Company: DXPE
Filing Date: 2025-04-30
Form Type: ARS
Source: 0001020710-25-000081
Chunk: 45

Company: DXP ENTERPRISES INC
Filing Date: 2025-04-30
Form: ARS
Chunk 45
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ings. 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. Table of Contents 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 $ 1,480.8 100.0 Cost of sales 1,245.8 69.1 1,173.3 69.9 1,058.8 71.5 Gross profit 556.2 30.9 505.3 30.1 422.0 28.5 Selling, general and administrative expenses 410.9 22.8 366.6 21.8 324.3 21.9 Income from operations 145.3 8.1 138.7 8.3 97.7 6.6 Interest expense 63.9 3.5 53.1 3.2 29.1 2.0 Other (income) expense, net (3.5) (0.2) (1.4) (0.1) 2.7 0.2 Income before income taxes 84.9 4.7 87.0 5.2 65.9 4.5 Provision for income tax expense 14.5 0.8 18.1 1