Industrial and energy product distributor DNOW Inc. on Thursday reported a 3% increase in quarterly sales despite project delays and a “challenging” environment, company officials said.
The company’s profit and earnings totals, however, were down significantly.
DNOW — no. 14 on ID’s 2024 Big 50 — posted revenue of $606 million, up from $588 million in the same quarter of 2023. Operating profit fell from $37 million to $23 million over that span, while net income plummeted from $35 million down to $13 million.
Diluted earnings came in at $0.12 per share compared to $0.32 per share last year.
DNOW President and CEO David Cherechinsky highlighted an additional $72 million in free cash flow in the quarter and a total of $273 million across the trailing four quarters, which he said stemmed from recent acquisitions, a record performance in the company’s U.S. Process Solutions segment, and “robust inventory velocity.”
“These results were produced in a challenging oil and gas environment, with the backdrop of lower commodity prices and a wave of customer consolidations,” Cherechinsky said in a statement.
He added that the company currently has $261 million in cash and no debt, which offers “a range of options to pursue growth.”
