Looking back on maintenance and repair distributors stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including DXP (NASDAQ: DXPE) and its peers.
Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Maintenance and repair distributors that boast reliable selection and quickly deliver products to customers can benefit from this theme. While e-commerce hasn’t disrupted industrial distribution as much as consumer retail, it is still a real threat, forcing investment in omnichannel capabilities to serve customers everywhere. Additionally, maintenance and repair distributors are at the whim of economic cycles that impact the capital spending and construction projects that can juice demand.
The 9 maintenance and repair distributors stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 2%.
Luckily, maintenance and repair distributors stocks have performed well with share prices up 12.2% on average since the latest earnings results.
DXP (NASDAQ: DXPE)
Founded during the emergence of Big Oil in Texas, DXP (NASDAQ: DXPE) provides pumps, valves, and other industrial components.
DXP reported revenues of $498.7 million, up 11.9% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
David R. Little, Chairman and Chief Executive Officer commented, "Second quarter results reflect the execution of our growth strategy and the resilience and durability of DXP’s business. We are pleased with our sequential and year-over-year sales growth and strength in our gross profit margins. This resulted in operating leverage that produced earnings per share of $1.43. DXP’s second quarter 2025 sales were $498.7 million, or a 4.6 percent increase over the first quarter of 2025 and 11.9 percent increase over 2024. Sequential organic sales for the quarter increased 12.3 percent or $51.9 million and acquisitions added another $24.6 million in sales during Q2. Adjusted EBITDA grew $4.8 million, or 9.2 percent over the first quarter of 2025. During the second quarter of 2025, sales were $339.7 million for Service Center, $93.5 million for Innovative Pumping Solutions, and $65.4 million for Supply Chain Services. Overall, we are very pleased with our performance and the progress DXP continues to make as a growth company, and we are excited to enter the second half of 2025.”
DXP delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 12.5% since reporting and currently trades at $126.40.
Is now the time to buy DXP? Access our full analysis of the earnings results here, it’s free.
Best Q2: Transcat (NASDAQ: TRNS)
Serving the pharmaceutical, industrial manufacturing, energy, and chemical process industries, Transcat (NASDAQ: TRNS) provides measurement instruments and supplies.
Transcat reported revenues of $76.42 million, up 14.6% year on year, outperforming analysts’ expectations by 5.7%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Transcat achieved the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $79.20.
Is now the time to buy Transcat? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: W.W. Grainger (NYSE: GWW)
Founded as a supplier of motors, W.W. Grainger (NYSE: GWW) provides maintenance, repair, and operating (MRO) supplies and services to businesses and institutions.
W.W. Grainger reported revenues of $4.55 billion, up 5.6% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a slower quarter as it posted full-year EPS guidance slightly missing analysts’ expectations and a miss of analysts’ EPS estimates.
As expected, the stock is down 1.1% since the results and currently trades at $1,028.
Read our full analysis of W.W. Grainger’s results here.
WESCO (NYSE: WCC)
Based in Pittsburgh, WESCO (NYSE: WCC) provides electrical, industrial, and communications products and augments them with services such as supply chain management.
WESCO reported revenues of $5.9 billion, up 7.7% year on year. This number topped analysts’ expectations by 1.6%. More broadly, it was a mixed quarter as it also recorded a narrow beat of analysts’ organic revenue estimates but a miss of analysts’ adjusted operating income estimates.
The stock is up 2.9% since reporting and currently trades at $218.37.
Read our full, actionable report on WESCO here, it’s free.
VSE Corporation (NASDAQ: VSEC)
With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ: VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.
VSE Corporation reported revenues of $272.1 million, up 41.1% year on year. This print beat analysts’ expectations by 3.4%. Overall, it was an incredible quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
VSE Corporation achieved the fastest revenue growth among its peers. The stock is up 18.1% since reporting and currently trades at $167.
Read our full, actionable report on VSE Corporation here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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