olivLaw · US equity research
DXP Enterprises, Inc. DXPE
Wholesale-Industrial Machinery & Equipment · SIC 5084 · Vertical: Wholesale — durable goods (SIC 508x)
DXP Enterprises distributes MRO products, equipment and services to industrial customers in North America and provides pumping solutions and supply chain services. In the first half of 2026 the company grew sales in its Service Centers and IPS segments by about 14.3 percent, in a volatile macroeconomic setting that makes its profile relevant to investors following industrial distribution. Quarterly sales reached 576.5 million USD in the second quarter of 2026.
At the close of 04 Nov 2026, DXP Enterprises, Inc. (DXPE) stock was 158.38 USD (−11.76% on the day), with market capitalisation 2.5 bn USD, P/E 27.9 on diluted EPS of 5.68 USD over the last 12 months, dividend yield 0.00%, beta 1.56, 52-week range 85.53–200.84 USD. Latest reported quarter (Q2 2026): revenue of 576.5 m USD (+15.6% YoY), net income of 28.7 m USD (+21.6% YoY), diluted EPS 1.76 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 38.5
- weak (30–45)
- Bollinger (20, 2)
- 156.84 – 189.04
- in the lower half of the band · %B 0.05 · band width 18.6%
- SMA 50 / 200
- 181.14 / 162.31
- mixed trend
- MACD (12, 26, 9)
- -3.70 / -3.79
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −19.1% | −1.1% | −18.0 pp | — |
| 3 months | −5.9% | −0.5% | −5.5 pp | — |
| 6 months | −12.7% | +4.4% | −17.1 pp | — |
| Year to date | +44.3% | +12.3% | +31.9 pp | — |
| 1 year | +29.5% | +13.5% | +15.9 pp | +26.2% |
| 3 years | +364.3% | +76.4% | +287.9 pp | +26.4% |
| 5 years | +348.3% | +63.7% | +284.6 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 472.9 m | 470.9 m | 476.6 m | 498.7 m | 513.7 m | 527.4 m | 521.7 m | 576.5 m |
| Cost of revenue | 326.8 m | 322.4 m | 326.3 m | 340.9 m | 352.5 m | 360.8 m | 353.1 m | 393.4 m |
| Gross profit | 146.1 m | 148.5 m | 150.3 m | 157.8 m | 161.3 m | 166.6 m | 168.6 m | 183.1 m |
| SG&A | 106.5 m | 109.2 m | 109.8 m | 111.8 m | 117.6 m | 119.9 m | 126.1 m | 127.6 m |
| Operating income | 39.6 m | 39.3 m | 40.5 m | 46.0 m | 43.7 m | 46.7 m | 42.5 m | 55.5 m |
| Interest expense | 15.7 m | 17.3 m | 14.7 m | 14.7 m | 14.9 m | 16.2 m | 16.4 m | 16.8 m |
| Pre-tax income | 23.7 m | 22.7 m | 27.2 m | 31.6 m | 29.5 m | 31.0 m | 26.6 m | 39.7 m |
| Income tax | 2.6 m | 1.3 m | 6.6 m | 8.0 m | 7.8 m | 8.2 m | 6.6 m | 11.0 m |
| Net income | 21.1 m | 21.4 m | 20.6 m | 23.6 m | 21.6 m | 22.8 m | 20.0 m | 28.7 m |
| Diluted EPS | 1.27 | 1.29 ≈ | 1.25 | 1.43 | 1.31 | 1.39 ≈ | 1.22 | 1.76 |
| Operating cash flow | 28.3 m ≈ | 32.1 m | 3.0 m | 18.6 m ≈ | 34.9 m ≈ | 37.8 m | 29.6 m | 32.4 m ≈ |
| Capex | 4.0 m ≈ | 9.4 m | 19.9 m | 10.3 m ≈ | 6.7 m ≈ | 3.3 m | 3.3 m | 2.6 m ≈ |
| Dividends paid | 23.0 k ≈ | 22.0 k | 23.0 k | 22.0 k ≈ | 23.0 k ≈ | 22.0 k | 23.0 k | 22.0 k ≈ |
| Share repurchases | 4.8 m ≈ | 224.0 k | 0 | 0 ≈ | 2.0 m ≈ | 15.1 m | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 74 percentile of its own 35-quarter history (min 6.5, median 17.5, max 82.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.2 bn | 1.3 bn | 1.0 bn | 1.1 bn | 1.5 bn | 1.7 bn | 1.8 bn | 2.0 bn |
