscal 2025 sales reached $2.0 billion, an increase of 11.9% from fiscal 2024[5] - Net income for fiscal 2025 was $88.7 million, up 25.8% compared to $70.5 million in fiscal 2024[5] - Adjusted EBITDA for fiscal 2025 was $225.3 million, representing a 17.8% increase from $191.3 million in 2024[6] - Fourth quarter sales increased 12.0% to $527.4 million, compared to $470.9 million in Q4 2024[6] - Diluted earnings per share for fiscal 2025 was $5.37, compared to $4.22 per share in 2024[6] - Operating income for the year was $176,870, a 21.6% increase compared to $145,382 in 2024[24] - Diluted earnings per share for 2025 was $5.37, compared to $4.22 in 2024, reflecting a 27.2% increase[28] Cash Flow and Liquidity - Free cash flow for fiscal 2025 was $54.0 million, or 24.7% of EBITDA[6] - Free cash flow for the fourth quarter was $34,473, an increase of 51.6% from $22,748 in 2024[28] - DXP ended the year with $303.8 million in cash and a net debt of $543.0 million[9] Sales Growth - Innovative Pumping Solutions sales grew 26.4% to $390.3 million in fiscal 2025[9] - Total sales for 2025 reached $2,016,365, representing a 11.9% increase from $1,802,040 in 2024[22] - Organic sales for the fourth quarter were $505,467, a 15.9% increase from $436,127 in 2024[27] Acquisitions and Assets - The company completed six acquisitions during fiscal 2025[5] - Total assets increased to $1,685,155, up 24.9% from $1,349,494 in 2024[20] Debt and Liabilities - Total current liabilities rose to $272,481, up 11.6% from $243,984 in 2024[20] - Long-term debt increased to $818,476, a 31.6% rise from $621,684 in 2024[20] - The secured leverage ratio was 2.3:1.0, significantly below the covenant of 5.75:1.0[9]

Financial Data and Key Metrics Changes - DXP's sales grew 11.9% to $2 billion in fiscal 2025, with gross profit margins expanding 67 basis points to 31.5% [5][22] - Adjusted EBITDA reached a record $225.3 million, with an 11.2% margin, marking the first year of sustained 11%+ adjusted EBITDA margins [5][26] - Operating income increased 21.7% year-over-year to $176.9 million, and diluted earnings per share improved to $5.37, up from $4.22 in fiscal 2024 [5][26] Business Line Data and Key Metrics Changes - Innovative Pumping Solutions (IPS) sales grew 26.4% year-over-year to $390.3 million, driven by strength in energy and water-related project activity [8][18] - Service Centers experienced 11% total sales growth, including 9.8% organic growth [10][18] - Supply Chain Services saw a modest decline of 1.4% year-over-year due to reduced activity at certain energy-related sites [11][21] Market Data and Key Metrics Changes - Energy represented 22% of DXP sales, followed by Water and Wastewater at 15%, General Industry at 15%, Chemical at 10%, and Food and Beverage at 7% [6][10] - Geographic regions with notable sales growth included Ohio River Valley, Southeast, Texas Gulf Coast, and California [11][20] Company Strategy and Development Direction - The company focuses on diversification of end market exposure while building scale in competitive markets [6][10] - DXP completed 6 acquisitions in 2025, contributing $96 million in sales, and continued to execute on its share repurchase program, returning $17 million to shareholders [8][15] - The company aims to maintain margin discipline while driving organic growth and executing strategic acquisitions [13][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand across energy, water, and industrial markets, while remaining mindful of inflation dynamics and supply chain variability [13][22] - The company anticipates continued growth in 2026, with a focus on operational efficiency and margin expansion [13][26] Other Important Information - DXP generated $94.3 million in cash from operating activities, translating into $54 million of free cash flow during fiscal 2025 [12][32] - The company successfully refinanced its debt, improving flexibility and positioning for growth [8][29] Q&A Session Summary Question: Can you share daily sales trends by month for Q4 and Q1 thus far? - Management provided monthly sales data, indicating an average of $8.5 million per day in Q4, with January at $6.9 million per day, typically the slowest month of the year [38] Question: Will there be a meaningful margin difference comparing Q4 with Q1? - Management noted that water continues to be accretive to margins, and recent acquisitions are expected to positively impact Q1 margins [39] Question: What are the positive dynamics in Energy for the second half of the year? - Management acknowledged a decline in Q4 energy-related backlog but noted increased quoting activity, suggesting potential for stronger performance in 2026 [45][46]

