Company: DXPE
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001020710-25-000036
Chunk: 121

Company: DXP ENTERPRISES INC
Filing Date: 2025-03-10
Form: 10-K
Item: Item 1A
Chunk 121
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 or the failure to attract and retain key personnel could adversely impact our results of operations.

•The loss of any key supplier could adversely affect the Company’s sales and profitability.

•Our future results will be impacted by our ability to implement our internal growth strategy.

•Our future results will be impacted by the effective execution of our acquisition strategy.

•Goodwill and intangible assets recorded as a result of our acquisitions could become impaired.

•Interruptions in the proper functioning of our information systems could disrupt operations and cause increases in costs and/or decreases in revenues.

•Cybersecurity breaches and other disruptions or misuse of our network and information systems could affect our ability to conduct our business effectively.

•Our backlog is subject to unexpected adjustments and potential cancellations.

•Our actual results could differ from the assumptions and estimates used to prepare our financial statements.

Market and Economy 

•A general slowdown in the economy could negatively impact the Company’s sales growth and profitability.

•We could be adversely impacted by low oil prices, volatility in oil prices and downturns in the energy industry, including decreased capital expenditures, impacting our customers’ demand for our products and services.

•Adverse weather events or natural disasters could negatively disrupt our operations.

Credit and Access to Debt Capital

•We may not be able to refinance on favorable terms, extend, or repay our debt, which could adversely affect our results of operations or may result in default of our debt.

•Our failure to comply with financial covenants of our credit facilities may adversely affect our results of operations and our financial conditions.

•We may not be able to access acquisition financing, including debt capital.

•A deterioration in the oil and gas sector or other circumstances may negatively impact our business and results of operations and thus hinder our ability to comply with financial covenants under our credit facilities, including the Secured Leverage Ratio and Fixed Charge Coverage Ratio financial covenants.

•Changes in our credit profile may affect our relationship with our suppliers, which could have a material adverse effect on our liquidity.

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Legal and Regulatory 

•Risks associated with substantial or material claim or lawsuits that are not covered by insurance.

•The nature of our manufactured products carries the possibility of significant product liability and warranty claims, which could harm our business and future results.

•We are subject to potential shareholder litigation associated with potential volatile trading of our common stock.

•We are subject to personal injury, product liability and environmental claims involving allegedly defective products.

•We are subject to risks associated with conducting business in foreign