DXP Enterprises, Inc. (NASDAQ: DXPE) reported its financial results for the third quarter ended September 30, 2024. Key highlights include:
Third Quarter 2024 Financial Results
- Sales: $472.9 million, a 6.1% increase from $445.6 million in Q2 2024 and a 12.8% increase from $419.2 million in Q3 2023.
- Net Income: $21.1 million, up from $16.2 million in Q3 2023 and $16.7 million in Q2 2024.
- Earnings per Diluted Share: $1.27, compared to $0.93 in Q3 2023. Adjusted diluted EPS was $1.43, up from $0.96 in Q3 2023.
- Adjusted EBITDA: $52.4 million, a 19% increase from $44.0 million in Q3 2023 and an 8.7% increase from $48.2 million in Q2 2024. Adjusted EBITDA margin was 11.1%.
- Free Cash Flow: $24.4 million, compared to $38.3 million in Q3 2023.
Segment Performance
- Service Centers: $316.8 million in sales.
- Innovative Pumping Solutions: $89.8 million in sales.
- Supply Chain Services: $66.3 million in sales.
Executive Commentary
David R. Little, Chairman and CEO, stated, “Our third quarter results were strong, reflecting solid sales growth, robust adjusted EBITDA margins, and efficient operational execution. We are proud of the progress made in our strategic growth initiatives and the contributions from recent acquisitions. DXP continues to achieve new performance milestones.”
Kent Yee, CFO and Senior Vice President, added, “We delivered another record quarter with increased sales and strong margins. Our strategic acquisitions and effective debt repricing have strengthened our financial position. With a secured leverage ratio of 2.54:1.0 and a covenant EBITDA of $200.7 million over the past twelve months, we are well-positioned to finish 2024 strong and carry momentum into 2025.”