| Revenue YoY | +21.0% | +3.8% | −20.5% | +10.8% | +32.9% | +13.4% | +7.4% | +11.9% |
| Net income | 38.3 m | 37.0 m | -29.3 m | 16.5 m | 48.2 m | 68.8 m | 70.5 m | 88.7 m |
| Net income YoY | +127.1% | −3.4% | −179.1% | unavailable | +191.9% | +42.9% | +2.4% | +25.8% |
| Diluted EPS | 2.08 | 2.01 | -1.65 | 0.83 | 2.47 | 3.89 | 4.22 | 5.37 |
| Diluted EPS YoY | +123.7% | −3.4% | −182.1% | unavailable | +197.6% | +57.5% | +8.5% | +27.3% |
| net % | 3.1% | 2.9% | -2.9% | 1.5% | 3.3% | 4.1% | 3.9% | 4.4% |
| Free cash flow | 26.5 m | 19.2 m | 103.0 m | 31.1 m | 978.0 k | 94.0 m | 77.1 m | 54.0 m |
Reported results vs expectations
Loading…
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 303.8 m USD
- Financial debt
- 827.1 m USD
- Net debt
- 523.3 m USD
- Equity
- 498.4 m USD
- Total assets
- 1.7 bn USD
- Debt / equity
- 1.66x
- Current ratio
- 3.34x
- ROE
- 19.3%
- ROA
- 5.8%
- FCF margin
- 2.7%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.0 bn | 1.1 bn | 1.5 bn | 1.7 bn | 1.8 bn | 2.0 bn | SEC (XBRL)· 26 Feb 2026verified |
| Cost of revenue | 728.1 m | 785.4 m | 1.1 bn | 1.2 bn | 1.2 bn | 1.4 bn | SEC (XBRL)· 26 Feb 2026verified |
| Gross profit | 277.2 m | 328.5 m | 422.0 m | 505.3 m | 556.3 m | 635.9 m | SEC (XBRL)· 26 Feb 2026verified |
| SG&A | 245.0 m | 288.6 m | 324.3 m | 366.6 m | 410.9 m | 459.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Operating income | -27.7 m | 39.9 m | 97.8 m | 138.7 m | 145.4 m | 176.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Interest expense | 20.6 m | 21.1 m | 29.1 m | 53.1 m | 63.9 m | 60.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Pre-tax income | -48.3 m | 19.2 m | 65.9 m | 86.9 m | 85.0 m | 119.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Income tax | -18.7 m | 3.4 m | 17.8 m | 18.1 m | 14.5 m | 30.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Net income | -29.3 m | 16.5 m | 48.2 m | 68.8 m | 70.5 m | 88.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Diluted EPS | -1.65 | 0.83 | 2.47 | 3.89 | 4.22 | 5.37 | SEC (XBRL)· 26 Feb 2026verified |
| Weighted average diluted shares | 17.7 m | 19.8 m | 19.5 m | 17.7 m | 16.7 m | 16.5 m | SEC (XBRL)· 26 Feb 2026verified |
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 119.3 m | 49.0 m | 46.0 m | 173.1 m | 148.3 m | 303.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Receivables | 166.9 m | 218.1 m | 320.9 m | 311.2 m | 339.4 m | 397.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Inventories | 97.1 m | 100.9 m | 101.4 m | 103.8 m | 103.1 m | 108.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | 409.4 m | 404.6 m | 516.1 m | 648.6 m | 661.9 m | 910.3 m | SEC (XBRL)· 26 Feb 2026verified |
| Property, plant & equipment, net | 56.9 m | 51.9 m | 46.0 m | 61.6 m | — | — | SEC (XBRL)· 09 May 2024verified |
| Goodwill | 249.8 m | 296.5 m | 333.8 m | 344.0 m | 452.3 m | 494.6 m | SEC (XBRL)· 26 Feb 2026verified |
| Intangibles (excl. goodwill) | 80.1 m | 79.2 m | 79.6 m | 63.9 m | 85.7 m | 81.4 m | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | 868.1 m | 894.2 m | 1.0 bn | 1.2 bn | 1.3 bn | 1.7 bn | SEC (XBRL)· 26 Feb 2026verified |
| Short-term debt | 3.3 m | 3.3 m | 4.4 m | 5.5 m | 6.6 m | 8.6 m | SEC (XBRL)· 26 Feb 2026verified |
