Wrapping up Q3 earnings, we look at the numbers and key takeaways for the maintenance and repair distributors stocks, 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 satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.4% 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 $513.7 million, up 8.6% year on year. This print exceeded analysts’ expectations by 3%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

David R. Little, Chairman and Chief Executive Officer commented, "The Company posted excellent third quarter financial results, delivering solid sales, adjusted EBITDA, earnings per share and free cash flow. Third quarter results reflect the continued execution of our growth strategy. We continue to set new high watermarks as DXPeople. We are pleased with our sequential sales growth. This resulted in operating leverage that produced diluted earnings per share of $1.31. DXP’s fiscal year 2025 third quarter sales were $513.7 million, or an 8.6 percent growth over the same period in 2024. Adjusted EBITDA was $56.5 million in the quarter. During the third quarter of 2025, sales were $350.2 million for Service Centers, $100.6 million for Innovative Pumping Solutions, and $63.0 million for Supply Chain Services. Overall, we are very pleased with our performance and the progress DXP continues to make as a growth company. "

Unsurprisingly, the stock is down 29.8% since reporting and currently trades at $85.85.

Is now the time to buy DXP? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: 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 $282.9 million, up 3.4% year on year, outperforming analysts’ expectations by 2.3%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10.8% since reporting. It currently trades at $160.

Is now the time to buy VSE Corporation? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Global Industrial (NYSE: GIC)

Formerly known as Systemax, Global Industrial (NYSE: GIC) distributes industrial and commercial products to businesses and institutions.

Global Industrial reported revenues of $353.6 million, up 3.3% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

Global Industrial delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 23.3% since the results and currently trades at $26.93.

Read our full analysis of Global Industrial’s results here.

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 $82.27 million, up 21.3% year on year. This number beat analysts’ expectations by 3.5%. More broadly, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

Transcat delivered the fastest revenue growth among its peers. The stock is down 23.3% since reporting and currently trades at $54.03.

Read our full, actionable report on Transcat here, it’s free for active Edge members.

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 $6.20 billion, up 12.9% year on year. This result topped analysts’ expectations by 4.9%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ revenue estimates.

WESCO achieved the biggest analyst estimates beat among its peers. The stock is up 13% since reporting and currently trades at $257.98.

Read our full, actionable report on WESCO here, it’s free for active Edge members.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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