Company: DXPE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050322
Chunk: 42

Company: DXP ENTERPRISES INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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148,600 $122,951 Estimated profits, thereon70,927 58,373 Total costs and estimated profits on uncompleted contracts219,527 181,324 Less: billings to date178,891 143,251 Net$40,636 $38,073 Such amounts were included in the accompanying unaudited condensed consolidated balance sheets for September 30, 2025 and December 31, 2024 under the following captions (in thousands): September 30, 2025December 31, 2024Costs and estimated profits in excess of billings$57,696 $50,735 Billings in excess of costs and estimated profits(17,060)(12,662)Net$40,636 $38,073 During the nine months ended September 30, 2025 and 2024, $7.9 million and $5.3 million of the balances that were previously classified as contract liabilities at the beginning of the period were recognized in revenues, respectively. Contract asset and liability changes were primarily due to normal activity and timing differences between our performance and customer payments.

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NOTE 7 – INCOME TAXES

The following table presents provision for income taxes (in thousands, except for effective tax rate):  Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Income before provision for income taxes$29,452 $23,732 $88,221 $62,291 Provision for income taxes7,821 2,631 22,389 13,165 Effective tax rate26.6 %11.1 %25.4 %21.1 %We are subject to income taxes in the U.S. and foreign jurisdictions. Significant judgment is required in determining our provision for income taxes and evaluating our uncertain tax positions. The effective tax rate increased primarily due to a lower tax benefit from research and development tax credits, lower tax benefit from stock compensation vested during the period, partially offset by a higher benefit for state income taxes.While we believe that we have adequately provided for all uncertain tax positions, or tax positions where we believe it is not more-likely-than-not that the position will be sustained upon review, amounts asserted by tax authorities could be greater or less than our accrued position. Accordingly, our provisions on federal, state and foreign tax related matters to be recorded in the future may change as revised estimates are made or