DNOW (DNOW) Q1 2025 Earnings
How Did DNOW Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +6.87%.
Did DNOW Beat Earnings? Q1 2025 Results
Yes. DNOW reported Q1 2025 earnings of $0.22 a share on May 7, 2025, beating the $0.17 consensus estimate by 26.9%. Revenue was $599.0M against a $587.2M estimate.
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.
- 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
“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.”
DNOW CEO, on the earnings call
What Was DNOW's Outlook in Q1 2025?
CEO David Cherechinsky noted that future market conditions are difficult to predict given uncertainties stemming from the decline in oil prices and tariff-induced trade disruptions. However, the company believes it is well positioned to seize organic, adjacent, and inorganic growth opportunities while pursuing more efficient and cost-effective operational execution. The strategic addition of $33 million in inventory is expected to set the company up favorably in the current environment.
DNOW YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $599.0M | $563.0M | +6.4% |
| Gross Profit | $139.0M | $129.0M | +7.7% |
| Operating Income | $30.0M | $28.0M | +7.1% |
| Net Income | $22.0M | $21.0M | +4.8% |
DNOW Revenue by Segment
DNOW Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.