DXP Enterprises (DXPE) 10-Q 7 Nov 24 2024 Q3 Quarterly report Financial data

COVER

COVER - shares	9 Months Ended
	Sep. 30, 2024	Nov. 04, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	0-21513
Entity Registrant Name	DXP Enterprises, Inc.
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	76-0509661
Entity Address, Address Line One	5301 Hollister
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77040
City Area Code	713
Local Phone Number	996-4700
Title of 12(b) Security	Common Stock par value $0.01
Trading Symbol	DXPE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		15,694,883
Entity Central Index Key	0001020710
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Sales	$ 472,935	$ 419,249	$ 1,331,126	$ 1,271,556
Cost of sales	326,825	293,687	923,341	889,101
Gross profit	146,110	125,562	407,785	382,455
Selling, general and administrative expenses	106,502	89,706	301,694	273,720
Income from operations	39,608	35,856	106,091	108,735
Interest expense	15,716	12,684	46,644	36,068
Other expense (income), net (Note 15)	160	1,234	(2,844)	522
Income before income taxes	23,732	21,938	62,291	72,145
Provision for income taxes	2,631	5,766	13,165	19,339
Net income	21,101	16,172	49,126	52,806
Preferred stock dividend	23	22	68	67
Net income attributable to common shareholders	21,078	16,150	49,058	52,739
Foreign currency translation adjustments	380	(844)	(141)	(87)
Comprehensive income	$ 21,481	$ 15,328	$ 48,985	$ 52,719
Earnings per share (Note 9):
Basic (in dollars per share)	$ 1.34	$ 0.98	$ 3.08	$ 3.08
Diluted (in dollars per share)	$ 1.27	$ 0.93	$ 2.93	$ 2.94
Weighted average common shares outstanding:
Basic (in shares)	15,750	16,516	15,915	17,104
Diluted (in shares)	16,590	17,356	16,755	17,944

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash	$ 35,000	$ 173,120
Restricted cash	91	91
Accounts receivable, net of allowance of $5,316 and $5,584, respectively	337,722	311,171
Inventories	109,787	103,805
Costs and estimated profits in excess of billings	49,707	42,323
Prepaid expenses and other current assets	22,274	18,044
Total current assets	554,581	648,554
Property and equipment, net	73,050	61,618
Goodwill	448,103	343,991
Other intangible assets, net	89,356	63,895
Operating lease right of use assets, net	48,498	48,729
Other long-term assets	17,857	10,649
Total assets	1,231,445	1,177,436
Current liabilities:
Current maturities of debt	5,500	5,500
Trade accounts payable	106,802	96,469
Accrued wages and benefits	41,230	36,238
Customer advances	12,656	12,160
Billings in excess of costs and estimated profits	11,911	9,506
Short-term operating lease liabilities	14,928	15,438
Other current liabilities	56,336	48,854
Total current liabilities	249,363	224,165
Long-term debt, net of unamortized debt issuance costs and discounts	519,250	520,697
Long-term operating lease liabilities	34,922	34,336
Other long-term liabilities	25,542	17,359
Total long-term liabilities	579,714	572,392
Total liabilities	829,077	796,557
Commitments and Contingencies (Note 10)
Shareholders' equity:
Common stock, $0.01 par value, 100,000,000 shares authorized; 15,694,883 and 16,177,237 outstanding, respectively	345	345
Additional paid-in capital	218,062	216,482
Retained earnings	368,329	319,271
Accumulated other comprehensive loss	(31,381)	(31,240)
Treasury stock, at cost 4,707,773 and 4,141,989 shares, respectively	(153,003)	(123,995)
Total DXP Enterprises, Inc. equity	402,368	380,879
Total liabilities and equity	1,231,445	1,177,436
Series A preferred stock, $1.00 par value; 1,000,000 shares authorized
Shareholders' equity:
Preferred stock	1	1
Series B preferred stock, $1.00 par value; 1,000,000 shares authorized
Shareholders' equity:
Preferred stock	$ 15	$ 15

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Allowance for accounts receivable	$ 5,316	$ 5,584
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares outstanding (in shares)	15,694,883	16,177,237
Treasury stock, at cost (in shares)	4,707,773	4,141,989
Series A preferred stock, $1.00 par value; 1,000,000 shares authorized
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Series B preferred stock, $1.00 par value; 1,000,000 shares authorized
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 49,126	$ 52,806
Reconciliation of net income to net cash provided by operating activities:
Depreciation	6,821	6,262
Amortization of intangibles and fixed assets	17,564	15,206
(Recovery of) provision for credit losses	(783)	(277)
Payment of contingent consideration liability in excess of acquisition-date fair value	(108)	(160)
Fair value adjustment on contingent consideration	380	1,502
Amortization of debt issuance costs	2,678	2,176
Restricted stock compensation expense	3,398	2,211
Deferred income taxes	(10,376)	(10,178)
Changes in operating assets and liabilities, net of effects of businesses acquired:
Accounts receivable, net	(12,325)	2,295
Costs and estimated profits in excess of billings	(7,392)	(23,629)
Accounts payable and accrued expenses	16,622	12,868
Prepaid expenses and other assets	2,848	16,583
Inventories	1,130	(3,397)
Billings in excess of costs and estimated profits	2,410	(3,232)
Other long-term liabilities	(1,925)	(7,261)
Net cash provided by operating activities	70,068	63,775
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(15,673)	(7,103)
Acquisition of businesses, net of cash acquired	(149,440)	(8,848)
Net cash used in investing activities	(165,113)	(15,951)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on asset-backed credit facility	6,000	7,870
Repayments on asset-backed credit facility	(6,000)	(7,870)
Repayments under term loan facility	(4,125)	(3,276)
Payment for acquisition contingent consideration liability	(4,580)	(5,090)
Preferred stock dividends paid	(68)	(67)
Shares repurchased held in treasury	(28,783)	(56,215)
Payment for employee taxes withheld from stock awards	(1,818)	(464)
Principal payments on finance leases	(3,010)	(1,632)
Net cash used in financing activities	(42,384)	(66,744)
Effect of foreign currency on cash	(691)	70
Net change in cash and restricted cash	(138,120)	(18,850)
Cash and restricted cash at beginning of period	173,211	46,117
Cash and restricted cash at end of period	$ 35,091	$ 27,267

