DXP ENTERPRISES, INC. REPORTS FOURTH QUARTER AND FISCAL 2025 RESULTS

Fourth Quarter 2025 financial highlights:

Fiscal Year 2025 financial highlights:

Business segment financial highlights:

Conference Call Information

Non-GAAP Financial Measures

About DXP Enterprises, Inc.

The Private Securities Litigation Reform Act of 1995 provides a “safe-harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made by or to be made by the Company) contains statements that are forward-looking. These forward-looking statements include without limitation those about the Company’s expectations regarding the impact of the COVID-19 pandemic and the impact of low commodity prices of oil and gas; the Company’s business, the Company’s future profitability, cash flow, liquidity, and growth. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future; and accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the Company. These risks and uncertainties include, but are not limited to; decreases in oil and natural gas prices; decreases in oil and natural gas industry expenditure levels, which may result from decreased oil and natural gas prices or other factors; ability to obtain needed capital, dependence on existing management, leverage and debt service, domestic or global economic conditions, economic risks related to the impact of COVID-19, ability to manage changes and the continued health or availability of management personnel and changes in customer preferences and attitudes. In some cases, you can identify forward-looking statements by terminology such as, but not limited to, “may,” “will,” “should,” “intend,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “goal,” or “continue” or the negative of such terms or other comparable terminology. For more information, review the Company’s filings with the Securities and Exchange Commission. More information on these risks and other potential factors that could affect the Company’s business and financial results is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

DXP ENTERPRISES, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

($ thousands, except per share amounts)

			Three Months Ended December 31,												Twelve Months Ended December 31,
			2025						2024						2025						2024
Sales			$	527,390					$	470,914					$	2,016,365					$	1,802,040
Cost of sales			360,799						322,422						1,380,437						1,245,763
Gross profit			166,591						148,492						635,928						556,277
Selling, general and administrative expenses			119,920						109,201						459,058						410,895
Income from operations			46,671						39,291						176,870						145,382
Interest expense			16,232						17,283						60,530						63,927
Other income, net			(562)						(673)						(2,882)						(3,517)
Income before income taxes			31,001						22,681						119,222						84,972
Provision for income taxes			8,156						1,318						30,545						14,483
Net income			22,845						21,363						88,677						70,489
Preferred stock dividend			22						22						90						90
Net income attributable to common shareholders			$	22,823					$	21,341					$	88,587					$	70,399
Net income			$	22,845					$	21,363					$	88,677					$	70,489
Foreign currency translation adjustments			1,063						(2,229)						3,003						(2,370)
Comprehensive income			$	23,908					$	19,134					$	91,680					$	68,119
Earnings per share:
Basic			$	1.46					$	1.36					$	5.65					$	4.44
Diluted			$	1.39					$	1.29					$	5.37					$	4.22
Weighted average common shares outstanding:
Basic			15,595						15,695						15,667						15,861
Diluted			16,435						16,535						16,507						16,701

DXP ENTERPRISES, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

($ thousands, except share amounts)

			December 31, 2025						December 31, 2024
ASSETS
Current assets:
Cash			$	303,783					$	148,320
Restricted cash			—						91
Accounts receivable, net of allowance of $3,995 and $5,172, respectively			397,502						339,365
Inventories			108,144						103,113
Costs and estimated profits in excess of billings			53,855						50,735
Prepaid expenses and other current assets			47,033						20,250
Total current assets			910,317						661,874
Property and equipment, net			114,822						81,556
Goodwill			494,561						452,343
Other intangible assets, net			81,351						85,679
Operating lease right of use assets, net			74,709						46,569
Other long-term assets			9,395						21,473
Total assets			$	1,685,155					$	1,349,494
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of debt			$	8,580					$	6,595
Trade accounts payable			116,765						103,728
Accrued wages and benefits			51,180						41,650
Customer advances			15,460						13,655
Billings in excess of costs and estimated profits			15,689						12,662
Short-term operating lease liabilities			19,038						14,921
Other current liabilities			45,769						50,773
Total current liabilities			272,481						243,984
Long-term debt, net of unamortized debt issuance costs and discounts			818,476						621,684
Long-term operating lease liabilities			57,509						33,159
Other long-term liabilities			38,250						27,879
Total long-term liabilities			914,235						682,722
Total liabilities			1,186,716						926,706
Shareholders' Equity:
Series A preferred stock, $1.00 par value; 1,000,000 shares authorized			1						1
Series B preferred stock, $1.00 par value; 1,000,000 shares authorized			15						15
Common stock, $0.01 par value, 100,000,000 shares authorized; 20,403,647 issued and 15,513,590 outstanding at December 31, 2025 and 20,402,861 issued and 15,695,088 outstanding at December 31, 2024			204						204
Additional paid-in capital			220,681						219,511
Retained earnings			478,257						389,670
Accumulated other comprehensive loss			(30,607)						(33,610)
Treasury stock, at cost 4,890,057 and 4,707,773 shares, respectively			(170,112)						(153,003)
Total DXP Enterprises, Inc. equity			498,439						422,788
Total liabilities and equity			$	1,685,155					$	1,349,494

SEGMENT DATA

($ thousands, unaudited)

RECONCILIATION OF OPERATING INCOME FOR REPORTABLE SEGMENTS

($ thousands, unaudited)

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION

($ thousands, unaudited)

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION CONTINUED

($ thousands, unaudited)