DXP Enterprises : Stephens Inc Fall Investor Conference

Presented by:

David Little

Chairman, President & CEO

Nick Little

Senior Vice President & COO

Kent Yee

Senior Vice President & CFO

David Santos

Vice President & CAO

INVESTOR PRESENTATION

NASDAQ: DXPE

NOVEMBER 2023

SAFE HARBOR AND REGULATION G DISCLOSURES

Forward-Looking Statements:	Statement Regarding use of Non-GAAP Measures:

This presentation contains forward-looking statements within the meaning of the U.S. federal securities laws that involve risks and uncertainties. Certain statements contained in this report are not purely historical, including statements regarding our expectations, beliefs, intentions or strategies regarding the future that are forward- looking. These statements include statements concerning projected revenues, expenses, gross profit, income, gross margins or other financial items.

All forward-looking statements speak only as of the date of this presentation. You should not place undue reliance on these forward- looking statements. Although we believe our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make in this presentation are reasonable, we may be unable to achieve these plans, intentions or expectations. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf. Risks and uncertainties that could cause actual results to differ from those in the forward-looking statements are described in "Risk Factors" and "Forward-Looking Statements" in our Quarterly Reports on Form 10-Q and in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission.

The Non-GAAP financial measures contained in this presentation (including, without limitation, EBITDA, Adjusted EBITDA, Free Cash Flow, Return on Invested Capital (ROIC) and variations thereof are not measures of financial performance calculated in accordance with GAAP and should not be considered as alternatives to net income (loss) or any other performance measure derived in accordance with GAAP or as alternatives to cash flows from operating activities as a measure of our liquidity. They should be viewed in addition to, and not as a substitute for, analysis of our results reported in accordance with GAAP, or as alternative measures of liquidity. Management believes that certain non-GAAP financial measures provide a view to measures similar to those used in evaluating our compliance with certain financial covenants under our credit facilities and provide financial statement users meaningful comparisons between current and prior year period results. They are also used as a metric to determine certain components of performance-based compensation. The adjustments and Adjusted EBITDA are based on currently available information and certain adjustments that we believe are reasonable and are presented as an aid in understanding our operating results. They are not necessarily indicative of future results of operations that may be obtained by the Company.

2

DXP ENTERPRISES… DIFFERENTIATED BUSINESS MODEL

($ millions)

Company Description

• Leading technical distributor of maintenance, repair and operating ("MRO") products and services
• Operates via 3 segments: Service Centers,
  Innovative Pumping Solutions ("IPS") and Supply Chain Services ("SCS")
• Top 20 distributor of MRO products in a fragmented industry
• North America's largest distributor of pumps and provider of rotating equipment products
• Serves more than 25,000+ active customers across a broad range of end markets including general industrial, energy, food & beverage, transportation, chemical, water and wastewater
• Founded in 1908 and headquartered in Houston, Texas

FY2022 Sales

By Segment

By End Market

By Region1

SCS

Other

Canada

5%

16%

24%

Oil & Gas

Chemical

29%

IPS

10%

16%

Manuf.

Service

9%

Gen. Indust.

USA

Centers

F&B

Water & Waste

17%

95%

68%

5%

6%

Key End Markets

General Industrial

Food & Beverage

Transportation

Quick Facts

• LTM Q3-23 Sales: ~$1,678mm
• LTM Q3-23 Adj. EBITDA: $164mm2
• 180 Locations
• 4 Distribution Centers and 16 Fabrication Centers
• ~2,700 Employees3
• 37 Acquisitions and 1 Divestiture since 2009

3

Note: Business segment, end market, and region data as of FY2022 unless noted otherwise. Acquisition count reflects M&A transactions completed from FY09 to YTD FY23. 1 Dubai sales contributed less than 1% of total FY2022 sales. 2 Equates to $168mm for LTM Q3-23 PF Compliance Adj. EBITDA. 3 Includes corporate employees.

WHY DXP: COMPELLING INVESTOR VALUE PROPOSITION

1

2

3

4

5

4

Please refer to the appendix of this presentation for current period reconciliation of the Non-GAAP financial measures to the most directly comparable GAAP measures.

