DXP Reports 21.6% Net Income Growth and Selects Share Buybacks in Capital Allocation
Key Facts
DXP Enterprises announced a new share repurchase program, allowing the company to direct some capital to shareholders alongside investment in its business and acquisitions. Chief Executive David Little said the board’s approval reflected confidence in the company’s outlook and provided “another opportunity to create shareholder value.” The move follows improved results in the second quarter of 2026, with sales, net income and cash flows rising from the same period a year earlier. The program gives management the option to make purchases based on market conditions and expected returns, while retaining the right to suspend it. The company ended a previous share repurchase authorization in August 2026.
DXP’s second-quarter sales reached 576.5 million dollars, up 15.6% from 498.7 million dollars in the same period of 2025. Net income rose 21.6% to 28.7 million dollars, compared with 23.6 million dollars a year earlier. Free cash flow also increased to 29.8 million dollars from 8.3 million dollars, while cash flow from operating activities was 32.4 million dollars versus 18.6 million dollars. In its results filing, the company reported diluted earnings per share of 1.76 dollars, compared with 1.43 dollars in the second quarter of 2025. The figures were based on 16.3 million diluted shares in the latest quarter, versus 16.5 million shares in the year-earlier period.
Adjusted earnings before interest, taxes, depreciation and amortization rose to 70.4 million dollars from 57.3 million dollars, an annual increase of 22.8%. The margin on this measure improved to 12.2% from 11.5% in the year-earlier quarter. Service center revenue was 367.9 million dollars, up 8.3%, while Innovative Pumping Solutions recorded 142.7 million dollars, an increase of 52.6%. Supply Chain Services generated 65.8 million dollars, up 0.6%. The company had 226.6 million dollars in cash at the end of the second quarter, according to its filing with the U.S. Securities and Exchange Commission.
Chief Financial Officer Kent Yee said the company would evaluate share repurchases against other investment opportunities and act when market conditions and expected returns made them “an attractive use of capital.” Management said the evaluation includes investment in the business, acquisitions and share repurchases. DXP completed four acquisitions in the first half of 2026, and Yee said it was looking to close more in the second half. Total outstanding debt was 842.5 million dollars on June 30, 2026, while net debt to adjusted earnings before interest, taxes, depreciation and amortization was 2.30:1.0 under the covenant measure, based on earnings of 267.3 million dollars for the last 12 months through that date. Little said the company was focused on liquidity and continued growth in 2027.
DXP’s weighted average diluted shares outstanding were about 16.4 million on June 30, 2026, the company said. The figure provides context for the size of the share base available to management, but does not indicate how many shares the company will actually buy. DXP said any purchases, if made, could occur from time to time at prevailing market prices, through the open market or privately negotiated transactions. The authorization does not guarantee the purchase of a specific number of shares, and the company may suspend it at any time. At the latest price in EL7 data, DXPE shares closed at 167.56 dollars on October 27, 2026.