DXP Enterprises, Inc. (DXPE) 2026 Q1 法說會逐字稿

Hello, everyone. Thank you for joining us, and welcome to DXP Enterprises first quarter 2026 earnings call. (Operator Instructions) I will now hand the conference over to David Little, CEO. David, please go ahead.

各位好。感謝各位加入我們，歡迎參加 DXP Enterprises 2026 會計年度第一季財報電話會議。(接線員指示) 現在我將把會議交給執行長 David Little。David，請開始。

Yes. Actually, Samantha, this is Kent Yee, Chief Financial Officer. I'll walk through a few comments, and then we'll hand it over to David Little, our CEO and Chairman.

是的。其實，Samantha，我是財務長 Kent Yee。我會先說明幾點，接著再交給我們的執行長兼董事長 David Little。

Before we get started, I want to remind you that today's call is being webcast and recorded and includes forward-looking statements. Actual results may differ materially from those contemplated by these forward-looking statements. A detailed discussion of the many factors that we believe may have a material effect on our business on an ongoing basis are contained in our SEC filings. DXP assumes no obligation to update that information because of new information or future events.

在開始之前，我想提醒各位，今天的電話會議將以網路直播並錄音，且包含前瞻性陳述。實際結果可能與這些前瞻性陳述所預期者有重大差異。我們認為可能對本公司業務持續產生重大影響的多項因素之詳細討論，載於我們向 SEC 提交的文件中。DXP 不承擔因新資訊或未來事件而更新該等資訊之義務。

During this call, we may present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our earnings press release. The press release and an accompanying investor presentation are now available on our website at ir.dxpe.com.

在本次電話會議中，我們可能同時呈現 GAAP 與非 GAAP 財務衡量指標。GAAP 與非 GAAP 指標之調節表已包含於我們的財報新聞稿中。該新聞稿及隨附的投資人簡報目前已公布於我們網站 ir.dxpe.com。

I will now turn the call over to David Little, our Chairman and CEO, to provide his thoughts and a summary of our first quarter performance and financial results. David?

現在我將把電話會議交給我們的董事長兼執行長 David Little，請他分享看法並總結第一季營運表現與財務結果。David？

Good afternoon, and thanks for joining us today on DXP's fiscal 2026 first quarter conference call. Well, we've delivered a slow start to 2026, especially sales in January, which improved in February and improved to a greater extent in March. We are not sure why sales in January were so soft, but glad to see the growth in the other two months and the growth in bookings during the quarter plus continuing in April. We also maintained gross margin discipline, generated meaningful free cash flow that gives us confidence in the quarters ahead.

各位下午好，感謝各位今天參加 DXP 2026 會計年度第一季電話會議。我們在 2026 年的開局較為緩慢，尤其是一月的銷售表現；二月有所改善，三月改善幅度更大。我們不確定一月銷售為何如此疲弱，但很高興看到後兩個月的成長，以及本季訂單成長並在四月持續。我們也維持毛利率紀律，並創造可觀的自由現金流，讓我們對未來幾季更有信心。

From an earnings standpoint, the quarter included increased interest expense, amortization and a few discrete items in SG&A like health care, legal, audit-related costs tied to our acquisition activity, which we view are timing and will normalize and are not reflected of our underlying earning power. Our strategy remains simple and consistent: be customer-driven experts, execute operationally, grow where we have competitive advantage, allocate capital in a disciplined way. This quarter reflects steady execution across our diversified platforms. We grew sales nearly 10%, expanded gross profit margins, delivered EBITDA margins above 11%, all the while generating strong cash flow.

就獲利面而言，本季包含利息費用增加、攤銷，以及 SG&A 中一些離散項目，例如醫療保健、法律、與併購活動相關的審計成本；我們認為這些屬於時點因素，將會正常化，且不代表我們的基本獲利能力。我們的策略仍然簡單且一致：以客戶為導向的專家定位、落實營運執行、在具競爭優勢之處成長、以紀律方式配置資本。本季反映我們在多元化平台上的穩健執行。我們的銷售成長近 10%，毛利率擴張，EBITDA 利潤率超過 11%，同時創造強勁現金流。

On behalf of the 3,497 DXPeople you can trust, I want to thank our customers, suppliers and shareholders for their continued trust and support. Our team continues to execute with consistency. We remain focused on profitable growth and cash generation. Consolidated performance in the first quarter, sales were $521.7 million, up 9.5% year-over-year. Sales per business day increased to $8.28 million from $7.57 million.

我代表 3,497 位值得信賴的 DXPeople，感謝我們的客戶、供應商與股東持續的信任與支持。我們的團隊持續穩健一致地執行。我們仍專注於獲利性成長與現金創造。第一季合併表現方面，銷售額為 5.217 億美元，年增 9.5%。每個營業日銷售額由 757 萬美元提升至 828 萬美元。

Gross profit margins expanded 32.3%, nearly 80 basis points higher. Adjusted EBITDA was $57.8 million or 11.1% margin. Operating income totaled $42.5 million. Adjusted diluted earnings per share was $1.26. Free cash flow was $26.3 million.

