Company: DXPE
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001020710-25-000137
Chunk: 104

Company: DXP ENTERPRISES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 104
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 year's corresponding period. This increase in operating income was primarily driven by increases in our SC and IPS segments. 

INTEREST EXPENSE. Interest expense for the second quarter of 2025 decreased $0.6 million compared to the prior year's corresponding period. This decrease was primarily due to the Company refinancing its Term Loan during the fourth quarter of 2024.

INCOME TAXES. Our effective tax rate for continuing operations was 25.3 percent for the three months ended June 30, 2025, compared to 27.4 percent for the three months ended June 30, 2024. Compared to the U.S. statutory rate for the three months ended June 30, 2024, the effective tax rate decreased primarily due to a higher tax benefit from stock compensation vested during the period, a higher benefit from state income taxes, and higher tax benefits from research and development tax credits (R&D). These benefits were partially offset by recognition of uncertain tax positions related to R&D tax credits.

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Six Months Ended June 30, 2025 compared to Six Months Ended June 30, 2024

 Six Months Ended June 30, 2025%2024%Sales$975,251 100.0%$858,191 100.0%Cost of sales667,173 68.4%596,516 69.5%Gross profit308,078 31.6%261,675 30.5%Selling, general and administrative expenses221,577 22.7%195,192 22.7%Income from operations86,501 8.9%66,483 7.7%Interest expense29,404 3.0%30,928 3.6%Other (income) expense, net(1,672)(0.2)%(3,004)(0.4)%Income before income taxes58,769 6.0%38,559 4.5%Provision for income taxes 14,568 1.5%10,534 1.2%Net income$44,201 4.5%$28,025 3.3%Earnings per share:Basic$2.81 $1.75 Diluted$2.67 $1.66 

The following table sets forth the reconciliation of Acquisition Sales and Organic Sales to the most comparable U.S. GAAP financial measure (in thousands):

SalesAcquisition SalesOrgan