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Preferred stock Series A preferred stock	Preferred stock Series B preferred stock	Common stock	Paid-in capital	Retained earnings	Treasury stock	Accum other comp loss
Beginning Balance at Dec. 31, 2022	$ 365,392	$ 1	$ 15	$ 345	$ 213,937	$ 250,549	$ (67,780)	$ (31,675)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred dividends paid	(23)					(23)
Compensation expense for restricted stock	476				476
Tax related items for share based awards	(104)				(104)
Currency translation adjustment	98							98
Repurchases of shares	(9,135)						(9,135)
Net income	17,580					17,580
Ending Balance at Mar. 31, 2023	374,284	1	15	345	214,309	268,106	(76,915)	(31,577)
Beginning Balance at Dec. 31, 2022	365,392	1	15	345	213,937	250,549	(67,780)	(31,675)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	52,806
Ending Balance at Sep. 30, 2023	363,576	1	15	345	215,684	303,288	(123,995)	(31,762)
Beginning Balance at Mar. 31, 2023	374,284	1	15	345	214,309	268,106	(76,915)	(31,577)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred dividends paid	(22)					(22)
Compensation expense for restricted stock	871				871
Tax related items for share based awards	(328)				(328)
Currency translation adjustment	659							659
Repurchases of shares	(25,053)						(25,053)
Net income	19,054					19,054
Ending Balance at Jun. 30, 2023	369,465	1	15	345	214,852	287,138	(101,968)	(30,918)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred dividends paid	(22)					(22)
Compensation expense for restricted stock	864				864
Tax related items for share based awards	(32)				(32)
Currency translation adjustment	(844)							(844)
Repurchases of shares	(22,027)						(22,027)
Net income	16,172					16,172
Ending Balance at Sep. 30, 2023	363,576	1	15	345	215,684	303,288	(123,995)	(31,762)
Beginning Balance at Dec. 31, 2023	380,879	1	15	345	216,482	319,271	(123,995)	(31,240)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred dividends paid	(23)					(23)
Compensation expense for restricted stock	864				864
Tax related items for share based awards	(54)				(54)
Currency translation adjustment	(614)							(614)
Repurchases of shares	(16,920)						(16,920)
Net income	11,332					11,332
Ending Balance at Mar. 31, 2024	375,464	1	15	345	217,292	330,580	(140,915)	(31,854)
Beginning Balance at Dec. 31, 2023	380,879	1	15	345	216,482	319,271	(123,995)	(31,240)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	49,126
Ending Balance at Sep. 30, 2024	402,368	1	15	345	218,062	368,329	(153,003)	(31,381)
Beginning Balance at Mar. 31, 2024	375,464	1	15	345	217,292	330,580	(140,915)	(31,854)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred dividends paid	(22)					(22)
Compensation expense for restricted stock	1,212				1,212
Tax related items for share based awards	(1,701)				(1,701)
Currency translation adjustment	93							93
Repurchases of shares	(7,058)						(7,058)
Net income	16,693					16,693
Ending Balance at Jun. 30, 2024	384,681	1	15	345	216,803	347,251	(147,973)	(31,761)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred dividends paid	(23)					(23)
Compensation expense for restricted stock	1,322				1,322
Tax related items for share based awards	(63)				(63)
Currency translation adjustment	380							380
Repurchases of shares	(5,030)						(5,030)
Net income	21,101					21,101
Ending Balance at Sep. 30, 2024	$ 402,368	$ 1	$ 15	$ 345	$ 218,062	$ 368,329	$ (153,003)	$ (31,381)

THE COMPANY

THE COMPANY	9 Months Ended
	Sep. 30, 2024
THE COMPANY [Abstract]
THE COMPANY	THE COMPANY DXP Enterprises, Inc. together with its subsidiaries (collectively "DXP," the "Company," "us," "we," or "our") was incorporated in Texas on July 26, 1996. DXP Enterprises, Inc. and its subsidiaries are engaged in the business of distributing maintenance, repair and operating ("MRO") products and services to a variety of end markets and business-to-business customers. Additionally, DXP provides integrated, custom pump skid packages, pump remanufacturing and manufactures branded private label pumps to energy and broad industrial customers. The Company is currently organized into three business segments: Service Centers ("SC"), Innovative Pumping Solutions ("IPS"), and Supply Chain Services ("SCS"). See Note 11 - Segment Reporting for discussion of the business segments.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES Basis of Presentation The Company's financial statements are prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). For interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission ("SEC") not all disclosures normally required in annual consolidated financial statements prepared in accordance with U.S. GAAP are required. The unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2023 that are included in our annual report on Form 10-K filed with the SEC on March 11, 2024 (“Annual Report”). Certain reclassifications were made to the prior year’s consolidated financial statements to conform to the current year presentation. Such reclassifications did not have a material effect on our consolidated statements of operations and comprehensive income, balance sheets, cash flows or equity. The results of operations for the nine months ended September 30, 2024 are not necessarily indicative of results expected for the full fiscal year. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary for the fair statement of the Company's financial position, results of operations and cash flows for the interim periods presented. All intercompany accounts and transactions have been eliminated in consolidation.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS The Company considers the applicability and impact of all Accounting Standard Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not listed within this Quarterly Report on Form 10-Q were assessed and determined as either not applicable or not material to the Company’s consolidated financial position or result of operations. Recent Accounting Standards or Updates Not Yet Effective Segment Reporting In November 2023, the FASB issued an accounting standard update that expands the disclosure requirements for reportable segments, primarily through enhanced disclosures around significant segment expenses. The accounting standard update will be effective for our fiscal 2024 Form 10-K on a retrospective basis, and early adoption is permitted. We are currently evaluating the impact of this accounting standard update on our segment disclosures. Improvements on Income Tax Disclosures In December 2023, the FASB issued an accounting standard update expanding the requirements for disclosure of disaggregated information about the effective tax rate reconciliation and income taxes paid. The accounting standard update will be effective for our fiscal 2025 Form 10-K. We are currently evaluating the impact of this accounting standard update on our income tax disclosures.

FAIR VALUE OF FINANCIAL ASSETS

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES	FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES Our acquisitions may include contingent consideration as part of the purchase price. The fair value of the contingent consideration is estimated as of the acquisition date based on the present value of the contingent payments to be made using a weighted probability of possible payments. The unobservable inputs used in the determination of the fair value of the contingent consideration include management's assumptions about the likelihood of payment based on the established benchmarks, discount rates, and an internal rate of return analysis. The fair value measurement includes inputs that are Level 3 inputs as they are not observable in the market. Should actual results increase or decrease as compared to the assumptions used in our analysis, the fair value of the contingent consideration obligations will increase or decrease, up to the contracted limit, as applicable. Changes in the fair value of the contingent consideration are measured each reporting period and reflected in our results of operations. During the nine months ended September 30, 2024, we recorded $11.3 million in other current and other long-term liabilities for contingent consideration associated with the recent acquisitions. The following table provides a reconciliation of the beginning and ending balances and gains or losses recognized during the nine months ended September 30, 2024 ( in thousands ): Contingent Consideration *Beginning balance at December 31, 2023 $ 8,753 Acquisitions ( Note 12 ) 11,306 Settlements (4,688) Total remeasurement adjustments: Changes in fair value recorded in other expense (income), net 380 *Ending Balance at September 30, 2024 $ 15,751 *Amounts included in other current liabilities were $7.5 million and $5.4 million for the periods ending September 30, 2024 and December 31, 2023, respectively. Amounts included in other long-term liabilities were $8.3 million and $3.4 million for the periods ending September 30, 2024 and December 31, 2023, respectively. Sensitivity to Changes in Significant Unobservable Inputs The significant Level 3 unobservable inputs used in the fair value measurement of contingent consideration related to the acquisitions are annualized EBITDA forecasts developed by the Company's management and the probability of achievement of those EBITDA results. The discount rate used in the calculations was 9.6 percent. Changes in our unobservable inputs in isolation would result in a change to our fair value measurement. As of September 30, 2024, the maximum amount of contingent consideration payable under these arrangements is $18.2 million over three years. Other financial instruments not measured at fair value on the Company's unaudited condensed consolidated balance sheets at September 30, 2024 and December 31, 2023, but which require disclosure of their fair values include: cash, restricted cash, accounts receivable, trade accounts payable and accrued expenses. The Company believes that the estimated fair value of such instruments at September 30, 2024 and December 31, 2023 approximates their carrying value as reported on the unaudited condensed consolidated balance sheets due to the relative short maturity of these instruments. See Note 8 - Long-term Debt for fair value disclosures on our asset-backed line of credit and term loan debt under our syndicated credit agreement facilities.

