DXP Enterprises on Wednesday reported lower sales, profits and earnings to start 2024 but said officials expect to see growth as the year moves along.
The Houston-based provider of pumps, MRO products and supply chain services — no. 17 on ID’s 2023 Big 50 — said first-quarter sales declined 2.7% to nearly $413 million compared to $424 million in the first three months of last year.
Gross profit edged down from $125 million to $123 million over that span, while net income fell from $17.6 million in the previous first quarter to $11.3 million in the latest January-March window.
The company’s overall revenue drop stemmed from declines in its service center and supply chain services businesses, which eclipsed an increase in its pumping solutions segment.
DXP officials, however, said that they were “encouraged” by the start to the year, which saw a sequential sales increase compared to the final quarter of 2023 driven by acquisitions — the company closed three in the latest quarter — and strong free cash flow.
Senior Vice President and Chief Financial Officer Kent Yee said the company expects to see both organic and acquisition-driven growth moving through the year — particularly in the second half, when a project backlog increase and end-market diversification efforts should take hold.
“As we look ahead to the rest of 2024, we remain optimistic around market conditions, our ability to execute our growth initiatives and the diversity of our end markets to deliver growth in 2024,” Chairman and CEO David Little said in a statement.
