Financial Performance - Fiscal 2024 sales reached $1.8 billion, representing a 7.4% increase from fiscal 2023[5] - Fourth quarter sales were $470.9 million, up from $407.0 million in the same quarter of 2023, marking a year-over-year growth of 15.6%[6] - Full year GAAP diluted EPS was $4.22, compared to $3.89 in fiscal 2023, reflecting an increase of 8.5%[6] - Adjusted EBITDA for fiscal 2024 was $191.3 million, a 9.8% increase from $174.3 million in 2023[6] - Adjusted net income for the twelve months ended December 31, 2024, was $75,396, up from $71,212 in 2023, representing a 5.5% increase[27] - The company reported a diluted earnings per share of $1.29 for the three months ended December 31, 2024, compared to $0.94 in 2023, a 37.2% increase[27] Cash Flow and Debt - Free cash flow for fiscal 2024 was $77.1 million, which is 42.3% of EBITDA, down from $94.0 million in fiscal 2023[6] - Free cash flow for the three months ended December 31, 2024, was $22,748, down from $37,287 in 2023, indicating a decrease of 39%[27] - The company ended fiscal 2024 with $148.4 million in cash and net debt of $500.6 million, resulting in a secured leverage ratio of 2.4:1.0[8] - Long-term debt rose to $621,684 as of December 31, 2024, from $520,697 in 2023, reflecting a 19.4% increase[18] Sales and Market Position - Innovative Pumping Solutions sales surged 47.7% to $323.0 million, while Supply Chain Services sales declined 1.5% to $256.4 million[8] - Organic sales for the three months ended December 31, 2024, were $436,127, compared to $404,232 in 2023, showing an 8% growth[25] - Total DXP sales for the three months ended December 31, 2024, reached $470,914, a 15.6% increase from $407,044 in the same period of 2023[20] Operational Efficiency - Operating income for the total segments increased to $64,948 for the three months ended December 31, 2024, compared to $51,142 in 2023, reflecting a 27% growth[20] - EBITDA for the three months ended December 31, 2024, was $48,984, up from $40,501 in 2023, representing a 21.5% increase[24] Assets and Liabilities - Total assets increased to $1,349,494 as of December 31, 2024, compared to $1,177,436 in 2023, marking a growth of 14.6%[18] - The total current liabilities increased to $243,984 as of December 31, 2024, from $224,165 in 2023, reflecting an 8.9% rise[18] Strategic Growth - DXP completed seven acquisitions during fiscal 2024, enhancing its market position[5] - The company expects continued growth driven by both organic and acquisition strategies, supported by a strong balance sheet[8]

Financial Data and Key Metrics Changes - DXP Enterprises reported a 7.4% increase in total sales for fiscal 2024, reaching $1.8 billion, with adjusted EBITDA of $191.3 million, reflecting a 9.8% year-over-year increase [9][30][37] - Gross profit margins improved by 77 basis points to 30.9%, marking a second consecutive fiscal year with adjusted EBITDA margins exceeding 10% [9][29][50] - Diluted earnings per share for fiscal 2024 increased to $4.22, up from $3.89 in the previous year, with adjusted diluted EPS in Q4 at $1.38 [51][63] Business Line Data and Key Metrics Changes - Innovative Pumping Solutions (IPS) experienced significant growth of 47.7% year-over-year, contributing $323 million to total sales [22][40] - Service Centers grew by 1.9% to $1.2 billion, while Supply Chain Services saw a slight decline of 1.5% [22][40] - IPS sales contribution increased to 18% of total sales in 2024, up from 13% in 2023 [30][46] Market Data and Key Metrics Changes - DXP's end-market diversification included oil and gas at 23%, water and wastewater at 10%, and food and beverage at 7% [11] - The DXP Water backlog grew by 108% year-over-year, with organic growth of 39.5% [42] - Regions showing year-over-year growth included North Central, South Rockies, and Southwest, with notable strength in Canadian rotating equipment and U.S. safety services [27][43] Company Strategy and Development Direction - The company aims to double its size over the next 3 to 5 years through strategic investments and acquisitions, having completed 7 acquisitions in fiscal 2024 [15][18] - DXP continues to focus on diversifying end markets, particularly in water and wastewater, while maintaining operational efficiencies [13][19] - The strategy combines the strengths of a large company with the agility of local businesses to enhance customer value and growth opportunities [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal 2025, anticipating continued organic and acquisition-driven growth, with a strong pipeline of opportunities [18][21] - The company is well-positioned to navigate inflationary pressures, with a history of passing on cost increases to customers [34][80] - Management highlighted the importance of maintaining margins while driving long-term operational efficiencies [31][79] Other Important Information - DXP generated $77 million in free cash flow for fiscal 2024, reflecting a focus on consistent cash generation while investing in working capital [17][57] - The company successfully refinanced its Term Loan B, reducing borrowing costs and raising an additional $105 million for acquisitions [55][61] - Capital expenditures for fiscal 2024 were $25.1 million, up from $12.3 million in fiscal 2023, indicating a commitment to reinvestment [56] Q&A Session Summary Question: Can you share daily sales trends by month for Q4 and into Q1? - In Q4, sales per business day were $7.2 million in October, $7.5 million in November, and $8.1 million in December. For January and February 2025, sales per business day were $6.8 million and $7.8 million respectively [68][69] Question: How are margins trending quarter-over-quarter? - Margins increased significantly from Q3 to Q4, driven by a favorable mix, particularly from water and wastewater acquisitions, which typically have higher gross and EBITDA margins [70][72] Question: What are the company's goals regarding EBITDA margins? - The company aims to achieve 11% EBITDA margins, having previously set a goal of 10%, which has been met [74][79]

