DXP ENTERPRISES INCDXPE
DXP ENTERPRISES INC Segments Disclosure
SEGMENT REPORTING
We have three reportable and operating segments: Service Centers, Innovative Pumping Solutions and Supply Chain Services.
The Service Centers segment is engaged in providing MRO products and equipment, including logistics capabilities, to industrial customers. The Service Centers segment provides a wide range of MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, fastener, industrial supply, safety products and safety services categories.
The Innovative Pumping Solutions segment fabricates and assembles custom-made pump packages, re-manufactures pumps, manufactures branded private label pumps, and provides products and services for the water and wastewater treatment industries.
The Supply Chain Services segment provides a wide range of MRO products and manages all or part of a customer's supply chain, including warehouse and inventory management.
No customer accounts for 10% or more of our revenues. Sales are shown net of intersegment eliminations.
Corporate primarily includes unallocated overhead costs that are not directly associated with our reportable segments.
Segment information is prepared on the same basis that our Chief Executive Officer, who is our chief operating decision maker (“CODM”), manages the segments, evaluates financial results, and makes key operating decisions.
These segments were determined primarily by the distribution channels of the products and services offered and the nature of the customer markets and the primary driver of the customers’ spending. The Company's CODM directs the allocation of resources to these segments based upon historical and current revenue, direct operating expenses, operating income, and capital expenditures of each respective segment. The allocation of resources across these segments is dependent upon, among other factors, the segments' historical or future expected operating margins; the segments' historical or future expected returns on capital; outlook within a specific market; opportunities to grow profitability; new products, services or new customer accounts; confidence in management; and competitive landscape and intensity.
As a part of the Company's annual business planning, the CODM reviews our reportable segment composition and financial performance. As a result of this review, on January 1st, 2025, we moved certain branch locations previously reported under our IPS segment to our SC segment. Historical financial information by segment has been retroactively recast to reflect the results of this review.
The following table sets out financial information related to the Company’s segments (in thousands):
| Years Ended December 31, | Service Centers | Innovative Pumping Solutions | Supply Chain Services | Total | Corporate | Total | |||||||||||||||||
| 2025 | |||||||||||||||||||||||
| Sales | $ | 1,373,140 | $ | 390,291 | $ | 252,934 | $ | 2,016,365 | $ | — | $ | 2,016,365 | |||||||||||
| Operating expenses | 1,165,844 | 316,119 | 230,796 | 1,712,759 | — | 1,712,759 | |||||||||||||||||
Other expenses | |||||||||||||||||||||||
| Depreciation | 3,865 | 3,019 | 32 | 6,916 | 3,456 | 10,372 | |||||||||||||||||
Amortization of finance lease assets | 5,265 | 930 | 187 | 6,382 | 426 | 6,808 | |||||||||||||||||
Other(1) | — | — | — | — | 109,556 | 109,556 | |||||||||||||||||
Income (loss) from operations | $ | 198,166 | $ | 70,223 | $ | 21,919 | $ | 290,308 | $ | (113,438) | $ | 176,870 | |||||||||||
| Interest expense | — | — | — | — | 60,530 | 60,530 | |||||||||||||||||
| Other income, net | — | — | — | — | (2,882) | (2,882) | |||||||||||||||||
| Income (loss) before income taxes | $ | 198,166 | $ | 70,223 | $ | 21,919 | $ | 290,308 | $ | (171,086) | $ | 119,222 | |||||||||||
