DXP Enterprises Reports Record Q3 2026 Sales and Margin Expansion
DXP Enterprises (DXPE) reported strong third-quarter 2026 financial results, characterized by record quarterly sales of $587.2 million, a 14.3% increase year-over-year. This growth was fueled by both organic expansion and contributions from recent acquisitions. The company saw significant strength in its DXP Water segment, which grew 71% year-over-year, marking sixteen consecutive quarters of sequential increases. Despite the top-line success, gross profit margins saw a slight compression to 30.7% from 31.4%, attributed to shifts in sales mix toward lower-margin business. Additionally, quarterly free cash flow decreased to $14.4 million due to a significant increase in working capital required to support growth and project activity. However, the company maintained healthy operating income growth of 20.1% as it realized leverage on its fixed cost base.
Tickers: $DXPE
Topics: earnings report EBITDA EPS revenue growth segment performance