DXP Enterprises, Inc. (NASDAQ: DXPE) has reported its financial results for the fourth quarter and fiscal year ended December 31, 2024. The company's sales for fiscal 2024 reached $1.8 billion, reflecting a 7.4 percent increase from the previous fiscal year, where sales were reported at $1.7 billion.
In terms of diluted earnings per share, the company reported $4.22 for fiscal 2024, an increase from $3.89 per share in 2023. Adjusted diluted earnings per share also saw an improvement, reaching $4.51 per share in 2024 compared to $4.09 per share in 2023.
Net income for the fiscal year increased to $70.5 million, up from $68.8 million in fiscal 2023. Adjusted earnings before interest, taxes, depreciation, amortization, and other non-cash charges (EBITDA) also showed a positive trend, reaching $191.3 million in 2024, compared to $174.3 million in 2023.
The company's cash position at the end of fiscal 2024 was reported at $148.4 million, and it also managed to reduce borrowing costs by 100 basis points while refinancing its senior secured term loan B, raising $649.5 million.
For the fourth quarter of 2024, sales were $470.9 million, up from $407.0 million in the fourth quarter of 2023. Diluted earnings per share for the fourth quarter of 2024 was $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 quarter was $1.38 per share compared to $1.12 per share for the fourth quarter of 2023.
Additionally, the company completed seven acquisitions during the fiscal year and repurchased 0.6 million shares for $28.8 million in fiscal 2024.
Segment-wise, the service centers' revenue for the fiscal year was $1.2 billion, marking an increase of 1.9 percent year-over-year with a 14.3 percent operating income margin. Innovative pumping solutions’ revenue increased by 47.7 percent year over year to $323.0 million, with an operating income margin of 16.6 percent. However, supply chain services’ revenue decreased by 1.5 percent year-over-year to $256.4 million, with an 8.5 percent operating margin.
David R. Little, Chairman and CEO of DXP, expressed satisfaction with the company's performance, noting strong growth across all business segments and a 7.4 percent revenue increase on a year-over-year basis.
Kent Yee, CFO of DXP, emphasized the company's strong underlying sales growth, operating leverage, earnings per share, and free cash flow generation, positioning fiscal 2024 as the most profitable year in the company’s history.
The market has reacted to these announcements by moving the company's shares 0.3% to a price of $78.69. For the full picture, make sure to review DXP Enterprises's 8-K report.
