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.