DNOW Inc (DNOW) 2025 Q1 法說會逐字稿

Good morning. My name is Janine, and I will be your conference operator for today. At this time, I would like to welcome everyone to the DNOW first quarter 2025 earnings conference call. (Operator Instructions). Mr. Brad Wise, Vice President of Digital Strategy and Investor Relations, you may begin your conference.

早安.我叫 Janine，今天我將擔任您的會議主持人。現在，我歡迎大家參加 DNOW 2025 年第一季財報電話會議。（操作員指令）。數位策略和投資者關係副總裁布拉德懷斯先生，您可以開始您的會議了。

Well, thank you, Janine, and good morning. Welcome to DNOW's first quarter 2025 earnings conference call. We appreciate you joining us and thank you for your interest in DNOW. With me today is David Cherechinsky, President and Chief Executive Officer, and Mark Johnson, Senior Vice President and Chief Financial Officer.

好吧，謝謝你，珍妮，早安。歡迎參加 DNOW 2025 年第一季財報電話會議。感謝您的加入我們，並感謝您對 DNOW 的關注。今天與我一起的有總裁兼執行長 David Cherechinsky 和資深副總裁兼財務長 Mark Johnson。

We operate under the DNOW brand, which is also our New York Stock Exchange ticker symbol. Please note that some of the statements we make during this call, including responses to your questions, may contain forecasts, projections, and estimates, including but not limited to comments about the outlook of the company's business.

我們以 DNOW 品牌經營，這也是我們的紐約證券交易所股票代碼。請注意，我們在本次電話會議中所做的一些聲明（包括對您的問題的回答）可能包含預測、預期和估計，包括但不限於對公司業務前景的評論。

These are forward-looking statements within the meanings of the US Federal securities laws based on limited information as of today, May 7, 2025, which is subject to change. They are subject to risks and uncertainties, and actual results may differ materially. No one should assume these forward-looking statements remain valid later in the quarter or later in the year.

這些是根據截至 2025 年 5 月 7 日的有限資訊根據美國聯邦證券法所定義且可能發生變化的前瞻性陳述。它們受風險和不確定性的影響，實際結果可能存在重大差異。任何人都不應假設這些前瞻性陳述在本季稍後或今年稍後仍然有效。

We do not undertake any obligation to publicly update or revise any forward-looking statements for any reason. In addition, this conference call contains time sensitive information that reflects management's best judgment at the time of the live call.

我們不承擔因任何原因公開更新或修改任何前瞻性聲明的義務。此外，本次電話會議包含時間敏感訊息，反映了管理層在現場通話時的最佳判斷。

I refer you to the latest forms 10-K and 10-Q that DNOW has on file with the US Securities and Exchange Commission for a more detailed discussion of the major risk factors affecting our business. Further information, as well as supplemental and operating financial and operating information. May be found within our earnings release or on our website at ir.dnow.com or in our filings with the SEC.

我請您參閱 DNOW 向美國證券交易委員會提交的最新 10-K 和 10-Q 表格，以便更詳細地討論影響我們業務的主要風險因素。更多資訊以及補充和營運財務和營運資訊。可在我們的收益報告或我們的網站 ir.dnow.com 或我們向美國證券交易委員會 (SEC) 提交的文件中找到。

In an effort to provide investors with additional information regarding our results as determined by US GAAP. You'll note we disclosed various non-gap financial measures in our earnings press release and other public disclosures. Those non-GAAP financial measures include earnings before interest, taxes, depreciation, amortization, or EBITDA excluding other costs, EBITDA excluding other costs as a percentage of revenue.

為了向投資者提供按照美國公認會計準則確定的有關我們業績的更多資訊。您會注意到，我們在收益新聞稿和其他公開揭露中揭露了各種非差距財務指標。這些非公認會計準則財務指標包括息稅折舊攤提前利潤，或不包括其他成本的息稅折舊攤提前利潤，即不包括其他成本的息稅折舊攤銷前利潤佔收入的百分比。

Then income attributable to DNOW Inc. Excluding other costs, diluted earnings per share attributable to DNOW Inc stockholders, excluding other costs, and free cash flow. Please refer to reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measures and the supplemental information available at the end of our earnings release.

然後是歸屬於 DNOW Inc. 的收入。不包括其他成本、歸屬於 DNOW Inc 股東的每股稀釋收益（不包括其他成本）和自由現金流。請參閱這些非 GAAP 財務指標與其最可比較的 GAAP 財務指標的對帳以及我們的收益報告末尾提供的補充資訊。

As of this morning, the investor relations section of our website contains a presentation covering our results and key takeaways for the first quarter of 2025. A replay of today's call will also be available on the site for the next 30 days. Now let me turn it over David.

截至今天上午，我們網站的投資者關係部分包含一份介紹我們 2025 年第一季業績和要點的簡報。今天的電話會議重播也將在未來 30 天內在網站上提供。現在讓我把它交給大衛。

Thank you, Brad, and good morning everyone. I'd like to start by acknowledging the solid execution by our team in the first quarter of the year. Their grit or perseverance and passion, not just for today, but for playing the long game and doing the things today that ensure the enduring success of DNOW inspires me. Thank you for everything you do to support our suppliers and delight our customers.

謝謝你，布拉德，大家早安。首先，我要對我們團隊在今年第一季的出色表現表示感謝。他們的勇氣、毅力和熱情，不僅針對今天，而且針對長遠目標以及今天為確保 DNOW 持久成功所做的事情，都激勵著我。感謝您為支持我們的供應商和取悅我們的客戶所做的一切。

The first quarter of 2025 represents the second best first quarter EBITDA results in our public company history at $46 million up 2% sequentially and up 18% year over year. For reference, the actual record quarter or first quarter EBITDA was 2023 at $47 million in a period then where we had 29% more active rigs and 18% more new wells completed.

2025 年第一季是我們上市公司史上第二好的第一季 EBITDA 業績，達到 4,600 萬美元，季增 2%，年增 18%。作為參考，實際創紀錄的季度或第一季 EBITDA 是 2023 年，為 4,700 萬美元，而當時我們的活躍鑽機數量增加了 29%，新井完工數量增加了 18%。

I make that reference to illustrate the resilience of the continued earnings power produced by our team. Again, this is notable given the misunderstood perception that the upstream sector alone drives opportunities for DNOW.

我這樣說是為了說明我們的團隊所創造的持續獲利能力的韌性。再次，鑑於人們錯誤地認為只有上游產業才能為 DNOW 帶來機遇，這一點值得注意。

In the quarter, we delivered top line growth both sequentially and, on a year-to-year basis, beating our February guidance, despite headwinds from a slow start to the year coupled with flat US rigs and lower US completions. Revenue of the first quarter was $599 million, up 4.9% from the fourth quarter and up 6.4% year over year. Gross margins remained resilient at 23.2%, better than expected in the first quarter.

本季度，儘管年初美國鑽井數量持平且完工量下降等不利因素，我們的營收仍環比和同比均有所增長，超過了 2 月份的預期。第一季營收為5.99億美元，季增4.9%，年增6.4%。毛利率維持強勁，達到 23.2%，優於第一季的預期。

EBITDA as a percentage of revenue was 7.7%, beating our first quarter target and demonstrating continued earnings strength. We are focused on opportunities that drive accreted margins while diversifying our market mix. We continue to execute our strategy to invest in and grow our core market, capture additional revenues from energy evolution opportunities, and diversify our customer base.