毛利率擴張至 32.3%，提高近 80 個基點。調整後 EBITDA 為 5,780 萬美元，利潤率 11.1%。營業利益合計 4,250 萬美元。調整後稀釋每股盈餘為 1.26 美元。自由現金流為 2,630 萬美元。

These results are driven by a combination of organic growth, favorable mix, operating execution and contributions from accretive acquisitions. Margin performance reflects pricing discipline, cost controls and ongoing shift towards higher-value products, engineered solutions and services. SG&A was higher year-over-year due to several unique and some nonrecurring items, including health care, claims, volatility, legal and audit costs tied to acquisitions and other onetime expenses. We expected those to normalize as the year progresses, and we remain focused on managing SG&A while continuing to invest in growth initiatives that generate acceptable returns.

這些結果來自有機成長、有利的產品組合、營運執行，以及具增益性的併購貢獻等多重因素。利潤率表現反映定價紀律、成本控管，以及持續轉向更高價值產品、工程解決方案與服務。SG&A 年增主要因數項獨特且部分為非經常性項目，包括醫療保健、理賠波動、法律與與併購相關的審計成本，以及其他一次性費用。我們預期這些將隨年度推進而正常化；同時我們仍專注於管理 SG&A，並持續投資於可帶來可接受報酬的成長計畫。

From a growth standpoint, we continue to lean into markets where demand is durable and where DXP's capabilities matter. water and wastewater, energy infrastructure, general industry. Selected technology-driven markets like data centers and air compression continue to provide attractive long-term demand drivers. Across DXP, growth is coming from several consistent themes: expanding technical and engineered solutions, broadening solutions around pumps, automation, filtration and process equipment, leveraging our decentralized model to pursue local growth opportunities and cross-selling across platforms and integrating acquisitions more effectively. We are not chasing volume for volume's sake. Growth is targeted at areas where we can maintain margins, generate cash and deepen our customer relationships.

就成長而言，我們持續加碼需求具韌性且 DXP 能力能發揮關鍵作用的市場：水與廢水、能源基礎設施、一般工業。部分以科技驅動的市場（如資料中心與空氣壓縮）持續提供具吸引力的長期需求動能。在 DXP 各事業中，成長來自幾個一致主題：擴大技術與工程解決方案、強化泵浦、自動化、過濾與製程設備等解決方案、運用我們的分權模式追求在地成長機會並跨平台交叉銷售，以及更有效整合併購。我們不會為了量而追量。成長鎖定在我們能維持利潤率、創造現金並深化客戶關係的領域。

Thank you, DXP sales and operational professionals for teaming up together and winning for our customers and stakeholders. Thank you to our corporate support for their efforts to support both internal and external customers. Segment performance, Innovative Pumping Solutions continues to deliver engineering solutions that matter. Sales increased 37.7% to $111.7 million. Growth was driven by energy-related and water and wastewater activity, along with contributions from recent acquisitions.

感謝 DXP 的銷售與營運專業團隊攜手合作，為客戶與利害關係人贏得成果。也感謝公司後勤支援團隊，致力於支援內外部客戶。就部門表現而言，Innovative Pumping Solutions 持續提供具關鍵價值的工程解決方案。銷售額成長 37.7% 至 1.117 億美元。成長動能來自能源相關與水及廢水活動，以及近期併購的貢獻。

Bookings and backlog in energy infrastructure remain above long-term averages, and we're encouraged by the traction we're seeing early in fiscal 2026. Many of these engineered solutions are large multi-quarter in nature, which support revenue visibility and backlog conversion moving forward.

能源基礎設施的接單與在手訂單仍高於長期平均，我們對 2026 會計年度初期所見的進展感到鼓舞。其中許多工程解決方案屬於大型、跨多季的專案，有助於提升營收能見度並推動未來在手訂單轉換。

We also continue to build scale in water and wastewater markets within IPS, where municipal infrastructure investments and regulatory requirements create long-cycle demand for pumps and treatment solutions. Service Centers produced 3.3% total sales growth. This segment continues to benefit from its diversification across end markets and its product -- multi-product, MRO-focused model. Growing is coming from technical products such as automation, vacuum pumps, filtration, newer pump brands serving water and industrial applications. We are also seeing demand improvements in markets like air compression and data centers, where customers need reliable systems for pumping, cooling, power and filtration areas where DXP can provide bundled solutions rather than just individual components.

我們也持續在 IPS 內的水與廢水市場擴大規模；在該市場中，市政基礎設施投資與法規要求帶來對泵浦與處理解決方案的長週期需求。Service Centers 的總銷售成長 3.3%。該部門持續受惠於終端市場多元化，以及其多產品、以 MRO 為核心的模式。成長來自自動化、真空泵、過濾等技術型產品，以及服務水務與工業應用的新泵浦品牌。我們也看到空氣壓縮與資料中心等市場需求改善；客戶需要可靠的泵送、冷卻、電力與過濾系統，而這些正是 DXP 能提供整合式解決方案、而非僅提供單一零組件的領域。

Supply Chain Services grew 2.7% year-over-year and 6.2% sequentially. This business continues to onboard new customers. As we have discussed before, implementation timing and facility level ramp-up can create temporary variability, but demand for US SCS' technology that enables integrated supply solutions continues to build. The sales pipeline remains encouraging, and we expect performance to improve gradually on onboarding mature and program volume scale.

