DXP Enterprises(DXPE)2025-05-08 20:27Financial Performance - For the three months ended March 31, 2025, DXP Enterprises reported total sales of approximately $476.6 million, an increase of 15.5% compared to $412.6 million for the same period in 2024[107]. - Gross profit for the three months ended March 31, 2025, was $150.3 million, resulting in a gross profit margin of 31.5%, up from 30.0% in the prior year[107]. - EBITDA for the same period was $51.0 million, with an EBITDA margin of 10.7%, compared to 9.4% in the previous year[98]. - Operating income for Q1 2025 increased by $11.4 million to $40.5 million, reflecting growth in the SC and IPS segments[112]. - Total DXP Sales for the three months ended March 31, 2025, increased by $63.9 million, or 15.5%, to $476.6 million compared to $412.6 million in the prior year[108]. Sales Growth - Sales in the Service Centers segment increased by $38.6 million, while the Innovative Pumping Solutions segment saw an increase of $24.0 million, contributing to the overall sales growth[107]. - The Company experienced a 17.9% increase in sales in its Service Centers and Innovative Pumping Solutions segments, totaling approximately $413.3 million for the quarter[93]. - Sales in the Service Centers segment rose by $38.6 million, or 13.4%, driven by increases in the Texas Gulf Coast, Ohio River Valley, and California regions[108]. - Innovative Pumping Solutions segment sales increased by $24.0 million, or 38.5%, attributed to growth in fabrication and global solutions groups[109]. - The Supply Chain Services segment reported sales of approximately $63.3 million, a 2.1% increase compared to the same period in 2024[94]. - Supply Chain Services segment sales grew by $1.3 million, or 2.1%, primarily due to increases in the oil and gas end market[110]. Cash Flow and Debt - Free cash flow for the three months ended March 31, 2025, was $(16.9) million, a decrease from $24.1 million in the same period of 2024[98]. - Total outstanding debt as of March 31, 2025, was $647.3 million, representing 59.3% of total capitalization[129]. - Cash available as of March 31, 2025, was $114.3 million, with an additional $108.9 million in credit facility availability[123]. - Working capital increased by $34.3 million to $325.3 million as of March 31, 2025, due to sustained sales growth and acquisitions[136]. Expenses and Economic Conditions - SG&A expenses rose by $15.0 million, or 15.8%, to $109.8 million, mainly due to higher payroll and related expenses[111]. - DXP Enterprises is actively monitoring economic conditions and adjusting strategies to mitigate risks associated with inflation and supply chain challenges[90].