DXP Enterprises Reports Robust Q3 2024 Results

DXP Enterprises ( (DXPE) ) has released its Q3 earnings. Here is a breakdown of the information DXP Enterprises presented to its investors.

DXP Enterprises, Inc., a key distributor of industrial products and services across North America and Dubai, focuses on providing innovative pumping solutions, supply chain services, and maintenance, repair, operating, and production services, leveraging its expertise in industrial supplies and safety products.

DXP Enterprises reported strong financial results for the third quarter of 2024 with notable increases in sales and earnings. The company achieved $472.9 million in sales, marking a 6.1% sequential increase and a 12.8% rise from the previous year. The company’s earnings per diluted share increased to $1.27, compared to $0.93 in the third quarter of 2023.

Key financial highlights include an adjusted EBITDA of $52.4 million, reflecting an 8.7% increase over the previous quarter and a 19% increase from the same quarter last year. DXP Enterprises completed five acquisitions within the quarter, contributing to its growth strategy. Additionally, the company reported a free cash flow of $24.4 million for the quarter.

The company attributes its strong performance to strategic acquisitions and effective cost management, with significant contributions from its Service Centers and Innovative Pumping Solutions segments. Service Centers achieved $316.8 million in revenue, while Innovative Pumping Solutions saw a 52.3% year-over-year increase, generating $89.8 million.

Looking ahead, DXP Enterprises aims to maintain momentum into the next fiscal year, supported by a strong balance sheet and strategic initiatives. The company anticipates continued growth driven by its acquisition strategy and diversification efforts, with further plans to optimize its capital structure to support future expansion.