Houston-based oilfield products distributor DNOW reported its 2024 second quarter financial results on Aug. 7, showing a year-over-year increase in sales, after decline in 1Q24.
The company posted 2Q total sales of $633 million, up 6.6% year-over-year, following a 4% fall in sales during 1Q24.
DNOW’s 2Q U.S. sales increased 11.6% year-over-year, driven by the company’s acquisition of PVF and automation products distributor Whitco supply in February 2024.
Elsewhere, 2Q DNOW’s Canada Sales fell 16.4% year-over-year, and fell 10.1% in the rest of international.
The company’s 2Q gross margin of 21.8% was down year-over-year. Operating profit of $33 million trailed the $35 million of a year earlier, while net profit of $25 million likewise trailed the $34 million of a year earlier.
DNOW’s 2Q adjusted EBITDA of $50 million on 7.9% margin increased slightly from the $47 million and 7.9% margin of a year earlier, and the $39 million/6.9% margin of 1Q24.
“We are delighted with the growth we achieved during the second quarter, in a challenging market, where we delivered $50 million in EBITDA and produced $18 million in free cash flow, bringing our free cash flow haul to $201 million over the past four quarters,” DNOW President and CEO David Cherechinsky said in the company’s financial release. “We continue to execute on our strategy to bolster DNOW’s capabilities and expand our core market, while further penetrating into midstream, energy evolution and adjacent industrial markets, providing additional opportunities for growth.”
Looking forward, DNOW said it will continue to expand and pursue complementary, margin acquisitions to fuel future success for the company.
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