1 UNIQUE MARKET APPROACH ACROSS THREE SEGMENTS

($ millions)

LTM Q3 2023

Sales: $1,167

Operating Income: $162

Technical expertise and logistics

capabilities to industrial customers; single

source of supply on an efficient and

competitive basis

• Breadth of Technical Products
• Vendor Managed Inventory
• Largest Network of National Field and Shop Repair Facilities

LTM Q3 2023

Sales: $246

Operating Income: $38

Single source for engineering, modular

process systems, engineered fluid handling

packages, pump manufacturing,

remanufacturing, custom castings and

private label pumps

• Process Engineering and Capital Project Management
• Manufacturing and Remanufacturing
• Private Label Pumps

LTM Q3 2023

Sales: $265

Operating Income: $22

Manages supply chains including

procurement and inventory management; reduces customers' indirect material costs

and order cycle time

• End-to-EndTotal Supply Chain Solutions
• Fully Outsourced MRO Service Offering

5

Source: Company filings as of September 30, 2023.

1 DIVERSIFIED COUNTER CYCLICAL END MARKETS

DXP End Market Transformation and Diversification

FY2014

FY2019

FY 2022

Other
End-markets
34%		Oil &
	Oil &	Gas
Oil &	30%
Gas
Gas
43%
66%
	Other	Other
	End-markets	End-markets
	57%	70%

DXP is a leading player in diverse, growing, and recession-resistant end markets

• Less exposure to Oil & Gas end market; Decreased over 35%from FY2014 to FY2022
• Increased diversity in end market exposure
• Expanding presence in Industrial, Water & Wastewater and Food & Beverage industries which benefit from strong secular trends
• High quality customer base across dynamic industries

6

Note: Management estimates. Industrial includes aggregates, alternative energy, automotive, building products, military, municipal, pharmaceuticals, pulp & paper, sanitary, steel, telecommunications and wood products.

2 COMPREHENSIVE PRODUCT PORTFOLIO WITH EMPHASIS ON HIGHLY ENGINEERED SOLUTIONS

	DXP Product Divisions1
			Safety
Industrial		Products and
		Services
Supplies	6%
13%
Metal
Working /
Cutting Tools			Rotating
11%
		Equipment
	58%

Bearing &

Power

Transmission

12%

Market Leader Across Products

#1	Rotating Equipment
Top 5	Metal Working / Cutting Tools
Safety Products and Services

A breadth of technical products and services. . . . . .

• Single source for engineering, system design, and fabrication of custom pump packages
• Fulfill MRO, OEM, and capex customer demand streams
• Higher margin products and value-added services

Top 10 Bearings and Power Transmission

Top 15 Industrial Supplies

7

Source: Rankings reflect management market estimates regarding market share position. Modern Distribution Management, Product Rankings and industry/product trade publications.

1 % of FY 2022 sales.

3 BALANCED STRATEGY HAS ACCELERATED GROWTH

Annual Goals

Results

Recent Acquisitions (2020 - YTD 2023)

Organic Growth

Remains a Top

Priority...

10%

...Acquisitions

Accelerate Growth

and Scale

10%

Combined,

Consistent Growth

in Excess of the

Market

• Completing first national pump distribution platform
• SuperCenters - unmatched branch model
• Aligned sales force expansion - national and local
• Unmatched Innovative Pumping Solution capabilities
• SCS guaranteed "customer savings"
• Continue consolidation of fragmented market
• Opportunities to enlarge key product divisions
• Diversify end markets and customers
• U.S. still top priority - targeting "holes" in the map
• Consistent top and bottom-line growth
• "One-stop"source for customer's technical products and service needs - "Customer Driven Experts in MRO Solutions"
• Long-termshareholder value creation

Date	Acquisition	Product Division	Region
Nov-23	Alliance Pump & Mech.	Pump Service & Repair	North
Central
May-23	Florida Valve & Equipment	Water & Wastewater	South
Atlantic
May-23	Riordan Materials	Water & Wastewater	Mid
Atlantic
Sep-22	Sullivan Environmental	Water & Wastewater	Midwest
Technologies
May-22	Cisco Air Systems	Compressors	South
Mar-22	Drydon Equipment, Inc	Water & Wastewater	Midwest
Mar-22	Burlingame Engineers, Inc	Water & Wastewater	West
Sep-21	Premier Water	Water & Wastewater	South
Jul-21	Process Machinery, Inc	Pumps, Filters	South
Apr-21	Carter & Verplanck, Inc	Water & Wastewater	South
East
Dec-20	Total Equipment	Pumps, Compressors	East
Dec-20	APO Pumps &	Pumps, Compressors	Midwest
Compressors
Dec-20	Pumping Solutions	Pumps, Process	Midwest
Equipment
Dec-20	Corporate Equipment	Water & Wastewater	Midwest
Feb-20	Turbo Machinery Repair	Pump Service & Repair	West
Jan-20	Pumping Systems	Pumps	South
Atlantic