| Long-term debt | 317.1 m | 315.4 m | 409.2 m | 520.7 m | 621.7 m | 818.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Current liabilities | 147.1 m | 181.1 m | 212.9 m | 224.2 m | 244.0 m | 272.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Total liabilities | 507.0 m | 547.5 m | 671.9 m | 796.6 m | 926.7 m | 1.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Equity | 349.1 m | 346.7 m | 365.4 m | 380.9 m | 422.8 m | 498.4 m † | SEC (XBRL)· 26 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 109.7 m | 37.1 m | 5.9 m | 106.2 m | 102.2 m | 94.3 m | SEC (XBRL)· 26 Feb 2026verified |
| Capex | 6.7 m | 6.0 m | 4.9 m | 12.3 m | 25.1 m | 40.3 m | SEC (XBRL)· 26 Feb 2026verified |
| Free cash flow | 103.0 m ≈ | 31.1 m ≈ | 978.0 k ≈ | 94.0 m ≈ | 77.1 m ≈ | 54.0 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Investing cash flow | -121.8 m | -69.0 m | -53.4 m | -22.6 m | -181.7 m | -99.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Financing cash flow | 77.4 m | -38.5 m | 44.3 m | 43.6 m | 56.8 m | 158.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Dividends paid | 90.0 k | 90.0 k | 90.0 k | 90.0 k | 90.0 k | 90.0 k | SEC (XBRL)· 26 Feb 2026verified |
| Share repurchases | 0 | 33.5 m | 47.9 m | 56.2 m | 29.0 m | 17.1 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 65 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 2.5 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation51
- Returns46
- Quality70
- Balance sheet53
- Growth95
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 114.86 – 281.49 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)151.24 – 281.49 (Mid 198.91)WACC 8.1% · starting FCFF 166.0 m USD · terminal value share of EV 77%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 2.5%
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E114.86 – 161.72 (Mid 135.83)6 companies used · median multiple 23.9x · quartiles 20.2x – 28.5xAIT, GIC, HDSN, MSM, TLIH, WLFC
- Dividend discount (DDM)unavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 65/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 13.0% | 67 (vs peers) | 13% |
| Net margin · Quality | 4.4% | 44 (vs peers) | 8% |
| FCF conversion · Quality | 127.4% | 100 (on a fixed band) | 8% |
| Revenue CAGR 3Y · Growth | 10.8% | 90 (on a fixed band) | 11% |
| EPS CAGR 3Y · Growth | 29.5% | 100 (on a fixed band) | 11% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 2.9x | 22 (on a fixed band) | 8% |
| Current ratio · Balance sheet | 3.0x | 100 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 27.9x | 43 (vs peers) | 13% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 4.8% | 60 (on a fixed band) | 11% |
| Shareholder yield (distributions) · Returns | 0.7% | 10 (on a fixed band) | 8% |
| Payout ratio (FCF) · Returns | 0.1% | 100 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet53/100 · 2/3 factors with a value
- Growth95/100 · 2/2 factors with a value
- Quality70/100 · 3/3 factors with a value
- Returns46/100 · 2/2 factors with a value
- Valuation51/100 · 2/3 factors with a value
Memo
DXP Enterprises, Inc. (DXPE). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 2.0 bn USD in 2025; YoY growth 11.9%; net margin 4.4%; ROE 18.5%.