| Capital expenditures | $ | 4,509 | $ | 3,580 | $ | — | $ | 8,089 | $ | 32,197 | $ | 40,286 | |||||||||||
(1). Other primarily includes selling, general and administrative expenses of $87.9 million and amortization of intangible assets of $21.7 million. | |||||||||||||||||||||||
| Years Ended December 31, | Service Centers | Innovative Pumping Solutions | Supply Chain Services | Total | Corporate | Total | |||||||||||||||||
| 2024 | |||||||||||||||||||||||
| Sales | $ | 1,236,775 | $ | 308,850 | $ | 256,415 | $ | 1,802,040 | $ | — | $ | 1,802,040 | |||||||||||
| Operating expenses | 1,051,316 | 253,927 | 234,508 | 1,539,751 | — | 1,539,751 | |||||||||||||||||
Other expenses | |||||||||||||||||||||||
| Depreciation | 3,125 | 3,352 | 32 | 6,509 | 2,510 | 9,019 | |||||||||||||||||
Amortization of finance lease assets | 2,812 | 508 | 133 | 3,453 | 1,106 | 4,559 | |||||||||||||||||
Other(1) | — | — | — | — | 103,329 | 103,329 | |||||||||||||||||
Income (loss) from operations | $ | 179,522 | $ | 51,063 | $ | 21,742 | $ | 252,327 | $ | (106,945) | $ | 145,382 | |||||||||||
| Interest expense | — | — | — | — | 63,927 | 63,927 | |||||||||||||||||
| Other income, net | — | — | — | — | (3,517) | (3,517) | |||||||||||||||||
| Income (loss) before income taxes | $ | 179,522 | $ | 51,063 | $ | 21,742 | $ | 252,327 | $ | (167,355) | $ | 84,972 | |||||||||||
| Capital expenditures | $ | 4,144 | $ | 2,593 | $ | 13 | $ | 6,750 | $ | 18,318 | $ | 25,068 | |||||||||||
(1). Other primarily includes selling, general and administrative expenses of $83.5 million and amortization of intangible assets of $19.8 million. | |||||||||||||||||||||||
| Years Ended December 31, | Service Centers | Innovative Pumping Solutions | Supply Chain Services | Total | Corporate | Total | |||||||||||||||||
| 2023 | |||||||||||||||||||||||
| Sales | $ | 1,214,602 | $ | 203,630 | $ | 260,368 | $ | 1,678,600 | $ | — | $ | 1,678,600 | |||||||||||
| Operating expenses | 1,032,264 | 167,333 | 238,774 | 1,438,371 | — | 1,438,371 | |||||||||||||||||
Other expenses | |||||||||||||||||||||||
| Depreciation | 2,729 | 3,687 | 27 | 6,443 | 1,980 | 8,423 | |||||||||||||||||
Amortization of finance lease assets | 3,026 | 214 | 45 | 3,285 | 166 | 3,451 | |||||||||||||||||
Other(1) | — | — | — | — | 89,633 | 89,633 | |||||||||||||||||
Income (loss) from operations | $ | 176,583 | $ | 32,396 | $ | 21,522 | $ | 230,501 | $ | (91,779) | $ | 138,722 | |||||||||||
| Interest expense | — | — | — | — | 53,146 | 53,146 | |||||||||||||||||
| Other income, net | — | — | — | $ | — | (1,355) | $ | (1,355) | |||||||||||||||
| Income (loss) before income taxes | $ | 176,583 | $ | 32,396 | $ | 21,522 | $ | 230,501 | $ | (143,570) | $ | 86,931 | |||||||||||
| Capital expenditures | $ | 6,277 | $ | 1,965 | $ | — | $ | 8,242 | $ | 4,021 | $ | 12,263 | |||||||||||
(1). Other primarily includes selling, general and administrative expenses of $71.4 million and amortization of intangible assets of $18.2 million. | |||||||||||||||||||||||
| Years Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Service Centers | $ | 820,289 | $ | 744,966 | |||||||
| Innovative Pumping Solutions | 383,201 | 307,818 | |||||||||
Supply Chain Services | 95,045 | 85,823 | |||||||||
Total Reportable Segments Assets | $ | 1,298,535 | $ | 1,138,607 | |||||||
| Corporate | 386,620 | 210,887 | |||||||||
| Total Assets | $ | 1,685,155 | $ | 1,349,494 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 10, 2025 | |
| 2023 | Mar 11, 2024 | |
| 2022 | Apr 17, 2023 | |
| 2021 | Apr 5, 2022 | |
| 2020 | Mar 18, 2021 | |
| 2019 | Mar 13, 2020 | |
| 2018 | Mar 8, 2019 | |
| 2017 | Mar 28, 2018 | |
| 2016 | Mar 31, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.