DXP 3Q Sales, Profits & EBITDA Continue Strong Growth - Modern Distribution Management

Log In

DXP 3Q Sales, Profits & EBITDA Continue Strong Growth

The company's 3Q YoY sales growth of 8.2% was a considerable slowdown from 2Q’s 16.4%, but still considered strong.
DXP Enterprises 2

On Nov. 8, Houston-based pumping solutions and MROP supplies distributor DXP Enterprises announced its 2023 third quarter earnings, which showed $419.2 million in sales, an 8.2% year-over-year increase.

The 8.2% growth was a noticeable drop from 2Q — when DXP reported 16.4% growth — but still a healthy quarter by almost any measure.  For the first nine months of 2023, DXP reported more than $1.27 billion in year-to-date sales, an 18.3% increase over 2022.

“The Company posted solid third-quarter results in a lessening inflationary market and varied spending by our customers, delivering solid sales, Adjusted EBITDA, earnings per share and Free Cash Flow performance,” said David R. Little, Chairman and CEO.

Net income for 3Q increased 16.1% to $16.2 million, compared to $13.9 million during the same quarter a year ago. Adjusted EBITDA for 3Q was $44.0 million compared to $34.3 million for 3Q 2022. Adjusted EBITDA as a percentage of sales, or Adjusted EBITDA Margin, was 10.5% and 8.9%, respectively.

3Q Financial Highlights by Business Segment:

  • Service Centers: Revenue was $294.5 million, a 1.3% sequential decrease and an increase of 13.2% year-over-year, with a 14.1% operating income margin and a revenue increase of 21.7% for the nine months ended Sept. 30.
  • Innovative Pumping Solutions: Revenue was $59.0 million, a sequential decrease of 7.1% and a decrease of 0.1% year-over-year with a 18.9% operating income margin and a revenue increase of 8.5% for the nine months ended Sept. 30.
  • Supply Chain Services: Revenue was $65.8 million, a 0.5% sequential decrease and a decrease of 3.5 percent year-over-year with a 8.5% operating income margin and a revenue increase of 14.0% for the nine months ended Sept. 30.

On Oct. 16, DXP announced it had closed on refinancing existing Senior Secured Term Loan B borrowings and raising an incremental $125 million in TLB borrowings. Two weeks later, the company announced that it had acquired Alliance Pump & Mechanical Service, which it describes as a municipal and industrial pump sales, service and repair company based in Independence, Missouri.

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.