DNOW (DNOW) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 revenue of $599 million, up 5% sequentially and 6.4% year-over-year, with EBITDA of $46 million (7.7% margin), despite fewer active rigs and completions.

• Net income attributable to shareholders was $22 million ($0.20 per diluted share); non-GAAP net income was $24 million ($0.22 per share).

• Closed the acquisition of Natron International in Singapore, expanding MacLean International's Asia-Pacific presence and electrical supply capabilities.

• Repurchased $8 million in shares in Q1 and $16 million year-to-date under a new $160 million program.

• Ended Q1 with $219 million in cash, $567 million in total liquidity, and no debt.

Financial highlights

• Revenue: $599 million, up $28 million (5%) from Q4 2024 and $36 million (6.4%) from Q1 2024.

• EBITDA (excluding other costs): $46 million (7.7% of revenue), up from $39 million (6.9%) in Q1 2024.

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

• Gross margin: 23.2%, stable and better than expected.

• Free cash flow was negative $22 million in Q1 2025, reflecting increased working capital and capital expenditures.

Outlook and guidance

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

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

• Management remains cautious due to oil price volatility and tariff-related trade disruptions but is confident in operational execution.