DNOW Inc. reported a revenue of $599 million for the first quarter of 2025, marking a 6.4% increase from $563 million in the same period of 2024. The company achieved a net income of $22 million, up from $21 million year-over-year. Operating profit also rose to $30 million, compared to $28 million in the prior year. The increase in revenue was primarily driven by higher sales in the U.S. segment, which saw a 9% rise in revenue to $474 million, attributed to acquisitions made in 2024, despite a decline in drilling and completion activities.
In terms of operational metrics, DNOW's total assets increased to $1.651 billion as of March 31, 2025, from $1.621 billion at the end of 2024. The company reported a cash and cash equivalents balance of $219 million, down from $256 million at the end of the previous fiscal year. The company’s inventory also rose to $385 million, reflecting a proactive investment to support customer demand. The total employee headcount stood at approximately 2,575, consistent with the previous quarter.
Strategically, DNOW has continued to expand its market presence, recently completing an acquisition in Singapore aimed at enhancing its electrical supply capabilities in the Asia Pacific region. This move aligns with the company's focus on serving both traditional and renewable energy markets. Additionally, DNOW has initiated a new share repurchase program, authorizing up to $160 million for the buyback of its common stock, following the completion of a previous $80 million program.
The company’s effective tax rate for the quarter was 23.3%, a decrease from 27.6% in the prior year, primarily due to increased tax benefits related to stock-based compensation. Looking ahead, DNOW's outlook remains closely tied to fluctuations in crude oil and natural gas prices, as well as global drilling and completion activities. The company is also focusing on expanding its offerings in energy transition markets, which are expected to drive future growth as customers increasingly invest in sustainable energy solutions.
About DNOW Inc.
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