EBITDA 佔營收的百分比為 7.7%，超過了我們第一季的目標，並顯示出持續的獲利實力。我們專注於推動利潤成長並實現市場組合多樣化的機會。我們將繼續執行我們的策略，投資並發展我們的核心市場，從能源發展機會中獲取額外收入，並實現客戶群多元化。

By targeting and realizing revenue from adjacent industrial markets while driving efficiencies across our business. With our current liquidity and capital allocation framework, we have the ability to strike deals at the right time and repurchase shares opportunistically, thus balancing the growth of our business with a return of capital to produce sustainable long-term value for our shareholders.

透過瞄準並實現鄰近工業市場的收入，同時提高整個業務的效率。憑藉我們目前的流動性和資本配置框架，我們有能力在適當的時間達成交易並適時回購股票，從而平衡業務成長和資本回報，為股東創造可持續的長期價值。

In April, we closed a small but important international acquisition which provides industrial lighting and electrical bulk materials to the energy and industrial end markets in Singapore and in the Asia Pacific region. The acquisition is complementary too and further strengthens and expands our MacLean International brand, where we have the same electrical manufacturer distribution agreement in the UK and Australia.

四月份，我們完成了一項規模雖小但意義重大的國際收購，為新加坡和亞太地區的能源和工業終端市場提供工業照明和電氣散裝材料。此次收購也具有互補性，進一步加強和擴大了我們的 MacLean International 品牌，我們在英國和澳洲擁有相同的電氣製造商分銷協議。

Allowing for increased revenue synergies with this key manufacturer and further positions MacLean to capture more market share. Moving to share repurchases under the new upsize $160 million program authorized earlier this year, we have purchased $16 million in shares to date.

允許與該主要製造商增加收入協同效應，並進一步使 MacLean 佔據更多的市場份額。根據今年稍早批准的新的 1.6 億美元增額計劃，我們進行了股票回購，迄今為止我們已經回購了價值 1,600 萬美元的股票。

Before I move to our results on a regional basis, I'd like to take a moment to comment on tariffs, some macro uncertainty, and the impact on DNOW. As you are aware, the tariff situation is dynamic. As a point of reference, following the first round of tariffs in 2018 and supply chain disruptions faced in 2021 and 2022.

在介紹我們各地區表現之前，我想花點時間評論一下關稅、一些宏觀不確定性以及對 DNOW 的影響。如您所知，關稅情況是動態的。作為參考，繼 2018 年第一輪關稅以及 2021 年和 2022 年面臨的供應鏈中斷之後。

In the wake of the COVID-19 pandemic, our supply chain and sourcing teams had repositioned our supply and increased sourcing from domestic producers, reducing our dependence on international sources. Today in our US operations, our rough estimates are that around 70% of the products we sell are sourced domestically, leaving the remaining products sourced internationally.

在新冠疫情爆發後，我們的供應鏈和採購團隊重新定位了我們的供應，並增加了從國內生產商的採購，減少了對國際來源的依賴。目前，在我們的美國業務中，我們粗略估計，我們銷售的產品中約有 70% 是在國內採購的，其餘產品則在國際採購。

South Korean, Indian, and European supply make up the majority of the directly imported product. DNOW directly imports a negligible amount of products from China, less than 1 million per year. Approximately 20% of our US operations supply for inventory has some exposure to China, mostly raw materials.

韓國、印度和歐洲的供應佔直接進口產品的大部分。DNOW直接從中國進口的產品數量極少，每年不到100萬件。我們美國業務庫存供應的約 20% 與中國有關，主要是原料。

Neither DNOW nor our key suppliers have dependency on Chinese imports for pipe fittings, and flanges, inclusive of raw materials and semi-finished materials. DNOW valve and pump manufacturers range from 100% US made to varying percentages of critical components to 100% Chinese made. Manufacturers exposed to Chinese-specific tariffs have begun altering supply chains and diversify diversifying outside of China.

DNOW 和我們的主要供應商都不依賴中國進口管件和法蘭，包括原料和半成品。DNOW 閥門和泵浦製造商範圍從 100% 美國製造到不同比例的關鍵零件到 100% 中國製造。受到中國特定關稅影響的製造商已開始改變供應鏈，並在中國以外實現多元化發展。

In response to this, we are taking the following actions to mitigate the impact and protect our margins. We are passing supplier cost increases through as quickly as we can. We are updating our pricing structures to reflect increases as they occur. We are working with our key suppliers to ensure adherence to advanced notification clauses in our agreements.

針對此情況，我們採取以下措施來減輕影響並保護我們的利潤。我們正在盡快轉嫁供應商成本的增加。我們正在更新我們的定價結構以反映價格上漲的情況。我們正在與主要供應商合作，以確保遵守協議中的提前通知條款。

We are using our purchasing power to continue to multi-source key commodity product lines to help our customers. We are working closely with our customers on project materials to solidify commitments ahead of procurement. And we are analyzing alternate manufacturers for qualification to our approved manufacturers' list.

我們正在利用我們的購買力繼續從多方採購關鍵商品產品線來幫助我們的客戶。我們正在與客戶就專案材料進行密切合作，以鞏固採購前的承諾。我們正在分析替代製造商，以確保其符合我們認可製造商名單的資格。

He now has the scale, systems, processes, and talent and experience to execute our inflation period playbook. Our suppliers are actively managing this evolving situation alongside us. In conclusion, DNOW is better positioned to navigate these challenges and seize opportunities related to tariff impact. Now some comments on a regional basis. In the US, revenue was $474 million up $23 million, or 5% sequentially.

他現在擁有執行我們通貨膨脹時期劇本的規模、系統、流程以及人才和經驗。我們的供應商正在與我們一起積極應對這一不斷變化的情況。總之，DNOW 更有能力應對這些挑戰並抓住與關稅影響相關的機會。現在談談一些基於地區的評論。美國市場營收為 4.74 億美元，比上一季增加 2,300 萬美元，增幅為 5%。

Growth was driven by a full quarter contribution of our fourth quarter Trojan acquisition and increased midstream demand, most notably from our Whitco business. In midstream, we are seeing demand to support continued de bottlenecking of midstream takeaway capacity combined with operators, investments and gathering assets.

成長主要得益於第四季度對 Trojan 的收購以及中游需求的增加（尤其是 Whitco 業務）。在中游，我們看到需要支援中游外送能力與營運商、投資和聚集資產相結合的持續消除瓶頸。

As a result of softening in some areas, we continue to exercise our self-help initiatives by optimizing our branch footprint, leading to some location closures. As we look into the 2nd quarter, we'll continue to drive incremental expense savings as we adjust our model to the market, investing in areas of growth and pruning underperforming areas.

由於某些地區業務疲軟，我們繼續透過優化分支機構佈局來實施自助舉措，從而關閉了一些分支機構。展望第二季度，我們將繼續推動增量費用節約，同時根據市場調整我們的模式，投資於成長領域並削減表現不佳的領域。

In US process solutions, revenue increased sequentially from a full quarter of the Trojan business and due to higher demand for our suite of products and services. Growth was driven by demand for Odessa pumps packages, aftermarket service, and Trojan rental equipment. Activity remains strong for our power service and flex flow business while Eco Vapor experienced a decrease due to project timing variations as expected.

