DXP 1Q Sales Jump 33% From a Year Earlier

On May 11, Houston-based pumping solutions and MROP supplies distributor DXP Enterprises announced its 2023 first-quarter financials, showing explosive sales growth compared to the same period in 2022.

DXP reported 1Q sales of $424.3 million, a 32.8% increase year-over-year and up 4.4% sequentially from 4Q 2022. 1Q adjusted EBITDA rose 53.6% year-over-year to $43.1 million. Adjusted EBITDA as a percentage of sales was 10.2% in 1Q.

DXP’s sales and adjusted EBITDA in 1Q were company records, according to a news release.

“Our first quarter sales and adjusted EBITDA established another set of new high watermarks for DXP,” DXP Chief Financial Officer Kent Yee said in the release. “Our first quarter year-over-year and sequential financial results continue to reflect the growth we have been experiencing over the last ten quarters and reflect our financial goals to grow organically and through acquisitions. We have diversified our end markets and business model exposure.”

In 1Q 2023, DXP had earnings per diluted share of $0.95 based on 18.4 million diluted shares, compared to earnings of $0.65 per share in 1Q 2022 based on 19.4 million diluted shares.

DXP posted year-over-year sales growth in each of the following business segments in 1Q, according to the release:

• Service Centers revenue grew 34.9% to $295.2 million.
• Innovative Pumping Solutions grew 16.9% to $62 million.
• Supply Chain Services revenue grew 41% to $67 million.

“The DXPeople continue to perform well and set new highs amidst solid demand in an ever-changing environment. All three segments delivered strong growth and good margins, while we continue to invest in our growth strategies and continue to be customer driven experts,” DXP Chairman and CEO David Little said in the release. “While managing the slowing pace of inflation and other market challenges, overall, we are off to a great start to the year, and we feel good about the outlook for 2023. With our strong, growing DXPeople, a robust acquisition pipeline, and a drive to continue to create value for all our stakeholders, we are confident in our ability to drive exceptional performance and growth in years to come.”