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NASDAQ: DXPE Results for Q3 Fiscal 2025 Earnings Announcement: November 6, 2025 (Quarter Ending September 30, 2025) Presented by: David Little Chairman, President & CEO Kent Yee Senior Vice President & CFO
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FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the U.S. federal securities laws that involve risks and uncertainties. Certain statements contained in this report are not purely historical, including statements regarding our expectations, beliefs, intentions or strategies regarding the future that are forward-looking. These statements include statements concerning projected revenues, expenses, gross profit, income, gross margins or other financial items. All forward-looking statements speak only as of the date of this presentation. You should not place undue reliance on these forward-looking statements. Although we believe our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make in this presentation are reasonable, we may be unable to achieve these plans, intentions or expectations. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf. Risks and uncertainties that could cause actual results to differ from those in the forward-looking statements are described in “Risk Factors” and “Forward-Looking Statements” in our Quarterly Reports on Form 10-Q and in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission. Statement Regarding use of Non-GAAP Measures: The Non-GAAP financial measures contained in this presentation (including, without limitation, EBITDA, Adjusted EBITDA, Free Cash Flow, Return on Invested Capital (ROIC) and variations thereof are not measures of financial performance calculated in accordance with GAAP and should not be considered as alternatives to net income (loss) or any other performance measure derived in accordance with GAAP or as alternatives to cash flows from operating activities as a measure of our liquidity. They should be viewed in addition to, and not as a substitute for, analysis of our results reported in accordance with GAAP, or as alternative measures of liquidity. Management believes that certain non-GAAP financial measures provide a view to measures similar to those used in evaluating our compliance with certain financial covenants under our credit facilities and provide financial statement users meaningful comparisons between current and prior year period results. They are also used as a metric to determine certain components of performance- based compensation. The adjustments and Adjusted EBITDA are based on currently available information and certain adjustments that we believe are reasonable and are presented as an aid in understanding our operating results. They are not necessarily indicative of future results of operations that may be obtained by the Company. 2
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Please refer to the appendix of this presentation for reconciliations of the Non-GAAP financial measures to the most directly comparable GAAP measures. Q3 2025 KEY TAKEAWAYS 3 • Sales increased 8.6 percent to $513.7 million compared to $472.9 million for the third quarter of 2024, and increased 3.0 percent sequentially from $498.7 million for the second quarter of 2025. ◦ Organic sales grew 11.5 percent year over year and 4.5 percent sequentially ◦ Acquisition sales contributed $18.4 million in sales ◦ Sales per business day of $8.0 million • Net income increased 2.5 percent for the third quarter to $21.6 million, compared to $21.1 million for the third quarter of 2024. • Earnings per diluted share for the third quarter was $1.31 based upon 16.5 million diluted shares, compared to $1.27 earnings per diluted share in the third quarter of 2024, based on 16.6 million diluted shares. • Adjusted EBITDA for the third quarter was $56.5 million compared to $52.4 million for the third quarter of 2024. ◦ Adjusted EBITDA as a percentage of sales, or Adjusted EBITDA margin, was 11.0 percent and 11.1 percent, respectively • Cash flow from operating activities increased 23.1 percent for the third quarter to $34.9 million, compared to $28.3 million for the third quarter of 2024. • Free Cash Flow (cash flow from operating activities less capital expenditures) increased 15.4 percent for the third quarter to $28.1 million, compared to $24.4 million for the third quarter of 2024. • Closed one acquisition during the third quarter and two subsequent to quarter end.