Financial Data and Key Metrics Changes - DXP's sales grew 11.9% to $2 billion in fiscal 2025, with gross profit margins expanding 67 basis points to 31.5% [5][12] - Adjusted EBITDA reached a record $225.3 million, with an 11.2% margin, marking the first year of sustained 11%+ adjusted EBITDA margins [15][26] - Operating income increased 21.7% year-over-year to $176.9 million, and diluted earnings per share improved to $5.37, up from $4.22 in fiscal 2024 [5][26] Business Line Data and Key Metrics Changes - Innovative Pumping Solutions (IPS) sales grew 26.4% year-over-year to $390.3 million, driven by strength in energy and water-related project activity [8][18] - Service Centers experienced 11% total sales growth, including 9.8% organic growth, reflecting diverse end markets [10][18] - Supply Chain Services saw a modest decline of 1.4% year-over-year due to reduced activity at certain energy-related sites [11][21] Market Data and Key Metrics Changes - Energy represented 22% of DXP sales, followed by water and wastewater at 15%, general industry at 15%, chemical at 10%, and food and beverage at 7% [6][10] - Geographic regions with notable sales growth included Ohio River Valley, Southeast, Texas Gulf Coast, and California [11][20] Company Strategy and Development Direction - The company focuses on diversification of end market exposure while building scale in competitive markets [6][10] - DXP completed 6 acquisitions in 2025, contributing $96 million in sales, and continued to execute on its share repurchase program, returning $17 million to shareholders [8][16] - The company aims to maintain margin discipline while driving organic growth and executing strategic acquisitions [13][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand across energy, water, and industrial markets, while remaining mindful of inflation dynamics and supply chain variability [13][22] - The company anticipates a strong 2026, with expectations for new bookings and continued growth in backlog [19][35] Other Important Information - DXP generated $94.3 million in cash from operating activities, translating into $54 million of free cash flow during fiscal 2025 [12][32] - The company successfully refinanced its debt, improving flexibility and reducing borrowing costs by 50 basis points [29][30] Q&A Session Summary Question: Can you share daily sales trends by month for Q4 and Q1 thus far? - Management provided monthly sales data, indicating an average of $8.5 million per day in Q4, with January at $6.9 million per day, typically the slowest month of the year [38] Question: Will there be a meaningful margin difference comparing Q4 with Q1? - Management noted that water continues to be accretive to margins, and recent acquisitions should positively impact Q1 margins [39] Question: What are the positive dynamics developing in energy for the second half of the year? - Management acknowledged a decline in Q4 energy-related backlog but noted increased quoting activity, suggesting potential for a stronger second half in 2026 [45][46]

Financial Data and Key Metrics Changes - DXP sales grew 11.9% to $2 billion in fiscal 2025, with gross profit margins expanding 67 basis points to 31.5% [5][12] - Adjusted EBITDA reached a record $225.3 million, with an 11.2% margin, marking the first year of sustained 11%+ adjusted EBITDA margins [16][27] - Operating income increased 21.7% year-over-year to $176.9 million, and diluted earnings per share improved to $5.37, up from $4.22 in fiscal 2024 [5][27] Business Line Data and Key Metrics Changes - Innovative Pumping Solutions (IPS) sales grew 26.4% year-over-year to $390.3 million, driven by strength in energy and water-related project activity [9][19] - Service Centers delivered 11% total sales growth, including 9.8% organic growth, supported by diverse end markets [11][19] - Supply Chain Services experienced a modest decline of 1.4% year-over-year due to reduced activity at certain energy-related sites [12][22] Market Data and Key Metrics Changes - Energy represented 22% of DXP sales, followed by water and wastewater at 15%, general industry at 15%, chemical at 10%, and food and beverage at 7% [6][12] - Geographic regions with notable sales growth included Ohio River Valley, Southeast, Texas Gulf Coast, and California [12][21] Company Strategy and Development Direction - The company focuses on diversification of end market exposure while building scale in markets with a strong competitive position [6][14] - DXP completed 6 acquisitions in 2025, strengthening capabilities and expanding reach, while also executing a share repurchase program returning $17 million to shareholders [9][35] - The company aims to maintain margin discipline while driving organic growth and executing strategic acquisitions [14][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand across energy, water, and industrial markets, while remaining mindful of inflation dynamics and supply chain variability [14][30] - The company anticipates continued growth in 2026, with a focus on maintaining operational efficiency and leveraging recent acquisitions [14][30] Other Important Information - DXP generated $94.3 million in cash from operating activities, translating into $54 million of free cash flow during fiscal 2025 [13][32] - The company successfully refinanced its debt, improving flexibility and positioning for growth and acquisitions [9][30] Q&A Session Summary Question: Can you share daily sales trends by month for Q4 and Q1 thus far? - In Q4, daily sales were $7.5 million in October, $8.2 million in November, and $9.8 million in December, averaging $8.5 million per day [37] - January's daily sales were $6.9 million, typically the slowest month of the year [38] Question: Will there be a meaningful margin difference comparing Q4 with Q1? - Management indicated that water continues to be accretive to margins, and recent acquisitions should positively impact Q1 margins [40] Question: What are the positive dynamics developing in energy for the second half of the year? - Management noted a decline in Q4 energy-related backlog but observed increased quoting activity, suggesting potential for back-end weighted growth in 2026 [46][47]

