DXP Sales, Earnings Up Despite ‘Varied’ Customer Spending

The company said it is in position to outpace the overall market heading into the new year.

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DXP Enterprises Inc.

DXP Enterprises on Wednesday reported third-quarter sales that were up more than 8% year-over-year amid a more uneven demand environment.

The Houston-based MRO and industrial supply distributor — no. 17 on ID’s 2023 Big 50 — said sales climbed from $387 million in the third quarter of 2022 to $419 million in the latest three-month window.

Net income, meanwhile, increased from $13.9 million to $16.2 million over that span — an increase of more than 16% — while its adjusted EBITDA jumped by more than 28%, rising from $34.3 million to $44 million.

The company’s diluted earnings rose from $0.71 per share to $0.93 per share.

DXP Chairman and CEO David Little highlighted the company’s “solid” results despite moderating inflation and “varied” spending by customers. He said the company is poised to outgrow the market and bolster its operating margins heading into the new year.

Through the first three quarters of the year, DXP’s sales were up more than 18%.

“Our third quarter year-over-year financial results continue to reflect the growth we have been experiencing in fiscal year 2023, and reflect our financial goals to grow through a combination of organic and acquisition sales,” added Kent Yee, the company’s senior vice president and chief financial officer.

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