Q1 2025 DNOW Inc Earnings Call Transcript
Key Points
- Dnow Inc (DNOW) reported its second-best first quarter EBITDA in company history at $46 million, up 18% year over year.
- Revenue for the first quarter was $599 million, representing a 4.9% increase from the previous quarter and a 6.4% increase year over year.
- Gross margins remained strong at 23.2%, exceeding expectations for the first quarter.
- The company successfully closed a strategic international acquisition in Singapore, expanding its MacLean International brand.
- Dnow Inc (DNOW) has a robust cash position with $219 million and no debt, providing flexibility for future acquisitions and share repurchases.
- The company faces macroeconomic uncertainties, including potential impacts from US tariffs and retaliatory measures.
- Revenue in Canada decreased by $4 million sequentially due to a non-repeating project from the previous quarter.
- International revenue is expected to decline by about $10 million in the second quarter due to non-repeating projects.
- The company anticipates potential revenue declines in the upstream sector due to expected rig count reductions.
- Dnow Inc (DNOW) is experiencing competitive pressures in the market, particularly in project bidding.
Good morning. My name is Janine, and I will be your conference operator for today. At this time, I would like to welcome everyone to the DNOW first quarter 2025 earnings conference call. (Operator Instructions). Mr. Brad Wise, Vice President of Digital Strategy and Investor Relations, you may begin your conference.
Well, thank you, Janine, and good morning. Welcome to DNOW's first quarter 2025 earnings conference call. We appreciate you joining us and thank you for your interest in DNOW. With me today is David Cherechinsky, President and Chief Executive Officer, and Mark Johnson, Senior Vice President and Chief Financial Officer.
We operate under the DNOW brand, which is also our New York Stock Exchange ticker symbol. Please note that some of the statements we make during this call, including responses to your questions, may contain forecasts, projections, and estimates, including but not limited to comments about the outlook of the company's business.
These are forward-looking
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