Company: DXPE
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001020710-25-000137
Chunk: 101

Company: DXP ENTERPRISES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 101
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 items. We identify the impact of all other non-cash charges, adjustments and non-recurring items because we believe these items do not directly reflect our underlying operations.

EBITDA Margin and Adjusted EBITDA Margin

We define and calculate EBITDA Margin as EBITDA divided by sales. We define and calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by sales.

Free Cash Flow

We define and calculate free cash flow as net cash (used in) provided by operating activities less purchases of property and equipment.

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RESULTS OF OPERATIONS

(in thousands, except percentages and per share data)

DXP is organized into three business segments: Service Centers, Innovative Pumping Solutions, and Supply Chain Services. The Service Centers are engaged in providing MRO products, equipment and integrated services, including technical expertise and logistics capabilities, to industrial customers with the ability to provide same day delivery. The Service Centers provide a wide range of MRO products and services in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, industrial supply and safety product and service categories. The IPS segment provides products and services to the water and wastewater market and fabricates and assembles integrated pump system packages custom made to customer specifications, remanufactures pumps, and manufactures branded private label pumps. The SCS segment provides a wide range of MRO products and manages all or part of our customer's supply chain function, and inventory management.

 Three Months Ended June 30, 2025 compared to Three Months Ended June 30, 2024

 Three Months Ended June 30, 2025%2024%Sales$498,682 100.0%$445,556 100.0%Cost of sales340,869 68.4%307,763 69.1%Gross profit157,813 31.6%137,793 30.9%Selling, general and administrative expenses111,827 22.4%100,441 22.5%Income from operations45,986 9.2%37,352 8.4%Interest expense14,744 3.0%15,384 3.5%Other income, net(354)(0.1)%(1,035)(0.2)%Income before income taxes31,596 6.3%23,003 5.2%Provision for income tax expense7,984 1.6%6,310 1.4%Net