Company Performance - DXP Enterprises (DXPE) closed at $88.29, down 1.8% from the previous trading session, underperforming the S&P 500's loss of 0.5% [1] - Over the past month, DXP Enterprises' shares have decreased by 15.38%, significantly trailing the Industrial Products sector's loss of 6.92% and the S&P 500's loss of 0.47% [1] Earnings and Analyst Estimates - The upcoming earnings release of DXP Enterprises is highly anticipated by investors, with recent changes to analyst estimates indicating evolving near-term business trends [2] - Positive estimate revisions are interpreted as a favorable sign for the company's business outlook [2][3] Zacks Rank and Valuation - DXP Enterprises currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining stagnant over the past month [4] - The company has a Forward P/E ratio of 20.86, which is a discount compared to the industry's average Forward P/E of 23.15 [5] - The Manufacturing - General Industrial industry, part of the Industrial Products sector, has a Zacks Industry Rank of 141, placing it in the bottom 44% of over 250 industries [5]

Company Performance - DXP Enterprises (DXPE) closed at $101.90, with a +0.25% change from the previous day, outperforming the S&P 500's daily loss of 0.27% [1] - Over the past month, shares of DXP Enterprises have appreciated by 5.7%, surpassing the Industrial Products sector's gain of 3.78% and the S&P 500's gain of 4.27% [1] Earnings and Analyst Estimates - The investment community is closely monitoring DXP Enterprises' forthcoming earnings report, with a focus on any recent changes to analyst estimates [2] - Upward revisions in estimates indicate analysts' positivity towards the company's business operations and profit generation capabilities [2] Valuation and Ranking - DXP Enterprises has a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining stagnant over the past month [4] - The company is currently traded at a Forward P/E ratio of 23.58, which is a premium compared to the industry's average Forward P/E of 23.27 [4] Industry Context - The Manufacturing - General Industrial industry, part of the Industrial Products sector, has a Zacks Industry Rank of 160, placing it in the bottom 37% of over 250 industries [5] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [5]

Core Viewpoint - DXP Enterprises, Inc. (DXPE) has experienced significant stock performance, with shares trading above $100 and a 113.5% increase over the past six months, outperforming both the S&P 500 and industry peers [1][2][3]. Stock Performance - The stock closed at $102.44, nearing its 52-week high of $107.06 [1] - Over the last six months, DXPE's stock surged 113.5%, compared to the S&P 500's growth of 13.5% and the industry's 9.5% [2]. Market Sentiment - DXPE is trading above its 50-day and 200-day moving averages, indicating strong upward momentum and price stability, reflecting positive market sentiment [4][5]. Growth Drivers - The Service Centers segment grew approximately 8% year over year in Q3 2024, driven by strong demand for MRO products and contributions from acquisitions [7]. - The Innovative Pumping Solutions segment saw a 52% revenue increase in Q3, supported by a strong project pipeline in energy and water markets [9]. - The company expects to recognize revenues from large project wins in energy and water markets starting Q1 2025, supported by a healthy backlog [10]. Acquisitions - Recent acquisitions, including Arroyo Process Equipment, Burt Gurney & Associates, and MaxVac Inc., are expected to enhance DXPE's product offerings and market reach [11][12]. Financial Challenges - The company faces high operating costs, with cost of sales increasing by 11.3% year over year in Q3 2024, and selling, general, and administrative expenses rising by 18.7% [13]. - Long-term debt stood at $519.3 million, with a debt-to-capital ratio of 56.34%, significantly higher than the industry average [15]. Valuation Concerns - DXPE's forward P/E ratio is 23.77X, above the industry average of 21.59X and higher than peers like The Middleby Corporation at 17.10X, indicating potential vulnerability to market sentiment shifts [17]. Earnings Estimates - Consensus earnings estimate for 2024 is $4.07 per share, reflecting a slight decline of 0.5% year over year [20]. Overall Outlook - The company is well-positioned for growth due to strong performance in key segments, but faces challenges from rising operating expenses, high debt levels, and premium stock valuation [21].

