Dxp Enterprises Inc (NASDAQ: DXPE)

DXP Enterprises, Inc. distributes maintenance repair and operating products equipment and services to customers in diverse end markets such as general industrial, energy, food and beverage, chemical, transportation, water and wastewater. The company operates through three business segments: Service Centers, Innovative Pumping Solutions, and Supply Chain Services. It maintains a network of facilities across the United States and Canada to provide same day delivery and technical support.

The company generates revenue primarily from the sale of maintenance repair and operating products equipment and services through its Service Centers. It also derives income from integrated custom pump skid packages, remanufactured pumps, and private label pumps offered by its Innovative Pumping Solutions segment. Additionally the Supply Chain Services segment contributes revenue through inventory optimization, store room management, transaction consolidation, vendor oversight, and productivity improvement services. In 2025 total sales reached $2.0 billion with over 90% of revenue coming from product sales and service revenues accounting for less than 10%.

The company operates through the following segments: Service Centers, Innovative Pumping Solutions, and Supply Chain Services.

• Service Centers: The segment provides maintenance repair and operating products equipment and services including technical expertise, logistics, and same day delivery to a wide range of industrial customers. It stocks more than 60,000 stock keeping units and offers over one million items across categories such as rotating equipment, bearings, power transmission, hose, fluid power, metal working, industrial supplies, and safety products. The segment operates from approximately 164 service center facilities and four distribution centers primarily in the United States and Canada.

• Innovative Pumping Solutions: The segment offers integrated custom pump skid packages, remanufactured pumps, and private label pumps to serve the water and wastewater treatment market and other industrial sectors. It provides design engineering project management and fabrication services for unique customer specifications. The segment operates from 36 facilities located in the United States, Canada, United Arab Emirates, India, and Saudi Arabia and reported a backlog of $325.0 million at the end of 2025.

• Supply Chain Services: The segment manages customers' supply chains through procurement, inventory management, store room management, transaction consolidation, vendor oversight, and productivity improvement services using tools such as SmartAgreement, SmartBuy, SmartSource SM, SmartStore, SmartVend, and SmartServ. It enters into long term contracts with customers that can be cancelled on little or no notice under certain circumstances. The segment served 89 customer sites at the end of 2025 and employed approximately 465 full time staff.

Based on 2024 sales, DXP Enterprises, Inc. is ranked as the 17th largest distributor of maintenance repair and operating products in the United States. The industry is highly fragmented with many small local distributors serving narrow product niches. DXP differentiates itself by operating as a first tier distributor offering a broad product range exceeding one million items and providing technical expertise such as same day delivery and integrated solutions. It competes with other industrial supply distributors catalog distributors large warehouse stores and manufacturers.

The company serves industrial customers across sectors including general industrial, manufacturing, energy, food and beverage, chemical, transportation, water and wastewater. Its customer base includes manufacturers processors utilities refineries and other industrial operators that require maintenance repair and operating products and services. No single customer represented 10% or more of total revenue.