DXP Enterprises (DXPE) Q3 2025 earnings summary

Executive summary

• Q3 2025 sales reached $513.7 million, up 8.6% year-over-year and 3.0% sequentially, with organic sales growing 11.5% and acquisitions contributing $18.4 million.

• Net income for Q3 was $21.6 million, up 2.5% year-over-year; diluted EPS was $1.31, and adjusted EPS was $1.34.

• Adjusted EBITDA for Q3 was $56.5 million (11.0% margin), up from $52.4 million a year ago.

• Growth was driven by strong performance in Service Centers and Innovative Pumping Solutions, with acquisitions and organic initiatives supporting expansion.

• Five acquisitions closed in 2025, with at least two more completed after quarter end, supporting diversification and growth.

Financial highlights

• Gross profit for Q3 2025 was $161.3 million, with a margin of 31.4%.

• Operating income for Q3 was $43.7 million (8.5% margin), up from $39.6 million last year.

• Free cash flow for Q3 was $28.1 million, up 15.4% year-over-year; cash flow from operations was $34.9 million.

• EBITDA for the last twelve months was $225.1 million.

• Net income margin for Q3 2025 was 4.2%.

Outlook and guidance

• Q4 is expected to be seasonally lighter, but the 11% EBITDA margin is seen as sustainable.

• Management anticipates continued improvement in ROIC and strong momentum into 2026, with a robust acquisition pipeline.

• Flexible capital deployment allows for opportunistic share repurchases and M&A.