DNOW

DNOW Q1 2025 Earnings

Reported May 7, 2025 at 6:57 AM ET · SEC Source

Q1 25 EPS

$0.22

BEAT +26.95%

Est. $0.17

Q1 25 Revenue

$599.0M

BEAT +2.02%

Est. $587.2M

vs S&P Since Q1 25

-41.3%

TRAILING MARKET

DNOW -10.6% vs S&P +30.7%

Market Reaction

Did DNOW Beat Earnings? Q1 2025 Results

DNOW Inc. Kicked off 2025 with a notably strong first quarter, posting non-GAAP adjusted diluted EPS of $0.22 against a consensus estimate of $0.17, a beat of roughly 26.95%, while revenue of $599.00 million topped forecasts by 2.02% and grew 6.4% ye… Read more DNOW Inc. Kicked off 2025 with a notably strong first quarter, posting non-GAAP adjusted diluted EPS of $0.22 against a consensus estimate of $0.17, a beat of roughly 26.95%, while revenue of $599.00 million topped forecasts by 2.02% and grew 6.4% year-over-year. The primary engine behind the results was a resurgent U.S. Segment, which generated $474.00 million in revenue compared to $435.00 million a year earlier, reflecting broad-based demand across the company's distribution network. EBITDA excluding other costs reached $46.00 million, or 7.7% of revenue, the company's second-best first-quarter margin on record. A deliberate $33.00 million inventory build weighed on operating cash flow but is designed to position DNOW favorably amid tariff-driven supply chain uncertainty. With $219.00 million in cash, zero long-term debt, and roughly $567.00 million in total liquidity, CEO David Cherechinsky acknowledged the difficult-to-predict environment around oil prices and trade disruptions, while expressing confidence in the company's capacity to pursue both organic growth and acquisitions from a position of financial strength.

Key Takeaways

  • 5% sequential revenue growth despite fewer operating rigs and completions
  • Second-best first-quarter EBITDA excluding other costs of $46 million at 7.7% of revenue
  • Strong U.S. segment revenue growth of 9% year-over-year
  • Strategic inventory investment of $33 million for anticipated organic growth
24/7 Wall St

DNOW YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

DNOW Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26
24/7 Wall St

DNOW Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Following our second-best fourth quarter in history, we beat first-quarter expectations with revenue growth of 5% sequentially to $599 million, and delivered our second-best first-quarter EBITDA of $46 million, in a market with fewer operating rigs and completions.”

— David Cherechinsky, Q1 2025 Earnings Press Release