DXP ENTERPRISES INCDXPE
DXP ENTERPRISES INC Revenue Disclosure
CONTRACT ASSETS AND LIABILITIES
Under our customized pump production contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, upon various measures of performance, including achievement of certain milestones, completion of specified units, or completion of a contract. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets presented as “Cost and estimated profits in excess of billings” on our Consolidated Balance Sheets. However, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities that are presented as “Billings in excess of costs and estimated profits” on our Consolidated Balance Sheets.
Costs and estimated profits on uncompleted contracts and related amounts billed were as follows (in thousands):
| December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Costs incurred on uncompleted contracts | $ | 147,866 | $ | 122,951 | $ | 92,363 | |||||||||||
| Estimated profits, thereon | 71,260 | 58,373 | 37,379 | ||||||||||||||
Total costs and estimated profits on uncompleted contracts | 219,126 | 181,324 | 129,742 | ||||||||||||||
| Less: billings to date | 180,960 | 143,251 | 96,925 | ||||||||||||||
Total | $ | 38,166 | $ | 38,073 | $ | 32,817 | |||||||||||
Such amounts were included in the accompanying Consolidated Balance Sheets for 2025 and 2024 under the following captions (in thousands):
| December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Costs and estimated profits in excess of billings | $ | 53,855 | $ | 50,735 | $ | 42,323 | |||||||||||
| Billings in excess of costs and estimated profits | (15,689) | (12,662) | (9,506) | ||||||||||||||
Net contract assets | $ | 38,166 | $ | 38,073 | $ | 32,817 | |||||||||||
During the twelve months ended December 31, 2025, 2024 and 2023, $10.4 million, $7.4 million, and $10.4 million of the balances that were previously classified as contract liabilities at the beginning of the period were recognized into revenues, respectively.
REVENUEThe Company disaggregates revenue based upon our geography and our reportable segments - Service Centers, Innovative Pumping Solutions and Supply Chain Services. Each of our geographic and reportable business segments are impacted and influenced by varying factors, including the macroeconomic environment, maintenance and capital spending and commodity prices and exploration and production activity. As such, we believe this information is important in depicting the nature, timing and uncertainty of our contracts with customers. The following Geographical Information and Note 20 - Segment Reporting present our revenue disaggregated by source.
Geographical Information
Revenues are presented in geographic area based on location of the facility shipping products or providing services.
The Company’s revenues by geographical location are as follows (in millions):
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| United States | $ | 1,939 | $ | 1,721 | $ | 1,602 | |||||||||||
| Canada | 75 | 79 | 75 | ||||||||||||||
Other | 2 | 2 | 2 | ||||||||||||||
| Total | $ | 2,016 | $ | 1,802 | $ | 1,679 | |||||||||||
Recent Acquisitions
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.
The following tables sets forth the disaggregation of revenue from sales associated with recent acquisitions for the twelve months ended December 31, 2025 and 2024 (in thousands):
| Sales | Acquisition Sales | Organic Sales | ||||||||||||||||||
| Twelve Months Ended December 31, 2025 | ||||||||||||||||||||
| Service Centers | $ | 1,373,140 | $ | 56,164 | $ | 1,316,976 | ||||||||||||||
| Innovative Pumping Solutions | 390,291 | 39,879 | 350,412 | |||||||||||||||||
| Supply Chain Services | 252,934 | — | 252,934 | |||||||||||||||||
| Total Sales | $ | 2,016,365 | $ | 96,043 | $ | 1,920,322 | ||||||||||||||
| Twelve Months Ended December 31, 2024 | ||||||||||||||||||||
Service Centers (1) | $ | 1,236,775 | $ | 36,944 | $ | 1,199,831 | ||||||||||||||
Innovative Pumping Solutions (1) | 308,850 | 61,556 | 247,294 | |||||||||||||||||
| Supply Chain Services | 256,415 | — | 256,415 | |||||||||||||||||
| Total Sales | $ | 1,802,040 | $ | 98,500 | $ | 1,703,540 | ||||||||||||||
| $ Change | ||||||||||||||||||||
| Service Centers | $ | 136,365 | $ | 19,220 | $ | 117,145 | ||||||||||||||
| Innovative Pumping Solutions | 81,441 | (21,677) | 103,118 | |||||||||||||||||
| Supply Chain Services | (3,481) | — | (3,481) | |||||||||||||||||
| Total $ Change | $ | 214,325 | $ | (2,457) | $ | 216,782 | ||||||||||||||
| % Change | ||||||||||||||||||||
| Service Centers | 11.0 | % | 52.0 | % | 9.8 | % | ||||||||||||||
| Innovative Pumping Solutions | 26.4 | % | (35.2) | % | 41.7 | % | ||||||||||||||
| Supply Chain Services | (1.4) | % | N/A | (1.4) | % | |||||||||||||||
| Total % Change | 11.9 | % | (2.5) | % | 12.7 | % | ||||||||||||||
(1) Prior period segment disclosures have been recast. For additional information, please refer to Note 20. Segment Reporting. | ||||||||||||||||||||
The following tables sets forth the disaggregation of revenue from sales associated with recent acquisitions for the twelve months ended December 31, 2024 and 2023 (in thousands):
| Sales | Acquisition Sales | Organic Sales | ||||||||||||||||||
| Twelve Months Ended December 31, 2024 | ||||||||||||||||||||
Service Centers (1) | $ | 1,236,775 | $ | 36,944 | $ | 1,199,831 | ||||||||||||||
Innovative Pumping Solutions (1) | 308,850 | 61,556 | 247,294 | |||||||||||||||||
| Supply Chain Services | 256,415 | — | 256,415 | |||||||||||||||||
| Total Sales | $ | 1,802,040 | $ | 98,500 | $ | 1,703,540 | ||||||||||||||
| Twelve Months Ended December 31, 2023 | ||||||||||||||||||||
Service Centers (1) | $ | 1,214,602 | $ | 19,275 | $ | 1,195,327 | ||||||||||||||
Innovative Pumping Solutions (1) | 203,630 | 13,803 | 189,827 | |||||||||||||||||
| Supply Chain Services | 260,368 | — | 260,368 | |||||||||||||||||
| Total Sales | $ | 1,678,600 | $ | 33,078 | $ | 1,645,522 | ||||||||||||||
| $ Change | ||||||||||||||||||||
| Service Centers | $ | 22,173 | $ | 17,669 | $ | 4,504 | ||||||||||||||
| Innovative Pumping Solutions | 105,220 | 47,753 | 57,467 | |||||||||||||||||
| Supply Chain Services | (3,953) | — | (3,953) | |||||||||||||||||
| Total $ Change | $ | 123,440 | $ | 65,422 | $ | 58,018 | ||||||||||||||
| % Change | ||||||||||||||||||||
| Service Centers | 1.8 | % | 91.7 | % | 0.4 | % | ||||||||||||||
| Innovative Pumping Solutions | 51.7 | % | 346.0 | % | 30.3 | % | ||||||||||||||
| Supply Chain Services | (1.5) | % | N/A | (1.5) | % | |||||||||||||||
| Total % Change | 7.4 | % | 197.8 | % | 3.5 | % | ||||||||||||||
(1) Prior period segment disclosures have been recast. For additional information, please refer to Note 20. Segment Reporting. | ||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 10, 2025 | |
| 2023 | Mar 11, 2024 | |
| 2022 | Apr 17, 2023 | |
| 2018 | Mar 8, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.