DXP Enterprises Inc

Core & Main reported second-quarter revenue of $2.15 billion, up 2.5% year on year and in line with analysts' expectations, but the industrial distributor missed EPS and EBITDA estimates significantly and its stock has fallen 7.7% since the results to trade at $40.69. The results came as the 24 industrial distributors stocks tracked by the report collectively beat analysts' consensus revenue estimates by 3.7% in a very strong quarter, though their share prices have on average declined 3.7% since the latest earnings results. Transcat posted the group's best quarter, with revenue of $92.95 million, up 21.6% year on year and 7.4% above expectations, alongside beats on EPS and EBITDA, yet its stock is down 8.2% since reporting to $84.35. Watsco had the weakest quarter, with revenue of $2.10 billion, up 2.1% year on year but 1.9% short of expectations, a significant EPS miss, and a 14.5% stock decline to $314.22. DNOW delivered the group's fastest revenue growth at $1.31 billion, up 108% year on year and 3.1% above expectations, with its stock up 10% to $15.65, while DXP reported revenue of $576.5 million, up 15.6% and 6.2% above expectations, with its stock up 10.9% to $186.68.

DXP Enterprises reported second-quarter sales rose 15.6 percent year over year to 576.5 million dollars, while adjusted EBITDA margin reached a company-record 12.2 percent. Net income increased to 28.7 million dollars and diluted earnings per share climbed to 1.76 dollars from 1.43 dollars a year earlier. Innovative Pumping Solutions sales jumped 52.6 percent to 142.7 million dollars, driven by water and wastewater activity, and DXP Water sales rose 85.6 percent year over year amid sustained municipal infrastructure demand. Free cash flow improved to 29.8 million dollars in the quarter, and the company completed four acquisitions plus the purchase of Canadian firm Mequipco to expand its water platform. Management said it is targeting a sustainable long-term adjusted EBITDA margin of 12 percent.

StockStory identified DXP and Champion Homes as Russell 2000 industrials with strong growth potential, while recommending investors avoid AerSale. DXP achieved 16.8% annual revenue growth over five years and boosted earnings per share by 18.3% annually through share repurchases. Champion Homes posted 14.7% annual revenue growth over two years and 20.4% annual EPS growth over five years, aided by buybacks and high returns on capital. AerSale faces flat sales, a 36.5 percentage point drop in free cash flow margin over five years, and declining returns on capital.

DXP Enterprises reported first-quarter 2026 sales rose 9.5% year over year to $521.7 million, with adjusted EBITDA increasing to $57.8 million and free cash flow swinging to $26.3 million from a prior-year outflow. GAAP EPS was broadly flat at $1.22 versus $1.25, reflecting acquisition-related costs and financing headwinds, while margins held firm at 11.1%. The company saw accelerating momentum through the quarter, with average daily sales improving from $7.2 million in January to $9.2 million in March and bookings extending into April. Its Innovative Pumping Solutions segment, where water accounted for 66% of sales, delivered 14 consecutive quarters of sequential growth, and acquisitions contributed $40.7 million in higher-margin revenue.

DXP Enterprises has completed the acquisition of General Repair Service, a regional distributor and service provider specializing in fluid handling and process equipment. The transaction was funded entirely using cash from DXP's balance sheet and establishes DXP's operational presence in Minnesota. Headquartered in Vadnais Heights, General Repair serves the greater Minnesota market with mission-critical pumps, industrial blowers, and related rotating process equipment for water, wastewater, and industrial end-markets. For the trailing twelve months ended March 31, 2026, General Repair generated total sales of approximately $12.2 million and adjusted EBITDA of approximately $1.6 million.