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Presented by: David Little Chairman, President & CEO Kent Yee Senior Vice President & CFO NASDAQ: DXPE Results for Q4 Fiscal 2025 Earnings Announcement: February 26, 2026 (Quarter Ending December 31, 2025 ) FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the U.S. federal securities laws that involve risks and uncertainties. Certain statements contained in this report are not purely historical, including statements regarding our expectations, beliefs, in ...

Core Viewpoint - DXP Enterprises, Inc. reported strong financial results for the fourth quarter and fiscal year 2025, highlighting significant revenue growth, increased net income, and successful acquisitions, positioning the company for continued success in 2026 [1]. Financial Highlights - Fiscal 2025 sales reached $2.0 billion, an increase of 11.9% from fiscal 2024 [1]. - Net income for fiscal 2025 was $88.7 million, up 25.8% from $70.5 million in fiscal 2024 [1]. - Adjusted EBITDA for fiscal 2025 was $225.3 million, representing a 17.8% increase from $191.3 million in 2024 [1]. - Diluted earnings per share for fiscal 2025 were $5.37, compared to $4.22 in 2024 [1]. Fourth Quarter Performance - Sales for the fourth quarter of 2025 were $527.4 million, a 12.0% increase from $470.9 million in the fourth quarter of 2024 [1]. - Net income for the fourth quarter was $22.8 million, up 6.9% from $21.4 million in the same quarter of 2024 [1]. - Adjusted EBITDA for the fourth quarter was $59.0 million, compared to $50.3 million in the fourth quarter of 2024 [1]. Business Segment Performance - Supply Chain Services revenue for fiscal 2025 was $252.9 million, a decrease of 1.4% year-over-year [1]. - Innovative Pumping Solutions revenue increased by 26.4% to $390.3 million [1]. - Service Centers revenue grew by 11.0% to $1.4 billion [1]. Strategic Actions - The company completed six acquisitions during the fiscal year, enhancing its market position [1]. - DXP repurchased 0.2 million shares for $17.0 million in fiscal 2025 [1]. - The company refinanced its Senior Secured Term Loan B, raising an additional $205 million and reducing borrowing costs by 50 basis points [1]. Outlook - The company expressed confidence in its growth strategy and operational discipline, anticipating positive dynamics in end markets such as water & wastewater and energy in the second half of 2026 [1].

Core Viewpoint - DXP Enterprises, Inc. is set to announce its financial results for the fourth quarter and fiscal year ending December 31, 2025, on February 25, 2026, followed by a conference call on February 26, 2026, at 10:30 AM Central Time [1] Financial Results Announcement - The earnings announcement will be released after market close on February 25, 2026 [1] - A live webcast of the conference call will be available on the company's website [1] - Related materials will be posted in the "Investor Relations" section of the website after the earnings call [1] Recent Acquisitions - DXP Enterprises has completed the acquisition of Ambiente H2O Inc., a manufacturer representative specializing in pumps and process equipment [1] - The company has also acquired PREMIERflow, LLC, and Mid Atlantic Storage Systems Inc., with financial terms undisclosed [1] - These acquisitions are aimed at enhancing DXP's service offerings in various sectors [1] Debt Refinancing - DXP has refinanced its existing Senior Secured Term Loan B borrowings and raised an additional $205 million [1] - The total Senior Secured Term Loan B borrowings will amount to $848 million, maturing on October 13, 2030, with a pricing of Term SOFR plus an applicable margin of 3.25 percent [1] - Proceeds from the refinancing will be used to repay existing borrowings and support growth initiatives [1]