NOW 1Q Revenue Jumped 23.5% from a Year Earlier - Modern Distribution Management

Log In

NOW 1Q Revenue Jumped 23.5% from a Year Earlier

The oilfield products distributor's 1Q growth far outpaced that of the global rig count, powered by sales in the U.S. and international.

NOW Inc. — which does business through its DistributionNOW brand — reported its 2023 first quarter financial results on May 4, showing a considerable sequential increase in year-over-year sales.

The Houston-based oilfield products distributor posted total January-March sales of $584 million, up 23.5% year-over-year. The company noted how that figure far outpaces the global rig count growth of 15% year-over-year.

The major year-over-year sales growth was driven by 28 percentage points of growth in the U.S. and 30 points in international, while Canada was up 1%.

Sequentially, sales improved 7% from 4Q22, during which sales decreased 5.2% year-over-year.

NOW’s 1Q gross margin was 23.5% — up from 22.6% a year earlier and trailing the 24.1% seen in 4Q22 and 3Q22. The company’s 1Q23 operating profit of $35 million topped the $23 million of a year earlier.

The company had a 1Q23 net profit of $28 million, topping the $15 million it had a year earlier and narrowly trailing 4Q22’s $29 million.

NOW’s 1Q23 EBITDA was $47 million, or 8.0% of costs — up from $28 million/5.9% in 1Q22 and trailing 4Q22’s $47 million/8.6%.

“Our year is off to a nice start, including strong top- and bottom-line performance,” NOW President and CEO David Cherechinsky said in a news release. “We achieved these better-than-expected results despite headwinds related to inclement weather, lower U.S. rig counts and completions, and weaker oil and gas prices during the quarter. We are excited about our international segment posting strong sequential revenue growth of 28% at operating profit levels not seen since 2014.

The company noted that it completed two acquisitions during May to fortify its U.S. Process Solutions pump and seal distribution and service territories.

Looking ahead, NOW reaffirmed its full-year 2023 revenue outlook of 8% to 12% growth vs. 2022, with full-year 2023 EBITDA targeted at 8.0% of revenue, excluding other costs (non-GAAP).

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.