Supply Chain Services 年增 2.7%，季增 6.2%。該業務持續導入新客戶。如同我們先前所討論，導入時程與廠區層級的爬坡可能造成短期波動，但市場對 US SCS 之技術（可實現整合式供應解決方案）的需求仍在累積。銷售管線仍令人鼓舞，我們預期隨著導入客戶成熟與專案量規模化，表現將逐步改善。

Cash flow and capital discipline and balance sheet. Cash generation remains a core focus for DXP. In the first quarter, we generated $29.6 million in operating cash flow and $26.3 million of free cash flow, even while investing in working capital to support growth, particularly in IPS and our water-focused business. Our balance sheet remains strong with ample liquidity to fund organic growth initiatives, integrate recent acquisitions, pursue disciplined accretive M&A and maintain financial flexibility through different macro environments. We continue to emphasize cash conversion, working capital discipline and return on invested capital when making growth and acquisition decisions.

現金流、資本紀律與資產負債表。現金創造仍是 DXP 的核心重點。第一季我們創造 2,960 萬美元的營運現金流與 2,630 萬美元的自由現金流，即使我們仍投資於營運資金以支援成長，特別是在 IPS 與我們以水務為重點的業務。我們的資產負債表仍然穩健，具備充足流動性以資助有機成長計畫、整合近期併購、推動具紀律且具增益性的併購（M&A），並在不同總體環境下維持財務彈性。在做出成長與併購決策時，我們持續強調現金轉換、營運資金紀律與投入資本報酬率。

As we move through fiscal 2026, our priorities remain clear: drive organic growth in attractive end markets, maintain margin discipline and operational execution, execute strategic accretive acquisitions and generate cash and allocate capital thoughtfully. We like the current setup in our markets, especially water, general industry and energy-related infrastructure. Bookings are trending higher. Backlog remains healthy to higher. And based on current visibility, we're encouraged about the second quarter and the remainder of the year.

隨著我們邁入2026會計年度，我們的優先事項依然明確：在具吸引力的終端市場推動內生成長、維持毛利率紀律與營運執行、執行具策略性且具增益效果的併購、創造現金並審慎進行資本配置。我們看好目前我們所處市場的態勢，特別是水務、一般工業以及與能源相關的基礎設施。訂單趨勢走高。在手訂單維持健康並有走高趨勢。且基於目前的能見度，我們對第二季以及今年剩餘期間感到鼓舞。

DXP's diversified model, improving demand indicators and consistent operating discipline gives us confidence in our ability to execute through fiscal 2026.

DXP多元化的商業模式、改善中的需求指標以及一貫的營運紀律，使我們對自身在2026會計年度的執行能力充滿信心。

In closing, I want to thank our DXPeople for their execution, teamwork and commitment. They continue to differentiate DXP in the markets we serve and create value for our customers and shareholders.

最後，我要感謝我們的DXPeople在執行力、團隊合作與投入上的表現。他們持續讓DXP在我們服務的市場中脫穎而出，並為客戶與股東創造價值。

With that, I'll turn it over to Kent to walk you through the financial details.

接下來，我把時間交給Kent，請他帶各位了解財務細節。

Thank you, David, and thank you to everyone for joining us for our review of our first quarter of 2026 financial results. Q1 shows that we carried momentum from last year into fiscal 2026, but started off slower than anticipated. That said, at this time last year, we experienced a similar trend and finished 2025 strong. Likewise, we anticipate 2026 to be another strong year. Specifically in terms of Q1, we had strength in sales during the months of February and March, strong gross margin performance and good free cash flow generation.

謝謝你，David，也感謝各位參與我們對2026會計年度第一季財務結果的回顧。第一季顯示我們將去年的動能延續到2026會計年度，但開局比預期更慢。不過，在去年的這個時間點，我們也經歷了類似趨勢，並在2025年以強勁表現作收。同樣地，我們預期2026年也將是另一個強勁的一年。就第一季而言，我們在2月與3月的銷售表現強勁、毛利率表現亮眼，且自由現金流創造良好。

To summarize the quarter, Q1 key takeaways are as follows: 9.5% sales growth with sales per business day showing 28% growth between January and March, strong gross margin performance with gross margin improvement sequentially and year-over-year and great quarterly free cash flow generation. In terms of our detailed results, total sales for the first quarter increased 9.5% year-over-year to $521.7 million. Acquisitions that have been with DXP for less than a year contributed $40.7 million in sales during the quarter. Average daily sales for the first quarter were $8.3 million per day versus $7.6 million per day in Q1 of 2025.

總結本季，第一季的關鍵重點如下：銷售成長9.5%，且每個營業日銷售額在1月至3月間成長28%；毛利率表現強勁，毛利率較前一季及去年同期皆改善；以及季度自由現金流創造出色。就詳細結果而言，第一季總銷售額年增9.5%至5.217億美元。加入DXP未滿一年的併購案在本季貢獻4,070萬美元的銷售額。第一季平均每日銷售額為830萬美元/日，相較於2025年第一季的760萬美元/日。

Adjusting for acquisitions, average daily sales were $7.6 million per day for the first quarter of 2026 versus $7.1 million per day during the first quarter of 2025. As is typical, sales accelerated through the quarter, with average daily sales increasing from $7.2 million per day in January to $9.2 million per day in March, reflecting a normal quarter end push, but highlighting strong acceleration coming into quarter end. In terms of our business segments and on a year-over-year basis, Innovative Pumping Solutions grew 37.7%. This was followed by Service Centers growing 3.3% and Supply Chain Services growing 2.7% year-over-year. In terms of our service centers, sales grew 3.3% year-over-year and declined 5.1% sequentially.

