Houston-based pumping solutions and industrial supplies distributor DXP Enterprises reported its 2024 fourth quarter and full-year results on March 6, showing an increase in 4Q sales year-over-year, as well as an increase in annual sales.

4Q Results

The company posted 4Q sales of $470.9 million, up 15.7% year-over-year and down slightly from 3Q24’s $472.9 million. Gross margin of 31.5% ticked up 140 basis points year-over-year and 70 bps sequentially.

DXP Acquires Manufacturers Rep, Vacuum Pumps Supplier (November 2024)

By DXP business segment during 4Q24:

• Service Center sales of $310.8 million were up 8.8% year-over-year with an operating margin of 18.9%.
• Innovative Pumping Solution sales of $97.6 million were up 61.8% year-over-year with an operating margin of 23.3%.
• Supply Chain Services sales of $62.4 million increased 1.8% year-over-year with an operating margin of 7.8%.

DXP’s 4Q operating profit of $39.2 million increased from $29.9 million a year earlier, while net profit of $21.3 million was up from 4Q23’s $16.0 million, but decreased sequentially from 3Q24’s $21.1 million.

4Q adjusted EBITDA of $50.3 million on 10.4% margin was up compared to the $41.8 million on 7.4% margin for 4Q23.

DXP Refinances Debt, Raises $105M to Drive Growth (October 2024)

“The sales momentum from the fourth quarter accompanied by our backlogs continues to position us for success as we move into 2025,” DXP Chairman and CEO David Little said in the company’s financial release. “Additionally, we strengthened our balance sheet in the fourth 2 quarter, similar to this time last year, raising a new Term Loan B which put an incremental $105 million in cash on the balance sheet. DXP’s balanced end markets, and our ability to continue to execute on acquisitions have set the stage for 2025.”

2024 Results

For its full-year results, the company posted $1.8 billion, up 7.4% year-over-year. Gross margin of 30.8% ticked up 70 bps year-over-year.

DXP completed seven acquisitions during 2024, accounting for $80.5 million of total full-year sales.

By DXP business segment during 2024:

• Service Center sales of $1.2 billion, increased 1.9% year-over-year with an operating margin of 14.3%.
• Innovative Pumping Solution sales of $323.0 million up 47.7% year-over-year with an operating income margin of 16.6%.
• Supply Chain Services sales of $256.4 million down 1.5% year-over-year with an operating margin of 8.5%.

DXP’s 2024 operating profit of $145.3 million increased $138.7 million from a year prior, while net profit of $84.9 million decreased from 2023’s $86.9 million.

MDM’s 4Q24 M&A Report (store link)

Full-year adjusted EBITDA of $191.3 million was down compared to 2023’s $174.3 million, but margin of 10.6% was up compared to the prior year’s 10.4% margin.

Little added: “DXP completed an outstanding fiscal 2024, with strong underlying sales growth, operating leverage, earnings per share and free cash flow generation. The DXP team delivered a strong finish to Fiscal 2024, which represents the most profitable year in our Company’s history. Fiscal 2024 financial performance continues to reflect the execution of our end market diversification efforts, our plans to grow both organically and through acquisitions, and continuous improvement in our operations and efficiency.”

In recent news, DXP announced on Feb. 6 that it acquired Barstow, FL-based Arroyo Process Equipment, marking its first acquisition of 2025.

DXP was No. 21 on MDM’s Top Distributor’s List for Industrial Supplies, No. 8 for MRO, No 8. for Power Transmission/Bearings and No. 4 for Fluid Power.