DXP Enterprises reported strong increases in sales, profits and earnings in its latest quarter, as well as announced its acquisition of a Michigan bearings and power transmission distributor.
The Houston pump and MRO distributor — no. 15 on ID’s newest Big 50 List — on Thursday posted $587.2 million in third-quarter sales, an increase of 14.3% compared to the same quarter last year. The company’s organic sales climbed from $495.3 million to $538.3 million over that span, while acquisitions contributed $48.8 million to the quarterly sales total. Sales rose in each of DXP’s three segments as its largest division, service centers, posted a 7.6% increase.
DXP’s gross profit was up by 11.8% year-over-year to $180.5 million, and net income jumped 24.2% to $26.9 million. The company’s operating margin and net margin both rose by 40 basis points to 8.9% and 4.6%, respectively, while adjusted EBITDA margin climbed 50 basis points to 11.5%.
“We remain focused on executing our strategic initiatives, integrating and pursuing acquisitions, generating strong cash flow, and positioning the company for continued growth in 2027,” DXP Chairman and CEO David Little said in a statement.
The results came two days after DXP announced its acquisition of MDS of Michigan, a suburban Grand Rapids distributor to the food and beverage, automotive, aggregates, and waste and water treatment industries. DXP said that MDS posted sales of about $19 million for the 12 months ending Oct. 31; financial details of the transaction were not disclosed.
“MDS has built a strong reputation, with deep technical expertise and long-standing customer relationships,” Little said in the announcement. “This acquisition expands our service center presence in the Midwest and strengthens our bearing and power transmission offering.”
