DXP Enterprises, Inc. Q4 FY2025 earnings call

2025 was an exciting year for DXP with strong performance in key financial metrics. Completed six acquisitions, executed share repurchase program, and refinanced debt in the fourth quarter. Diversified in - market exposure with energy accounting for 22% of sales, water and wastewater at 15%, etc.

Innovative Pumping Solutions grew 26.4% year over year to 390.3 million in 2025. DXP Water represented 55% of the segment sales in 2025, up from 46% last year. Service centers achieved 11% total sales growth, including 9.8% organic growth. Supply chain services had a modest year - over - year decline mainly due to customer facility closures and reduced activity at certain energy - related sites

Focus on maintaining margin discipline while driving organic growth and executing strategic acquisitions. See constructive demand across energy, water, and industrial markets. Expect to close at least one to three additional acquisitions by the middle of 2026

Customer facility closures and reduced activity at certain energy - related sites affected supply chain services. Mindful of inflation dynamics and supply chain variability

Q: Is there any color you can share on the daily sales trends by month for both Q4 and Q1 thus far?

A: Starting in October, 7.5 million per day. November, 8.2 million per day. December 9.8 million per day for a quarterly average of 8.5 million per day. January was 6.9 million per day.

Q: Is there anything that should drive a meaningful margin difference whether up or down when comparing 4Q with 1Q?

A: Water continues to be accretive to both gross and operating income margins. Closed three acquisitions in Q4, which should be accretive to margins in Q1.

Q: Looking for some color on the positive dynamics that you guys call that developing an energy in the second half of this year, would this be conversion backlog or something else?

A: Saw a lot of quoting activity, bookings seem light, but early expectation is 2026 from an energy perspective potentially to be more back - end weighted