在美國流程解決方案領域，由於特洛伊業務整個季度的收入環比增長，並且對我們的產品和服務套件的需求增加。成長的動力來自於對敖德薩泵組、售後服務和特洛伊租賃設備的需求。我們的電力服務和彈性流量業務活動依然強勁，而 Eco Vapor 則因專案時間變化而出現下滑，這符合預期。

Our flex flow and Trojan rental fleets saw increased demand due to some operators favoring leasing over purchasing to support their maintenance production. Given the rental nature of this business, these are higher margin product lines and revenue should increase to the extent customers cut CapEx. Another example supporting our resilient business model.

由於一些營運商更傾向於透過租賃而不是購買來支持他們的維護生產，因此我們的 flex flow 和 Trojan 租賃車隊的需求增加。鑑於該業務的租賃性質，這些是利潤率更高的產品線，隨著客戶削減資本支出，收入應該會增加。另一個支持我們彈性商業模式的例子。

We delivered our first power distribution center or PDC for a midstream company. This newly engineered unit is a turnkey 16 by 50 ft packaged unit, an insulated building, including variable frequency drives, panel boards, transformers, and HVAC units. We expanded our pump product lines by signing new distribution agreements with a lobe style and vertical slack style pump manufacturer.

我們為一家中游公司交付了第一個電力配電中心或PDC。這個新設計的裝置是一個交鑰匙的 16 x 50 英尺封裝裝置，一個隔熱建築，包括變頻驅動器、配電板、變壓器和 HVAC 裝置。我們與一家葉片式和立式鬆弛式泵浦製造商簽署了新的分銷協議，擴大了我們的泵浦產品線。

Which expands our addressable market and the produced water transfer and industrial end markets. During the quarter, we commissioned our first horizontal H pump rental for a liquid CO2 recycle transfer application in an enhanced oil recovery operation for a Permian operator. The performance exceeded customer expectations and expanded our application capabilities for the rental fleet.

這擴大了我們的潛在市場以及生產水轉移和工業終端市場。在本季度，我們委託租賃了第一台水平 H 泵，用於為二疊紀運營商的強化採油作業提供液態二氧化碳循環輸送應用。其性能超出了客戶的預期，並擴展了我們租賃車隊的應用能力。

As part of our sable automation solution, we successfully commissioned a water recycling facility for a leading national egg producer. This system ensures consistent delivery of high-quality water and nutrition in poultry feed, ultimately enhancing egg production.

作為我們穩定自動化解決方案的一部分，我們成功地為全國領先的雞蛋生產商建立了水循環利用設施。該系統確保持續向家禽飼料中輸送高品質的水和營養，最終提高產蛋量。

We launched our new Tank Commander Eco vapor product which addresses the needs expressed by several of our customers. This unit is a vapor management system designed to capture 100% of tank vapor and eliminate venting emissions, thereby enhancing the value of oil and gas assets.

我們推出了新款 Tank Commander Eco 蒸氣產品，以滿足多位顧客表達的需求。該裝置是一種蒸汽管理系統，旨在捕獲 100% 的油罐蒸汽並消除排放，從而提高石油和天然氣資產的價值。

This innovation combines our 02 technology with an automated system to control storage tank pressures, allowing operators to sell valuable high BTU tank vapor gas and reduce scope 1 emissions. In Canada, revenue was $62 million for the quarter, down $4 million sequentially as a $4 million project from 4Q did not repeat.

這項創新將我們的 02 技術與控制儲罐壓力的自動化系統相結合，使營運商能夠銷售有價值的高 BTU 儲罐蒸汽氣體並減少範圍 1 的排放。在加拿大，本季營收為 6,200 萬美元，比上一季下降 400 萬美元，因為第四季的 400 萬美元項目沒有重複。

And in international revenue is $63 million sequentially higher by $9 million or 17%, primarily due to increased project activity with a $15 million dollar project in one queue not expected to repeat in the second quarter. For DNOW, the energy evolution includes activity primarily associated with carbon capture, utilization and storage, direct air capture, hydrogen, and renewable natural gas, or RNG related projects.

國際收入為 6,300 萬美元，比上一季增加 900 萬美元，增幅為 17%，這主要是由於項目活動增加，其中一個隊列中的 1,500 萬美元項目預計在第二季度不會重複。對於 DNOW 而言，能源發展包括主要與碳捕獲、利用和儲存、直接空氣捕獲、氫氣和可再生天然氣或 RNG 相關項目相關的活動。

Throughout the quarter, we successfully delivered a range of PBF Plus and eco vapor products for various projects and companies encompassing CCUS hydrogen and RNG and markets. Regarding capital investments and expansion in data centers to support AI growth, DNOW is positioned to participate in several areas.

整個季度，我們成功地為涵蓋 CCUS 氫氣和 RNG 及市場的各種項目和公司提供了一系列 PBF Plus 和生態蒸汽產品。在支援人工智慧發展的資料中心資本投資和擴張方面，DNOW 已準備好參與多個領域。

First, for data centers powered from natural gas, we see growth opportunities in construction of midstream transmission lines to supply natural gas for our PBS plus products, with many of the operators already being customers of DNOW. In the United States, our pumping solutions are being used in cooling systems alongside pipe valves and fittings from engineering, procurement, and construction firms who design and build the data centers.

首先，對於由天然氣供電的資料中心，我們看到了建造中游輸電線路為我們的 PBS plus 產品供應天然氣的成長機會，其中許多營運商已經是 DNOW 的客戶。在美國，我們的泵送解決方案與設計和建造資料中心的工程、採購和建築公司的管道閥門和配件一起用於冷卻系統。

And internationally, our MacLean operations in the UK, Norway, Netherlands, and now Asia Pacific are experienced increasing bidding activity for our electrical cable, supports, basketball, basket tray system supplies, and lighting for data center projects as well.

在國際上，我們在英國、挪威、荷蘭以及現在的亞太地區的 MacLean 業務在電纜、支架、籃球、籃框托盤系統供應以及資料中心專案照明方面的投標活動也在不斷增加。

Moving to our digital now initiatives, our digital revenue as a percent of total SAP revenue, improved to 53% during the quarter, driving improved efficiencies through integrated systems. We are not only looking to grow revenues by selling our products in the construction of data centers, we are also deploying AI solutions to drive efficiencies in a number of internal processes across DNOW.

轉向我們的數位化計劃，我們的數位收入佔 SAP 總收入的百分比在本季度提高到 53%，透過整合系統提高了效率。我們不僅希望透過銷售資料中心建立產品來增加收入，我們還部署人工智慧解決方案來提高 DNOW 內部流程的效率。

One project we recently completed uses AI to index and upload manufacturer test certificates which are provided along with the products we sell to customers. This project has taken a highly manual process which is now powered by the use of AI and machine learning, processing up to 85% of requests without any action or manual intervention required. With that, let me hand it over to Mark.