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES Inventories are made up of equipment purchased for resale, and materials utilized in the fabrication of industrial and wastewater equipment stated at lower of cost and net realizable value, primarily determined using the weighted average cost method. The Company reviews inventory and records provisions for the difference between cost and net realizable value arising from excess and obsolete items on hand based upon the aging of the inventories, market trends, and continued demand. The carrying values of inventories are as follows ( in thousands ): September 30, 2024 December 31, 2023 Finished goods $ 95,432 $ 94,031 Work in process 14,355 9,774 Inventories $ 109,787 $ 103,805

CONTRACT ASSETS AND LIABILITIES

CONTRACT ASSETS AND LIABILITIES	9 Months Ended
	Sep. 30, 2024
Contractors [Abstract]
CONTRACT ASSETS AND LIABILITIES	CONTRACT ASSETS AND LIABILITIES Under our customized pump production and water and wastewater project 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 "Costs and estimated profits in excess of billings". 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 unaudited condensed consolidated balance sheets. Costs and estimated profits on uncompleted contracts and related amounts billed were as follows ( in thousands ): September 30, 2024 December 31, 2023 Costs incurred on uncompleted contracts $ 119,971 $ 92,363 Estimated profits, thereon 52,241 37,379 Total costs and estimated profits on uncompleted contracts 172,212 129,742 Less: billings to date 134,418 96,928 Net $ 37,794 $ 32,814 Such amounts were included in the accompanying unaudited condensed consolidated balance sheets for September 30, 2024 and December 31, 2023 under the following captions ( in thousands ): September 30, 2024 December 31, 2023 Costs and estimated profits in excess of billings $ 49,707 $ 42,323 Billings in excess of costs and estimated profits (11,911) (9,506) Translation adjustment (2) (3) Net $ 37,794 $ 32,814 During the nine months ended September 30, 2024 and 2023, $5.3 million and $10.0 million of the balances that were previously classified as contract liabilities at the beginning of the period were recognized in revenues, respectively. Contract asset and liability changes were primarily due to normal activity and timing differences between our performance and customer payments.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Income tax expense during interim periods is based on our estimated annual effective income tax rate plus any discrete items, which are recorded in the period in which they occur. Our effective tax rate from continuing operations was a tax expense of 11.1 percent for the three months ended September 30, 2024 compared to a tax expense of 26.3 percent for the three months ended September 30, 2023. Compared to the U.S. statutory rate for the three months ended September 30, 2024, the effective tax rate was decreased by research and development tax credits and other tax credits and partially offset by state taxes, foreign taxes, nondeductible expenses, contingent consideration payments, and uncertain tax positions recorded for research and development tax credits. Our effective tax rate from continuing operations was a tax expense of 21.1 percent for the nine months ended September 30, 2024, compared to a tax expense of 26.8 percent for the nine months ended September 30, 2023. Compared to the U.S. statutory rate for the nine months ended September 30, 2024, the effective tax rate was decreased by research and development tax credits and other tax credits and partially offset by state taxes, foreign taxes, nondeductible expenses, contingent consideration payments, and uncertain tax positions recorded for research and development tax credits. To the extent penalties and interest would be assessed on any underpayment of income tax, such accrued amounts would be classified as a component of income tax provision (benefit) in the financial statements consistent with the Company’s policy. The Organization of Economic Cooperation and Development (OECD) continues to release additional guidance, including administrative guidance on how Pillar Two rules should be interpreted and applied by jurisdictions as they adopt Pillar Two. A number of countries have utilized the administrative guidance as a starting point for legislation that went into effect January 1, 2024. As of September 30, 2024, DXP anticipates the impact of Pillar Two to be immaterial to the Company based on current legislation that has been enacted to date.

LONG-TERM DEBT

LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT The components of the Company's long-term debt consisted of the following ( in thousands ): September 30, 2024 December 31, 2023 ABL Revolver $ — $ — Senior Secured Term Loan B due October 13, 2030 (1) 544,500 548,625 Total debt 544,500 548,625 Less: current maturities (5,500) (5,500) Total long-term debt $ 539,000 $ 543,125 Unamortized discount and debt issuance costs 19,750 22,428 Long-term debt, net of unamortized discount and debt issuance costs $ 519,250 $ 520,697 (1) The fair value of the Term Loan B due October 13, 2030 was $547.9 million and $554.1 million as of September 30, 2024 and December 31, 2023, respectively. Senior Secured Term Loan B: On October 13, 2023, the Company entered into an amendment on its existing Senior Secured Term Loan B (the "Term Loan Amendment"), which provides for, among other things, an additional $125 million in new incremental commitments. The Term Loan Amendment refinanced the existing Senior Term Loan B and replaced it with a new Senior Secured Term Loan B with total borrowings of $550.0 million. The new Senior Secured Term Loan B amortizes in equal quarterly installments of 0.25%, with the remaining balance being payable on October 13, 2030, when the facility matures. Deferred financing costs associated with the Term Loan Amendment were $11.7 million, which is being amortized to Interest expense using the interest method over the remaining maturity of the Senior Secured Term Loan B. The interest rate for the Senior Secured Term Loan B was 10.16% and 10.44% as of September 30, 2024 and December 31, 2023, respectively. In connection with the Term Loan Amendment the Company expensed third-party fees of $0.8 million and recognized a $1.2 million loss on debt extinguishment, which were included in Interest expense during 2023. Quarterly interest payments accrue on outstanding borrowings under the new Senior Secured Term Loan B at a rate equal to Term SOFR (with a floor of 1.00%) plus 4.75%, or base rate plus 3.75%. The new Senior Secured Term Loan B is guaranteed by each of the Company’s direct and indirect material wholly owned subsidiaries, other than any of the Company’s Canadian subsidiaries and certain other excluded subsidiaries. As of September 30, 2024 there was $544.5 million outstanding under the Senior Secured Term Loan B. The Company was in compliance with all financial covenants as of September 30, 2024. ABL Revolver: On July 19, 2022, the Company entered into an Amended and Restated Loan and Security Agreement (the “ABL Credit Agreement”) that provided for a $135.0 million asset-backed revolving line of credit (the "ABL Revolver"). Subject to the conditions set forth in the ABL Credit Agreement, the ABL Revolver may be increased in increments of $10.0 million up to an aggregate of $50.0 million. The ABL Revolver matures on July 19, 2027. Interest accrues on outstanding borrowings at a rate equal to SOFR plus a margin ranging from 1.25% to 1.75% per annum, or at an alternate base rate, Canadian prime rate or Canadian base rate plus a margin ranging from 0.25% to 0.75% per annum, in each case, based upon the average daily excess availability under the ABL Revolver for the most recently completed calendar quarter. Fees payable on the unused portion of the facility range from 0.25% to 0.375% per annum. At September 30, 2024 the unused line fee was 0.375% and there were no amounts outstanding under the ABL Revolver. As of September 30, 2024, the borrowing availability under our credit facility was $131.6 million compared to $132.1 million at December 31, 2023, primarily as a result of outstanding letters of credit. The interest rate for the ABL Revolver was 8.25% and 8.75% as of September 30, 2024 and December 31, 2023, respectively. As of September 30, 2024, the maturities of long-term debt for the next five years and thereafter were as follows ( in thousands ): Amount 2024 $ 1,375 2025 5,500 2026 5,500 2027 5,500 2028 5,500 Thereafter 521,125 Total $ 544,500

