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NOW Q1 2025 Earnings Report
DNOW Inc. reported its first quarter 2025 financial results.
Key Takeaways
DNOW Inc. exceeded first-quarter expectations with a 5% sequential revenue growth to $599 million and achieved its second-best first-quarter EBITDA of $46 million, despite a market with fewer operating rigs and completions. The company also made strategic capital allocation moves, including a key acquisition and share repurchases.
Revenue for the first quarter of 2025 was $599 million, representing a 5% sequential growth.
Net income attributable to DNOW Inc. was $22 million, or $0.20 per diluted share.
EBITDA, excluding other costs, was $46 million, or 7.7% of revenue.
The company repurchased $8 million of common stock in Q1 2025 and completed the acquisition of Natron International Pte. Ltd.
Revenue by Geographic Location
Forward Guidance
While future market conditions are difficult to predict due to declining oil prices and tariff-induced trade disruptions, DNOW is well-positioned to capitalize on organic, adjacent, and inorganic growth opportunities.
Positive Outlook
- Well-capitalized with a significant cash balance and no debt.
- Ability to be selective and patient at the acquisition bargaining table.
- Benefiting from fortuitous inventory planning.
- Well-positioned to seize organic, adjacent, and inorganic growth opportunities.
- Pursuing more efficient and cost-effective ways to execute operationally.
Challenges Ahead
- Future market conditions are difficult to predict.
- Uncertainties stemming from the decline in oil prices.
- Uncertainties stemming from tariff-induced trade disruptions.
- Fewer operating rigs and completions in the market.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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