DXP Enterprises Misses Q1 Revenue Expectations Despite Year-on-Year Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 12 2026
0mins
Source: Yahoo Finance
- Sales Growth Weakness: DXP Enterprises reported Q1 sales of $521.7 million, reflecting a 9.5% year-on-year increase, yet falling short of analyst expectations of $531.5 million, raising concerns about the company's growth potential in the market.
- Profitability Decline: The adjusted EPS of $1.26 was below the expected $1.29, marking a 2.3% miss, which highlights challenges in cost management and profitability for the company.
- Acquisition-Driven Growth: Management emphasized that recent acquisitions, particularly in water and infrastructure sectors, are expected to drive future revenue and margin growth, despite the impact of weak January sales on Q1 performance.
- Cost Fluctuation Impact: Increased SG&A expenses due to one-off items like healthcare claims and acquisition-related costs were noted, with management anticipating normalization of these costs in the future, which should enhance overall margin performance.
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Analyst Views on DXPE
About DXPE
DXP Enterprises, Inc. is a products and service distributor. The Company serves industrial customers throughout the United States, Canada, and Dubai. The Company's segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. The Company's Service Centers segment provides a range of maintenance, repair and operating (MRO) products and services in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, industrial supply and safety product and service categories. The Company's Innovative Pumping Solutions segment provides products and services to the water and wastewater market and fabricates and assembles integrated pump system packages custom made to customer specifications, remanufactures pumps, and manufactures branded private label pumps. The Company's Supply Chain Services segment provides a range of MRO products and manages all or part of its customers' supply chain function, and inventory management.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
DXP Enterprises Misses Q1 Revenue Expectations Despite Year-on-Year Growth
- Sales Growth Weakness: DXP Enterprises reported Q1 sales of $521.7 million, reflecting a 9.5% year-on-year increase, yet falling short of analyst expectations of $531.5 million, raising concerns about the company's growth potential in the market.
- Profitability Decline: The adjusted EPS of $1.26 was below the expected $1.29, marking a 2.3% miss, which highlights challenges in cost management and profitability for the company.
- Acquisition-Driven Growth: Management emphasized that recent acquisitions, particularly in water and infrastructure sectors, are expected to drive future revenue and margin growth, despite the impact of weak January sales on Q1 performance.
- Cost Fluctuation Impact: Increased SG&A expenses due to one-off items like healthcare claims and acquisition-related costs were noted, with management anticipating normalization of these costs in the future, which should enhance overall margin performance.
See More
DXP (DXPE) Q1 2026 Earnings Call Transcript
See More
DXP Enterprises Reports Strong Q1 Financial Results with 9.5% Sales Growth
- Significant Sales Growth: DXP Enterprises reported Q1 sales of $521.7 million, reflecting a 9.5% year-over-year increase, which underscores the company's robust performance and solidifies its leadership in the industrial products and services distribution sector.
- Improved Profitability: The Adjusted EBITDA for Q1 reached $57.8 million, up 10.1% from $52.5 million in the same quarter last year, indicating ongoing enhancements in cost control and operational efficiency.
- Strong Free Cash Flow: The company generated $26.3 million in free cash flow during Q1, a significant turnaround from a negative $16.9 million in the prior year, demonstrating improved cash management and investment capacity to support future acquisitions and expansion plans.
- Ongoing Acquisition Strategy: DXP completed three acquisitions in Q1, further diversifying its business portfolio, which is expected to drive long-term revenue growth and enhance market share, strengthening its position in a competitive landscape.
See More
DXP Enterprises Q1 Earnings Miss Expectations
- Earnings Performance: DXP Enterprises reported a Q1 non-GAAP EPS of $1.26, missing expectations by $0.03, indicating pressure on profitability that could affect investor confidence.
- Revenue Growth: The company achieved revenue of $521.66 million in Q1, reflecting a 9.5% year-over-year increase, yet it fell short of market expectations by $9.84 million, highlighting intensified market competition.
- Organic vs. M&A Growth: DXP's organic growth outpaced its acquisition-driven growth, suggesting progress in its core business despite overall performance not meeting expectations, demonstrating its adaptability in the market.
- EBITDA Margin: The EBITDA margin stood at 11.2%, which, while facing challenges, shows improvement that may support future profitability and strengthen the company's competitive position in the industry.
See More
DXP Enterprises Reports Q1 Net Income of $19.978 Million
- Financial Performance: The company reported a net income of USD 19.978 million for Q1.
- Earnings Overview: This figure reflects the company's financial health and performance during the first quarter.