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Basic earnings per share is computed based on weighted average shares outstanding and excludes dilutive securities. Diluted earnings per share is computed including the impacts of all potentially dilutive securities. The following table sets forth the computation of basic and diluted earnings per share for the periods indicated ( in thousands, except per share data ): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Basic earnings per share: Weighted average shares outstanding 15,750 16,516 15,915 17,104 Net income attributable to DXP Enterprises, Inc. $ 21,101 $ 16,172 $ 49,126 $ 52,806 Convertible preferred stock dividend 23 22 68 67 Net income attributable to common shareholders $ 21,078 $ 16,150 $ 49,058 $ 52,739 Per share amount $ 1.34 $ 0.98 $ 3.08 $ 3.08 Diluted earnings per share: Weighted average shares outstanding 15,750 16,516 15,915 17,104 Assumed conversion of convertible preferred stock 840 840 840 840 Total dilutive shares 16,590 17,356 16,755 17,944 Net income attributable to common shareholders $ 21,078 $ 16,150 $ 49,058 $ 52,739 Convertible preferred stock dividend 23 22 68 67 Net income attributable to DXP Enterprises, Inc. $ 21,101 $ 16,172 $ 49,126 $ 52,806 Per share amount $ 1.27 $ 0.93 $ 2.93 $ 2.94

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES From time to time, the Company is a party to various legal proceedings arising in the ordinary course of business. While DXP is unable to predict the outcome or estimate the financial impact of these disputes, it believes that the ultimate resolution will not have, either individually or in the aggregate, a material adverse effect on DXP's consolidated financial position, cash flows, or results of operations.

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
SEGMENT REPORTING	SEGMENT REPORTING The Company's reportable business segments are: Service Centers ("SC"), Innovative Pumping Solutions ("IPS"), and Supply Chain Services ("SCS"). The Service Centers segment is engaged in providing MRO products, equipment and integrated services, including logistics capabilities, to business-to-business customers. The Service Centers segment provides a wide range of MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, 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 process lines 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. Sales are shown net of inter-segment eliminations. Our chief operating decision maker ("CODM") is the Chief Executive Officer. The Company's CODM directs the allocation of resources to operating or business segments based on revenue and operating income of each respective segment. 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, 2024, we moved certain branch locations previously reported under our IPS segment to our SC segment. Prior period segment disclosures have been recast. The following table sets out financial information related to the Company's segments excluding amortization ( in thousands ): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Sales Service Centers $ 316,831 $ 294,459 $ 911,783 $ 914,078 Innovative Pumping Solutions 89,825 58,962 225,417 158,440 Supply Chain Services 66,279 65,828 193,926 199,038 Total Sales $ 472,935 $ 419,249 $ 1,331,126 $ 1,271,556 Operating Income Service Centers $ 46,154 $ 41,912 $ 130,329 $ 134,549 Innovative Pumping Solutions 18,207 10,599 38,543 26,555 Supply Chain Services 5,568 5,589 16,653 16,519 Total Segments Operating Income $ 69,929 $ 58,100 $ 185,525 $ 177,623 The following table presents reconciliations of income from operations for reportable segments to the consolidated income before taxes ( in thousands ): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Income from operations for reportable segments $ 69,929 $ 58,100 $ 185,525 $ 177,623 Adjustment for: Amortization of intangible assets 5,245 5,866 14,333 15,206 Corporate expenses 25,076 16,378 65,101 53,682 Income from operations $ 39,608 $ 35,856 106,091 108,735 Interest expense 15,716 12,684 46,644 36,068 Other expense (income), net 160 1,234 (2,844) 522 Income before income taxes $ 23,732 $ 21,938 $ 62,291 $ 72,145

BUSINESS ACQUISITIONS

BUSINESS ACQUISITIONS	9 Months Ended
	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
BUSINESS ACQUISITIONS	BUSINESS ACQUISITIONS The Company enters into strategic acquisitions in an effort to better service existing customers and to attract new customers. The Company makes an initial allocation of the purchase price at the date of acquisition based upon its estimate of the fair value of the acquired assets and assumed liabilities. Subsequent to the acquisition, and not later than one year from the acquisition date, we will record any material adjustments to the initial estimate in the reporting period in which the adjustment amounts are determined based on facts and circumstances that existed as of the acquisition date, as applicable. A summary of the allocation of the total purchase consideration of our five business acquisitions during the nine months ended September 30, 2024 is presented as follows ( in thousands ): Purchase Price Consideration Cash payments $ 153,763 Future consideration 11,306 Total purchase price consideration 165,069 Net Tangible Assets Acquired 20,914 Purchased Intangible Assets 39,801 Goodwill $ 104,354 The total purchase consideration related to our acquisitions during the period consisted primarily of cash consideration. The total cash and cash equivalents acquired for these acquisitions was $4.5 million. Transaction-related costs included within selling, general, and administrative expenses in the consolidated statements of operations was $1.2 million for the nine months ended September 30, 2024. The goodwill total of approximately $104.4 million is attributable primarily to expected synergies and the assembled workforce of each entity and is generally not deductible for tax purposes. Goodwill assigned to our SC and IPS segments was $63.3 million and $41.0 million, respectively. The operating results of these acquisitions are included within the Company's consolidated statements of operations from the date of acquisition, which were not material for the three and nine months ended September 30, 2024. Pro forma results of operations information have not been presented, as the effects of the acquisitions were not material to our financial results.