我們最近完成的一個專案使用人工智慧來索引和上傳與我們向客戶銷售的產品一起提供的製造商測試證書。該專案過去採用高度手動的流程，現在藉助人工智慧和機器學習，無需任何操作或人工幹預即可處理高達 85％ 的請求。說完這些，讓我把它交給馬克。

Thank you, David. Good morning, everyone. Total revenue for the first quarter of 2025 was $599 million up 5% or $28 million from the fourth quarter of 2024, and up 6% or $36 million from the first quarter of 2024, exceeding our guide from our February call. EBITDA, excluding other costs, or EBITDA for the first quarter was $46 million or 7.7% of revenue, up $1 million sequentially.

謝謝你，大衛。大家早安。2025 年第一季的總營收為 5.99 億美元，比 2024 年第四季成長 5% 或 2800 萬美元，比 2024 年第一季成長 6% 或 3,600 萬美元，超過了我們 2 月電話會議上的預期。扣除其他成本後的 EBITDA（即第一季的 EBITDA）為 4,600 萬美元，佔營收的 7.7%，比上一季增加 100 萬美元。

The first quarter marked the 12th consecutive quarter where DNOWs delivered EBITDA at or above the 6.9% level and is the second highest EBITDA in our company history for first quarter performance. US revenue for the first quarter of 2025 totaled $474 million an increase of $23 million or up 5% from the fourth quarter of 2024. Year over year US revenue increased $39 million or up 9%.

第一季是 DNOW 連續第 12 季實現 EBITDA 達到或超過 6.9% 的水平，也是我們公司歷史上第一季業績的第二高 EBITDA。2025 年第一季美國營收總計 4.74 億美元，比 2024 年第四季增加 2,300 萬美元，增幅為 5%。美國營收年增 3,900 萬美元，增幅 9%。

US energy centers contributed approximately 69% of total US revenue in the first quarter, and US process solutions contributed approximately 31%. This quarter marked the highest revenue dollar contribution yet for US Processed Solutions, a new quarterly record. In Canada for the first quarter, revenue totaled $62 million a decrease of $4 million or 6% in the fourth quarter of 2024.

美國能源中心在第一季貢獻了美國總收入的約69%，美國流程解決方案貢獻了約31%。本季是美國加工解決方案公司迄今營收貢獻最高的季度，創下了新的季度紀錄。加拿大第一季總收入為 6,200 萬美元，比 2024 年第四季減少 400 萬美元，降幅為 6%。

International revenue for the first quarter of 2025 was $63 million up $9 million or 17% sequentially, driven by higher project activity as expected. Overall, DNOW's gross margins for the first quarter were 23.2%. Similar to the fourth quarter of 2024, better than expected. Warehousing, selling, and administrative, or WSA for the quarter was $109 million slightly better than our forecasted level of $110 million.

2025 年第一季的國際收入為 6,300 萬美元，比上一季增加 900 萬美元，增幅為 17%，這得益於專案活動的增加，正如預期的那樣。整體而言，DNOW 第一季的毛利率為 23.2%。與2024年第四季類似，優於預期。本季的倉儲、銷售和管理（WSA）為 1.09 億美元，略高於我們預測的 1.1 億美元。

This decrease was due to a focus on operational efficiencies and resource alignment activities. We estimate a similar level of WSA for the second quarter of 2025. Now moving to operating profit, in the first quarter, total company operating profit was $30 million. The US generated $22 million of operating profit, and Canada and international each delivered $4 million in the first quarter of 2025.

這一下降是由於注重營運效率和資源調整活動。我們估計 2025 年第二季的 WSA 水準將與此類似。現在談談營業利潤，第一季度，公司總營業利潤為 3,000 萬美元。2025 年第一季度，美國實現了 2,200 萬美元的營業利潤，加拿大和國際各實現了 400 萬美元的營業利潤。

Interest income in the first quarter was $1 million. Now moving to income taxes in the first quarter of 2025, DNOW's income tax expense was $7 million and our effective tax rate as computed on the face of the income statement was 23.3%. We estimate our 2025 full year effective tax rate to be approximately 26% to 29%.

第一季的利息收入為100萬美元。現在轉到 2025 年第一季的所得稅，DNOW 的所得稅費用為 700 萬美元，而根據損益表計算的有效稅率為 23.3%。我們預計 2025 年全年有效稅率約為 26% 至 29%。

And from a cash income tax perspective, we are not expecting to pay material US federal cash income taxes in 2025 due to available NOL carry forms. Net income attributable to DNOW Inc. For the first quarter was $22 million or $0.20 per fully diluted share. And on a non-GAAP basis, Q1 2025 net income attributable to DNOW Inc, excluding other costs was $24 million or $0.22 per fully diluted share.

從現金所得稅的角度來看，由於可用的 NOL 結轉表格，我們預計 2025 年無需繳納重大美國聯邦現金所得稅。第一季歸屬於 DNOW Inc. 的淨收入為 2,200 萬美元，即每股 0.20 美元。根據非公認會計準則 (Non-GAAP)，2025 年第一季歸屬於 DNOW Inc 的淨收入（不包括其他成本）為 2,400 萬美元或每股攤薄收益 0.22 美元。

Moving to the balance sheet at the end of the first quarter, we had zero debt and a cash position of $219 million. We ended the quarter with total liquidity of $567 million comprising our net cash position of $219 million plus $348 million in additional credit facility availability. Our existing $500 million revolving credit facility extends into December of 2026, providing DNOW with immediate access to capital under the facilities.

從第一季末的資產負債表來看，我們的債務為零，現金狀況為 2.19 億美元。本季結束時，我們的總流動資金為 5.67 億美元，其中包括 2.19 億美元的淨現金部位以及 3.48 億美元的額外信貸額度。我們現有的 5 億美元循環信貸額度將延長至 2026 年 12 月，使 DNOW 能夠立即獲得該額度下的資金。

Accounts receivable was $439 million at the end of the first quarter, an increase of $51 million from year end. Day's sales outstanding, or DSO was 67 days at the end of the first quarter, up from the fourth quarter, partially due to the cadence of project deliveries in the quarter and a couple of customers working through system upgrades and conversions at quarter end. We expect improvements in the DSO picture next quarter.

第一季末應收帳款為4.39億美元，較年底增加5,100萬美元。第一季末，Day 的未償銷售額（DSO）為 67 天，高於第四季度，部分原因是本季專案交付的節奏以及一些客戶在季度末進行系統升級和轉換。我們預計下個季度的 DSO 情況將會有所改善。

Inventory was $385 million at the end of the first quarter, an increase of $33 million from year end, with an annualized turn rate of 4.8 times. In our most recent earnings call, we outlined our strategic approach to intentionally build our inventory levels as we start the new year. This decision was made to support our customers' growth while effectively navigating the challenges posed by tariffs.

第一季末庫存為3.85億美元，較年底增加3,300萬美元，年化週轉率為4.8倍。在我們最近的收益電話會議上，我們概述了在新年伊始有意提高庫存水準的策略方針。做出這項決定是為了支持客戶的成長，同時有效應對關稅帶來的挑戰。

Our focus was particularly on the midstream and fluid management businesses where we're seeing increased demand. Accounts payable was $329 million at the end of the first quarter, an increase of $29 million from the fourth. And for the first quarter of 2025, working capital excluding cash as a percentage of annualized first quarter revenue was 16.2%.

