Core Insights - DXP Enterprises reported an 11.9% increase in GAAP revenue for Q2 2025, reaching $498.7 million, slightly missing estimates by $0.3 million, while GAAP EPS rose to $1.43, exceeding expectations by $0.04, indicating strong profitability growth driven by core business segments and cost discipline [1][5][6] Financial Performance - GAAP revenue for Q2 2025 was $498.7 million, up from $445.6 million in Q2 2024, reflecting an 11.9% year-over-year increase [2][5] - GAAP EPS increased by 43.0% from $1.00 in Q2 2024 to $1.43 in Q2 2025 [2] - Adjusted EBITDA reached $57.3 million, an 18.9% increase from $48.2 million in the previous year, with an adjusted EBITDA margin of 11.5%, up from 10.8% [2][6] - Free cash flow rose by 40.7% to $8.3 million compared to $5.9 million in Q2 2024 [2][6] Segment Performance - Service Centers generated $339.7 million in revenue, a 10.8% increase, with an operating income margin of 14.8% [7] - Innovative Pumping Solutions saw a significant 27.5% revenue growth to $93.5 million, with a segment margin of 19.9%, benefiting from strong order backlogs [7][10] - Supply Chain Services reported nearly flat revenue at $65.4 million, with an 8.0% operating income margin, indicating a need for improvement in this segment [7][11] Strategic Focus - The company is focusing on growth through acquisitions, having completed two during the quarter and planning to finalize three or four more in the second half of fiscal 2025 [8][13] - DXP Enterprises emphasizes the integration of customized solutions and efficient business practices to enhance customer value and reduce costs [4][12] Operational Highlights - Gross profit increased by 14.5% to $157.8 million, with net income rising 41.3% to $23.6 million, outpacing sales growth [5][6] - Operating cash flow was reported at $18.6 million, with cash on hand at $112.9 million, reflecting a decrease due to acquisition spending and capital investments [6][12] Market Position - DXP Enterprises operates across 279 locations in North America and select international markets, providing a diverse range of products and solutions for industrial customers [3] - The company maintains a strong balance sheet, although it carries elevated net debt with a leverage ratio of 2.4 times adjusted EBITDA [12]