DXP Enterprises Q2 Earnings Call Highlights

DXP Enterprises Q2 Earnings Call Highlights DXP Enterprises logo MarketBeat Thu, August 6, 2026 at 7:04 PM GMT+2 6 min read DXPE Key Points Interested in DXP Enterprises, Inc.? Here are five stocks we like better. DXP Enterprises delivered strong Q2 growth: Sales rose 15.6% year over year to $576.5 million, while net income, diluted EPS and adjusted EBITDA increased; the EBITDA margin reached a company-record 12.2%.

Water and wastewater drove segment performance: Innovative Pumping Solutions sales jumped 52.6% to $142.7 million, with organic growth of 13.3%, and DXP Water sales rose 85.6% year over year amid sustained municipal infrastructure demand. Cash generation and strategic expansion improved: Second-quarter free cash flow increased to $29.8 million, while DXP completed four acquisitions and acquired Canadian company Mequipco to expand its water platform; management is targeting a sustainable long-term adjusted EBITDA margin of 12%. 3 Best Industrials Sector Picks for Long-Term Investors in 2025 DXP Enterprises (NASDAQ:DXPE) reported higher second-quarter sales, earnings and cash flow, supported by organic growth, acquisitions and continued expansion in water and wastewater markets. Total sales for the quarter ended June 30 rose 15.6% year over year to $576.5 million.

Acquisitions completed within the past year contributed $49.8 million of revenue, while organic sales increased 11.1% to $526.6 million, according to Chief Financial Officer Kent Yee. → 3 Drone Stocks That Should Soar After the Summer Slump Net income increased to $28.7 million, and diluted earnings per share rose to $1.76 from $1.43 in the second quarter of 2025. Operating income climbed 20.7% to $55.5 million. Adjusted EBITDA increased to $70.4 million from $57.3 million a year earlier, with the adjusted EBITDA margin reaching 12.2% of sales, compared with 11.5% in the prior-year period.

Yee described the margin level as a new high watermark for the company. Segment Growth Led by Innovative Pumping Solutions → Meta's Earnings Drop Shows Wall Street Wants More Than Ad Growth Innovative Pumping Solutions, or IPS, was DXP's fastest-growing segment during the quarter. Sales increased 52.6% year over year to $142.7 million, driven by water and wastewater activity, production contracts and acquisitions.

Recent acquisitions contributed $47 million of IPS sales in the quarter, compared with $9.1 million in the prior-year period. Excluding acquisitions, IPS organic sales rose 13.3%, or $11.3 million. Segment operating income increased to $26.7 million from $18.6 million a year earlier. → Jersey Mike's Serves Fresh Gains After IPO Stumble Story Continues Chief Operating Officer Nick Little said water and wastewater demand, municipal infrastructure investment and regulatory requirements continue to create long-cycle opportunities for the business.

DXP Water generated approximately $97 million in second-quarter sales and $175.5 million for the first half, up 85.6% year over year. Yee said DXP Water recorded its 15th consecutive quarter of sequential sales growth. Water and wastewater now accounts for nearly 70% of IPS sales, he said during the question-and-answer session.