DXP Enterprises, Inc. (NASDAQ: DXPE) has reported its financial results for the fourth quarter and fiscal year ended December 31, 2024. The company achieved a 7.4 percent increase in sales, reaching $1.8 billion for fiscal 2024 compared to fiscal 2023. Key financial highlights include a $191.3 million adjusted EBITDA for fiscal 2024, up from $174.3 million in 2023. Net income also saw an increase, reaching $70.5 million compared to $68.8 million in fiscal 2023.
The fourth quarter of 2024 saw sales of $470.9 million, a notable increase from the $407.0 million reported in the fourth quarter of 2023. Diluted earnings per share for the fourth quarter of 2024 stood at $1.29, based upon 16.5 million diluted shares, compared to $0.94 per share in the fourth quarter of 2023 based on 17.0 million diluted shares. Adjusted diluted earnings per share for the same period were $1.38 per share, compared to $1.12 per share in the fourth quarter of 2023.
The business segments also demonstrated varying performances. Service centers' revenue for the fiscal year was $1.2 billion, showing a 1.9 percent year-over-year increase with a 14.3 percent operating income margin. Innovative Pumping Solutions' revenue for the fiscal year was $323.0 million, reflecting a substantial 47.7 percent year-over-year increase with a 16.6 percent operating income margin. However, Supply Chain Services' revenue for the fiscal year was $256.4 million, indicating a 1.5 percent year-over-year decrease with an 8.5 percent operating margin.
DXP's CEO, David R. Little, emphasized the strong performance across all business segments, with particular growth in innovative pumping solutions and service centers. Additionally, the company completed seven acquisitions during the fiscal year, contributing to its overall performance.
Kent Yee, Chief Financial Officer, expressed satisfaction with the company's financial performance, noting strong underlying sales growth, operating leverage, earnings per share, and free cash flow generation. The company ended the year with $148.4 million in cash on the balance sheet and net debt of $500.6 million.
DXP Enterprises, Inc. continues to focus on growth and operational discipline, with a strong balance sheet and a broad product offering. The company's strategy includes both organic and acquisition-driven growth, with an emphasis on driving shareholder and stakeholder value. The market has reacted to these announcements by moving the company's shares 0.3% to a price of $78.69. Check out the company's full 8-K submission here.