我們特別關注中游和流體管理業務，這些業務的需求正在增加。第一季末應付帳款為3.29億美元，較第四季增加2,900萬美元。2025 年第一季度，不包括現金的營運資本佔第一季年化收入的百分比為 16.2%。

In the first quarter of 2025, net cash used in operating activities was $16 million better than expected as we build inventory to organically invest in the business. We generally consume cash in the first quarter, and in the first quarter, we invested $6 million in capital expenditures to support growth, primarily in process solutions.

2025 年第一季度，由於我們建立庫存以對業務進行有機投資，經營活動所用淨現金比預期高出 1,600 萬美元。我們通常在第一季消耗現金，在第一季度，我們投資了 600 萬美元的資本支出來支持成長，主要用於流程解決方案。

Over the last four quarters we've completed a $114 million acquisition, generated $187 million in free cash flow, and converted over 100% of our EBITDA to free cash flow while returning over the past four quarters $30 million to our shareholders through share repurchases and increased our cash balance by $31 million.

在過去四個季度中，我們完成了 1.14 億美元的收購，產生了 1.87 億美元的自由現金流，並將超過 100% 的 EBITDA 轉換為自由現金流，同時在過去四個季度中通過股票回購向股東返還了 3000 萬美元，並使我們的現金餘額增加了 3100 萬美元。

In January we announced a new $160 million share repurchase program that is double our inaugural program that we completed in the fourth quarter of 2024. This new program enhances our ability to opportunistically return capital to shareholders as market and business conditions warrant, all while maintaining our focus on investing in a creative organic growth and strategic acquisitions while adhering to our disciplined approach to balance sheet management.

今年 1 月，我們宣布了一項新的 1.6 億美元股票回購計劃，金額是 2024 年第四季完成的首個計劃的兩倍。這項新計畫增強了我們根據市場和商業條件適時向股東返還資本的能力，同時我們繼續專注於投資創造性的有機成長和策略性收購，並堅持嚴格的資產負債表管理方法。

In the first quarter, we repurchased $8 million of common stock, and so far in the second quarter we have repurchased an additional $8 million of common stock or $16 million the year-to-date, or approximately 950,000 shares under the $160 million share repurchase program. Maintaining a disciplined approach to capital allocation remains a core priority.

在第一季度，我們回購了價值 800 萬美元的普通股，而第二季度迄今為止，我們又回購了價值 800 萬美元的普通股，或年初至今回購價值 1,600 萬美元的普通股，或根據 1.6 億美元的股票回購計劃回購了約 95 萬股。保持嚴謹的資本配置方法仍然是核心優先事項。

We continue to balance the creative organic and inorganic growth with opportunistic share repurchases, all while sustaining a strong and flexible balance sheet to drive long-term shareholder value. We continue to be debt-free, have no interest payments, while keeping cash flow generation a top priority. And with that, let me turn the call back David.

我們繼續在創造性的有機和無機成長與機會性股票回購之間取得平衡，同時保持強勁而靈活的資產負債表，以推動長期股東價值。我們繼續保持無債務、無利息支付的狀態，同時將現金流產生作為首要任務。說完這些，讓我把電話轉回給大衛。

Thank you, Mark. Before switching to our outlook for the second quarter and full year 2025, I would like to revisit and make a few additional comments on the market. As I mentioned earlier, recent US tariffs, together with retaliatory measures has significantly contributed to market uncertainty. Furthermore, OPEC plus has targeted increased production levels, exerting downward pressure on global oil prices.

謝謝你，馬克。在轉向對 2025 年第二季和全年的展望之前，我想重新回顧市場並發表一些補充評論。正如我之前提到的，最近美國的關稅以及報復措施大大增加了市場的不確定性。此外，OPEC+已將產量目標定為提高，對全球油價造成下行壓力。

The dynamics of this environment remain volatile, leading to fluctuations in market sentiment. Currently we have not observed a notable impact on customer spending. In the US, we expect sequential second quarter growth driven by increased midstream activity and from key supply chain solution customers spend. We have seen an increase in gas rig related activity in the area poised for some recovery.

這種環境的動態仍然不穩定，導致市場情緒波動。目前我們尚未觀察到對客戶支出有明顯影響。在美國，我們預計第二季將出現環比成長，這得益於中游活動的增加以及主要供應鏈解決方案客戶支出的增加。我們看到該地區天然氣鑽井相關活動增加，並有望達到一定程度的復甦。

In Canada, expected seasonality will drive sequential revenue lower. Canada's revenue historically declines approximately 15% to 20% from the first quarter to the second quarter due to the second quarter breakup period where heavy equipment, access to production areas is restricted. Internationally, we expect top line sequential decline of about $10 million due to $15 million in projects delivered in the first quarter that will not repeat.

在加拿大，預期的季節性因素將導致收入持續下降。由於第二季休市期間重型設備進入生產區域受到限制，加拿大的收入從第一季到第二季歷來下降約 15% 至 20%。在國際上，我們預計營業收入將連續下降約 1,000 萬美元，因為第一季交付的 1,500 萬美元項目不會重複。

Taken altogether, we expect DNOW's second quarter revenues to be flat to up in the mid-single digit percentage range from the first quarter. On a full year basis, we are reaffirming our full year guidance for 2025 revenues to be flat to up in the high single digit percentage range from 2024 levels, and full year 2025 EBITDA could approach 8% of revenue. And we are targeting free cash flow in 2025 of $150 million.

總體而言，我們預計 DNOW 第二季的營收將與第一季持平或成長中個位數百分比範圍。從全年來看，我們重申對 2025 年全年收入的預期，即與 2024 年水準持平或上升至高個位數百分比範圍，2025 年全年 EBITDA 可能接近收入的 8%。我們的目標是到 2025 年實現 1.5 億美元的自由現金流。

In closing, following our second best fourth quarter in history, we built on that and beat first quarter expectations with revenue growth of 5% sequentially to $599 million and delivered our second best first quarter EBITDA of $46 million in a market with fewer operating rigs and completions.

最後，繼史上第二好的第四季之後，我們在此基礎上再接再厲，超出了第一季的預期，營收季增 5%，達到 5.99 億美元，並在營運鑽機和完井數量較少的市場中實現了第二好的第一季 EBITDA，達到 4,600 萬美元。

We executed adroitly on our capital allocation initiatives, closing on a small strategic acquisition in Singapore to expand our MacLean International offering. We repurchase $16 million of common stock on a year-to-date basis under our new $160 million share repurchase program while strategically adding inventory for organic growth ahead of the April tariffs. Which should set us up favorably in this environment.

我們巧妙地執行了資本配置計劃，在新加坡完成了一項小型策略收購，以擴大我們的 MacLean International 產品線。根據我們新的 1.6 億美元股票回購計劃，我們年初至今已回購了 1,600 萬美元的普通股，同時在 4 月份關稅實施前戰略性地增加庫存以實現有機增長。這應該會讓我們在這個環境中處於有利地位。

We are uniquely well capitalized with a significant cash balance and no debt or interest payments and can be selective and patient at the acquisition bargaining table while benefiting from our fortuitous inventory planning. While future market conditions are difficult to predict, given uncertainty stemming from the decline in oil prices and tariff-induced trade disruptions.

