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 Insights - DXP Enterprises, Inc. has completed the acquisition of APSCO, LLC, enhancing its water and wastewater platform [1][3] - APSCO, founded in 1986, is a leading manufacturer's representative in the water and wastewater industry, servicing multiple states [2][4] - The acquisition was funded with cash from DXP's balance sheet, indicating a strategic investment in expanding its market presence [2][5] Financial Summary - APSCO reported sales of approximately $12.9 million and adjusted EBITDA of $1.5 million for the twelve months ending July 31, 2025 [4] - Adjusted EBITDA is defined as income before tax, plus interest, depreciation, amortization, and non-recurring items, minus go-forward selling costs [4] Strategic Implications - The acquisition is expected to enhance DXP's product and aftermarket service capabilities, contributing to the growth of its DXP Water platform [3][5] - DXP aims to continue its acquisition strategy in the water and wastewater sector, with plans for further acquisitions into 2026 [5]