Record Revenue and Strong Top-Line Growth
Total sales grew 11.9% year-over-year to $2.0 billion for fiscal 2025, with Q4 sales of $527.4 million (also +11.9% YoY). Since 2022, sales have grown at a 15% compounded annual growth rate, marking a record year for the company.
Expanded Gross Profit and Margins
Consolidated gross profit margin expanded 67 basis points to 31.5% in fiscal 2025. Segment gross margin improvements included Innovative Pumping Solutions (+166 bps), Supply Chain Services (+121 bps) and Service Centers (+59 bps), driven by mix, pricing and accretive acquisitions.
Record Adjusted EBITDA and Operating Profitability
Adjusted EBITDA reached $225.3 million with an 11.2% margin (first fiscal year >11%), operating income increased 21.7% to $176.9 million, and adjusted EPS (diluted) improved to $5.42 (reported diluted EPS $5.37 vs $4.22 in FY2024).
Improved Sales Productivity
Average sales per business day rose to $8.0 million in fiscal 2025 versus $7.13 million in fiscal 2024 (a 12.3% increase). Quarterly daily trends improved from $7.57M in Q1 to $8.51M in Q4, demonstrating steady operational momentum.
Innovative Pumping Solutions (IPS) Outperformance and Water Momentum
IPS sales grew 26.4% year-over-year to $390.3 million. DXP Water increased to 55% of IPS sales (from 46% prior year), with IPS delivering the largest year-over-year margin expansion and growing backlog driven by water-related project activity and acquisitions.
Service Centers Broad-Based Growth
Service Centers delivered 11% total sales growth (9.8% organic), contributing the largest share of sales (68%). Regional gains included Ohio River Valley, Southeast, Texas Gulf Coast and California; product strength in air compressors, metalworking and U.S. Safety Services was noted.
Accretive M&A and Strong Capital Position
Completed 6 acquisitions in 2025 contributing $96 million in sales (Q4 acquisitions <1 year contributed $21.9M). Returned $17 million to shareholders via repurchases. Refinanced Term Loan B, reducing borrowing cost by 50 bps (to SOFR + 325) and raising $205 million incremental capital. Cash of $303.8M on the balance sheet and liquidity of $457.3M; generated $94.3M cash from operations and $54M free cash flow.
High Returns and Leverage Metrics
Return on invested capital (ROIC) was 39.2%, well above cost of capital. Secured leverage ratio was 2.3:1 with fixed charge coverage of 2.1:1, reflecting strong operating cash flow and continued acquisition activity.