DXP Sales Hit Record as Pumping Growth Cools

The Tip Desk · November 11, 2026 · 2 min read

Third-quarter sales reached $587.2 million, up 14.3% from a year earlier, as acquisitions added $48.8 million and organic sales were $538.3 million.

DXP Enterprises, Inc. (DXPE), a products and service distributor for industrial customers, reported third-quarter sales of $587.2 million, a 14.3% increase from $513.7 million a year earlier and a new sales high watermark, after a 15.6% year-over-year rise in the second quarter.

Net income was $26.9 million, up 24.2% from $21.6 million a year earlier, and diluted earnings were $1.64 a share on 16.4 million diluted shares, versus $1.31 a share a year earlier.

Adjusted EBITDA was $67.3 million, up 19.0% from $56.5 million a year earlier, with Adjusted EBITDA margin of 11.5% versus 11.0% a year earlier. Operating income margin was 8.9% versus 8.5% a year earlier, and EBITDA margin was 11.2% versus 10.6%.

Organic sales were $538.3 million, with acquisitions contributing $48.8 million of the quarter’s sales. Organic sales per business day were $8,412 thousand on 64 business days, versus $7,739 thousand a year earlier.

Innovative Pumping Solutions remained the growth engine. Revenue was $144.1 million, up 43.3% year-over-year, with a 16.3% operating income margin. That year-over-year growth slowed from 52.6% in the second quarter, and the segment’s operating income margin compressed to 16.3% from 18.7%.

Service Centers, the largest reportable unit, generated $376.6 million in revenue, up 7.6% year-over-year, with a 14.8% operating income margin. Supply Chain Services revenue was $66.4 million, up 5.5% year-over-year, with a 9.0% operating income margin.

Free cash flow was $14.4 million, down from $29.8 million in the second quarter. Cash flow from operating activities was $18.7 million. Cash was $218.8 million at September 30, 2026. Total debt outstanding was $839.5 million, and the secured leverage ratio was 2.30:1.0 on covenant EBITDA of $270.0 million for the last twelve months ending September 30, 2026.

The company completed five acquisitions through the third quarter, versus four through the second quarter.

Chairman and Chief Executive Officer David R. Little said the results reflected continued execution of the growth strategy, solid organic performance, contribution from recent acquisitions, and sustained strength in EBITDA margins. Chief Financial Officer Kent Yee said the company expects to finish fiscal year 2026 with momentum going into fiscal year 2027.