See More
DXP Enterprises Set to Announce Q1 Earnings on May 7
- Earnings Announcement Date: DXP Enterprises is scheduled to release its Q1 earnings on May 7 before market open, with a consensus EPS estimate of $1.29, reflecting a 2.4% year-over-year growth, indicating stable profitability.
- Revenue Growth Expectations: The revenue for Q1 is projected to reach $531.5 million, representing an 11.5% year-over-year increase, showcasing the company's strong performance and ongoing business growth potential.
- Historical Performance Review: Over the past two years, DXP has beaten EPS estimates 100% of the time and revenue estimates 88% of the time, demonstrating the company's reliability and execution in financial forecasting.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates but one downward revision, while revenue estimates saw two upward revisions, indicating growing market confidence in the company's future performance.
See More
DXP Enterprises Misses Q1 Revenue Expectations Despite Year-on-Year Growth
- Sales Growth Weakness: DXP Enterprises reported Q1 sales of $521.7 million, reflecting a 9.5% year-on-year increase, yet falling short of analyst expectations of $531.5 million, raising concerns about the company's growth potential in the market.
- Profitability Decline: The adjusted EPS of $1.26 was below the expected $1.29, marking a 2.3% miss, which highlights challenges in cost management and profitability for the company.
- Acquisition-Driven Growth: Management emphasized that recent acquisitions, particularly in water and infrastructure sectors, are expected to drive future revenue and margin growth, despite the impact of weak January sales on Q1 performance.
- Cost Fluctuation Impact: Increased SG&A expenses due to one-off items like healthcare claims and acquisition-related costs were noted, with management anticipating normalization of these costs in the future, which should enhance overall margin performance.
See More
DXP (DXPE) Q1 2026 Earnings Call Transcript
See More
DXP Enterprises Reports Strong Q1 Financial Results with 9.5% Sales Growth
- Significant Sales Growth: DXP Enterprises reported Q1 sales of $521.7 million, reflecting a 9.5% year-over-year increase, which underscores the company's robust performance and solidifies its leadership in the industrial products and services distribution sector.
- Improved Profitability: The Adjusted EBITDA for Q1 reached $57.8 million, up 10.1% from $52.5 million in the same quarter last year, indicating ongoing enhancements in cost control and operational efficiency.
- Strong Free Cash Flow: The company generated $26.3 million in free cash flow during Q1, a significant turnaround from a negative $16.9 million in the prior year, demonstrating improved cash management and investment capacity to support future acquisitions and expansion plans.
- Ongoing Acquisition Strategy: DXP completed three acquisitions in Q1, further diversifying its business portfolio, which is expected to drive long-term revenue growth and enhance market share, strengthening its position in a competitive landscape.
See More
DXP Enterprises Q1 Earnings Miss Expectations
- Earnings Performance: DXP Enterprises reported a Q1 non-GAAP EPS of $1.26, missing expectations by $0.03, indicating pressure on profitability that could affect investor confidence.
- Revenue Growth: The company achieved revenue of $521.66 million in Q1, reflecting a 9.5% year-over-year increase, yet it fell short of market expectations by $9.84 million, highlighting intensified market competition.
- Organic vs. M&A Growth: DXP's organic growth outpaced its acquisition-driven growth, suggesting progress in its core business despite overall performance not meeting expectations, demonstrating its adaptability in the market.
- EBITDA Margin: The EBITDA margin stood at 11.2%, which, while facing challenges, shows improvement that may support future profitability and strengthen the company's competitive position in the industry.
See More
DXP Enterprises Reports Q1 Net Income of $19.978 Million
- Financial Performance: The company reported a net income of USD 19.978 million for Q1.
- Earnings Overview: This figure reflects the company's financial health and performance during the first quarter.
See More
DXP Enterprises Set to Announce Q1 Earnings on May 7
- Earnings Announcement Date: DXP Enterprises is scheduled to release its Q1 earnings on May 7 before market open, with a consensus EPS estimate of $1.29, reflecting a 2.4% year-over-year growth, indicating stable profitability.
- Revenue Growth Expectations: The revenue for Q1 is projected to reach $531.5 million, representing an 11.5% year-over-year increase, showcasing the company's strong performance and ongoing business growth potential.
- Historical Performance Review: Over the past two years, DXP has beaten EPS estimates 100% of the time and revenue estimates 88% of the time, demonstrating the company's reliability and execution in financial forecasting.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates but one downward revision, while revenue estimates saw two upward revisions, indicating growing market confidence in the company's future performance.
See More
