DXP Enterprises GAAP EPS of $1.43 beats by $0.04, revenue of $498.7M in-line
Earnings Performance: DXP Enterprises reported a Q2 GAAP EPS of $1.43, exceeding expectations by $0.04, with revenue at $498.7 million aligning with forecasts.
Market Positioning: The company faces macro challenges that may impact EBITDA growth, while its margin momentum and diversification strategies are seen as potential drivers for future growth.
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- New Investment Position: On February 13, 2026, ACK Asset Management disclosed a new stake in DXP Enterprises by acquiring 240,000 shares worth $26.35 million, reflecting strong confidence in the company and potentially driving its stock price higher.
- Significant Asset Allocation: This acquisition represents 3.31% of ACK's 13F reportable assets as of December 31, 2025, indicating DXP's importance in its portfolio, which may influence future investment strategies.
- Strong Performance Metrics: DXP Enterprises' stock has risen 40% over the past year, with third-quarter sales reaching $513.7 million, an 8.6% year-over-year increase, highlighting its robust position in the industrial MRO market and attracting more investor interest.
- Healthy Financial Position: DXP holds $123.8 million in cash against total debt of $644 million, with a net leverage ratio of 2.31, showcasing a solid financial foundation that supports future acquisitions and expansion, thereby enhancing market confidence.
- Acquisition Completed: DXP Enterprises announced on Wednesday that it has completed the acquisition of Ambiente H2O, a manufacturer representative in the water industry, funded through cash on DXP's balance sheet, thereby enhancing its market position in the water and wastewater platform.
- Sales Performance: Ambiente H2O generated approximately $8.1 million in sales for the twelve months ending December 31, 2025, and this acquisition is expected to provide DXP with a new revenue stream, driving future growth.
- Market Expansion: With three operational locations across Colorado, Idaho, Montana, Utah, and Wyoming, the acquisition establishes DXP's presence in several western U.S. states, enhancing its market coverage.
- Strategic Implications: The definitive agreement was signed on February 1, 2026, marking a strategic expansion for DXP in the water sector, which is anticipated to support the company's performance growth in the future.
- Acquisition Completed: DXP Enterprises has successfully acquired Ambiente H2O Inc., a company specializing in pumps and process equipment for the water and wastewater industry, with approximately $8.1 million in sales over the past twelve months, thereby enhancing DXP's market position in the water sector.
- Strategic Integration: This acquisition combines Ambiente's technical sales expertise with DXP's water platform, aiming to enhance customer value through a comprehensive product and service offering, which is expected to drive sales growth and strengthen market competitiveness.
- Funding Source: DXP funded the acquisition using cash from its balance sheet, demonstrating the company's financial stability and confidence in future growth, which is anticipated to positively impact customers, employees, and shareholders.
- Future Outlook: DXP's CFO stated that the addition of Ambiente will accelerate the expansion of the DXP Water platform and drive sales growth, reflecting the company's strong strategic positioning as it begins 2026 with this acquisition.
52 Week Range: DXPE's stock has a 52-week low of $67.68 and a high of $130.97, with the last trade recorded at $99.03.
Moving Average Insight: The article mentions a link to find other stocks that have recently crossed above their 200-day moving average.
Author's Perspective: The views expressed in the article are solely those of the author and do not necessarily represent Nasdaq, Inc.
Stock Performance Context: The information provided gives a snapshot of DXPE's stock performance within a broader market context.
Validea's Low PE Investor Model: Today's upgrades for Validea's Low PE Investor model, based on John Neff's strategy, highlight Nathan's Famous Inc., DXP Enterprises Inc., and Dorman Products Inc., all showing significant improvements in their ratings due to strong fundamentals and valuations.
Nathan's Famous Inc. Overview: Nathan's Famous Inc. is a small-cap growth stock in the Restaurants industry, with its rating increasing from 40% to 79%, indicating growing interest based on its earnings growth and dividend yield.
DXP Enterprises Inc. Overview: DXP Enterprises Inc., a small-cap growth stock in the Misc. Capital Goods industry, saw its rating rise from 42% to 81%, reflecting strong fundamentals and valuation metrics.
Dorman Products Inc. Overview: Dorman Products Inc., a mid-cap growth stock in the Auto & Truck Parts industry, improved its rating from 62% to 81%, suggesting a favorable outlook based on its underlying financial performance.
DXP Enterprises Stock Performance: DXP Enterprises, Inc. (DXPE) shares have entered oversold territory with an RSI of 29.8, indicating potential exhaustion of recent selling pressure.
Comparison with S&P 500: The current RSI for the S&P 500 ETF (SPY) is 55.8, suggesting that DXPE may present a buying opportunity for bullish investors.
52-Week Range: DXPE's stock has a 52-week low of $67.31 and a high of $130.97, with the last trade recorded at $98.86.
Author's Opinion Disclaimer: The views expressed in the article are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.











