DNOW Sales, Margins & Profits Slide YoY in 1Q - Modern Distribution Management

Log In

DNOW Sales, Margins & Profits Slide YoY in 1Q

1Q U.S. sales actually increased 2% year-over-year, driven by DNOW's acquisition of Whitco Supply that was completed during the quarter.

Houston-based oilfield products distributor DNOW reported its 2024 first quarter financial results on May 10, showing year-over-year declines in sales, margins and profits.

The company posted 1Q total sales of $563 million, down 4% year-over-year, following gains of 1.5% in 4Q23 and 1.9% in 3Q23. Sequentially, sales improved 1.4% vs. 4Q23.

DNOW’s 1Q U.S. sales increased 2% year-over-year, driven by the company’s completed acquisition of PVF and automation products distributor Whitco Supply (Broussard, LA). That deal gained DNOW about 230 employees across eight locations in Louisiana, Texas, New Mexico, Ohio and Pennsylvania. 

Elsewhere, 1Q DNOW’s Canada sales fell 20% year-over-year, and fell 16% in the rest of international.

The company’s 1Q gross margin of 22.9% was down 60 basis points year-over-year and down 50 bps from 4Q23. Operating profit of $28 million and margin of 5.0% trailed the $35 million and 6.0% of a year earlier, while net profit of $21 million likewise trailed the $31 million of a year earlier.

DNOW’s 1Q adjusted EBITDA of $39 million on 6.9% margin trailed the $47 million and 8.0% margin of a year earlier, and the $44 million/7.9% margin of 4Q23.

Looking forward, DNOW said it expects full-year 2024 sales to increase in the mid-to-high single digit range from 2023, with 2Q sales expected to jump 10-15% sequentially.

During the quarter on Jan. 19, DNOW officially changed its corporate name from NOW Inc., which had done business primary as DistributionNOW ever since the company spun off from National Oilwell Varco in 2014. Along with that, the company has also unveiled a new branding look  with a new corporate logo and “Run Stronger” tagline shown across its website.


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 mdm.com, 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 MDM.com
  • 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 mdm.com
  • 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.