The estimated value range is 133.05–221.60 USD per share (median of 2 methods, agreement: high); assumptions are illustrative. Against the central value of 167.37 USD, the price of 158.38 USD leaves a potential of 5.7% (value / price − 1) and a margin of safety of 5.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 65/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 127.4%
- Revenue CAGR 3Y: 10.8%
- EPS CAGR 3Y: 29.5%
- Current ratio: 3.0x
- Payout ratio (FCF): 0.1%
What contradicts it
- Interest coverage: 2.9x
- Shareholder yield (distributions): 0.7%
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Wholesale — durable goods (SIC 508x) · same industry group (3-digit SIC) · compared with 9 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AITApplied Industrial Technologies, Inc. | 10.9 bn | 26.4 | 22.5% | 8.4% | +8.8% | +15% / +86% |
| MSMMsc Industrial Direct Co., Inc. | 6.5 bn | 29.2 | 15.8% | 5.6% | +6.4% | +30% / +19% |
| DXPEDXP Enterprises, Inc. | 2.5 bn | 27.9 | 18.5% | 4.4% | +11.9% | +29% / +364% |
| GICGlobal Industrial Co | 1.8 bn | 19.8 | 27.6% | 6.3% | +4.8% | +66% / +34% |
| DSGRDistribution Solutions Group, Inc. | 1.6 bn | 180.0 | 1.4% | 0.4% | +9.8% | +26% / +38% |
| WLFCWillis Lease Finance Corp | 1.0 bn | 12.7 | 11.5% | 9.6% | +28.3% | +16% / +213% |
| ASLEAerSale Corporation | 237.2 m | — | -0.9% | -1.2% | −2.8% | −23% / −64% |
| ALTGAlta Equipment Group Inc. | 225.1 m | — | -2,085.7% | -4.4% | −2.2% | +41% / −28% |
| HDSNHudson Technologies Inc | 185.6 m | 21.4 | 3.6% | 3.5% | +4.0% | −35% / −64% |
| TLIHTen-League International Holdings Limited | 167.1 m | 37.9 | 49.6% | 7.3% | +38.4% | +59% / unavailable |
1- and 3-year price returns: for DXPE from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 105.25 Total return -34% · Per year -34% | 185.54 Total return 17% · Per year 17% | 278.74 Total return 76% · Per year 76% |
| 3 years | 115.57 Total return -27% · Per year -10% | 227.93 Total return 44% · Per year 13% | 374.03 Total return 136% · Per year 33% |
| 5 years | 126.91 Total return -20% · Per year -4% | 280.02 Total return 77% · Per year 12% | 501.88 Total return 217% · Per year 26% |
- Exit P/E± 56.98
- Net margin± 39.89
- Annual revenue growth± 30.87
- Annual dilution± 3.35
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
DXP Enterprises distributes MRO products, equipment and services to industrial customers in North America and provides pumping solutions and supply chain services. In the first half of 2026 the company grew sales in its Service Centers and IPS segments by about 14.3 percent, in a volatile macroeconomic setting that makes its profile relevant to investors following industrial distribution. Quarterly sales reached 576.5 million USD in the second quarter of 2026 3.
SWOT
Strengths
- The company has an extensive network of locations and a first-tier distributor position that gives it direct access to manufacturers 1.
- The IPS segment has fabrication and engineering capability that supports custom projects and a steady firm order backlog 1.
- Operating margins have held up in recent years, and free cash flow rose in the second quarter of 2026 13.
Weaknesses
- Total debt is significant, and interest costs have remained high relative to operating profit 13.
- Gross margins depend on the cost of purchased products, and the company cannot always pass price increases on to customers 1.
- Part of the business depends on project contracts that can be delayed or cancelled, which affects revenue timing 1.
Opportunities
- Additional acquisitions could extend geographic reach and product range, in line with the stated strategy 12.
- Demand for pumps and water treatment solutions could grow if municipal projects continue 1.
- Customers outsourcing procurement could expand SCS contracts if the supplier consolidation trend continues 1.
Threats
- Manufacturers could sell directly to customers or cancel distribution authorizations, affecting revenue 1.
- Tariffs and geopolitical tensions could raise costs and disrupt supply chains 2.
- An economic slowdown could reduce industrial demand and profitability, and falling oil prices could weigh on the energy segment 1.
Risks
- Dependence on manufacturershigh
Distribution depends on authorizations granted by manufacturers, which can be cancelled with little or no notice, potentially disrupting sales 1.
- Indebtedness and financing termshigh
Total debt is high, and meeting credit facility covenants could become difficult if performance declines 13.
- Margin pressuremedium
Rising product and labour costs that cannot be passed on to customers could reduce gross and operating margins 1.
- Project riskmedium
Delays, cost changes or cancellation of IPS projects could affect revenue and may lead to liquidated damages 1.
- Oil cycle risklow
A decline in oil and gas capital spending could reduce demand for the company's products and services 1.
Investment thesis
What would need to be true (bull case)
- Sales growth in the first half of 2026, combined with rising free cash flow, could support the continuation of the acquisition strategy 23.
- The IPS segment, with strong growth and a firm order backlog, could continue to contribute substantially to revenue 13.
- The trend of customers reducing their supplier count could favour a broad-coverage distributor such as DXP 1.
What would break the thesis
- The level of debt and the cost of financing could limit the company's flexibility if interest rates remain high 13.
