1Q23 Solid Start to the Year
DistributionNOW's 1Q23 revenue totaled $584 million, a 23% Y/Y increase and a 7% increase from 4Q22. US revenue climbed 28% Y/Y, while International revenue climbed by 30%. Canadian revenue was 1% higher. The US contributed 73% of total revenue in the quarter... Operating profit increased 52% Y/Y to $35 million from $23 million in 1Q22. The US accounted for 66% of the total operating profit. Operating profit margin was 6.0% in 1Q23, compared with 4.9% in 1Q22... Management expects FY23 revenue to increase 8-12% Y/Y and is targeting an adjusted EBITDA margin of 8.0% of revenue. 2Q23 revenue is expected to grow sequentially in the low single digits on a percentage basis. The result could be a ~10% Y/Y revenue increase from 2Q22... DistributionNOW is pursuing incremental acquisitions to add margin accretive business to its Process Solutions offerings. Management announced two acquisitions that expand its territorial exclusivity to distribute mechanical seals to customers in Colorado and Montana. The acquisitions are expected to generate revenue synergies with its pump capabilities and could expose the company to new customers in the general industrial markets...NOW, through its subsidiaries, is a distributor to the oil and gas and industrial markets. The company's global product offering includes consumable maintenance, repair and operating supplies, pipe, valves, fittings, flanges, gaskets, fasteners, electrical, instrumentation, artificial lift, pumping solutions, valve actuation and modular process, measurement and control equipment. The company also provides warehouse and inventory management solutions as part of its supply chain and materials management offering. The company's solutions include outsourcing the functions of procurement, inventory and warehouse management, logistics, point of issue technology, project management, as well as business process.
Water Tower Research is built on the foundation of democratizing information flow. We bridge the growing information gap between companies and investors through our investor engagement strategies and open-access research platform.
Our research analysts are Wall Street veterans with the experience and knowledge to work with companies and investors in tandem. We provide access to the information and content that anchors the due diligence process for both professional money managers and individual investors. We leverage traditional research distribution channels and the best of modern digital strategies and tactics to amplify this information flow globally to engage all categories of investors and stakeholders.
Information flow is the foundation for creating investor awareness, knowledge, and engagement. Our mission is to help companies and investors have the tools they need and achieve their goals.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.