Company: DXPE
Filing Date: 2025-04-30
Form Type: ARS
Source: 0001020710-25-000081
Chunk: 10

Company: DXP ENTERPRISES INC
Filing Date: 2025-04-30
Form: ARS
Chunk 10
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, 28 of which are located in the U.S. and two in Canada. All of the IPS segment’s long-lived assets are located in the U.S. At December 31, 2024, the IPS segment had 462 employees, all of whom were full-time. Table of Contents 9

Total backlog, representing firm orders for the IPS segment products that have been received and entered into our production systems, was $292.2 million and $138.4 million at December 31, 2024 and 2023, respectively. Supply Chain Services The Company's Supply Chain Services (“SCS”) segment manages all or part of its customers’ supply chains, including procurement and inventory management. The following chart represents financial information for the last three years and the key end markets our SCS segment currently serves: Supply Chain Services’ Financial Summary and End Markets ______________________________________________________________________________________________________ SCS Sales $256 Million Oil & Gas 18% Manuf. 10% Food & Bev. 10% Chemical 33% Fabr. & Const. 3% Power 6% Pharma. 5% Other 16% ($ in millions) 2024 2023 2022 Sales $ 256 $ 260 $ 240 Operating Income $ 22 $ 22 $ 20 % Margin 8.5 % 8.3 % 8.1 % EBITDA $ 22 $ 22 $ 20 % Margin 8.6 % 8.5 % 8.3 % SCS Employees 397 419 409 ______________________________________________________________________________________________________ The SCS segment enters into long-term contracts with its customers that can be canceled on little or no notice under certain circumstances. The SCS segment provides fully outsourced MRO solutions for sourcing MRO products including, but not limited to, the following: inventory optimization and management; store-room management; transaction consolidation and control; vendor oversight and procurement cost optimization; productivity improvement services; and customized reporting. Our mission is to help our customers become more competitive by reducing their indirect material costs and order cycle time by increasing productivity and by creating enterprise-wide inventory and procurement visibility and control. The Company has developed assessment tools and master plan templates aimed at taking cost out of supply chain processes, streamlining operations and boosting productivity. This multi-faceted approach allows us to manage the entire MRO products channel for maximum efficiency and optimal control, which ultimately provides our customers with a low-cost solution. The Company takes a consultative approach to determine the strengths and