COMMON STOCK AND SHARE REPURCHA

COMMON STOCK AND SHARE REPURCHASES	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
COMMON STOCK AND SHARE REPURCHASES	COMMON STOCK AND SHARE REPURCHASES The following is a summary of changes in outstanding common stock for the period indicated (in thousands ): Common stock outstanding at December 31, 2022 17,691 Common stock issued related to stock compensation expense (1) 193 Total number of shares purchased (1,707) Common stock outstanding at December 31, 2023 16,177 Common stock issued related to stock compensation expense (1) 84 Total number of shares purchased (566) Common stock outstanding at September 30, 2024 15,695 (1) The number of common stock issued represents issuance net of tax withholding. On December 15, 2022, the Company announced a new Share Repurchase Program pursuant to which it may repurchase up to $85.0 million worth, or 2.8 million shares, of the Company's outstanding common stock over the next 24 months from the date of the announcement. The Company completed the program in August 2024. On August 28, 2024, the Company announced a new Share Repurchase Program pursuant to which we may repurchase up to $85.0 million worth, or 2.5 million shares of the Company's outstanding common stock over the next 24 months Total consideration paid to repurchase the shares was recorded in shareholders’ equity as treasury stock. Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share data) 2024 2023 2024 2023 Total number of shares purchased 100 618 566 1,707 Amount paid $ 4,985 $ 21,508 $ 28,783 $ 54,721 Average price paid per share $ 49.85 $ 34.79 $ 50.87 $ 32.06

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	9 Months Ended
	Sep. 30, 2024
Supplemental Cash Flow Information [Abstract]
SUPPLEMENTAL CASH FLOW INFORMATION	SUPPLEMENTAL CASH FLOW INFORMATION Nine Months Ended September 30, (in thousands) 2024 2023 Supplemental disclosures of cash flow information: Cash paid for interest $ 43,966 $ 33,892 Cash paid for income taxes 17,911 20,298 Cash paid for finance lease liability 3,010 1,632 Non-cash investing and financing activities: Treasury shares repurchase accruals $ 225 $ 519

OTHER EXPENSE AND INCOME, NET

OTHER EXPENSE AND INCOME, NET	9 Months Ended
	Sep. 30, 2024
Other Income and Expenses [Abstract]
OTHER EXPENSE AND INCOME, NET	NOTE 15 - OTHER EXPENSE AND INCOME, NET The components of other expense (income), net were as followed: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Interest income (422) (202) (3,487) (1,053) Change in fair value of contingent consideration 685 663 380 1,502 Other, net (103) 773 263 73 Other expense (income), net 160 1,234 (2,844) 522

SUBSEQUENT EVENT

SUBSEQUENT EVENT	9 Months Ended
	Sep. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENT On October 3, 2024, the Company entered into an amendment (the “Third Term Loan Amendment”) on its existing Senior Secured Term Loan B, repricing and borrowing an incremental $105 million that was added to the existing Senior Secured Term Loan B. Including the new borrowings, the Company will have $649.5 million in Senior Secured Term Loan B borrowings. The new Senior Secured Term Loan B borrowings mature on October 13, 2030, and are priced at Term SOFR plus an applicable margin of 3.75 percent. On November 1, 2024, the Company completed the acquisitions of Burt Gurney & Associates and MaxVac Inc. DXP funded the acquisitions with cash on the balance sheet.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES (Policies)	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The Company's financial statements are prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). For interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission ("SEC") not all disclosures normally required in annual consolidated financial statements prepared in accordance with U.S. GAAP are required. The unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2023 that are included in our annual report on Form 10-K filed with the SEC on March 11, 2024 (“Annual Report”). Certain reclassifications were made to the prior year’s consolidated financial statements to conform to the current year presentation. Such reclassifications did not have a material effect on our consolidated statements of operations and comprehensive income, balance sheets, cash flows or equity. The results of operations for the nine months ended September 30, 2024 are not necessarily indicative of results expected for the full fiscal year. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary for the fair statement of the Company's financial position, results of operations and cash flows for the interim periods presented.
Consolidation	All intercompany accounts and transactions have been eliminated in consolidation.
Recent Accounting Standards or Updates Not Yet Effective	The Company considers the applicability and impact of all Accounting Standard Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not listed within this Quarterly Report on Form 10-Q were assessed and determined as either not applicable or not material to the Company’s consolidated financial position or result of operations. Recent Accounting Standards or Updates Not Yet Effective Segment Reporting In November 2023, the FASB issued an accounting standard update that expands the disclosure requirements for reportable segments, primarily through enhanced disclosures around significant segment expenses. The accounting standard update will be effective for our fiscal 2024 Form 10-K on a retrospective basis, and early adoption is permitted. We are currently evaluating the impact of this accounting standard update on our segment disclosures. Improvements on Income Tax Disclosures In December 2023, the FASB issued an accounting standard update expanding the requirements for disclosure of disaggregated information about the effective tax rate reconciliation and income taxes paid. The accounting standard update will be effective for our fiscal 2025 Form 10-K. We are currently evaluating the impact of this accounting standard update on our income tax disclosures.
Fair Value of Financial Assets and Liabilities	FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES Our acquisitions may include contingent consideration as part of the purchase price. The fair value of the contingent consideration is estimated as of the acquisition date based on the present value of the contingent payments to be made using a weighted probability of possible payments. The unobservable inputs used in the determination of the fair value of the contingent consideration include management's assumptions about the likelihood of payment based on the established benchmarks, discount rates, and an internal rate of return analysis. The fair value measurement includes inputs that are Level 3 inputs as they are not observable in the market. Should actual results increase or decrease as compared to the assumptions used in our analysis, the fair value of the contingent consideration obligations will increase or decrease, up to the contracted limit, as applicable. Changes in the fair value of the contingent consideration are measured each reporting period and reflected in our results of operations.

FAIR VALUE OF FINANCIAL ASSET_2

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of Reconciliation of the Beginning and Ending Balance and Gains or Losses Recognized	The following table provides a reconciliation of the beginning and ending balances and gains or losses recognized during the nine months ended September 30, 2024 ( in thousands ): Contingent Consideration *Beginning balance at December 31, 2023 $ 8,753 Acquisitions ( Note 12 ) 11,306 Settlements (4,688) Total remeasurement adjustments: Changes in fair value recorded in other expense (income), net 380 *Ending Balance at September 30, 2024 $ 15,751 *Amounts included in other current liabilities were $7.5 million and $5.4 million for the periods ending September 30, 2024 and December 31, 2023, respectively. Amounts included in other long-term liabilities were $8.3 million and $3.4 million for the periods ending September 30, 2024 and December 31, 2023, respectively.

