DXP Enterprises, Inc. reported significant financial results for the three and nine months ended September 30, 2024, reflecting a robust performance compared to the same periods in 2023. Total sales for Q3 2024 reached $472.9 million, marking a 12.8% increase from $419.2 million in Q3 2023. For the nine months, sales totaled $1.33 billion, up 4.7% from $1.27 billion in the prior year. The growth was driven by strong performance in the Innovative Pumping Solutions (IPS) segment, which saw sales rise by 52.3% to $89.8 million in Q3, largely due to increased project work and contributions from recent acquisitions.

Gross profit for Q3 2024 was $146.1 million, representing a gross margin of 30.9%, compared to $125.6 million and a 29.9% margin in Q3 2023. For the nine-month period, gross profit increased to $407.8 million, with a margin of 30.6%, up from $382.5 million and a 30.1% margin in the previous year. However, income from operations for the nine months decreased to $106.1 million from $108.7 million in 2023, reflecting increased selling, general, and administrative expenses (SG&A), which rose by 10.2% to $301.7 million.

Net income for Q3 2024 was $21.1 million, up from $16.2 million in Q3 2023, while net income for the nine months fell to $49.1 million from $52.8 million in the prior year. Earnings per share for Q3 2024 were $1.34 (basic) and $1.27 (diluted), compared to $0.98 and $0.93, respectively, in Q3 2023. For the nine months, earnings per share remained stable at $3.08 (basic) but slightly decreased to $2.93 (diluted) from $2.94 in 2023.

The company experienced a notable increase in cash used in investing activities, totaling $165.1 million for the nine months ended September 30, 2024, compared to $16.0 million in the same period last year. This increase was primarily due to acquisitions, with $149.4 million spent on acquisitions net of cash acquired. DXP also announced a new share repurchase program in August 2024, allowing for the repurchase of up to $85 million in shares over the next 24 months.

As of September 30, 2024, DXP's total assets increased to $1.23 billion, while total liabilities rose to $829.1 million. The company reported a decrease in cash and cash equivalents to $35.0 million, down from $173.1 million at the end of 2023. The effective tax rate for Q3 2024 was significantly lower at 11.1%, compared to 26.3% in Q3 2023, attributed to various tax credits.

Overall, DXP Enterprises, Inc. demonstrated strong sales growth and profitability in Q3 2024, supported by strategic acquisitions and increased demand across its business segments, despite facing challenges in net income for the nine-month period.