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NOW(DNOW) - 2024 Q4 - Annual Results
DNOWNOW(DNOW)2025-02-13 11:56

Revenue Performance - DNOW reported fourth quarter revenue of 571million,a2.9571 million, a 2.9% increase from 555 million in the same quarter of 2023[7]. - Full-year revenue for 2024 was 2,373million,up2.22,373 million, up 2.2% from 2,321 million in 2023[7]. Cash Flow and Liquidity - Free cash flow for 2024 was 289million,nearlydoubletheprojectionsfromthepreviousyear[4].−Cashprovidedbyoperatingactivitieswas289 million, nearly double the projections from the previous year[4]. - Cash provided by operating activities was 122 million for the fourth quarter and 298millionforthefullyear[7].−AsofDecember31,2024,DNOWhadcashandcashequivalentsof298 million for the full year[7]. - As of December 31, 2024, DNOW had cash and cash equivalents of 256 million and zero long-term debt, with total liquidity of approximately 556million[7].−NetcashprovidedbyoperatingactivitiesforQ42024was556 million[7]. - Net cash provided by operating activities for Q4 2024 was 122 million, up from 81millioninQ42023,resultinginafreecashflowof81 million in Q4 2023, resulting in a free cash flow of 119 million[24]. - For the year ended December 31, 2024, total free cash flow reached 289million,comparedto289 million, compared to 171 million in 2023, indicating a significant increase[24]. - Free cash flow for Q3 2024 was 72million,anincreasefrom72 million, an increase from 18 million in Q2 2024[24]. - The company’s net cash used in operating activities for Q3 2024 was 74million,comparedto74 million, compared to 105 million in Q3 2023[24]. Profitability Metrics - Fourth quarter EBITDA was 45million,representing7.945 million, representing 7.9% of revenue, exceeding expectations due to improved gross margins and cost control[4]. - Net income for the fourth quarter was 23 million, or 0.21perdilutedshare,comparedto0.21 per diluted share, compared to 147 million, or 1.35perdilutedshareinthesamequarterof2023[7].AcquisitionsandInvestments−ThecompanycompletedtheacquisitionofTrojanRentals,LLCfor1.35 per diluted share in the same quarter of 2023[7]. Acquisitions and Investments - The company completed the acquisition of Trojan Rentals, LLC for 114 million in cash, enhancing its pump rental and industrial automation capabilities[7]. - DNOW announced a new 160millionsharerepurchaseauthorization,doublethesizeofthepreviousprogram,reflectingconfidenceinitscashgenerationcapabilities[5].ExpensesandTaxBenefits−OtherexpensesforQ42024includedtransaction−relatedchargesofapproximately160 million share repurchase authorization, double the size of the previous program, reflecting confidence in its cash generation capabilities[5]. Expenses and Tax Benefits - Other expenses for Q4 2024 included transaction-related charges of approximately 2 million and international restructuring charges of about 1million[25].−FortheyearendedDecember31,2024,Otherexpensestotaled1 million[25]. - For the year ended December 31, 2024, Other expenses totaled 9 million, with 6millionattributedtoforeigncurrencytranslationlosses[28].−Thecompanyincurredapproximately6 million attributed to foreign currency translation losses[28]. - The company incurred approximately 12 million in transaction-related charges for the year ended December 31, 2024, with 5millionincludedincostofproducts[28].−Thecompanyreportedataxbenefitof5 million included in cost of products[28]. - The company reported a tax benefit of 126 million for Q4 2023 from the release of valuation allowances against deferred tax assets[30]. - For the year ended December 31, 2023, the tax benefit from the release of valuation allowances was 149million[33].−OtherexpensesforQ32024includedinternationalrestructuringchargesof149 million[33]. - Other expenses for Q3 2024 included international restructuring charges of 8 million, with $5 million related to foreign currency translation losses[27]. Future Outlook - The company aims for continued growth in 2025, potentially marking the fifth consecutive year of growth[6].