若調整併購因素，2026年第一季平均每日銷售額為760萬美元/日，對比2025年第一季的710萬美元/日。如同往常，銷售在季度內加速，平均每日銷售額從1月的720萬美元/日提升至3月的920萬美元/日，反映季末的正常衝刺，同時也凸顯季末前的強勁加速。就業務分部而言，並以年對年比較，Innovative Pumping Solutions成長37.7%。其次為Service Centers年增3.3%，Supply Chain Services年增2.7%。就我們的Service Centers而言，銷售年增3.3%，但較前一季下滑5.1%。

Regions that experienced sequential as well as year-over-year sales growth include our South Central, South Rockies and South Atlantic regions. From a product perspective, our Metalworking division also experienced sequential and year-over-year sales growth. From a segment operating income perspective, we have had four consecutive quarters of around 14% or greater, and we look for this to continue as we still believe there are regions that can enhance or become more consistent in their operating income margins.

同時呈現較前一季及年對年銷售成長的區域包括我們的South Central、South Rockies與South Atlantic地區。從產品角度來看，我們的Metalworking事業部也呈現較前一季及年對年銷售成長。從分部營業利益角度來看，我們已連續四個季度維持約14%或更高的水準，我們預期此趨勢將延續，因為我們仍相信有些地區能提升或使其營業利益率更為穩定。

In terms of Innovative Pumping Solutions, we continue to experience strong backlogs in both our energy and water and wastewater businesses. Our Q1 2026 energy-related average backlog increased 2.1% sequentially, stemming the declines we saw in Q3 and Q4 of last year. As David mentioned and as we have been discussing on previous earnings calls, we have booked a few large engineered projects in both energy and water that we have recognized some revenue in 2025 and will continue into 2026.

就Innovative Pumping Solutions而言，我們在能源以及水與廢水業務兩方面仍持續擁有強勁的在手訂單。我們2026年第一季與能源相關的平均在手訂單較前一季增加2.1%，扭轉了去年第三季與第四季所見的下滑。如David所提及、也如我們在先前的法說會中討論過的，我們在能源與水務兩方面都取得了幾個大型工程專案；其中部分營收已在2025年認列，並將延續至2026年。

The conclusion continues to remain that we are trending meaningfully above all notable sales levels based upon where our backlog stands today. Our DXP Water platform experienced our 14th consecutive quarter of sequential sales growth, and we look for this to continue as we move through 2026. That said, we are seeing project and product delivery time lines stretched in our already long-cycle business. We also see strength in our IPS Water backlog as it continues to grow due to a combination of organic and acquisition additions. It is worth noting that DXP Water was 66% of IPS sales in Q1.

結論仍然是：以目前在手訂單水位來看，我們的趨勢顯著高於所有重要的銷售水準。我們的DXP Water平台已連續第14個季度呈現較前一季銷售成長，我們預期在2026年推進過程中將持續如此。不過，我們也看到在本就屬於長週期的業務中，專案與產品交付時程被拉長。我們同樣看到IPS Water在手訂單持續成長，原因是內生成長與併購新增的綜合作用。值得注意的是，DXP Water在第一季占IPS銷售的66%。

Supply Chain Services performance primarily reflects a 6.2% increase sequentially as well as growing 2.7% year-over-year. As we discussed during Q3 and Q4 of last year, we experienced an uptick in Supply Chain Services performance, which we are seeing here in Q1.

Supply Chain Services的表現主要反映較前一季增加6.2%，且年對年成長2.7%。如同我們在去年第三季與第四季所討論的，我們看到Supply Chain Services表現回升，而在第一季也延續了這個趨勢。

Interest and demand for SCS services is increasing because of the proven technology and efficiencies they perform for all their industrial customers, and we expect a stronger 2026 as we onboard new customers. In terms of turning to DXP's gross margins, DXP's total gross margins were 32.3%, a 79 basis point improvement over Q1 of 2025. This improvement is attributed to increased margins year-over-year across all three business segments and the contribution from acquisitions at a higher overall relative gross margin versus our DXP business. That said, from a segment mix sales contribution in Q1, Service Centers contributed 65%, Innovative Pumping Solutions was 23% and Supply Chain Services was 12% of sales.

由於其為所有工業客戶所提供的技術與效率已獲驗證，市場對SCS服務的興趣與需求正在增加；隨著我們導入新客戶，我們預期2026年將更為強勁。接著談DXP的毛利率，DXP整體毛利率為32.3%，較2025年第一季提升79個基點。此改善歸因於三個業務分部的毛利率年對年皆提升，以及併購案的貢獻（其整體相對毛利率高於我們原有DXP業務）。不過，就第一季分部銷售貢獻的組合而言，Service Centers占65%，Innovative Pumping Solutions占23%，Supply Chain Services占12%。

With our mix increasing more towards Innovative Pumping Solutions, this continues to elevate DXP's gross margins. In terms of operating income, combined, all threebusiness segments increased 105 basis points year-over-year in business segment operating income margins. This was driven by improvements in operating income margins across all three segments year-over-year and sequentially. Total DXP operating income was $42.5 million in Q1 of 2026. Our SG&A for the quarter increased $16.1 million from Q1 of 2025 and $6.2 million from Q4 of 2025 to $126.1 million.

