The EPS miss and declining net income despite solid revenue growth may pressure the stock in the near term. Monitor Q2 for margin trends and acquisition contributions; operating cash flow improvement is a positive signal. No guidance leaves the market without a forward anchor.
Price Chart
Executive Summary
DXP Enterprises reported Q1 2026 sales of $521.7M (+9.5% YoY) but GAAP diluted EPS of $1.22 missed the $1.38 consensus by 11.6%, declining from $1.25 a year ago. Net income slipped to $20.0M from $20.6M, weighed by higher interest expense, while operating cash flow improved sharply to $29.6M. No forward guidance was provided, leaving the market to assess the mixed top-line growth vs. earnings miss.
Key Financial Metrics
Key Facts
- Q1 2026 sales $521.7M, +9.5% YoY ($476.6M)
- GAAP diluted EPS $1.22 vs $1.25 YoY; missed consensus of $1.38 (-11.6%)
- Net income $20.0M vs $20.6M YoY
- Adjusted EBITDA $57.8M, +10.1% YoY; margin 11.1% vs 11.0%
- Operating cash flow $29.6M, up from $3.0M; FCF $26.3M vs -$16.9M
- Three acquisitions closed during Q1
- Interest expense rose to $16.4M from $14.6M YoY
- No explicit financial guidance issued
Financial Impact
EPS miss of $0.16 vs consensus (-11.6%) on $521.7M revenue; revenue growth offset by margin compression and higher interest cost
Risk Factors
- Rising interest expense from higher debt levels ($844.7M total debt)
- Operating margin compression (8.1% vs 8.5% YoY)
- Acquisition integration risk and potential dilution from continued M&A
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-032333 |
| Document: dxpe-20260507.htm | 0001628280-26-032333 |
| Document: 0001628280-26-032333-index-headers.html | 0001628280-26-032333 |
| Document: 0001628280-26-032333-index.html | 0001628280-26-032333 |
| Document: 0001628280-26-032333.txt | 0001628280-26-032333 |
| 8-K Data (Synthetic) | 0001628280-26-032333 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 6, 2026 11w ago | 8-K | $198.21 $181.21 | ▼ −8.58% | ▼ −9.18% | $164.43 (−17.04%) |
May 7, 2026 24w ago | 8-K | $156.18 $157.40 | ▲ +0.78% | ▲ +0.76% | $164.43 (+5.28%) |
Apr 30, 2026 25w ago | DEFA14A | $170.75 $148.93 | ▼ −12.78% | ▼ −17.75% | $164.43 (−3.70%) |
US Market Status
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