DXP 2023 Sales Grew 13.4% to $1.7B; 4Q Flat - Modern Distribution Management

Log In

DXP 2023 Sales Grew 13.4% to $1.7B; 4Q Flat

Full-year operating and net profit jumped more than 40% vs. 2022.
New markets and overhauled operations are producing major dividends at leading distributors DXP Enterprises, NOW Inc. and MRC Global.

Houston-based pumps, pumping equipment and industrial supplies distributor DXP Enterprises reported its 2023 fourth quarter and full-year financial results on March 7, showing a double-digit annual sales gain despite a flat October-December period.

Fourth Quarter

For 4Q23, DXP posted total sales of $407 million, up narrowly from the $406 million of a year earlier. Operating profit of $51 million topped the $44 million of a year earlier. Adjusted EBITDA of $42 million topped the $32 million of a year earlier, with margin jumping 250 basis points to 10.3%. 

By business segment during 4Q:

  • Service Centers sales of $257 million (63.1% of total) fell 8.0% year-over-year, while operating profit of $34 million increased 5.6%.
  • Innovative Pumping Solutions sales of $89 million (21.9% of total) jumped 45.0% year-over-year, while operating profit of $13 million doubled the $6.8 million of a year earlier.
  • Supply Chain Services sales of $61 million (15.0% of total) fell 6.7% year-over-year, while operating profit of $5 million fell 4.5%.


For all of 2023, DXP totaled annual revenue of $1.68 billion, up 13.4% vs. 2022. DXP closed three acquisitions during the year — Florida Valve, Riordan, and Alliance Pump & Mechanical — and noted that acquisitions contributed $33 million to its 2023 sales, or 2.0%.

2023 gross margin of 30.1% jumped 160 basis points vs. 2022.

The company’s 2023 operating profit of $139 million jumped 41.9%, and net profit of $69 million likewise increased 43.0%.

Adjusted EBITDA of $174 million in 2023 was far above the $127 million in 2022, with margin improving 180 bps.

“Fiscal 2023 financial performance reflects 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,” DXP CFO Kent Yee said in the company’s financial report.

Other Notes

DXP has already announced three completed acquisitions in 2024: Hennesy Mechanical Sales, Kappe Associates and Pro-Seal.

In October 2023, DXP announced the closing on refinancing of existing Senior Secured Term Loan B borrowings and the raising of an incremental $125 million in TLB borrowings, which the company said will fund reinvestment in the business and acquisitions.

DXP was No. 22 on MDM’s 2023 Top Industrial Distributors List.

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.