Sep 30, 2023

DXP Q3 2023 Earnings Report

DXP Enterprises reported solid third-quarter results with sales growth, increased net income, and strong Adjusted EBITDA and Free Cash Flow performance.

Key Takeaways

DXP Enterprises, Inc. announced financial results for the third quarter ended September 30, 2023. Sales increased by 8.2 percent to $419.2 million, net income increased by 16.1 percent to $16.2 million, and diluted earnings per share increased to $0.93. Adjusted EBITDA was $44.0 million, and Free Cash Flow was $38.3 million.

Sales increased 8.2 percent year-over-year to $419.2 million.

Net income increased 16.1 percent year-over-year to $16.2 million.

Earnings per diluted share increased to $0.93, up 31.0 percent compared to Q3 2022.

Adjusted EBITDA was $44.0 million, with an Adjusted EBITDA Margin of 10.5 percent.

Total Revenue
$419M
Previous year: $387M
+8.2%
EPS
$0.93
Previous year: $0.75
+24.0%
Adjusted EBITDA
$44M
Previous year: $34.3M
+28.2%
Gross Profit
$126M
Previous year: $112M
+12.5%
Cash and Equivalents
$27.2M
Previous year: $17M
+60.1%
Free Cash Flow
$38.3M
Previous year: -$5.01M
-864.5%
Total Assets
$1.05B
Previous year: $996M
+4.9%

DXP

DXP

DXP Revenue by Segment

Forward Guidance

DXP Enterprises expects to finish fiscal year 2023 strong with momentum continuing into fiscal year 2024.

Positive Outlook

  • Anticipated acquisition growth
  • Maintaining liquidity
  • Maintaining flexibility
  • Well positioned to outgrow the market
  • Generate improved operating margins and returns

Revenue & Expenses

Visualization of income flow from segment revenue to net income