DXP Enterprises, Inc. — Cyborg Score 7/10

Strong
Industrial Products & Services Distribution - MRO (Maintenance, Repair & Operating Supplies)

Strategic Profile

The company achieved fiscal 2025 sales of $2.0 billion, up 11.9% year-over-year, with GAAP diluted EPS of $5.37. DXP is aggressively pursuing acquisitions, recently completing deals including PREMIERflow, Mid Atlantic Storage Systems, and Ambiente H2O. The company is building scale in water and wastewater markets through strategic acquisitions while maintaining strong profitability.

Cyborg Score Rationale

Fiscal 2025 delivered strong revenue growth of 11.9% and adjusted EBITDA of $225.3 million (11.2% of sales). The company maintains solid balance sheet strength with $303.8 million in cash and completed six acquisitions in fiscal 2025. Recent refinancing and acquisition velocity demonstrate strong execution, though mid-size distributor position requires continued growth through M&A.

Top Insights

  • Aggressive M&A strategy focused on water/wastewater platform with 15 acquisitions under DXP Water initiative
  • Strong fiscal 2025 performance with 11.9% revenue growth and $225.3M adjusted EBITDA
  • Completed $205M Term Loan B refinancing in Feb 2026 to fund continued acquisition activity
  • Diversified across three segments with technical expertise in specialty areas like pumps and rotating equipment

Named Competitors

  • MRO Distribution — Largest industrial MRO distributor in North America
  • Industrial Distribution — National MRO distributor focused on power transmission and rotating equipment
  • Supply Chain Services — Specialized supply chain management solutions

Recent Developments

  • (February 2026) Completed Ambiente H2O acquisition bringing water platform services to Mountain West region
  • (January 2026) Closed PREMIERflow and Mid Atlantic Storage Systems acquisitions with combined $93.7M sales
  • (December 2025) Fiscal 2025 results: $2.0B revenue (+11.9% YoY), $225.3M adjusted EBITDA
  • (February 2026) Refinanced Term Loan B raising incremental $205M at improved pricing

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