Group 1 - DXP Enterprises (DXPE) ended the recent trading session at $98.97, showing a -1.89% change from the previous day's closing price, underperforming compared to the S&P 500's daily gain of 0.92% [1] - Over the past month, shares of DXP Enterprises have gained 22.9%, significantly outperforming the Industrial Products sector's gain of 3.83% and the S&P 500's gain of 0.81% [1] Group 2 - Analysts and investors are closely monitoring DXP Enterprises ahead of its upcoming earnings disclosure, with recent changes in analyst estimates indicating a favorable outlook on the company's business health and profitability [2] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with stocks rated 1 producing an average annual return of +25% since 1988 [4] Group 3 - DXP Enterprises has a Forward P/E ratio of 23.41, which is lower than the industry average Forward P/E of 23.86, indicating that DXP Enterprises is trading at a discount compared to its peers [5] - The Manufacturing - General Industrial industry, which includes DXP Enterprises, currently ranks in the bottom 28% of all industries, with a Zacks Industry Rank of 182 [5][6]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1][2]. Company Overview: DXP Enterprises (DXPE) - DXP Enterprises currently holds a Momentum Style Score of B, indicating a favorable momentum outlook [3]. - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [4]. Performance Metrics - Over the past week, DXP Enterprises' shares increased by 3.49%, outperforming the Zacks Manufacturing - General Industrial industry, which rose by 1.01% [6]. - In a longer timeframe, DXP's shares have risen by 98.11% over the past three months and 204.96% over the past year, significantly outperforming the S&P 500's gains of 3.88% and 24.54%, respectively [7]. - The average 20-day trading volume for DXP Enterprises is 292,081 shares, indicating a bullish trend when combined with rising stock prices [8]. Earnings Outlook - Recent earnings estimate revisions for DXP Enterprises show one upward revision for the full year, increasing the consensus estimate from $3.56 to $4.07 over the past 60 days [10]. - For the next fiscal year, there has been one upward revision with no downward revisions, indicating a positive earnings outlook [10]. Conclusion - Given the strong performance metrics and positive earnings outlook, DXP Enterprises is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a compelling investment option [12].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks that exhibit recent price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify promising stocks [3] Group 2: DXP Enterprises (DXPE) Analysis - DXP Enterprises has shown significant price momentum, with a four-week price change of 22.9%, indicating growing investor interest [4] - The stock has gained 98.1% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - DXPE has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [6] - The stock has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - DXPE is trading at a Price-to-Sales ratio of 0.91, indicating it is reasonably valued at 91 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides DXPE, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to various investing styles, aimed at outperforming the market [9]

Company Performance - DXP Enterprises (DXPE) closed at $104.21, reflecting a +1.61% increase from the previous day, outperforming the S&P 500's gain of 0.61% [1] - Over the last month, DXP Enterprises' shares have increased by 25.55%, significantly surpassing the Industrial Products sector's gain of 5.08% and the S&P 500's gain of 2.08% [1] Earnings and Analyst Estimates - The investment community is closely monitoring the upcoming earnings performance of DXP Enterprises, with recent changes in analyst estimates indicating optimism about the company's business and profitability [2] - Positive estimate revisions are linked to stock price performance, suggesting that analysts' outlooks can influence market behavior [3] Zacks Rank and Valuation - DXP Enterprises currently holds a Zacks Rank of 1 (Strong Buy), which has historically delivered an average annual return of +25% since 1988 [4] - The Forward P/E ratio for DXP Enterprises is 23.8, which is a discount compared to the industry's average Forward P/E of 23.97 [5] Industry Context - The Manufacturing - General Industrial industry, part of the Industrial Products sector, has a Zacks Industry Rank of 188, placing it in the bottom 26% of over 250 industries [5] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the competitive landscape within the industry [6]

Core Viewpoint - DXP Enterprises, Inc. (DXPE) has demonstrated significant stock performance, with shares increasing 97.2% over the past six months, outperforming both the Zacks sub-industry and the S&P 500 [1][2][3] Company Performance - The stock is currently trading at $102.67, just 0.9% below its 52-week high of $103.61, and is above both its 50-day and 200-day moving averages, indicating strong upward momentum and market confidence [1][4][5] - The Service Centers segment has shown approximately 8% year-over-year growth in Q3 2024, driven by healthy demand for MRO products and integrated services [7] - The Innovative Pumping Solutions segment has experienced a 52% revenue increase in Q3 2024, supported by project-related work in energy and water markets [10] Competitive Position - DXP Enterprises has outperformed competitors such as Ingersoll Rand Inc. and Xylem Inc., which have seen stock declines of 8.1% and 14.2%, respectively, over the same period [2] Growth Drivers - The company has secured large projects in energy and water markets, expecting revenue recognition starting Q1 2025, and is focused on executing its backlog and modest volume growth across various sectors [11] - Recent acquisitions, including Burt Gurney & Associates and MaxVac Inc., have expanded the company's market reach and capabilities, contributing 6% to sales in Q3 [12] Financial Outlook - The Zacks Consensus Estimate for DXPE's 2025 earnings has risen by 11.7% to $4.31 per share, indicating a year-over-year growth of 5.9% [14] - Despite a forward P/E ratio of 23.82X, higher than the industry average of 21.49X and peer Flowserve Corporation's 19.62X, the company maintains positive analyst sentiment and growth prospects [15][19] Conclusion - DXP Enterprises is well-positioned for growth due to robust performance across its service segments and a healthy backlog, making it an attractive option for potential investors [18][19]