{"id":12219,"date":"2026-08-06T12:33:30","date_gmt":"2026-08-06T16:33:30","guid":{"rendered":"https:\/\/distributionstrategy.com\/?p=12219"},"modified":"2026-09-11T10:43:24","modified_gmt":"2026-09-11T14:43:24","slug":"dxp-enterprises-posts-strong-q2-growth-expands-canadian-water-business-with-mequipco-acquisition","status":"publish","type":"post","link":"https:\/\/distributionstrategy.com\/2026\/08\/dxp-enterprises-posts-strong-q2-growth-expands-canadian-water-business-with-mequipco-acquisition\/","title":{"rendered":"DXP Enterprises Posts Strong Q2 Growth, Expands Canadian Water Business with Mequipco Acquisition"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong><em>Why This Matters to Distributors:<\/em><\/strong><em> DXP continued to outpace much of the industrial distribution sector in the second quarter through a combination of organic growth and acquisitions. Its latest deal establishes a foothold in Canada&#8217;s water infrastructure market, reinforcing an ongoing consolidation trend among specialty industrial distributors.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">DXP Enterprises reported double-digit gains in second-quarter sales and earnings while expanding its North American water infrastructure business through the acquisition of a Canadian supplier.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Houston-based industrial distributor said second-quarter sales increased 15.6% to $576.5 million from $498.7 million a year earlier. Net income rose 21.6% to $28.7 million from $23.6 million.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For the first six months of 2026, sales climbed 12.6% to $1.10 billion from $975.3 million in the first half of 2025. Net income increased 10.1% to $48.7 million from $44.2 million.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The earnings report followed DXP&#8217;s announcement that it acquired Mequipco Ltd., a Calgary, Alberta-based manufacturer&#8217;s representative serving municipal and industrial water and wastewater markets across Western Canada.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"768\" src=\"https:\/\/distributionstrategy.com\/wp-content\/uploads\/2026\/08\/dxp-q2-2026-sales-chart-1024x768.jpg\" alt=\"\" class=\"wp-image-12223\" srcset=\"https:\/\/distributionstrategy.com\/wp-content\/uploads\/2026\/08\/dxp-q2-2026-sales-chart-1024x768.jpg 1024w, https:\/\/distributionstrategy.com\/wp-content\/uploads\/2026\/08\/dxp-q2-2026-sales-chart-300x225.jpg 300w, https:\/\/distributionstrategy.com\/wp-content\/uploads\/2026\/08\/dxp-q2-2026-sales-chart-768x576.jpg 768w, https:\/\/distributionstrategy.com\/wp-content\/uploads\/2026\/08\/dxp-q2-2026-sales-chart.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Founded in 1974, Mequipco operates three locations serving British Columbia, Alberta, Saskatchewan, and Manitoba. DXP financed the acquisition with cash and shares of common stock. Terms of the transaction were not disclosed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The acquisition gives DXP Water its first operating platform in Canada and advances the company&#8217;s strategy of building a larger North American water infrastructure business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Mequipco provides DXP Water with a beachhead in Canada that we can build and grow from as we scale DXP Water in Canada and the U.S.,&#8221; CEO David Little said. &#8220;Mequipco provides DXP with an exceptional business, accompanied by technical sales expertise.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">DXP completed four acquisitions during the first half of 2026. Those businesses contributed $49.8 million in second-quarter revenue, while organic sales totaled $526.6 million, indicating that the company&#8217;s growth extended beyond acquisitions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Little said the company benefited from continued organic demand, contributions from acquired businesses and strength across its operating segments despite ongoing macroeconomic uncertainty.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Chief financial officer Kent Yee said DXP intends to remain active on the acquisition front.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;We closed four acquisitions through the first half of the year and look forward to closing more during the second half of 2026,&#8221; Yee said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Yee said Mequipco&#8217;s established supplier relationships and technical expertise will strengthen DXP Water&#8217;s capabilities while providing a platform for additional growth in Canada.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">DXP&#8217;s Innovative Pumping Solutions segment delivered the strongest growth during the quarter, with revenue increasing 52.6% to $142.7 million from $93.5 million a year earlier.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company&#8217;s largest business, Service Centers, reported revenue of $367.9 million, up 8.3% from $339.7 million. Supply Chain Services generated $65.8 million, a 0.6% increase from $65.4 million.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For the first half, Service Centers revenue increased 5.9% to $705.9 million from $666.8 million. Innovative Pumping Solutions grew 45.4% to $261.4 million from $179.7 million, while Supply Chain Services rose 1.6% to $130.8 million from $128.7 million.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">DXP ended the quarter with $226.6 million in cash after funding four acquisitions during the first half.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">DXP distributes maintenance, repair, operating and production (MROP) products, rotating equipment, bearings, power transmission products, industrial supplies and safety products through its Service Centers, Innovative Pumping Solutions and Supply Chain Services businesses across the United States, Canada, Mexico, and Dubai.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/distributionstrategy.com\/subscribe\/\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Do not miss any content from Distribution Strategy Group. Join our list.<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Founded in 1974, Mequipco operates three locations serving British Columbia, Alberta, Saskatchewan, and Manitoba. DXP financed the acquisition with cash and shares of common stock. Terms of the transaction were not disclosed.<\/p>\n","protected":false},"author":8,"featured_media":7280,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_tec_requires_first_save":true,"content-type":"","_EventAllDay":false,"_EventTimezone":"","_EventStartDate":"","_EventEndDate":"","_EventStartDateUTC":"","_EventEndDateUTC":"","_EventShowMap":false,"_EventShowMapLink":false,"_EventURL":"","_EventCost":"","_EventCostDescription":"","_EventCurrencySymbol":"","_EventCurrencyCode":"","_EventCurrencyPosition":"","_EventDateTimeSeparator":"","_EventTimeRangeSeparator":"","_EventOrganizerID":[],"_EventVenueID":[],"_OrganizerEmail":"","_OrganizerPhone":"","_OrganizerWebsite":"","_VenueAddress":"","_VenueCity":"","_VenueCountry":"","_VenueProvince":"","_VenueState":"","_VenueZip":"","_VenuePhone":"","_VenueURL":"","_VenueStateProvince":"","_VenueLat":"","_VenueLng":"","_VenueShowMap":false,"_VenueShowMapLink":false,"_tribe_blocks_recurrence_rules":"","_tribe_blocks_recurrence_description":"","_tribe_blocks_recurrence_exclusions":"","_featured_video_url":"","footnotes":""},"categories":[4,300,304],"tags":[],"coauthors":[208],"class_list":["post-12219","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-distribution-industry-news","category-finance-strategy","category-mergers-acquisitions-private-equity"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>DXP Enterprises Posts Strong Q2 Growth, Expands Canadian Water Business with Mequipco Acquisition - Distribution Strategy Group<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/distributionstrategy.com\/2026\/08\/dxp-enterprises-posts-strong-q2-growth-expands-canadian-water-business-with-mequipco-acquisition\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DXP Enterprises Posts Strong Q2 Growth, Expands Canadian Water Business with Mequipco Acquisition - Distribution Strategy Group\" \/>\n<meta property=\"og:description\" content=\"Founded in 1974, Mequipco operates three locations serving British Columbia, Alberta, Saskatchewan, and Manitoba. 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