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
Schedule of Carrying Values of Inventories	The carrying values of inventories are as follows ( in thousands ): September 30, 2024 December 31, 2023 Finished goods $ 95,432 $ 94,031 Work in process 14,355 9,774 Inventories $ 109,787 $ 103,805

CONTRACT ASSETS AND LIABILITI_2

CONTRACT ASSETS AND LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2024
Contractors [Abstract]
Schedule of Costs and Estimated Profits on Uncompleted Contracts Included in Condensed Consolidated Balance Sheets	Costs and estimated profits on uncompleted contracts and related amounts billed were as follows ( in thousands ): September 30, 2024 December 31, 2023 Costs incurred on uncompleted contracts $ 119,971 $ 92,363 Estimated profits, thereon 52,241 37,379 Total costs and estimated profits on uncompleted contracts 172,212 129,742 Less: billings to date 134,418 96,928 Net $ 37,794 $ 32,814 Such amounts were included in the accompanying unaudited condensed consolidated balance sheets for September 30, 2024 and December 31, 2023 under the following captions ( in thousands ): September 30, 2024 December 31, 2023 Costs and estimated profits in excess of billings $ 49,707 $ 42,323 Billings in excess of costs and estimated profits (11,911) (9,506) Translation adjustment (2) (3) Net $ 37,794 $ 32,814

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Schedule of Components of Company's Long-term Debt	The components of the Company's long-term debt consisted of the following ( in thousands ): September 30, 2024 December 31, 2023 ABL Revolver $ — $ — Senior Secured Term Loan B due October 13, 2030 (1) 544,500 548,625 Total debt 544,500 548,625 Less: current maturities (5,500) (5,500) Total long-term debt $ 539,000 $ 543,125 Unamortized discount and debt issuance costs 19,750 22,428 Long-term debt, net of unamortized discount and debt issuance costs $ 519,250 $ 520,697 (1) The fair value of the Term Loan B due October 13, 2030 was $547.9 million and $554.1 million as of September 30, 2024 and December 31, 2023, respectively.
Schedule of Maturities of Long-Term Debt	As of September 30, 2024, the maturities of long-term debt for the next five years and thereafter were as follows ( in thousands ): Amount 2024 $ 1,375 2025 5,500 2026 5,500 2027 5,500 2028 5,500 Thereafter 521,125 Total $ 544,500

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Earnings per Share	The following table sets forth the computation of basic and diluted earnings per share for the periods indicated ( in thousands, except per share data ): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Basic earnings per share: Weighted average shares outstanding 15,750 16,516 15,915 17,104 Net income attributable to DXP Enterprises, Inc. $ 21,101 $ 16,172 $ 49,126 $ 52,806 Convertible preferred stock dividend 23 22 68 67 Net income attributable to common shareholders $ 21,078 $ 16,150 $ 49,058 $ 52,739 Per share amount $ 1.34 $ 0.98 $ 3.08 $ 3.08 Diluted earnings per share: Weighted average shares outstanding 15,750 16,516 15,915 17,104 Assumed conversion of convertible preferred stock 840 840 840 840 Total dilutive shares 16,590 17,356 16,755 17,944 Net income attributable to common shareholders $ 21,078 $ 16,150 $ 49,058 $ 52,739 Convertible preferred stock dividend 23 22 68 67 Net income attributable to DXP Enterprises, Inc. $ 21,101 $ 16,172 $ 49,126 $ 52,806 Per share amount $ 1.27 $ 0.93 $ 2.93 $ 2.94

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
Schedule of Financial Information Regarding Company's Segments	The following table sets out financial information related to the Company's segments excluding amortization ( in thousands ): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Sales Service Centers $ 316,831 $ 294,459 $ 911,783 $ 914,078 Innovative Pumping Solutions 89,825 58,962 225,417 158,440 Supply Chain Services 66,279 65,828 193,926 199,038 Total Sales $ 472,935 $ 419,249 $ 1,331,126 $ 1,271,556 Operating Income Service Centers $ 46,154 $ 41,912 $ 130,329 $ 134,549 Innovative Pumping Solutions 18,207 10,599 38,543 26,555 Supply Chain Services 5,568 5,589 16,653 16,519 Total Segments Operating Income $ 69,929 $ 58,100 $ 185,525 $ 177,623
Schedule of Reconciliation of Operating Income for Reportable Segments to Consolidated Income Before Taxes	The following table presents reconciliations of income from operations for reportable segments to the consolidated income before taxes ( in thousands ): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Income from operations for reportable segments $ 69,929 $ 58,100 $ 185,525 $ 177,623 Adjustment for: Amortization of intangible assets 5,245 5,866 14,333 15,206 Corporate expenses 25,076 16,378 65,101 53,682 Income from operations $ 39,608 $ 35,856 106,091 108,735 Interest expense 15,716 12,684 46,644 36,068 Other expense (income), net 160 1,234 (2,844) 522 Income before income taxes $ 23,732 $ 21,938 $ 62,291 $ 72,145

BUSINESS ACQUISITIONS (Tables)

BUSINESS ACQUISITIONS (Tables)	9 Months Ended
	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Schedule of Purchase Price Consideration	A summary of the allocation of the total purchase consideration of our five business acquisitions during the nine months ended September 30, 2024 is presented as follows ( in thousands ): Purchase Price Consideration Cash payments $ 153,763 Future consideration 11,306 Total purchase price consideration 165,069 Net Tangible Assets Acquired 20,914 Purchased Intangible Assets 39,801 Goodwill $ 104,354

COMMON STOCK AND SHARE REPURC_2

COMMON STOCK AND SHARE REPURCHASES (Tables)	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
Summary of Changes in Outstanding Common Stock	The following is a summary of changes in outstanding common stock for the period indicated (in thousands ): Common stock outstanding at December 31, 2022 17,691 Common stock issued related to stock compensation expense (1) 193 Total number of shares purchased (1,707) Common stock outstanding at December 31, 2023 16,177 Common stock issued related to stock compensation expense (1) 84 Total number of shares purchased (566) Common stock outstanding at September 30, 2024 15,695 (1) The number of common stock issued represents issuance net of tax withholding.
Schedule of Share Repurchase	Total consideration paid to repurchase the shares was recorded in shareholders’ equity as treasury stock. Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share data) 2024 2023 2024 2023 Total number of shares purchased 100 618 566 1,707 Amount paid $ 4,985 $ 21,508 $ 28,783 $ 54,721 Average price paid per share $ 49.85 $ 34.79 $ 50.87 $ 32.06

SUPPLEMENTAL CASH FLOW INFORM_2

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2024
Supplemental Cash Flow Information [Abstract]
Supplemental Disclosures of Cash Flow Information	Nine Months Ended September 30, (in thousands) 2024 2023 Supplemental disclosures of cash flow information: Cash paid for interest $ 43,966 $ 33,892 Cash paid for income taxes 17,911 20,298 Cash paid for finance lease liability 3,010 1,632 Non-cash investing and financing activities: Treasury shares repurchase accruals $ 225 $ 519

OTHER EXPENSE AND INCOME, NET (

OTHER EXPENSE AND INCOME, NET (Tables)	9 Months Ended
	Sep. 30, 2024
Other Income and Expenses [Abstract]
Schedule of Other Nonoperating Income (Expense)	The components of other expense (income), net were as followed: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Interest income (422) (202) (3,487) (1,053) Change in fair value of contingent consideration 685 663 380 1,502 Other, net (103) 773 263 73 Other expense (income), net 160 1,234 (2,844) 522

THE COMPANY (Details)

THE COMPANY (Details)	9 Months Ended
	Sep. 30, 2024 segment
THE COMPANY [Abstract]
Number of business segments	3

