Company: DXPE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050322
Chunk: 88

Company: DXP ENTERPRISES INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 88
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ales are shown net of intersegment eliminations.

14

Segment information is prepared on the same basis that our Chief Executive Officer, who is our chief operating decision maker (“CODM”), manages the segments, evaluates financial results, and makes key operating decisions.These segments were determined primarily on the distribution channels of the products and services offered and the nature of the customer markets and the primary driver of the customers spend. The Company's CODM directs the allocation of resources to these segments based upon historical and current revenue, direct operating expenses, operating income, and capital expenditures of each respective segment. The allocation of resources across these segments is dependent upon, among other factors, the segments' historical or future expected operating margins; the segments' historical or future expected returns on capital; outlook within a specific market; opportunities to grow profitability; new products, services or new customer accounts; confidence in management; and competitive landscape and intensity.As a part of the Company's annual business planning, the CODM reviews our reportable segment composition and financial performance. As a result of this review, on January 1st, 2025, we moved certain branch locations previously reported under our IPS segment to our SC segment. Prior period segment information has not been recast, as the changes to our segment composition did not have a material impact on the operating results of our reportable segments.  The following table sets forth financial information related to the Company's segments (in thousands):Three Months Ended September 30, 2025Service CenterInnovative Pumping SolutionsSupply Chain ServicesTotal Reportable SegmentsCorporateTotalSales$350,179 $100,551 $62,994 $513,724 $— $513,724 Operating expenses296,817 81,147 57,635 435,599 — 435,599 Other expensesDepreciation995 774 8 1,777 1,034 2,811 Amortization of finance lease assets1,021 231 47 1,299 443 1,742 Other(1)— — — — 29,874 29,874 Operating income (loss)$51,346 $18,399 $5,304 $75,049 $(31,351)$43,698 Interest expense— — — — 14,894 14,894 Other income, net— — — — (648)(648)Income (loss) before income