Houston-based oilfield and PVF products distributor DNOW reported its 2024 third quarter financial results on Nov. 7, showing year-over-year sales growth despite “project delays in the period.”
The company posted 3Q total sales of $606 million, up 3% year-over-year, following a 6.6% increase in sales during 2Q24.
DNOW’s 3Q U.S. sales of $482 million increased by 7.3% year-over-year.
Elsewhere, 3Q DNOW’s Canada sales of $65 million decreased 4.5% year-over-year, while international sales likewise decreased by 19.8%.
The company’s 3Q gross margin of 22.3% was down 50 basis points year-over-year. Operating profit of $23 million trailed the $37 million of a year earlier, while net profit of $13 million likewise trailed the $35 million of a year earlier.
DNOW’s 3Q adjusted EBITDA of $42 million on 6.9% margin decreased from the $46 million and 7.8% margin of a year earlier, and the $50 million/7.9% margin of 2Q24.
“We generated an additional $72 million in free cash flow during the quarter, yielding $273 million for the trailing four quarters, driven by record performance in our U.S. Process Solutions business, strong acquisition contribution and robust inventory velocity,” DNOW President and CEO David Cherechinsky said in the company’s financial release. “These results were produced in a challenging oil and gas environment, with the backdrop of lower commodity prices and a wave of customer consolidations. We repurchased $7 million of shares in the quarter and are on a path to complete the $80 million share repurchase program this year, as planned.”
Related Posts
-
Each of DXP's three business segments likewise improved year-over-year and sequentially.
-
The company attributed the profit decrease to continued investments in its business transformation.
-
The company’s 3Q results showed stronger unit sales and digital growth, despite slight decreases in…
