On August 8, Houston-based pumping solutions and MROP supplies distributor DXP Enterprises announced its 2023 second-quarter earnings, which showed that sales increased 16.4% to $428 million, compared to $367.8 million for the second quarter of 2022. Sales increased 0.9% sequentially compared to the first quarter of 2023.

Net income in 2Q23 was $19.1 million, an increase over the $14.4 million reported during the same period last year. Adjusted EBITDA for 2Q 2023 was $45.3 million, compared to $32.6 million for the second quarter of 2022. Adjusted EBITDA as a percentage of sales was 10.6% and 8.9%, respectively.

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2Q 2023 Earnings by Segment:

• Service Centers: Revenue for 2Q was $298.4 million, a 1.1% sequential increase and an increase of 18.9% year-over-year, with a 14.8 percent operating income margin.
• Innovative Pumping Solutions: Revenue was $63.4 million, a sequential increase of 2.3% and an increase of 9.8% year-over-year, with a 16.0% operating income margin.
• Supply Chain Services: Revenue was $66.2 million, a 1.3% sequential decrease and an increase of 12.3% year-over-year, with a 8.2% operating income margin.

“Second quarter results reflect the resilience and durability of DXP’s business,” said CEO and Chairman David R. Little.”We are pleased with our sequential sales growth and strength in our gross profit margins. This resulted in operating leverage that produced earnings per share of $1.06. We continue to experience broad-based demand across our key regions, products, and end markets. DXP’s second quarter 2023 sales were $428.0 million, or a 16.4 percent increase over the second quarter of 2022. Organic sales for the quarter, increased 20.2 percent and acquisitions added $7.3 million in sales. Adjusted EBITDA grew $12.7 million, or 38.9 percent over the second quarter of 2022. During the second quarter of 2023, sales were $298.4 million for Service Center, $66.2 million for Supply Chain Services, and $63.4 million for Innovative Pumping Solutions. Overall, we are very pleased with our performance and the progress DXP continues to make as a growth company. We are optimistic that we can show continued sales and profit improvement during the second half of 2023.”

DXP also announced two acquisitions during the quarter. On May 4, the company said that is had completed the acquisitions of Riordan Materials Corporation and Florida Valve & Equipment Corp. and Environmental MD.