Company: DXPE
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001020710-25-000137
Chunk: 42

Company: DXP ENTERPRISES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 that are presented as "Billings in excess of costs and estimated profits" on our unaudited condensed consolidated balance sheets.Costs and estimated profits on uncompleted contracts and related amounts billed were as follows (in thousands): June 30, 2025December 31, 2024Costs incurred on uncompleted contracts$136,025 $122,951 Estimated profits, thereon64,324 58,373 Total costs and estimated profits on uncompleted contracts200,349 181,324 Less: billings to date165,995 143,251 Net$34,354 $38,073 Such amounts were included in the accompanying unaudited condensed consolidated balance sheets for June 30, 2025 and December 31, 2024 under the following captions (in thousands): June 30, 2025December 31, 2024Costs and estimated profits in excess of billings$57,260 $50,735 Billings in excess of costs and estimated profits(22,906)(12,662)Net$34,354 $38,073 During the six months ended June 30, 2025 and 2024, $3.1 million and $2.9 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.

9

NOTE 7 – INCOME TAXES

The following table presents provision for income taxes (in thousands, except for effective tax rate):  Three Months Ended June 30,Six Months Ended June 30,2025202420252024Income before provision for income taxes$31,596 $23,003 $58,769 $38,559 Provision for income taxes7,984 6,310 14,568 10,534 Effective tax rate25.3 %27.4 %24.8 %27.3 %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 decreased primarily due to a higher tax benefit from stock compensation vested during the period, a higher benefit from state income taxes, and higher tax benefits from research and development tax credits (R&D). These benefits were partially offset by recognition of uncertain