Company: DXPE
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001020710-25-000036
Chunk: 148

Company: DXP ENTERPRISES INC
Filing Date: 2025-03-10
Form: 10-K
Item: Item 7
Chunk 148
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 capital expenditures, share repurchases, and debt payments in 2025. The amount of cash generated or consumed by working capital is dependent on our level of revenues, customer cash advances, backlog, customer-driven delays and other factors. We will seek to improve our working capital utilization, with a particular focus on improving the management of accounts receivable, inventory and cost in excess of billings. In 2025, our cash flows for investing activities will be focused on strategic initiatives, information technology software and infrastructure, general upgrades and cost reduction opportunities and we currently estimate capital expenditures to be between $15.0 million and $25.0 million, before consideration of any acquisition activity. 

Our sales growth strategy in recent years has focused on internal growth and acquisitions. Key elements of our sales strategy include leveraging existing customer relationships by cross-selling new products, expanding product offerings to new and existing customers, and increasing business-to-business solutions using system agreements and supply chain solutions for our integrated supply customers. We will continue to review opportunities to grow through the acquisition of distributors and other businesses that would expand our geographic reach and/or add additional products and services. Our results will depend on our success in executing our internal growth strategy and, to the extent we complete any acquisitions, our ability to integrate such acquisitions effectively.

Our strategies to increase productivity include consolidated purchasing programs, centralizing product distribution, customer service and inside sales functions, and using information technology to increase employee productivity.

34

Consolidated Results of Operations 

 Twelve Months Ended December 31,2024%2023%2022%(in millions, except percentages and per share amounts)Sales$1,802.0 100.0$1,678.6 100.0$1,480.8 100.0Cost of sales1,245.8 69.11,173.3 69.91,058.8 71.5Gross profit556.2 30.9505.3 30.1422.0 28.5Selling, general and administrative expenses410.9 22.8366.6 21.8324.3 21.9Income from operations145.3 8.1138.7 8.397.7 6.6Interest expense63.9 3.553.1 3.229.1 2.0Other (income) expense, net(3.5)(0.2)(1.4)(0.1)2.7 0.