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what it is
DXP sells industrial parts, pumps, and repair help to factories and energy customers.
how it gets paid
Last year Dxp Enterprises made $2.0B in revenue. Service Centers was the main engine at $1.4B, or 70% of sales.
why it's growing
Revenue grew 11.9% last year (FY2025 vs FY2024). Recent quarters show low-teens organic-style growth, not triple-digit spikes.
what just happened
Q4 2025 revenue was about $527M with diluted EPS near $1.39 (adjusted figures similar)—roughly ~12% sales growth vs. prior year.
At a glance
B balance sheet — gets the job done, barely
50/100 earnings predictability — expect surprises
25.5x trailing p/e — priced about right
9.8% return on capital — nothing to write home about
$4.22 fy2024 eps est
xvary composite: 54/100 — below average
What they do
DXP sells industrial parts, pumps, and repair help to factories and energy customers.
You call DXP when your line stops, not when life is calm. It has 1,843 employees and three businesses, so your plant can buy parts, repairs, and inventory help in one place. Service Centers did $1.4B, or 70% of sales, so the core is already huge.
How they make money
$2.0B
annual revenue · their business grew +11.9% last year
Service Centers
$1.4B
Pumping Solutions
$0.3B
Supply Chain Services
$0.3B
The products that matter
mro parts and service distribution
Service Centers
$1.4B · 70% of revenue
It generated 70% of the company's $2.0B in sales last year. This is the recurring workhorse, and it grew 11.9% compared to last year.
largest segment
pump sales and field service
Rotating Equipment
$600M · 30% of revenue
This $600M segment is where the energy backlog matters most. It also grew 11.9%, but bookings staying subdued would show up here first.
energy-linked
Key numbers
$2.0B
annual sales
You are paying 25.5x earnings for a company that already does $2.0B in sales.
25.5x
trailing P/E
That is 25.5 years of current earnings priced into the stock, which is rich for a distributor.
9.9%
operating margin
Each $100 of sales leaves $9.90 before interest and taxes. The rest gets spent keeping the machine running.
$664M
debt load
That is 25% of capital, so leverage is real even with a B balance sheet.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 25 / 100
- long-term debt $664M (25% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for DXPE right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Q4 2025 revenue was about $527M with diluted EPS near $1.39 (gross margin ~31–32%).
Sales rose about 12% vs. prior year vs Q4 2024—a strong quarter, but not a 190% headline (that older figure was a data error vs annual totals).
$527M
revenue (Q4)
$1.39
eps (Q4)
31.5%
gross margin
revenue surge
The ~12% Q4 revenue growth vs the prior-year quarter is the clean read—scale is growing without mistaking a quarterly print for an annual total.
source: company earnings report, 2026
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What could go wrong
The #1 risk is energy project backlog depletion.
high
Energy backlog runs down before bookings recover
New energy project bookings are subdued. Backlog buys time, not immunity. If that replenishment slows for too long, the pressure lands first on the $600M Rotating Equipment segment, which is 30% of revenue.
A project slowdown would hit growth and put more weight on the lower-drama service business.
med
The January 2026 deals fail to earn back the effort
DXP bought PREMIERflow and Mid Atlantic Storage Systems in January 2026. If integration drags or the purchase economics disappoint, a 4.4% net margin leaves little slack.
Even a small operational miss can show up fast in earnings when margins start this thin.
med
Thin margins meet a full valuation
DXPE trades at 25.5x earnings while carrying $664M of long-term debt and generating a 9.8% return on capital. That is not a broken balance sheet. It is a setup with less room for disappointment.
If growth slows, the multiple has more to compress than the underlying business has margin to absorb.
A demand slowdown would hit a business keeping 4.4 cents of profit per $1 of sales while carrying $664M of long-term debt. That is a workable setup. It is not a forgiving one.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
Q1 2026 earnings on May 12, 2026
Watch sales-per-day trends, margin, and any direct update on energy backlog. This is the next clean read on whether the growth story still has fuel.
trend
Service Centers staying above the noise
Service Centers produced $1.4B last year, or 70% of revenue. If this segment keeps compounding while projects wobble, the business gets steadier.
risk
Energy bookings replacing consumed backlog
The current backlog is a buffer. It is not a strategy. If bookings stay subdued, the 30% of revenue tied to Rotating Equipment gets harder to defend.
metric
Margin after the two January 2026 deals
The cleanest integration test is simple: does net margin move above 4.4%, or do the acquisitions just add revenue without improving the model.
Analyst rankings
earnings predictability
50 / 100
In human-speak: analysts do not see this as a smooth, highly predictable earnings story.
risk rank
3
That sits around the middle. Safer than the messiest names, but not a bunker stock.
source: institutional data
Institutional activity
institutional ownership data for DXPE is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$134
current price
n/a
target midpoint · n/a from current
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