Financial Results DXP Enterprises Announces Q4 and Full-Year 2024 Performance
DXP Enterprises, Inc. (NASDAQ: DXPE) has announced its financial results for the fourth quarter and full fiscal year ended December 31, 2024. The company demonstrated solid performance across all business segments, reflecting robust growth and operational strength. The financial outcomes for the three- and twelve-month periods ending December 31, 2024, are compared against the same periods in 2023.
Fourth Quarter 2024 Financial Highlights
DXP Enterprises reported sales of $470.9 million in Q4 2024, marking an increase from $407.0 million in Q4 2023. The company’s diluted earnings per share (EPS) rose to $1.29, based on 16.5 million diluted shares, compared to $0.94 per share in the same quarter of 2023 with 17.0 million diluted shares. Financial Results The adjusted diluted EPS was $1.38, up from $1.12 in Q4 2023.
The company’s adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) stood at $50.3 million for Q4 2024, compared to $41.9 million for Q4 2023. Adjusted EBITDA as a percentage of sales was 10.7%, slightly improving from 10.3% in Q4 2023. Free cash flow (operating cash flow minus capital expenditures) was $22.7 million, accounting for 46.4% of EBITDA.
Fiscal Year 2024 Financial Highlights
For the full year, sales grew 7.4% to $1.8 billion, compared to $1.7 billion in fiscal 2023. Diluted EPS for 2024 was $4.22 based on 16.7 million diluted shares, up from $3.89 per share in 2023, which was based on 17.7 million basic shares. Adjusted diluted EPS increased to $4.51, compared to $4.09 in 2023.
Net income saw an increase of $1.7 million, reaching $70.5 million in 2024, up from $68.8 million in fiscal 2023. Adjusted EBITDA for 2024 was $191.3 million, an improvement from $174.3 million in 2023. Adjusted EBITDA as a percentage of sales rose to 10.6%, compared to 10.4% in the prior year. Free cash flow for fiscal 2024 was $77.1 million, or 42.3% of EBITDA, compared to $94.0 million in 2023.
Business Segment Performance
- Service Centers: Revenue for fiscal 2024 reached $1.2 billion, reflecting a 1.9% increase year-over-year, with an operating income margin of 14.3%.
- Innovative Pumping Solutions (IPS): Revenue surged by 47.7% year-over-year to $323.0 million, with a 16.6% operating income margin.
- Supply Chain Services: Revenue declined slightly by 1.5% to $256.4 million, with an 8.5% operating margin.
CEO and CFO Commentary
David R. Little, Chairman and Chief Executive Officer, expressed confidence in DXP’s performance, stating, “Fiscal 2024 was another strong year for DXP, driven by our dedicated employees and broad-based business strength. Financial Results We achieved 7.4% revenue growth year-over-year, setting a positive momentum for 2025.Financial Results Innovative Pumping Solutions saw a significant 47.7% sales increase, while Service Centers experienced steady growth and Supply Chain Services showed resilience despite a minor decline. I commend our employees for their hard work and dedication to serving our customers.”
Little further emphasized the company’s strong positioning for 2025, citing the firm’s solid backlog and a strengthened balance sheet. “Our recent Term Loan B issuance added $105 million in cash to our balance sheet, bolstering our financial position. Financial Results We continue to see opportunities in our core markets, including oil & gas and water & wastewater, positioning us for sustained success. Over the past three years, DXP has achieved an average annual return on equity of 16.5% and returned approximately $118.7 million to shareholders through share repurchases.”
Kent Yee, Chief Financial Officer, highlighted the company’s impressive financial achievements in fiscal 2024, stating, “DXP delivered a record-breaking year, with strong sales growth, improved operating leverage, and robust free cash flow generation. Financial Results Total sales increased by 7.4%, while adjusted EBITDA grew by 9.8%. With diluted EPS at $4.22, we successfully positioned our balance sheet to support future growth. We ended the year with $148.4 million in cash and a net debt of $500.6 million. Our secured leverage ratio was 2.4:1.0, with covenant EBITDA of $206.2 million. Looking ahead, we remain optimistic about our ability to sustain growth through organic initiatives and strategic acquisitions.”
Non-GAAP Financial Measures
DXP provides supplemental financial information, including EBITDA, adjusted EBITDA, free cash flow, and net debt, in addition to GAAP-reported net income. Financial Results The company believes these measures enhance investors’ understanding of financial performance by isolating the effects of non-cash expenses, interest costs, and tax obligations. Furthermore, EBITDA serves as a key component in assessing financial covenants under the company’s credit facility.
By presenting non-GAAP financial metrics alongside reconciliations from net income, DXP aims to provide investors with greater clarity on its financial strategies and operational execution. Financial Results The company’s management team remains committed to driving shareholder value through continuous improvement, disciplined capital allocation, and strategic market positioning.
