Houston-based oilfield PVF products distributor DNOW reported its 2025 first quarter financial results on May 7, showing an increase in sales month-over-month and year-over-year.

The company posted 1Q total sales of $599 million, up 6% year-over-year, and likewise up 5% month-over-month.

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DNOW’s 1Q U.S. sales of $474 million increased by 9% year-over-year, driven by contributions from acquisitions completed in 2024, partially offset by weakening U.S. drilling and competition activity.

Elsewhere, DNOW’s Canada sales of $62 million decreased by 6% year-over-year, driven by unfavorable foreign exchange rate impacts. While international sales of $63 million increased 2% year-over-year, primarily driven by increased project activity.

The company’s 1Q gross margin of 23.2% increased 30 basis points year-over-year. Operating profit of $30 million rose from the $28 million of a year earlier, while net profit of $22 million increased slightly from 1Q24’s $21 million.

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DNOW’s adjusted EBITDA of $46 million on 7.7% margin was the company’s second-best first-quarter EBITDA, and increased from 1Q24’s $39 million on 6.9% margin.

“We are uniquely well-capitalized, with a significant cash balance and no debt or interest payments and can be selective and patient at the acquisition bargaining table while benefiting from our fortuitous inventory planning,” DNOW President and CEO David Cherechinsky said in the company’s financial release. “While future market conditions are difficult to predict, given uncertainties stemming from the decline in oil prices and tariff-induced trade disruptions, we believe we are well positioned to seize organic, adjacent and inorganic growth opportunities, pursuing more efficient and cost-effective ways to execute operationally.”

The company closed on an international bolt-on acquisition in April that expanded its MacLean International electrical cable distribution business in Singapore. DNOW didn’t name the company, but noted that it distributes lighting, cable glands and electrical bulk materials.

“They service kind of a broad different market space from offshore to marine to petrochemical,” said Brad Wise, DNOW’s Vice President of Digital Strategy and Investor Relations. “There’s a pharmaceutical business there — pretty diversified — shipyards, FPSOs, some data centers. So, we like the diversified end markets that they bring, and are just excited to bring them on board and look at revenue synergies with our MacLean leadership team.”

Cherechinsky noted that the acquired company’s EBITDA multiples are in DNOW’s standard 4% to 6% range, and closer to 4%.

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The company anticipates 2Q25 revenue to increase flat-to-up in the mid-single-digits percentage range sequentially, and EBITDA to approach 8% of revenue.

DNOW was No. 19 on MDM’s Top Distributor’s List for Industrial Supplies, No. 4 for Industrial PVF and No. 21 for MRO.