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Please refer to the appendix of this presentation for reconciliations of the Non-GAAP financial measures to the most directly comparable GAAP measures. Q3 2025 INCOME STATEMENT HIGHLIGHTS (in thousands, except percentages and per share data) QTD QTD QTD 09/30/24 06/30/25 09/30/25 Sales $ 472,935 $ 498,682 $ 513,724 % growth y/y 12.8 % 11.9 % 8.6 % % growth seq 6.1 % 4.6 % 3.0 % Gross Profit $ 146,110 $ 157,813 $ 161,259 % margin 30.9 % 31.6 % 31.4 % Operating Income $ 39,608 $ 45,986 $ 43,698 % margin 8.4 % 9.2 % 8.5 % Net Income $ 21,101 $ 23,612 $ 21,631 % margin 4.5 % 4.7 % 4.2 % Adj. EBITDA $ 52,440 $ 57,313 $ 56,501 % margin 11.1 % 11.5 % 11.0 % Net cash provided by Operating Activities $ 28,344 $ 18,646 $ 34,886 Free Cash Flow $ 24,390 $ 8,300 $ 28,146 Diluted EPS $ 1.27 $ 1.43 $ 1.31 Diluted Shares 16,590 16,534 16,526 Adj. Diluted EPS $ 1.43 $ 1.43 $ 1.34 Sales Per Business Day $ 7,390 $ 7,916 $ 8,027 4
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Return on invested capital is defined as tax-effected LTM EBITDA / average total net operating assets. *For March 2024, diluted earnings per share (EPS) was adjusted to exclude one-time acquisition integration costs and other unique non-cash charges, resulting in an actual diluted EPS of $0.67 for Q1 2024. SALES AND GROSS MARGIN $419 $407 $413 $446 $473 $471 $477 $499 $514 29.9% 30.2% 30.0% 30.9% 30.9% 31.5% 31.5% 31.6% 31.4% Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 DILUTED EARNINGS PER SHARE* $0.93 $0.94 $0.74 $1.00 $1.27 $1.29 $1.25 $1.43 $1.31 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 ADJ. EBITDA AND ADJ. EBITDA MARGIN $44 $42 $40 $48 $52 $50 $53 $57 $57 10.5% 10.3% 9.8% 10.8% 11.1% 10.7% 11.0% 11.5% 11.0% Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 RETURN ON INVESTED CAPITAL (ROIC%) 33.3% 36.3% 36.4% 36.0% 36.4% 37.4% 36.8% 34.8% 33.5% Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 QUARTERLY FINANCIAL HIGHLIGHTS (in millions, except percentages and per share data) 5
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SALES SALES MIX OPERATING PROFIT (OP) OP CONTRIBUTION OPERATING MARGIN $350.2 68% $51.3 68% 14.6% $100.6 20% $18.4 25% 18.3% $63.0 12% $5.3 8% 8.4% SEGMENT TOTAL $513.7 $75.0 14.6% CORPORATE (expenses & amortization of intangibles) $— $(31.4) TOTAL $513.7 $43.7 8.5% 6 QUARTERLY OPERATING PERFORMANCE BY SEGMENT (in millions, except percentages)* *Amounts may not foot/reconcile due to rounding
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QUARTERLY CASH FLOW AND WORKING CAPITAL (in thousands, except percentages) YTD QTD QTD 9/30/2025 6/30/2025 9/30/2025 Net Income $ 65,832 $ 23,612 $ 21,631 Depreciation and Amortization 28,544 9,490 9,920 Change in Net Working Capital (60,539) (21,537) (13,591) Other Operating Cash Flows, Net 22,668 7,081 16,926 Net Cash provided by Operating Activities $ 56,505 $ 18,646 $ 34,886 Purchase of Property & Equipment (37,000) (10,346) (6,740) Free Cash Flow $ 19,505 $ 8,300 $ 28,146 Other Investing Cash Flows, Net (21,733) (994) (10,588) Net Cash used in Investing Activities $ (58,733) $ (11,340) $ (17,328) Net Cash used in Financing Activities $ (23,194) $ (9,511) $ (6,600) Effect of foreign currency on cash $ 840 $ 852 $ (59) Cash and restricted cash at end of the period $ 123,829 $ 112,930 $ 123,829 Supplemental Information Purchase of businesses $ 24,448 $ 1,010 $ 10,588 Cash paid for interest $ 40,225 $ 13,003 $ 13,527 Cash paid for income taxes $ 35,095 $ 13,614 $ 1,147 Net Debt $ 520,176 $ 532,699 $ 520,176 NET WORKING CAPITAL (in millions) $290 $275 $269 $287 $291 $291 $325 $349 $365 17.3%16.4%16.1%17.0%16.7%16.1% 17.4%18.2%18.6% Q3 '23Q4 '23Q1 '24Q2 '24Q3 '24Q4 '24Q1 '25Q2 '25Q3 '25 7 FREE CASH FLOW (in millions) $38 $37 $24 $6 $24 $23 $(17) $8 $28 86.9%89.1% 59.7% 12.3% 46.5%45.2% (32.3)% 14.5% 49.8% Q3 '23Q4 '23Q1 '24Q2 '24Q3 '24Q4 '24Q1 '25Q2 '25Q3 '25 FCF Conversion % (1) (2) Notes: (1) Net working capital is calculated as current assets less current liabilities excluding cash and restricted cash, short term debt obligations, and short term operating leases. (2) Free cash flow conversion percentage is calculated as free cash flow over adjusted EBITDA.
