DXP Enterprises on Thursday reported stronger sales, earnings and profits in its full-year 2023 financial results, as well as a narrow uptick in sales in the final quarter of the year.
The Houston pumping and MRO distributor — no. 17 on ID’s latest Big 50 — posted $1.7 billion in sales last year, an increase of 13.4% compared to 2022. Net income, meanwhile, jumped by 43% to $68.8 million in 2023, and gross profit rose by nearly 20% to $505 million.
For the latest fiscal quarter, DXP reported $407 million in sales, up slightly from the $406.3 million reported during the fourth quarter of 2022. An increase in the company’s pumping solutions division offset declines in its service centers and supply chain services operations year-over-year. Net income attributable to DXP, meanwhile, more than doubled to $16 million last quarter. Company officials also pointed to sharply higher earnings per diluted share and improved adjusted EBITDA.
DXP executives highlighted strong annual performances across all divisions of the company, and said that its fourth quarter sales performance and backlogs positioned the company “for further success as we move into 2024.” The company refinanced a Senior Secured Term Loan B during the fiscal year, raising $550 million, and added three companies via acquisition: Florida Valve, Riordan and Alliance Pump and Mechanical.
DXP has already added three more companies in the first 11 weeks of the new year.
“DXP’s balanced end markets, and our ability to continue to execute on acquisitions, have set the stage for 2024,” Chairman and CEO David Little said in a statement. “We see positive dynamics in our traditional end markets like oil and gas, as well as positive outlooks for end markets like water and wastewater.”