我們擁有獨特的充足資本，擁有大量現金餘額，沒有債務或利息支付，並且可以在收購談判桌上選擇性和耐心，同時受益於我們幸運的庫存規劃。由於油價下跌和關稅引發的貿易中斷所帶來的不確定性，未來的市場狀況難以預測。

We believe we are well positioned to seize organic, adjacent, and inorganic growth, pursuing more efficient and cost-effective ways to execute operationally. I want to extend my sincerest gratitude to the women and men of DNOW who distinguished us in the market and how we promote our tea manufacturers and work tirelessly to delight our customers as we build upon a great start to the year. With that, let's open the call for questions.

我們相信，我們已做好準備，抓住有機、鄰近和無機成長的機會，尋求更有效率、更具成本效益的營運方式。我要向 DNOW 的員工們表示最誠摯的謝意，是他們讓我們在市場上脫穎而出，感謝我們推廣我們的茶葉製造商，並孜孜不倦地努力取悅我們的客戶，為我們今年的良好開端奠定了基礎。現在，讓我們開始提問。

Thank you. (Operator Instructions). Our first question comes from the line of Nathan Jones from [Stateville]. Please go ahead.

謝謝。（操作員指令）。我們的第一個問題來自 Nathan Jones[斯泰特維爾]。請繼續。

Yeah, good morning, guys. This is Adam Farley on for Nathan.

是的，大家早安。亞當法利 (Adam Farley) 代替內森 (Nathan)。

Hi Adam.

你好，亞當。

I to start on, hey, good morning guys. I wanted to start on tariffs, how is inflation tracking in the business? What product areas have seen the most tariff-related price increases from suppliers and then, how should we think about how that impacts gross margin as we move through the year.

首先，嘿，大家早安。我想從關稅開始，通貨膨脹在業務中如何追蹤？哪些產品領域的供應商出現了與關稅相關的價格上漲，然後，我們應該如何看待這對全年的毛利率有何影響。

Okay, so we're, we've got a few shifting tectonic plates here. We've got, in the inventory world we've, we're at kind of low points in terms of costing for inventory as we've gone through a couple of years of deflation. So inventory is arguably under costed to what's coming down the pipeline in terms of incoming product with we're seeing a resumption of normal inflationary pressures resulting from longer lead time starting.

好的，我們這裡有一些正在移動的板塊。在庫存領域，我們經歷了幾年的通貨緊縮，庫存成本處於低點。因此，就進入的產品而言，庫存成本可以說低於即將進入的產品成本，我們看到由於交貨時間延長而導致的正常通膨壓力的恢復。

To emerge from some of our manufacturers. We're starting to see normal price increases being passed through, and then we're seeing a layering on top of that of tariffs. So we really haven't begun to experience the tariff impacts that much. It's mostly the impacts from the normal inflation, but we see that in some of the some of the projects we're quoting, we're starting to see some of the impacts there.

從我們的一些製造商中脫穎而出。我們開始看到正常的價格上漲被轉嫁出去，然後我們看到關稅的層層疊加。因此，我們實際上還沒有開始感受到關稅的巨大影響。這主要是正常通貨膨脹的影響，但我們看到，在我們引用的一些項目中，我們開始看到一些影響。

Now for much of the products we buy stock and sell, pipe fittings and flanges, for example, which is in the 40% range of our revenues. We're not seeing much tariff impacts there. There's a lot of domestic production supporting those revenues in valves. It's a little different story.

現在，我們購買庫存並銷售的大部分產品，例如配件和法蘭，占我們收入的 40％ 左右。我們沒有看到關稅受到太大影響。大量的國內生產支撐了閥門的收入。這是一個稍微不同的故事。

There's a, we have heavy US production for some of our key suppliers, and then we have import production otherwise where we're starting to see some tariff impacts there depending on the manufacturer, depending on the product line or the size of the material, we're seeing product line. Increases from 3%, 5%, some of them 25% to 35%.

我們為一些主要供應商在美國進行大量生產，然後我們進行進口生產，否則，我們開始看到一些關稅影響，這取決於製造商、產品線或材料的大小，我們看到的是產品線。增加 3%、5%，有些甚至增加 25% 至 35%。

That's newly introduced activity which we really didn't see in the first quarter, of course, but we'll start to see in the second quarter. How that impacts gross margin. We think net, it'll be favorable as we said on prior calls, but there are also competitive forces at play that'll impact that as well. So I can't tell you. To what extent we'll see favorable gross margin increases.

當然，這是我們在第一季確實沒有看到的新活動，但我們將在第二季開始看到。這對毛利率有何影響。我們認為，正如我們在之前的電話會議上所說的那樣，這將是有利的，但也有競爭力量在起作用，這也會對其產生影響。所以我不能告訴你。我們將在多大程度上看到有利的毛利率成長。

I expect them to be favorable, or I expect to see the revenue benefit of higher cost material. But in terms of the timing and the degree, we don't have a real good read on that just yet.

我預計它們將是有利的，或者我預計會看到更高成本材料帶來的收入效益。但就時間和程度而言，我們目前還沒有很好的了解。

Thank you, David, that's really helpful caller. Just following up on that, as a sense today, are smaller competitors staying rational in the market, or is it more you expect, maybe heightened competitive pressures going forward?

謝謝你，大衛，你真是個有幫助的來電者。順便問一下，從今天的角度來看，市場上較小的競爭對手是否保持理性，或者更準確地說，未來的競爭壓力是否會加劇？

I think I In terms of commenting on how other people are behaving in terms of price, and I don't want to say too much about that, but I think. People are being careful about their inventory, and they see that, we certainly see it, and I think most of our competitors see our inventory as a competitive. Tool or really a weapon depending on how much you have.

我認為就評論其他人在價格方面的行為而言，我不想對此說太多，但我認為。人們對他們的庫存非常謹慎，他們看到了這一點，我們當然也看到了這一點，我認為我們的大多數競爭對手都將我們的庫存視為競爭力。工具或武器取決於你擁有多少。

The more you have right now ahead of the terrorists, the better. I think people are being careful, but there's still excessive intensified bidding on projects. . And so I think that's kind of a normal effect that we're seeing and nothing special really happening there, but it's an intensely competitive business, always has been. But I think that behavior hasn't changed much during the cycle so far.

現在你領先恐怖分子的越多越好。我認為人們已經很謹慎了，但專案競標仍然過於激烈。。所以我認為這是我們看到的一種正常現象，並沒有發生什麼特別的事情，但這是一個競爭非常激烈的行業，一直都是如此。但我認為，到目前為止，這種行為在周期內並沒有太大變化。

Okay. And then, just given the moves you've done with your supply chain following 2018 tariffs, the inventory bill in the quarter, and maybe just a little more colour on some of the opportunities to maybe drive market share gains going forward and then also any colour on adjacent market growth, and I'll leave it there. Thank you.

好的。然後，考慮到您在 2018 年關稅之後對供應鏈採取的措施、本季度的庫存賬單，以及可能推動未來市場份額增長的一些機會，以及相鄰市場增長的任何細節，我就講到這裡。謝謝。

In terms of market share gains, only a few, national or Global companies have the global buying power we do. So I think against the the smaller competitors, the regional P/E backed competitors, we do have an advantage, and we intend to take advantage of that. That's primarily due to volume.