FAIR VALUE OF FINANCIAL ASSET_3

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES - Narrative (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maximum contingent consideration payable	$ 18,200
Contingent consideration payable, period	3 years
Fair Value, Inputs, Level 3 | PMI, Burlingame, Drydon, Cisco and Sullivan | Valuation Technique, Discounted Cash Flow And Weighted Probability Of Possible Payments | Annualized EBITDA And Probability Of Achievement | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	0.096
Fair Value, Inputs, Level 3 | Contingent Consideration Liability | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Acquisitions	$ 11,306

FAIR VALUE OF FINANCIAL ASSET_4

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES - Reconciliation of Beginning and Ending Balances (Details) - Fair Value, Measurements, Recurring - Fair Value, Inputs, Level 3 - Contingent Consideration Liability $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Contingent Consideration
Beginning balance	$ 8,753
Acquisitions	11,306
Settlements	(4,688)
Changes in fair value recorded in other expense (income), net	380
Ending Balance	15,751
Other Current Liabilities
Contingent Consideration
Beginning balance	5,400
Ending Balance	7,500
Other Noncurrent Liabilities
Contingent Consideration
Beginning balance	3,400
Ending Balance	$ 8,300

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Finished goods	$ 95,432	$ 94,031
Work in process	14,355	9,774
Inventories	$ 109,787	$ 103,805

CONTRACT ASSETS AND LIABILITI_3

CONTRACT ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Schedule of costs and estimated earnings on uncompleted contracts [Abstract]
Costs incurred on uncompleted contracts	$ 119,971		$ 92,363
Estimated profits, thereon	52,241		37,379
Total costs and estimated profits on uncompleted contracts	172,212		129,742
Less: billings to date	134,418		96,928
Net	37,794		32,814
Schedule of Costs and Estimated Earnings on Uncompleted Contracts Included in Condensed Consolidated Balance Sheets [Abstract]
Costs and estimated profits in excess of billings	49,707		42,323
Billings in excess of costs and estimated profits	(11,911)		(9,506)
Translation adjustment	(2)		(3)
Net	37,794		$ 32,814
Balances previously classified as contract liabilities at the beginning of the period that have shipped	$ 5,300	$ 10,000

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Effective tax rate from continuing operations, expense (benefit)	11.10%	26.30%	21.10%	26.80%

LONG-TERM DEBT - Components of

LONG-TERM DEBT - Components of Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Borrowings [Abstract]
Unamortized discount and debt issuance costs	$ 19,750	$ 22,428
Long-term debt, net of unamortized discount and debt issuance costs	519,250	520,697
Carrying Value
Borrowings [Abstract]
Total debt	544,500	548,625
Less: current maturities	(5,500)	(5,500)
Total long-term debt	539,000	543,125
Long-term debt, net of unamortized discount and debt issuance costs	519,250	520,697
Carrying Value | ABL Revolver
Borrowings [Abstract]
Total debt	0	0
Carrying Value | Senior Secured Term Loan B due October 13, 2030
Borrowings [Abstract]
Total debt	544,500	548,625
Fair Value | Senior Secured Term Loan B due October 13, 2030
Borrowings [Abstract]
Total debt	$ 547,900	$ 554,100

LONG-TERM DEBT - Narrative (Det

LONG-TERM DEBT - Narrative (Details) - USD ($)			9 Months Ended	12 Months Ended
	Oct. 13, 2023	Jul. 19, 2022	Sep. 30, 2024	Dec. 31, 2023
Secured Debt | Senior Secured Term Loan B
Debt Instrument [Line Items]
Increase in borrowing capacity	$ 125,000,000
Debt issued	$ 550,000,000
Quarterly installments of term loan payable	0.25%
Financing costs			$ 11,700,000
Interest rate			10.16%	10.44%
Third-party fees				$ 800,000
Loss on debt extinguishment				$ 1,200,000
Margin rate	4.75%
Secured Debt | Senior Secured Term Loan B | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Variable rate floor	1%
Secured Debt | Senior Secured Term Loan B | Base Rate
Debt Instrument [Line Items]
Margin rate	3.75%
Asset-backed Revolving Line of Credit | ABL Revolver
Debt Instrument [Line Items]
Interest rate			8.25%	8.75%
Maximum borrowing capacity under credit agreement		$ 135,000,000
Increase in borrowing capacity under credit agreement		50,000,000
Minimum increments under credit agreement		$ 10,000,000
Commitment fee percentage			0.375%
Amount outstanding under credit facility			$ 0
Borrowing capacity			$ 131,600,000	$ 132,100,000
Asset-backed Revolving Line of Credit | ABL Revolver | Minimum
Debt Instrument [Line Items]
Commitment fee percentage		0.25%
Asset-backed Revolving Line of Credit | ABL Revolver | Maximum
Debt Instrument [Line Items]
Commitment fee percentage		0.375%
Asset-backed Revolving Line of Credit | ABL Revolver | Secured Overnight Financing Rate (SOFR) Or Canadian Dollar Offered Rate (CDOR) | Minimum
Debt Instrument [Line Items]
Margin rate		1.25%
Asset-backed Revolving Line of Credit | ABL Revolver | Secured Overnight Financing Rate (SOFR) Or Canadian Dollar Offered Rate (CDOR) | Maximum
Debt Instrument [Line Items]
Margin rate		1.75%
Asset-backed Revolving Line of Credit | ABL Revolver | Canadian Prime Rate Or Canadian Base Rate | Minimum
Debt Instrument [Line Items]
Margin rate		0.25%
Asset-backed Revolving Line of Credit | ABL Revolver | Canadian Prime Rate Or Canadian Base Rate | Maximum
Debt Instrument [Line Items]
Margin rate		0.75%

LONG-TERM DEBT - Maturities of

LONG-TERM DEBT - Maturities of Long-term Debt (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Debt Disclosure [Abstract]
2024	$ 1,375
2025	5,500
2026	5,500
2027	5,500
2028	5,500
Thereafter	521,125
Total	$ 544,500

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Basic earnings per share:
Weighted average shares outstanding (in shares)	15,750			16,516			15,915	17,104
Net income attributable to DXP Enterprises, Inc.	$ 21,101	$ 16,693	$ 11,332	$ 16,172	$ 19,054	$ 17,580	$ 49,126	$ 52,806
Convertible preferred stock dividend	23			22			68	67
Net income attributable to common shareholders	$ 21,078			$ 16,150			$ 49,058	$ 52,739
Per share amount (in dollars per share)	$ 1.34			$ 0.98			$ 3.08	$ 3.08
Diluted earnings per share:
Weighted average shares outstanding (in shares)	15,750			16,516			15,915	17,104
Assumed conversion of convertible preferred stock (in shares)	840			840			840	840
Total dilutive shares (in shares)	16,590			17,356			16,755	17,944
Net income attributable to common shareholders	$ 21,078			$ 16,150			$ 49,058	$ 52,739
Convertible preferred stock dividend	23			22			68	67
Net income attributable to DXP Enterprises, Inc.	$ 21,101			$ 16,172			$ 49,126	$ 52,806
Per share amount (in dollars per share)	$ 1.27			$ 0.93			$ 2.93	$ 2.94

