Houston-based oilfield and PVF products distributor DNOW reported its 2024 fourth quarter and full-year financial results on Feb. 13, showing an increase in U.S. and Canada sales year-over-year, while international sales declined.

4Q Results

The company posted 4Q total sales of $571 million were up 3% year-over-year, but down 6% sequentially.

DNOW’s 4Q U.S. sales of $451 million increased by 8% year-over-year, driven by acquisition contributions, partially offset by lower drilling and completion activity.

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Elsewhere, DNOW’s 4Q Canada sales of $66 million increased 2% year-over-year, while international sales of $54 million decreased 25% year-over-year, primarily driven by lower project activity and location exits.

The company’s 4Q gross margin of 23.3% improved 100 basis points year-over-year. Operating profit of $29 million trailed the $32 million of a year earlier, while net profit of $23 million fell behind 4Q23’s $147 million.

DNOW’s adjusted EBITDA of $45 million on 7.9% margin was unchanged from the $44 million on 7.9% margin of a year prior, but was up from 3Q24’s $42 million/6.9% margin.

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The company completed its acquisition of Trojan Rentals, LLC in 4Q24 for $114 million in cash, adding to its pump rental and industrial automation offerings in the water transfer and management industry.

2024 Results

DNOW reported full-year sales of $2.37 billion, a 2.2% annual increase from 2023’s $2.32 billion.

The company’s U.S. sales of $1.8 billion, increased 7.4% year-over-year. Sales in Canada of $253 million decreased 10.2% vs. 2023, while international sales of $240 million likewise decreased 17.2% year-over-year.

The company’s full-year operating profit of $113 million trailed the $140 million of a year earlier, while net profit of $82 million fell behind 2023’s reported $248 million.

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DNOW’s adjusted EBITDA of $176 million on 7.4% margin was down from 2023’s reported $185 million on 7.9% margin.

“The recently announced $160 million share repurchase authorization, which is double in size from our previous program, demonstrates confidence in the strength of our business,” DNOW President and CEO David Cherechinsky said in the company’s financial release. “This substantial increase signals our strong conviction in DNOW’s cash generation capabilities and future earnings potential. Our commitment to maintain an acquisition focus alongside share buybacks provides multiple avenues for shareholder value creation.”

2025 Outlook

DNOW updated its 2025 outlook saying it expects full-year revenue to be flat-to-up in the high single-digit percentage range, while full-year EBITDA is expected to approach 8% of revenue.

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The company anticipates 1Q25 revenue to increase in the low-to-mid single digits percent range and EBITDA to approach 7% 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.