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• Flexible share repurchase program that allows opportunistic buyback of DXP stock • ROIC should continue to improve as the company focuses on margins and operating leverage and improving run rate EBITDA • Disciplined M&A strategy focused on end market diversification, portfolio enhancement and geographic expansion • Track record of sustainable and proactive debt management through the cycle • Net leverage target of ≤ 3.5x • Flexible capital deployment policy with ability to shift capital based on business requirements DISCIPLINED CAPITAL ALLOCATION PRIORITIES 8 2020 - 2025 Capital Allocation 78% 60% 46% 12% 72% 36% 18% 3% 3% 6% 3% 7% 5% 6% 5% 15% 12% 54% 31% 46% 67% 13% 3% M&A Net Debt Repayment Net Capex Net Share Repurchases 2020 2021 2022 2023 2024 YTD 2025 Balanced Capital Deployment
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APPENDIX
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Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Operating Income for Reportable Segments $ 75,049 $ 69,930 $ 215,105 $ 185,526 Adjustments for: Amortization of intangibles 5,370 5,245 16,053 14,333 Corporate expenses 25,981 25,077 68,853 65,102 Total Operating Income $ 43,698 $ 39,608 $ 130,199 $ 106,091 Interest Expense 14,894 15,716 44,298 46,644 Other (Income) expense, net (648) 160 (2,320) (2,844) Income before Income Taxes $ 29,452 $ 23,732 $ 88,221 $ 62,291 10 RECONCILIATION OF OPERATING INCOME (in thousands)
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Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Service Centers $ 350,179 $ 316,831 $ 1,016,985 $ 911,783 Innovative Pumping Solutions 100,551 89,825 280,273 225,417 Supply Chain Services 62,994 66,279 191,717 193,926 Total DXP Sales $ 513,724 $ 472,935 $ 1,488,975 $ 1,331,126 Acquisition Sales $ 18,403 $ 28,535 $ 74,120 $ 63,713 Organic Sales $ 495,321 $ 444,400 $ 1,414,855 $ 1,267,413 Business Days 64 64 190 191 Sales per Business Day $ 8,027 $ 7,390 $ 7,837 $ 6,969 Organic Sales per Business Day $ 7,739 $ 6,944 $ 7,447 $ 6,636 Net Income $ 21,631 $ 21,101 $ 65,832 $ 49,126 Interest expense 14,894 15,716 44,298 46,644 Provision for income taxes 7,821 2,631 22,389 13,165 Depreciation and Amortization 9,920 8,720 28,544 24,385 EBITDA $ 54,266 $ 48,168 $ 161,063 $ 133,320 Plus: other non-recurring items 757 2,950 992 4,292 Plus: stock compensation expense 1,478 1,322 4,278 3,398 Adjusted EBITDA $ 56,501 $ 52,440 $ 166,333 $ 141,010 11 RECONCILIATION OF NON-GAAP MEASURES (in thousands, except days)
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Organic Sales and Acquisition Sales We define and calculate organic sales to include locations and acquisitions under our ownership for at least twelve months. "Acquisition Sales" are sales from acquisitions that have been under our ownership for less than twelve months and are excluded in our calculation of Organic Sales. Business Days "Business Days" are days of the week, excluding Saturdays, Sundays, and holidays, that our locations are open during the year. Depending on the location and the season, our branches may be open on Saturdays and Sundays; however, for consistency, those days have been excluded from the calculation of Business Days. Sales per Business Day We define and calculate Sales per Business Day as sales divided by the number of Business Days in the relevant reporting period. Organic Sales per Business Days We define and calculate Organic Sales per Business Day as Organic Sales divided by the number of Business Days in the relevant reporting period. EBITDA and Adjusted EBITDA We define and calculate EBITDA as Net income attributable to DXP Enterprises, Inc., plus interest, taxes, depreciation, and amortization. We define and calculate Adjusted EBITDA as Net income attributable to DXP Enterprises, Inc., plus interest, taxes, depreciation, and amortization plus stock-based compensation expense, and all other non-cash charges, adjustments, and non-recurring items. We identify the impact of all other non-cash charges, adjustments and non-recurring items because we believe these items do not directly reflect our underlying operations. EBITDA Margin and Adjusted EBITDA Margin We define and calculate EBITDA Margin as EBITDA divided by sales. We define and calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by sales. Free Cash Flow We define and calculate free cash flow as net cash (used in) provided by operating activities less purchases of property and equipment. 12 DEFINITIONS