SEGMENT REPORTING - Financial I

SEGMENT REPORTING - Financial Information of Company's Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information, Profit (Loss) [Abstract]
Total Sales	$ 472,935	$ 419,249	$ 1,331,126	$ 1,271,556
Total Segments Operating Income	69,929	58,100	185,525	177,623
Service Centers
Segment Reporting Information, Profit (Loss) [Abstract]
Total Sales	316,831	294,459	911,783	914,078
Total Segments Operating Income	46,154	41,912	130,329	134,549
Innovative Pumping Solutions
Segment Reporting Information, Profit (Loss) [Abstract]
Total Sales	89,825	58,962	225,417	158,440
Total Segments Operating Income	18,207	10,599	38,543	26,555
Supply Chain Services
Segment Reporting Information, Profit (Loss) [Abstract]
Total Sales	66,279	65,828	193,926	199,038
Total Segments Operating Income	$ 5,568	$ 5,589	$ 16,653	$ 16,519

SEGMENT REPORTING - Reconciliat

SEGMENT REPORTING - Reconciliation of Operating Income to Consolidated Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information, Operating Income (Loss) [Abstract]
Income from operations for reportable segments	$ 69,929	$ 58,100	$ 185,525	$ 177,623
Adjustment for:
Amortization of intangible assets	5,245	5,866	14,333	15,206
Corporate expenses	25,076	16,378	65,101	53,682
Income from operations	39,608	35,856	106,091	108,735
Interest expense	15,716	12,684	46,644	36,068
Other expense (income), net	160	1,234	(2,844)	522
Income before income taxes	$ 23,732	$ 21,938	$ 62,291	$ 72,145

BUSINESS ACQUISITIONS - Purchas

BUSINESS ACQUISITIONS - Purchase Price Consideration (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Goodwill	$ 448,103	$ 343,991
Acquisitions 2024
Business Acquisition [Line Items]
Cash payments	153,763
Future consideration	11,306
Total purchase price consideration	165,069
Net Tangible Assets Acquired	20,914
Purchased Intangible Assets	39,801
Goodwill	$ 104,354

BUSINESS ACQUISITIONS - Narrati

BUSINESS ACQUISITIONS - Narrative (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($) business_acquired	Dec. 31, 2023 USD ($)
Business Acquisition [Line Items]
Number of acquisitions | business_acquired	5
Acquisition related costs	$ 1,200
Goodwill	448,103	$ 343,991
Service Centers
Business Acquisition [Line Items]
Goodwill	63,300
Innovative Pumping Solutions
Business Acquisition [Line Items]
Goodwill	41,000
Acquisitions 2024
Business Acquisition [Line Items]
Cash	4,500
Goodwill	104,354
Purchased Intangible Assets	39,801
Acquisitions 2024 | Non-compete agreements
Business Acquisition [Line Items]
Purchased Intangible Assets	$ 2,200
Amortization period of acquired intangible assets (in years)	5 years
Acquisitions 2024 | Trade names
Business Acquisition [Line Items]
Purchased Intangible Assets	$ 3,700
Amortization period of acquired intangible assets (in years)	10 years
Acquisitions 2024 | Customer relationships
Business Acquisition [Line Items]
Purchased Intangible Assets	$ 33,900
Amortization period of acquired intangible assets (in years)	8 years

COMMON STOCK AND SHARE REPURC_3

COMMON STOCK AND SHARE REPURCHASES - Summary of Changes in Outstanding Common Stock (Details) - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock outstanding at beginning of period (in shares)	16,177,237
Common stock outstanding at end of period (in shares)	15,694,883	16,177,237
Common stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock outstanding at beginning of period (in shares)	16,177,000	17,691,000
Common stock issued related to stock compensation expense (in shares)	84,000	193,000
Total number of shares repurchased (in shares)	(566,000)	(1,707,000)
Common stock outstanding at end of period (in shares)	15,695,000	16,177,000

COMMON STOCK AND SHARE REPURC_4

COMMON STOCK AND SHARE REPURCHASES - Narrative (Details) - USD ($) shares in Millions, $ in Millions	Aug. 28, 2024	Dec. 15, 2022
Share Repurchase Program December 2022
Class of Stock [Line Items]
Share repurchase period (in months)		24 months
Share Repurchase Program December 2022 | Common stock
Class of Stock [Line Items]
Share repurchase, amount authorized		$ 85
Shares repurchase, shares authorized (in shares)		2.8
Share Repurchase Program August 2024
Class of Stock [Line Items]
Share repurchase period (in months)	24 months
Share Repurchase Program August 2024 | Common stock
Class of Stock [Line Items]
Share repurchase, amount authorized	$ 85
Shares repurchase, shares authorized (in shares)	2.5

COMMON STOCK AND SHARE REPURC_5

COMMON STOCK AND SHARE REPURCHASES - Schedule of Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Class of Stock [Line Items]
Amount paid	$ 5,030	$ 7,058	$ 16,920	$ 22,027	$ 25,053	$ 9,135
Common stock
Class of Stock [Line Items]
Total number of shares repurchased (in shares)	100,000			618,000			566,000	1,707,000
Amount paid	$ 4,985			$ 21,508			$ 28,783	$ 54,721
Average price paid per share (in dollars per share)	$ 49.85			$ 34.79			$ 50.87	$ 32.06

SUPPLEMENTAL CASH FLOW INFORM_3

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Supplemental disclosures of cash flow information:
Cash paid for interest	$ 43,966	$ 33,892
Cash paid for income taxes	17,911	20,298
Cash paid for finance lease liability	3,010	1,632
Non-cash investing and financing activities:
Treasury shares repurchase accruals	$ 225	$ 519

OTHER EXPENSE AND INCOME, NET_2

OTHER EXPENSE AND INCOME, NET (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Other Income and Expenses [Abstract]
Interest income	$ (422)	$ (202)	$ (3,487)	$ (1,053)
Change in fair value of contingent consideration	685	663	380	1,502
Other, net	(103)	773	263	73
Other expense (income), net	$ 160	$ 1,234	$ (2,844)	$ 522

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - USD ($) $ in Thousands	Oct. 03, 2024	Oct. 13, 2023	Sep. 30, 2024	Dec. 31, 2023
Carrying Value
Subsequent Event [Line Items]
Total debt			$ 544,500	$ 548,625
Senior Secured Term Loan B | Carrying Value
Subsequent Event [Line Items]
Total debt			$ 544,500	$ 548,625
Secured Debt | Senior Secured Term Loan B
Subsequent Event [Line Items]
Increase in borrowing capacity		$ 125,000
Margin rate		4.75%
Subsequent Event | Senior Secured Term Loan B | Carrying Value
Subsequent Event [Line Items]
Total debt	$ 649,500
Subsequent Event | Secured Debt | Senior Secured Term Loan B
Subsequent Event [Line Items]
Increase in borrowing capacity	$ 105,000
Margin rate	375%