DNOW Inc. on Thursday reported higher annual sales but a steep drop in earnings compared to the previous year.
The Houston industrial and energy product distributor — no. 14 on ID’s 2024 Big 50 — posted $2.37 billion in 2024 revenue, an increase of 2.2% over 2023’s total.
Operating profit, meanwhile, fell from $140 million in 2023 down to $113 million last year, while net income plummeted from $248 million to $82 million over that span.
The company’s fourth quarter followed a similar pattern: Q4 revenue climbed from $555 million last year to $571 million in the latest period, while operating profit slid from $32 million to $29 million and net income dropped from $147 million to $23 million year-over-year.
The decline in quarterly earnings, however, was far smaller than anticipated on Wall Street — prompting a jump in shares of the company’s stock.
DNOW President and CEO David Cherechinsky added that the company’s Q4 EBITDA of $45 million eclipsed executives' expectations amid an increase in gross margins and the implementation of cost-control initiatives.
“The company achieved solid results this quarter with year-over-year revenue growth, despite project delays in the period, thanks to the hard work of our dedicated employees, who provide a differentiated level of service and products to our customers every day,” Cherechinsky said in the company’s earnings release.
DNOW officials reportedly outlined a 2025 revenue forecast that ranged from flat to an increase in the high single-digits.