隨著我們的組合更偏向Innovative Pumping Solutions，這持續推升DXP的毛利率。就營業利益而言，三個業務分部合計的分部營業利益率年對年提升105個基點。這是由三個分部的營業利益率在年對年與較前一季比較下皆改善所帶動。2026年第一季DXP總營業利益為4,250萬美元。本季SG&A較2025年第一季增加1,610萬美元、較2025年第四季增加620萬美元，至1.261億美元。

The increase reflects normal seasonal amounts in terms of payroll taxes, insurance and other administrative items as well as the growth in the business and associated incentive compensation.

此增加反映了薪資稅、保險及其他行政項目的正常季節性金額，以及業務成長與相關的獎勵性薪酬。

Additionally, as David mentioned in his comments, the quarter included some unique and discrete onetime items, including elevated health care costs, excess legal and consulting costs as well as onetime equipment and fleet costs. SG&A as a percentage of sales increased 115 and 144 basis points year-over-year and sequentially to 24.2% of sales.

此外，如David在評論中提到，本季包含一些獨特且離散的一次性項目，包括較高的醫療保健成本、額外的法律與顧問費用，以及一次性的設備與車隊成本。SG&A占銷售比重年對年與較前一季分別增加115與144個基點，至銷售的24.2%。

Turning to EBITDA. Q1 2026 adjusted EBITDA was $57.8 million. Adjusted EBITDA margins were 11.1%. It is worth noting that our adjusted EBITDA margins remain above 11% amidst our normal financial seasonality associated with higher payroll taxes, insurance and associated items. We continue to expect to benefit from the fixed cost SG&A leverage we experienced as we grow sales and anticipate there is further operating leverage as we move through fiscal 2026.

接著談EBITDA。2026年第一季調整後EBITDA為5,780萬美元。調整後EBITDA利潤率為11.1%。值得注意的是，儘管我們在正常的財務季節性下會有較高的薪資稅、保險及相關項目，我們的調整後EBITDA利潤率仍維持在11%以上。隨著銷售成長，我們持續預期將受益於SG&A固定成本的槓桿效應，並預期在2026會計年度推進過程中仍有進一步的營運槓桿空間。

In terms of EPS, with a Q1 net income of $20 million, our earnings per diluted share for Q1 2026 was $1.22 per share versus $1.39 per share for Q4 of 2025. We would point out that in the fall, we repriced and raised an incremental $205 million in debt. Interest expense increased by $1.8 million compared to the first quarter of last year. Conservatively adjusting for some of the onetime acquisition and excess expense items, adjusted earnings per diluted share for Q1 of 2026 was $1.26 per share.

就每股盈餘（EPS）而言，第一季淨利為2,000萬美元，我們2026年第一季稀釋後每股盈餘為每股1.22美元，相較於2025年第四季的每股1.39美元。我們要指出的是，在秋季我們重新定價並額外增加了2.05億美元的債務。利息費用較去年第一季增加180萬美元。保守地調整部分一次性併購及超額費用項目後，2026年第一季調整後稀釋每股盈餘為每股1.26美元。

Turning to the balance sheet and cash flow. In terms of working capital, our working capital increased $17.9 million from December to $379.6 million. As a percentage of sales, this amounted to 18.4%. As mentioned during Q4, we will continue to grow into the working capital as a percentage of sales, specifically the impact from recent acquisitions. We do anticipate further acquisitions, however, which could cause us to move upwards, albeit we are focused on managing working capital as efficiently as possible as we scale and grow.

接著看資產負債表與現金流。就營運資金而言，我們的營運資金自12月起增加1,790萬美元至3.796億美元。以銷售額百分比計，為18.4%。如同在第四季所提到的，我們將持續讓營運資金占銷售額的比例隨著成長而逐步消化，特別是近期併購帶來的影響。我們確實預期還會有進一步的併購，不過這可能使該比例上升；儘管如此，隨著我們擴張與成長，我們仍專注於盡可能有效率地管理營運資金。

In terms of cash, we had $213.4 million in cash on the balance sheet as of March 31. This is a decrease of $90.4 million compared to the end of Q4, and this primarily reflects the acquisition of Mid Atlantic Storage Systems, PREMIERflow and Ambiente H2O. In terms of CapEx, CapEx in the first quarter was $3.3 million or essentially flat compared to Q4 of 2025 and a decrease of $16.6 million compared to the first quarter of 2025. As we have discussed, we were making investments in the business as we grow, and this began to taper during the second half of last year, and we see our current levels at less than 1% of sales as more of what we would expect in terms of maintenance capital expenditures.

