DXP’s Organic Growth Powers Ahead in 3Q - Modern Distribution Management

DXP’s Organic Growth Powers Ahead in 3Q

Strong sales continued in July-September, during which the company completed another acquisition before two more in October-November.
DXP 2022 sales 3Q

Houston-based pumping solution and industrial supplies distributor DXP Enterprises reported its 2025 third quarter financial results on Nov. 6, which showed continued strong sales gains that included robust organic growth alongside acquisition impacts.

DXP posted total 3Q sales of $514 million, up 8.6% year-over-year and up 3.0% from 2Q. The company saw 11.5% organic growth year-over-year (+4.5% sequentially), while acquisitions contributed $18.4 million in sales.

Q3 gross margin of 31.4% improved 50 basis points year-over-year and dipped 20 bps sequentially. Operating profit of $44 million increased 10.4% year-over-year and operating argin of 8.5% ticked up 10 bps. Q3 net profit of $22 million increased 2.5%; while adjusted EBITDA of $56.5 million (11.0% margin) topped the $52 million (11.1%) of a year earlier.

“This quarters financial results reflect continued execution of our strategic goals and the impact of our diversification efforts, and a strong balance sheet to support our key initiatives,” DXP CFO Kent Yee said in the company’s earnings statement.

By DXP business segment in Q3:

  • Service Centers sales of $350 million increased 10.5% while operating profit of $41 million increased 11.0% with an operating margin of 14.7%
  • Innovative Pumping Solutions sales of $101 million increased 11.9% while operating profit of $18 million increased 1.1% with an operating margin of 18.3%
  • Supply Chain Services revenue of $63 million decreased 5.0% while operating profit of $5 million decreased 5.0% with an operating margin of 8.4%

DXP closed on one acquisition during 3Q — Broussard, LA-based Moores Pump — and two more after the quarter ended — Redmond, WA-based APSCO and Ridgefield, WA-based Triangle Pump (announced Nov. 3).

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