Houston-based DXP Enterprises reported its 2018 second quarter financial results on Tuesday, led by continued gains in year-over-year (YoY) and sequential sales.
DXP posted Q2 total sales of $311.2 million, up 24.1 percent YoY and up 8.8 percent from Q1. Those figures outpace Q1's YoY growth of 19.9 percent and sequential growth of 7.6 percent. Organic sales jumped 19.2 percent in Q2.
Q2 marked six consecutive sales growth quarters for DXP, while acquisitions added $12.4 million in sales.
The company's Q2 total profit was $11.5 million, compared to $4.1 million a year earlier, while Q2 EBITDA of $28 million, increased from Q2 2017's $16.9 million. Q2 operating profit of $20.1 million nearly doubled from last year's $10.3 million and grew 33.8 percent sequentially, while gross profit of $85.1 million grew from last year's $68.9 million.
"We continue to experience broad-based demand across our key end markets and regions," said David Little, DXP chairman and CEO. Overall, we are very pleased with the progress DXP is making. That said, we are optimistic that we can show continued sales and profit improvement during the second half of 2018."
By business segment in Q2:
- Service Centers sales of $193.6 million increased 17.5 percent YoY, with organic sales up 10.0 percent. Operating profit of $21.9 million grew from $18.4 million of a year earlier, while operating margin of 11.3 percent improved from Q1's 9.0 percent.
- Innovative Pumping Solutions sales of $74.3 million jumped 67.0 percent YoY and 9.9 percent sequentially. Operating profit of $9.0 million improved from $1.8 million of a year earlier, while operating margin of 12.1 percent improved from 9.4 percent of a year earlier.
- Supply Chain Services sales of $43.4 million increased 4.6 YoY and ticked up 1.2 percent sequentially. Operating profit of $4.3 million improved from $3.7 million of a year earlier, while operating margin of 9.8 percent improved from 9.4 percent of a year earlier.