就現金而言，截至3月31日，我們資產負債表上的現金為2.134億美元。較第四季末減少9,040萬美元，主要反映收購Mid Atlantic Storage Systems、PREMIERflow與Ambiente H2O。就資本支出（CapEx）而言，第一季資本支出為330萬美元，與2025年第四季基本持平，且較2025年第一季減少1,660萬美元。如我們先前討論，我們在業務成長過程中持續投資，而這些投資自去年下半年開始趨緩；我們認為目前低於銷售額1%的水準，更符合我們對維持性資本支出的預期。

Turning to free cash flow. Cash flow from operations was $29.8 million in Q1 of this year versus Q1 of last year, was $3 million. As a reminder, during Q1 of 2025, we included tax payments, which were deferred from Q2 of last year due to storms that were paid in Q1 of 2025. That said, we continue investing in projects and experienced an uptick in receivable days during Q1.

接著看自由現金流。今年第一季營運活動現金流為2,980萬美元；相較之下，去年第一季為300萬美元。提醒一下，在2025年第一季，我們包含了稅款支付；該稅款原本因風暴而自去年第二季遞延，並於2025年第一季支付。即便如此，我們仍持續投資專案，且在第一季應收帳款天數有所上升。

As we move through 2026, this should balance out, and we should see a decrease in receivable days. We continue to focus tightly on managing projects from a cash flow perspective and look to align billings with the investments.

隨著我們走過2026年，這應會趨於平衡，我們也應會看到應收帳款天數下降。我們仍從現金流角度緊密聚焦於專案管理，並力求讓開立帳單與投資進度相匹配。

Return on invested capital, or ROIC, at the end of the first quarter was 34.1% and is consistent with DXP driving margins, operating leverage and improving our run rate EBITDA. As of March 31, our fixed charge coverage ratio was 2.5:1, and our secured leverage ratio was 2.6:1 with a covenant EBITDA for the last 12 months of $243.9 million. Total debt outstanding on March 31 was $844.7 million. In terms of liquidity, as of the first quarter, we were undrawn on our ABL with $31.7 million in letters of credit or $153.3 million in availability and liquidity of $366.7 million, which includes $213.4 million in cash.

第一季末投入資本報酬率（ROIC）為34.1%，與DXP推動毛利率、營運槓桿並改善我們的常態化EBITDA水準一致。截至3月31日，我們的固定費用覆蓋倍數為2.5:1，擔保槓桿比率為2.6:1，且過去12個月的契約EBITDA為2.439億美元。3月31日未償還總債務為8.447億美元。就流動性而言，截至第一季，我們的ABL額度未動用，信用狀為3,170萬美元，或可用額度為1.533億美元；總流動性為3.667億美元，其中包含2.134億美元現金。

DXP is poised to execute our acquisition strategy and would anticipate closing another one to two acquisitions before the second quarter ends. In terms of acquisitions, we closed on three during the quarter, Mid Atlantic Storage Systems, PREMIERflow and Ambiente H2O. DXP's acquisition pipeline continues to remain active, and the market continues to present compelling opportunities.

DXP已準備好執行我們的併購策略，並預期在第二季結束前再完成一到兩件併購。就併購而言，本季我們完成了三件：Mid Atlantic Storage Systems、PREMIERflow與Ambiente H2O。DXP的併購案源（pipeline）仍然活躍，市場也持續提供具吸引力的機會。

As we discussed during the Q4 earnings call, we anticipated closing one to three acquisitions before midyear, and we have closed three deals year-to-date. We have another three under letter of intent and another two closely to coming under letter of intent. That said, we are stressing sustainable performance with our acquisitions and remain comfortable with our ability to execute on our pipeline.

如同我們在第四季法說中討論的，我們預期在年中前完成一到三件併購，而今年迄今我們已完成三筆交易。我們另有三件已簽署意向書（LOI），還有另外兩件也接近進入意向書階段。即便如此，我們在併購上強調可持續的績效表現，並對我們執行案源的能力仍感到安心。

Heading into 2026, we refreshed our balance sheet, which has allowed us to continue to invest in the business, both organically and through acquisitions while also returning capital to shareholders. We are excited about the future. We are excited because there is still substantial value embedded in DXP. We look forward with great confidence to a future of sustained growth and market outperformance. Our resilient and critical MRO and supply chain solutions, combined with our engineered solution capabilities and exposure to secular trends, including water and wastewater will continue to drive our future sales and profitability. We are excited about the future.

進入2026年之際，我們更新了資產負債表，使我們得以持續投資業務，包含有機成長與併購，同時也回饋資本給股東。我們對未來感到振奮。我們之所以振奮，是因為DXP仍蘊含相當可觀的價值。我們對於持續成長與優於市場表現的未來充滿信心並期待。我們具韌性且關鍵的MRO與供應鏈解決方案，結合我們的工程解決方案能力，以及對包含水與廢水在內的長期結構性趨勢之曝險，將持續推動未來的銷售與獲利能力。我們對未來感到振奮。

I will now turn the call over for questions.

接下來我將把電話交給提問環節。

(Operator Instructions) Zach Marriott, Stephens.

(接線員指示) Zach Marriott，Stephens。

So I heard you give the January and March daily sales number. Could you please just fill us in for February and then Q2 thus far?

