Energy and industrial product distributor Distribution NOW reported a robust sales increase and dramatically higher profits and earnings in its latest fiscal quarter.
Houston-based NOW Inc. posted $577 million in revenue in the third quarter of the year, up 31% compared to the $439 million in the same quarter of 2021, while quarterly profit more than quadrupled from $10 million to $44 million over that span.
Earnings and net income, meanwhile, were up even more: earnings per share attributable to NOW Inc. went from $0.05 to $0.35, while net income jumped from $5 million to $41 million.
“The advancement of our strategic transformation continued into the third quarter as EBITDA as a percent of revenues reached 9.2% for the first time on expanded revenue and gross margins across a more efficient fulfillment model,” NOW Inc. President and CEO David Cherechinsky said in a statement.
The distributor raised its forecast for the remainder of the year amid the revenue growth and stronger gross margins. DNOW anticipates a nearly $120 million increase in full-year EBITDA over 2021, although revenues are expected to ease in the current quarter due to “seasonality and budget exhaustion.”