Company: DXPE
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001020710-25-000137
Chunk: 63

Company: DXP ENTERPRISES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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 Centers10.8 %78.6 %8.9 %Innovative Pumping Solutions27.5 %(38.4)%44.0 %Supply Chain Services(0.4)%N/A(0.4)%Total % Change11.9 %5.1 %12.3 %

SALES. Sales for the three months ended June 30, 2025 increased $53.1 million, or 11.9 percent, to approximately $498.7 million from $445.6 million for the prior year's corresponding period, of which acquisitions contributed $24.6 million. Additionally, the overall increase in sales was the result of an increase in sales in our SC and IPS segments of $33.2 million and $20.2 million, slightly offset by a decrease in our SCS segment of $0.3 million. The fluctuations in sales are further explained in our business segment discussions below.

GROSS PROFIT. Gross profit margin for the three months ended June 30, 2025 was 31.6 percent compared to 30.9 percent for the prior year's corresponding period. The gross profit margin for the three months ended June 30, 2025 was positively impacted by 70 basis points due to recent acquisitions and continuing margin expansion opportunities.

Service Centers segment. Sales for the SC segment increased $33.2 million, or 10.8 percent, for the three months ended June 30, 2025, compared to the prior year's corresponding period. Organic sales grew $26.4 million, this sales increase was the result of increases within our Ohio River Valley, California and South Central and Rockies regions totaling $12.4 million. Additionally, the increase was also attributable to  an overall increase in our rotating equipment and air compressors product categories totaling $14.6 million. Sales attributable to recent acquisitions was $15.6 million during the period as compared to $8.7 million in the three months ended June 30, 2024. 

Innovative Pumping Solutions segment. Sales for the IPS segment increased $20.2 million, or 27.5 percent, for the three months ended June 30, 2025, compared to the prior year's corresponding period. This sales increase was the result of increases within our fabrication, global solutions division, and our water and wastewater division totaling $25.8 million. Sales attributable to recent acquisitions was $9.0 million during the period as compared to