我聽到你提供了1月與3月的每日銷售額數字。能否請你補充2月以及目前為止第二季的情況？

Yes. No, absolutely. And I'll just kind of go from the beginning of the year. January was $7.2 million per day. February was $8.4 million per day. March was $9.2 million per day, and then April was $9 million per day.

好的。沒問題，當然可以。我就從年初開始說起。1月是每日720萬美元。2月是每日840萬美元。3月是每日920萬美元，然後4月是每日900萬美元。

Noted. And then is there anything that should drive a meaningful margin difference, whether up or down when comparing 2Q to 1Q?

了解。那麼在比較第二季與第一季時，有沒有任何因素會驅動毛利率出現顯著差異（不論上升或下降）？

Zach, obviously, there's SG&A leverage, which we talked about in our comments. And so as David mentioned, January was a light month. And so we came in at around 11.1% EBITDA margins, and that's kind of where we've kind of been in the last three quarters or so. That said, I think we feel good going into Q2. We don't provide direct formal guidance, but I think we do believe there's more leverage in the business, and we believe margins could be higher.

Zach，顯然有SG&A的槓桿效應，我們在評論中也談到了。如David提到的，1月是較淡的一個月。因此我們的EBITDA利潤率約為11.1%，這也大致是我們過去三個季度左右的水準。即便如此，我們對進入第二季的狀況感覺良好。我們不提供直接的正式指引，但我們確實認為業務仍有更多槓桿空間，且我們相信利潤率可能更高。

So if that answers your question, I think, hey, if sales keep driving in the direction that the trends show -- and by the way, on a monthly year-over-year basis, that April number is 15% up year-over-year compared to April of last year. That's going to drive incremental margin to the bottom line as we kind of move forward. So...

如果這能回答你的問題，我想說，嘿，如果銷售持續朝趨勢所顯示的方向推進——順帶一提，以月度年增率來看，4月的數字較去年4月年增15%。隨著我們往前推進，這將把額外的利潤增量帶到底線。所以……

Yes, that's responsive. And then just one more, if I could. Corporate expenses have fluctuated over the last year from as low as $20 million to up to $28 million this last quarter. So should we use the $28 million as the best proxy for 2Q and beyond? Or should this number just vary significantly over the balance of the year?

是的，這回答到我的問題。如果可以的話，我再問最後一個。公司費用在過去一年有所波動，最低約2,000萬美元，到本季最高達2,800萬美元。那麼我們是否應以2,800萬美元作為第二季及之後的最佳參考值？或者這個數字在今年剩餘期間仍會大幅波動？

There is some variability. I mean, we -- Zach, we pointed out in our comments, but there were some, what we call discrete unique onetime items, including some consulting fees, some fleet costs that we normally wouldn't incur. That said, I do think there are some costs in there like our health care claims that we have control over, but you don't have control over if you understand kind of how those are driven, if you will. And so I think as we grow, as we add people, that's a category that naturally would increase. So from an absolute dollar perspective, I wouldn't sit here and say it would be $20 million, but it could surely be a blend of between the $20 million to $28 million here over the short to medium term.

確實存在一些波動。我的意思是——Zach，我們在評論中指出過，但其中有一些我們所稱的離散、獨特的一次性項目，包括一些顧問費用、一些車隊成本，這些通常我們不會發生。話雖如此，我確實認為其中也有一些成本，例如我們的醫療保險理賠，這部分我們在某種程度上可以控制，但如果你了解其驅動因素，你又未必能完全掌控。因此我認為，隨著我們成長、增加人員，這一類別自然會增加。所以從絕對金額的角度來看，我不會坐在這裡說它會是2,000萬美元，但在短到中期內，它很可能會落在2,000萬到2,800萬美元之間的某種組合。

But once again, as we grow, as we add acquisitions, as we add people, you're going to have increased health care claims and particularly. We're self-insured as a company. And so now we hope for a healthy employee base, and we have all those things. But the reality is you do provide people health insurance, and that's part of what you do. And so we've grown pretty significantly through acquisitions here recently.

但再說一次，隨著我們成長、增加併購、增加人員，你會看到醫療保險理賠增加，尤其是。我們公司是自保的。因此我們當然希望員工群體健康，我們也做了所有那些事情。但現實是，你確實要為員工提供健康保險，這是你工作的一部分。而且我們最近透過併購成長相當顯著。

And so some of our costs have gone up correspondingly.

因此我們的一些成本也相應上升。

(inaudible)

(聽不清)

So I just would like to ask, I mean, are you seeing any changes in pricing dynamics across your key end markets, particularly in energy? And how is that impacting margins and demand?

所以我想請教一下，我是說，你是否看到你們主要終端市場的定價動態有任何變化，特別是在能源領域？這對毛利率和需求有什麼影響？

So I believe the question was how is the war kind of affecting the oil and gas industry on margins and demand? Is that -- I missed the first part.

所以我相信問題是，戰爭在某種程度上如何影響油氣產業的毛利率和需求？是這樣——我漏掉了前半部分。

Yes, yes. Yes. Do you see any changes in pricing -- I mean, yes, particularly in energy?

是的，是的。是的。你是否看到定價方面有任何變化——我的意思是，是的，特別是在能源方面？

Sure. Yes, our oil and gas business is doing good, and it's growing. And like we've said in the past, we have booked some really, really large orders. We've booked some very nice orders here recently. And there's still -- can be competitive or we also -- we do manufacturing of pumps. And so when we are able to sell those type of products, they're based on delivery, and we can produce pumps faster than anybody else can. So in that case, our margin goes up.

