DNOW (DNOW) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 revenue of $599 million, up 6.4% year-over-year and 5% sequentially, exceeding expectations despite flat U.S. rigs and lower completions.

• Net income was $22 million ($0.20 per diluted share); adjusted net income was $24 million ($0.22 per share).

• EBITDA reached $46 million (7.7% of revenue), the second-best Q1 in company history, up 18% year-over-year.

• Closed the acquisition of Natron International in Singapore in April, expanding MacLean International's Asia-Pacific reach.

• Repurchased $16 million in shares year-to-date under a new $160 million program.

Financial highlights

• U.S. revenue: $474 million (+9% YoY); Canada: $62 million (down 6% YoY); International: $63 million (+1.6% YoY).

• Gross margin: 23.2%; EBITDA margin: 7.7%.

• Net income: $22 million; adjusted net income: $24 million.

• Free cash flow was negative $22 million in Q1 2025; $6 million in Q1 capex.

• Ended Q1 with $219 million in cash, zero debt, and $567 million in total liquidity.

Outlook and guidance

• Q2 2025 revenue expected flat to up mid-single digits sequentially; full-year 2025 revenue guidance reaffirmed as flat to up high single digits from 2024.

• Full-year EBITDA could approach 8% of revenue; targeting $150 million in free cash flow for 2025.

• Management remains cautious due to oil price volatility, tariffs, and global demand uncertainty.

• Company aims to expand in energy transition and non-oil and gas end markets.