8

4 HEALTHY FINANCIAL PERFORMANCE DRIVING RETURNS

Sales and Gross Margin

			($ millions)		30.8%
33.0%	30.0%			28.8%	27.4%	29.5%		30.0%
31.0%		29.7% 28.4%			424	428	419
	28.9%		406
29.0%			387
		368
27.0%		293	319
25.0%	289
23.0%
21.0%
19.0%
17.0%
15.0%	Sep-21Dec-21Mar-22Jun-22Sep-22Dec-22Mar-23Jun-23Sep-23

Diluted Earnings Per Share

					($ actuals)*
450										1.2
400
350								1.06		1
300							0.95		0.93	0.8
250				0.74	0.75					0.6
200			0.65
150										0.4
100	0.36					0.37
									0.2
50		0.05
0										0
	Sep-21	Dec-21	Mar-22	Jun-22	Sep-22	Dec-22	Mar-23	Jun-23	Sep-23

Adj. EBITDA and Adj. EBITDA Margin

		($ millions)
14.0%				10.2%	10.6%	10.5%50
12.0%			8.9%	43	45	44	40
	8.9%
			7.8%
10.0%
	8.9%	34				30
		33	32
8.0%
6.5%	28
6.0%	5.0%						20
4.0%	19
15						10
2.0%
0.0%	Sep-21Dec-21Mar-22Jun-22Sep-22Dec-22Mar-23Jun-23Sep-23	0

Return on Invested Capital

ROIC%

Return on invested capital is defined as	40%
tax-effected LTM EBITDA / average total net operating assets.

									35%
							32%	34%	30%
						30%
					28%			25%
				25%
23%		24%	24%					20%
22%
									15%
									10%
									5%
Sep-21	Dec-21	Mar-22	Jun-22	Sep-22	Dec-22	Mar-23	Jun-23	Sep-23	0%

9

* Sep-22 diluted earnings per share is adjusted for the impact of a one-timenon-cash loss on the sale of an asset. Actual diluted earning per share was $0.71 for Q3'22.

4 STRONG CASH FLOW GENERATION THROUGH CYCLES

($ millions)																			Free Cash Flow 1	$164
																		2
																							Adj. EBITDA 1
													$140
											$123														$127
										$109											$103
													$89					$96	$95
													$84 $82
											$74												$70
								$66
														$61
			$59											$55				$58				$59
					$50
					$47								$44
	$37			$35					$37														$33
																	$29
						$23
						$22												$19
			$13
	$12													$10
																										$3
	2007	2008		2009	2010	2011	2012	2013	2014	2015	2016	2017	2018		2019	2020	2021		2022	LTM Q3
																											2023
FCF
	31.1%	22.4%		144.5%		48.4%	33.1%	34.1%	60.7%	63.9%	103.3%	80.3%	15.9%	30.3%		20.2%	177.6%	47.1%	2.4%	10.4%
Conversion¹
Average
FCF1		26.8%							48.0%							36.7%								20.0%

FCF conversion peaks at height of cycles…

…But is still strong during non-peak periods

FCF conversion peaks at the height of cycles (2009, 2015 and 2020) but remains robust (>35% average) during non-peak years

Robust free cash flow profile...

• 16 year average free cash flow conversion of ~60%from FY 2007 to FY 2022
• During downturns, DXP has effectively managed its cash flow by releasing working capital and remaining disciplined in acquisitive growth
• Flexible cost structure and disciplined working capital management underpin free cash flow generation through cycles
• Strong ability to manage headwinds in broader energy markets

10

Note: Adj. EBITDA is pre-impairment expense in 2009, 2014 and 2015. 2015 is also pre-B27 settlement and includes add back for above average legal fees.¹ Free Cash Flow calculated as cash flows from operations less net purchases of property and equipment per Company financials; FCF Conversion defined as (cash flows from operations - net purchases of property and equipment) / Adj. EBITDA; Adj. EBITDA per Company financials. 2 Equates to $162mm for LTM Q2-23 PF Compliance Adj. EBITDA. See appendix for the reconciliation from Adj. EBITDA to PF Compliance Adj. EBITDA.