Mar 31, 2024

DXP Q1 2024 Earnings Report

DXP Enterprises reported results with sequential sales growth driven by acquisitions, strong free cash flow, and continued efforts to expand and grow the business.

Key Takeaways

DXP Enterprises, Inc. announced first quarter 2024 results, featuring $412.6 million in sales, GAAP diluted EPS of $0.67, non-GAAP diluted EPS of $0.74, and Adjusted EBITDA of $40.3 million. The company also reported free cash flow of $24.1 million, a 6.4 percent year-over-year increase, and completed the acquisitions of Hennesy Mechanical Sales, Kappe Associates, and Pro-Seal, Inc.

Sales increased 1.4 percent sequentially to $412.6 million.

Net income for the first quarter of 2024 was $11.3 million.

Adjusted EBITDA for the first quarter of 2024 was $40.3 million.

Free Cash Flow for the first quarter of 2024 was $24.1 million, compared to $22.6 million for the first quarter of 2023.

Total Revenue
$413M
Previous year: $424M
-2.7%
EPS
$0.74
Previous year: $0.95
-22.1%
Adjusted EBITDA
$40.3M
Previous year: $43.1M
-6.5%
Gross Profit
$124M
Previous year: $125M
-0.9%
Cash and Equivalents
$140M
Previous year: $58.3M
+139.7%
Free Cash Flow
$24.1M
Previous year: $22.6M
+6.6%
Total Assets
$1.18B
Previous year: $1.05B
+12.4%

DXP

DXP

DXP Revenue by Segment

Forward Guidance

DXP anticipates the second half of the year to drive growth as they benefit from increases in their project backlog and the diversification of their end markets. They expect to drive organic and acquisition driven growth as they move through fiscal 2024.

Positive Outlook

  • Sequential sales growth driven by acquisitions
  • Strong free cash flow
  • Continued efforts to expand and grow our business
  • Optimistic around market conditions
  • Ability to execute growth initiatives

Challenges Ahead

  • No specific negatives were mentioned in the provided text.

Revenue & Expenses

Visualization of income flow from segment revenue to net income