Jun 30, 2022

DXP Q2 2022 Earnings Report

Reported a strong second quarter with significant sales growth and improved profitability.

Key Takeaways

DXP Enterprises reported a strong second quarter in 2022, marked by a 28.7% increase in sales to $367.8 million compared to the previous year. The company's net income rose to $14.4 million, and diluted EPS reached $0.74. Adjusted EBITDA also saw substantial growth, reaching $32.6 million, reflecting broad-based strength across the company.

Sales increased by 28.7% year-over-year, reaching $367.8 million.

Net income increased to $14.4 million, compared to $8.1 million in Q2 2021.

Earnings per diluted share were $0.74, up from $0.41 in the prior year.

Adjusted EBITDA grew to $32.6 million, reflecting a 43.8% increase.

Total Revenue
$368M
Previous year: $286M
+28.8%
EPS
$0.74
Previous year: $0.4
+85.0%
Adjusted EBITDA
$32.6M
Previous year: $22.6M
+44.2%
Gross Profit
$104M
Previous year: $85.2M
+22.4%
Cash and Equivalents
$20.6M
Previous year: $79.3M
-74.1%
Free Cash Flow
$1.9M
Previous year: $6.8M
-72.1%
Total Assets
$984M
Previous year: $902M
+9.1%

DXP

DXP

DXP Revenue by Segment

Forward Guidance

DXP Enterprises anticipates a strong second half of 2022, driven by positive demand trends, strategic acquisitions, and ongoing strategic initiatives, positioning the company for a robust finish to 2022 and setting the stage for a better 2023.

Positive Outlook

  • Strong demand trends are expected to continue.
  • Acquisitions are expected to contribute to growth.
  • Strategic initiatives are expected to drive performance.
  • Momentum in the business is expected to continue.
  • Diversification of end market and business model exposure.

Challenges Ahead

  • Macro-environment continues to remain dynamic.
  • Inflationary pressures are expected to continue.
  • Potential decreases in oil and natural gas prices.
  • Economic risks related to the impact of COVID-19.
  • Dependence on existing management.

Revenue & Expenses

Visualization of income flow from segment revenue to net income