DXP Enterprises, Inc. (NASDAQ: DXPE) is a leading distributor of maintenance, repair, operating (MRO) products and services, specializing in innovative pumping solutions, supply chain services, and comprehensive MRO offerings across various industrial sectors.

The company is currently experiencing a rise in its operational condition. In fiscal 2024, DXP reported total sales of $1.8 billion, reflecting a 7.4% increase compared to fiscal 2023’s sales of $1.7 billion. For the fourth quarter alone, sales rose to $470.9 million, marking a 15.7% increase year-over-year from $407.0 million in the fourth quarter of 2023. Additionally, average daily sales increased by 13.8% to $7.595 million in Q4 2024, up from $6.67 million in the same quarter last year.

Operating income for fiscal 2024 reached $145.4 million, an increase of 4.8% from $138.7 million in 2023. The company also reported a net income of $70.5 million for the full year, up from $68.8 million in fiscal 2023. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the fiscal year were $191.3 million, which represents a year-over-year increase of approximately 9.8%, compared to $174.3 million in 2023. The adjusted EBITDA margin improved to 10.6%, up from 10.4% in the prior year.

Gross profit margins improved by 77 basis points to 30.9% for the year. This increase was driven by enhanced performance across various business segments, including an impressive 47.7% sales growth in the Innovative Pumping Solutions segment, which generated $323 million in revenue for fiscal 2024.

The company completed seven acquisitions during fiscal 2024, contributing $98.5 million in sales, demonstrating a strategic focus on expanding its market reach. DXP’s operating expenses also increased by $44.3 million to $410.9 million, largely due to growth initiatives and higher compensation tied to performance incentives.

Cash flow from operations for the year was $106.2 million, yielding free cash flow of $77.1 million or 42.3% of adjusted EBITDA. As of December 31, 2024, DXP held $148.3 million in cash and total debt of $648.9 million. The secured leverage ratio was measured at 2.4x.

DXP’s focus on maintaining operational efficiency and pursuing acquisitions has positioned the company favorably for future growth, as evidenced by record financial results and improved margins across its service segments.