就市場佔有率成長而言，只有少數國內或全球公司擁有我們這樣的全球購買力。因此我認為，與規模較小的競爭對手、區域性 P/E 支援的競爭對手相比，我們確實具有優勢，而且我們打算利用這一點。這主要是由於數量。

We buy a lot more from a lot more suppliers and we have a bigger say at the table in terms of product availability, which is of course being the most important thing. Seconded by product cost, rebates, return privileges, etc. So we have an advantage in that regard, in terms of how that, plays out during the rest of the year, I'm not sure, but what was your second question, Adam? I want to make sure I got it.

我們從更多的供應商購買更多的產品，並且在產品供應方面我們有更大的發言權，這當然是最重要的。其次是產品成本、回扣、退貨特權等。因此，我們在這方面具有優勢，至於在今年剩餘時間內如何發揮作用，我不確定，但你的第二個問題是什麼，亞當？我想確認我收到了它。

Yeah, just any additional colour on, adjacent market growth, maybe an update on the energy evolution space industrial, etc.

是的，只是任何額外的色彩，相鄰的市場成長，也許是能源演進空間工業的更新，等等。

Okay, got you, Brad, you want to hit that?

好的，明白了，布拉德，你想打那個嗎？

Yeah, Adam, on the adjacent markets. We defined those and have defined those previously, water wastewater, the mining industry, chemical process, those really set up well with our US process solutions business on the on the fluid movement side, each quarter, we're winning business and each one of those markets we expect those to be fairly steady.

是的，亞當，在鄰近的市場。我們已經定義了這些，並且之前已經定義了這些，水廢水、採礦業、化學過程，這些在流體運動方面與我們美國過程解決方案業務非常契合，每個季度我們都在贏得業務，我們預計每個市場都會相當穩定。

There there are projects in there that cause some lumpiness, as we move forward. David called out a real interesting project that the Trojan Group won on the agricultural processing side with the water and an egg producer. We're excited about that one. That's our first project there. We think there's more of those to come in the future, so we're, opportunistic and optimistic about that one.

隨著我們不斷前進，其中的一些項目會造成一些阻礙。大衛提到了一個真正有趣的項目，特洛伊集團在農業加工方面贏得了水和雞蛋生產商。我們對此感到很興奮。這是我們在那裡的第一個項目。我們認為未來還會有更多這樣的事發生，所以我們對此充滿機會和樂觀。

We talked a little bit about data centers. There's been an awful lot of investment in data centers. You see it almost daily, I think in the news and so we gave a little colour on, where DNOW can participate in that industrial market, both on the natural gas power generation side that are that are feeding, high reliability data centers so that feed gas and natural gas suits up really well for DNOW.

我們談論了一些有關資料中心的事情。人們對資料中心的投資已經非常大了。我想你幾乎每天都會在新聞中看到它，所以我們對 DNOW 可以參與工業市場的地方做了一些介紹，包括天然氣發電方面和高可靠性資料中心的供電方面，因此原料氣和天然氣非常適合 DNOW。

We expect to secure some projects in the future. We're chasing those today. And then, with the data center themselves, depending on where we are, our MacLean group's got some electrical and lighting capabilities on top of our new acquisition in Singapore. So we think we'll be able to chase additional opportunities there as well as in the US with our PBF Plus side. And then maybe a final comment on energy evolution.

我們期望未來能夠獲得一些項目。今天我們正在追逐這些。然後，對於資料中心本身，根據我們所在的位置，我們的 MacLean 集團除了在新加坡新收購的設備外，還擁有一些電氣和照明能力。因此，我們認為，我們將能夠利用 PBF Plus 在那裡以及在美國尋找更多機會。最後，也許我們可以對能源演變做一點評論。

Carbon capture, well, the decarbonization business seems pretty steady, our customers are still looking to reduce methane, emissions, so we see that continuing. The carbon capture businesses are certainly kind of lumpy and, we expect projects in the future, but it's they're still kind of slower and smaller in size here in the early part of 2025. And then RNG tends to be a little bit kind of lumpy.

碳捕獲，嗯，脫碳業務似乎相當穩定，我們的客戶仍在尋求減少甲烷排放，因此我們認為這種情況將繼續下去。碳捕獲業務肯定有些不平衡，我們預計未來會有項目，但到 2025 年初，它們的發展速度仍然比較慢，規模也比較小。然後 RNG 就會變得有點不穩定。

Our eco vapor product, in the last really couple of years we've had probably more eco vapor sales on the R&G side, probably in the second half of the year than the first half of the year, but there's some additional color on the adjacent markets. It's certainly an area we're looking to grow. We expect to grow and excited about the future there.

我們的生態蒸汽產品，在過去的幾年裡，我們在 R&G 方面的生態蒸汽銷量可能在下半年比上半年更多，但相鄰市場也有一些額外的顏色。這無疑是我們希望發展的領域。我們期待在那裡成長並對未來感到興奮。

Alright, thank you for taking my questions.

好的，感謝您回答我的問題。

Thank you. (Operator Instructions). Our next question comes from the line of Chuck Minervino from Susquehanna. Please go ahead.

謝謝。（操作員指令）。我們的下一個問題來自薩斯奎哈納的查克·米納維諾。請繼續。

Hi, good morning.

嗨，早安。

Hi Chuck, good morning, Chuck.

嗨，查克，早上好，查克。

Hey, so I was just wondering maybe you can give us your updated thoughts on the geographic kind of growth for the year you reaffirmed the full year revenue growth, I guess flat up high single digits, but just kind of your updated thoughts here on US versus Canada versus international how they they should shape up for the year.

嘿，所以我只是想知道，也許您可以給我們提供您對今年地理增長的最新想法，您重申了全年收入增長，我猜是持平的高個位數，但您對美國、加拿大和國際市場今年應該如何發展的最新想法是什麼。

Okay, so, international, I think we talked last year about, year on year pretty flat. We made some restructuring moves in in international last year, and the idea there was to take out some risk. Add some focus for our management team to focus on where we're strong, which is in the UK and Australia and parts of the Middle East and Asia Pacific area.

好的，就國際而言，我想我們去年談過，同比情況相當平穩。去年我們在國際上採取了一些重組舉措，目的是消除一些風險。讓我們的管理團隊更加關注我們的優勢領域，即英國、澳洲、中東和亞太地區的部分地區。

And to un focus on the things where we're where we get paid late and we have too much inventory and we're not kind of, we're not making the returns that we expect. So we want internationally focused on profits and cash flow versus volume. So we expect, year over year general flatness with international. Canada is a highly competitive business.

而不要把注意力集中在那些我們付款延遲、庫存過多以及我們沒有獲得預期回報的事情上。因此，我們希望在國際上關注利潤和現金流而不是數量。因此，我們預計，與國際情況相比，同比總體持平。加拿大是一個競爭激烈的經濟體。

We expect the second quarter decline, of course, going into breakup, a strengthened 3Q, and then some seasonal, moderation, maybe a decline going into the fourth quarter. But I think what we're really going to see the most action is in the US. We talked on our last call about where we're going to see growth in in midstream, and, midstream is actually tracking better than we expected.