當然。是的，我們的油氣業務表現良好，而且正在成長。而且正如我們過去所說，我們已經拿到了一些非常、非常大的訂單。我們最近也拿到了一些非常不錯的訂單。而且仍然——可能會有競爭，或者我們也——我們有製造泵浦。因此當我們能夠銷售這類產品時，它們是以交付為基礎，而我們生產泵浦的速度比任何人都快。所以在那種情況下，我們的毛利率會提高。

When speed to delivery matters, then our margin goes up. We're -- and so we have some very nice margins in that particular area. And then I would say, in general, demand, it's twofold. One is oil companies aren't going crazy just because oil prices are $100 or $100 and above because they feel like the war and things like that are going to be resolved at some point in time. So they can't count on those kind of prices.

當交付速度很重要時，我們的毛利率就會提高。我們——因此在那個特定領域，我們有非常不錯的毛利率。然後我會說，整體而言，需求有兩個面向。其一是，油公司不會因為油價是100美元或高於100美元就瘋狂擴張，因為他們覺得戰爭以及諸如此類的事情終究會在某個時間點得到解決。所以他們不能指望那種價格水準。

They expect them to come down some. And so they're not going crazy. But on the other hand, they have a lot of extra money, and so they're spending it. So demand is up in that sense. So it's up some. It's not -- just booming is how I would answer that.

他們預期價格會回落一些。所以他們不會瘋狂擴張。但另一方面，他們有很多額外的資金，所以他們正在花這些錢。因此從這個意義上來說，需求是上升的。所以確實有上升一些。但不——我會說並不是那種爆發式成長。

Okay. That helps a lot. And my next question would be, you recently participated in DICE. So did you identify any meaningful opportunities either from a commercial or acquisition standpoint?

好的。這很有幫助。我的下一個問題是，你們最近參加了DICE。那麼你們是否從商業或併購的角度識別到任何有意義的機會？

That question was around DICE, I guess. And did you say or...

那個問題是關於DICE的，我想。你是說你們看到或……

Investment conference that you've participated. So did you identify any meaningful opportunities or I mean, from commercial or acquisition standpoint?

你們參加的投資者會議。所以你們是否識別到任何有意義的機會，或者我是說，從商業或併購的角度？

Yes. I think from an acquisition standpoint, hey, we're always out there as a business, whether in the field and/or us here at corporate, if you will. And so from a pipeline standpoint, as I mentioned in my comments, we have three letters of intent, if you will, in place today that we're working through due diligence. And then we have another two that are closely in the process to being under letter of intent. Point being, I guess, is, hey, we're still in acquisition mode. We think there's compelling opportunities out there.

是的。我認為從併購角度來看，嘿，我們作為一家企業一直都在外面尋找機會，無論是在一線現場，和/或我們在總部這邊也是如此。因此就案源管線而言，正如我在評論中提到的，我們目前有三份意向書（LOI）在手，正在進行盡職調查。另外還有兩個也已經非常接近進入意向書階段。我想要表達的重點是，嘿，我們仍然處於併購模式。我們認為外面有很有吸引力的機會。

Obviously, our recent focus has been on the water, wastewater side, and we're still finding opportunities in that space. And so as we always say, DXP is in the business of buying businesses. And so we're always finding opportunities. We spend a lot of time finding the right fit in particular.

顯然，我們近期的重點一直放在供水與污水處理領域，而我們仍在那個領域找到機會。因此正如我們一貫所說，DXP的業務就是收購企業。所以我們一直都在尋找機會。我們花很多時間去尋找特別合適的標的。

We've reached the end of the Q&A session. I will now turn the call back to David Little for closing remarks.

問答環節到此結束。我現在把電話交回給David Little作結語。

I would just reiterate that January was just surprisingly slow. I'm not -- I have no clue as to why it was across the board. It was in water. It was in oil and gas. It was in general industry.

我只想重申，一月份出乎意料地慢。我——我完全不知道為什麼會在各方面都如此。在水務是這樣。在油氣也是這樣。在一般工業也是這樣。

It was in everything. So I really can't have -- I don't have anything to point to. And so that kind of threw us off stride a bit. And so we didn't produce great results. I think that's obvious.

在所有領域都是如此。所以我真的無法——我沒有任何可以指向的原因。因此那讓我們的節奏有點被打亂。所以我們沒有做出很好的結果。我想這很明顯。

But with that said, bookings in January have kind of ticked up. They've ticked up higher in February, and they're ticking up higher in March. And so we feel good about what we're doing going forward. Sorry about January, but we feel good about the year. So we're looking forward to a great year and appreciate everybody hanging in there.

但話說回來，一月份的接單量已經有些回升。二月份回升得更多，三月份也持續回升。因此我們對未來的推進方向感覺良好。一月的表現很抱歉，但我們對今年感覺良好。所以我們期待今年會是很棒的一年，也感謝大家一路支持。

This concludes today's call. Thank you for attending. You may now disconnect.

今天的電話會議到此結束。感謝各位參與。您現在可以掛線。