- Tariffs and inflation could compress margins if the pass-through of cost increases to customers is delayed 2.
- Reliance on project contracts and manufacturer authorizations could create volatility in results 1.
What to watch
- Sales and margin trends in the IPS segment, including new firm ordersQ3 2026
- Level of net debt and compliance with credit facility covenantsQ3 2026
- Impact of tariffs and product costs on gross margin2026
- Pace and size of new acquisitions announced for the second half2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
DXP Enterprises, Inc., headquartered in Houston, Texas, distributes MRO products, equipment and services to customers in general industrial, energy, food and beverage, chemical, transportation and water and wastewater markets 1. The company is organized into three segments: Service Centers (SC), Innovative Pumping Solutions (IPS) and Supply Chain Services (SCS) 1. Sales for fiscal 2025 were 2016.4 million USD, up from 1802.0 million USD in 2024 1.
The business model combines first-tier distribution, which allows direct purchasing from manufacturers, with the fabrication of custom pump packages and branded private label pumps, as well as full outsourcing of customer procurement. The company states that it represents manufacturers supplying up to 90 percent of its customers' MRO products 1. Through acquisitions, DXP has extended its footprint to Canada, the United Arab Emirates, India and Saudi Arabia 1.
The latest available data show that in the first six months of 2026 acquisitions contributed 90.6 million USD in sales, and the company completed four acquisitions through the second quarter 23. Acquisition-driven growth remains a central part of the strategy alongside internal growth.
Segments
Innovative Pumping Solutions
The IPS segment designs and fabricates custom pump packages, remanufactures pumps and produces branded private label pumps, with a focus on water and wastewater 1. Sales reached 390.3 million USD in 2025 1, and in the second quarter of 2026 they rose 52.6 percent to 142.7 million USD 3.
Market context
The US industrial MRO distribution market is highly fragmented, and many industrial customers are reducing their number of suppliers to lower costs 1. Industrial indicators the company tracks, such as the industrial production index and the PMI, showed a near-stagnant manufacturing environment in 2025, with the PMI below the 50 expansion threshold 1.
The company links demand to industrial production and capacity utilization, while the oil and gas segment adds separate volatility tied to active drilling rigs 12. The market is largely non-discretionary in nature, which could offer some stability during periods of economic slowdown 2.
Trends
- Supplier consolidationtailwind
Industrial customers are reducing their number of suppliers, which favours first-tier distributors offering a broad product range 1. If the trend continues, DXP could gain share through integrated contracts.
- Customized integrated servicetailwind
Customers focused on their core competencies increasingly demand integrated services including supply, modular equipment and maintenance 1. This supports the IPS and SCS segments.
- Cost and tariff pressureheadwind
New and expanded tariffs and rising costs of products, labour and energy have strained supply chains and margins 21. The company cannot always pass these increases on to customers quickly.
- Financing conditionsmixed
Higher interest rates and new financing could raise the cost of debt in 2026, although the company said it is working to secure favourable terms 1. The impact depends on the path of benchmark rates.
Competitive position
The market is fragmented and DXP competes with many local and regional distributors that serve one product category 1. The company positions itself as a first-tier distributor, but the intensity of competition, described as substantial in its risk factors, could affect pricing and margins 1.
Competition also comes from manufacturers that could sell directly to end users, which could reduce demand for distributors 1. In the IPS segment, competition includes pump manufacturers and water system integrators.
- Local and regional MRO distributors
Fragmented companies serving single product categories that compete with DXP in local markets 1.
- Manufacturers selling directly to end users
A possible indirect competitor if manufacturers expand direct sales to final customers 1.
- Integrated supply and outsourced procurement providers
Companies offering full outsourcing of MRO purchasing, which compete directly with the SCS segment 1.
- Pump and pumping package manufacturers
Manufacturers that can compete with the IPS segment on water treatment projects and capital equipment 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report29 Oct 2026Other events · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Financial statements and exhibits
- Current report10 Jul 2026Material agreement · Creation of a direct financial obligation · Other events · Financial statements and exhibits
- Current report18 Jun 2026Shareholder vote
- Quarterly report07 May 2026
- Current report07 May 2026Results of operations · Financial statements and exhibits
- Proxy statement30 Apr 2026
- Annual report26 Feb 2026
- Current report26 Feb 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / DXP Enterprises, Inc. · 26 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / DXP Enterprises, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / DXP Enterprises, Inc. · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.