我們預計第二季會出現下滑，當然，進入分化階段後，第三季會增強，然後出現一些季節性的緩和，第四季可能會出現下滑。但我認為我們真正會看到最激烈的行動發生在美國。我們在上次電話會議上討論了中游的成長前景，事實上中游的發展比我們預期的要好。

So we're excited about the growth there. We're going to see a benefit from tariffs in the United States. We won't see that benefit elsewhere, and that should boost revenues and we think we have an advantage against most of our competition there because of our size and the volumes we we produce. Trojan, a new acquisition is tracking better than expected.

因此我們對那裡的成長感到非常興奮。我們將看到美國關稅帶來的好處。我們在其他地方看不到這種好處，這應該會增加收入，而且我們認為，由於我們的規模和產量，我們比那裡的大多數競爭對手都具有優勢。新收購的 Trojan 表現優於預期。

And that's going to be a boost to the US business. Our April bookings were really strong, and April tends to be the shortest revenue month of the quarter, so we're optimistic about making a plan in the 2nd quarter and that parlaying into later in the year.

這將促進美國業務的發展。我們四月份的預訂量非常強勁，而四月份往往是整個季度收入最短的月份，因此我們對在第二季度製定計劃並將其延續到今年晚些時候感到樂觀。

And we are poised to do more M&A. It's a matter of the parties coming to the right price and terms, etc. But, and we think most of that M&A is going to happen in the US and most likely in the process solutions group. Which is, becoming a bigger and more important part of our US business. So a lot of optimism in the US, but general flatness elsewhere around the world.

我們準備進行更多的併購。這是各方達成合適價格和條款等的問題。但是，我們認為大多數併購將在美國發生，最有可能發生在流程解決方案集團。這也將成為我們美國業務中更大、更重要的一部分。因此，美國國內充滿樂觀情緒，但世界其他地區的情況卻整體平淡。

Got you and I just thought maybe you can give us a little bit more detail on this new acquisition you're doing this Natron International I don't know if you can help us with kind of the revenues that that brings in it sounds like it's a small one, but just kind of how you're thinking about that and how it's going to contribute.

明白了，我只是想，也許您可以給我們更多關於這次新收購的細節，您正在進行的是 Natron International 的收購，我不知道您是否可以幫助我們了解這項收購帶來的收入，聽起來這筆收入不多，但您是如何看待它以及它將如何做出貢獻的。

Yeah, it's in the it's small it's in revenues are going to be in the 12 range to 15 range, the multiple are in our standard 4 range to 6 range, probably closer to the 4. But in terms of particulars about the business, Brad, do you want to give some colour on it?

是的，它很小，收入將在 12 到 15 的範圍內，倍數在我們的標準 4 到 6 的範圍內，可能更接近 4。但是就業務細節而言，布拉德，你想詳細說明一下嗎？

Sure, I mean, yeah, they're headquartered out of Singapore, they, they're highly aligned with our McLean electrical distribution business we call it MacLean International now based out of the UK, but also Australia too, so having that. Expansion to Singapore and then the Southeast Asian Asia pack markets is something that we were really excited about, they distribute, lighting, cable glands, electrical bolt materials, and service.

當然，我的意思是，是的，他們的總部設在新加坡，他們與我們的麥克萊恩電力分銷業務高度一致，我們稱之為麥克萊恩國際，現在總部位於英國，但也位於澳大利亞，所以有這個。我們對擴展到新加坡以及東南亞包裝市場感到非常興奮，他們分銷照明、電纜接頭、電氣螺栓材料和服務。

Chuck they service, kind of a broad different market space from offshore to marine to petrochemical, there's pharmaceutical business there, pretty diversified shipyards, FPSOs, some data centers, so we like the diversified in markets that they bring, and really just, excited to bring them on board and look at revenue synergies with our MacLean leadership team.

查克他們服務的市場範圍很廣泛，從近海到海洋到石化，有製藥業務，有相當多樣化的造船廠、FPSO、一些數據中心，所以我們喜歡他們帶來的市場多元化，真的很高興能讓他們加入我們，並與我們的麥克萊恩領導團隊一起探討收入協同效應。

Got it. And just one last one for me, I think you mentioned a $15 million kind of one-time revenue in the quarter or something that's going to not continue that sounded big to me. I don't know are your projects normally that large? I was just wondering if you could give us a little bit more colour on or if there's other opportunities like that one out there in the future.

知道了。對我來說，還有最後一個問題，我認為您提到了本季 1500 萬美元的一次性收入，或者說不會持續的收入，這對我來說聽起來很重要。我不知道你們的專案通常都這麼大嗎？我只是想知道您是否可以給我們更多詳細信息，或者未來是否還有其他類似的機會。

That particular multiple projects in the Kazakhstan area, which happens to be one of the countries we're pulling out of those were pent up projects, but overall, the business wasn't strong. These projects ended up, being at the tail end of our residents there, but we do have, the occasional $10 million to $15 million project. We used to have more of them internationally we see a lot less of that today internationally.

哈薩克地區恰好是我們撤出的國家之一，該地區的多個項目都是被壓抑的項目，但總體而言，業務並不強勁。這些項目最終都落到了我們當地居民的頭上，但我們偶爾也會有一些價值 1000 萬到 1500 萬美元的項目。過去，我們在國際上看到更多這樣的情況，但如今，這種情況在國際上卻少了很多。

But they do occur from time to time, and internationals, as you probably recall, Chuck it's been lumpy in terms of quarterly revenues in part due to the timing of projects. But that won't recur. We'll see some growth outside of that, outside of Kazakhstan and our core, MacLean business offsetting some of that $15 million decline, but that's kind of the read on that project and how they occur and size, etc.

但它們確實會不時發生，而且正如你可能記得的那樣，查克的國際季度收入一直不穩定，部分原因是專案的時間安排。但這種情況不會再發生。除了哈薩克和我們的核心業務之外，我們還會看到一些成長，MacLean 業務將抵消 1500 萬美元的部分下降，但這是對該專案的解讀，以及它們如何發生和規模等。

Got it thank you.

明白了，謝謝。

You're welcome thank you.

不用客氣，謝謝。

Thank you. Our next question comes from the line of Jeff Robertson from Water Tower Research. Please go ahead.

謝謝。我們的下一個問題來自 Water Tower Research 的 Jeff Robertson。請繼續。

Thank you Good morning. There's a lot of the EMP companies are talking about possibly curtailing, drilling and completion activity given the macro environment. Can you talk about how DNOW's recent efforts to diversify the revenue stack away from just DNOW, insulates. You partially from a potential slowdown in that area?

謝謝您，早安。鑑於宏觀環境，許多 EMP 公司正在討論可能削減鑽井和完井活動。您能否談談 DNOW 最近如何努力實現收入來源多元化，不再僅限於 DNOW 本身？您認為該地區的經濟可能會放緩嗎？

Okay, so our focus there is really to grow with the ENC customers and take market share, and we think our position enables us to do that, and we've seen gains that in more recent quarters. Our focus otherwise has been on growing our energy transition business.

好的，我們的重點實際上是與 ENC 客戶共同成長並佔領市場份額，我們認為我們的地位使我們能夠做到這一點，而且我們在最近幾個季度已經看到了成長。我們的重點一直是發展能源轉型業務。

We call it energy evolution, it's a five-year strategy focused on pursuing growth in those newer energy sources, and we've made nice gains there and we expect that to continue. In terms of adjacencies, most of the deals we're looking at today afford some adjacency benefits that would help us grow our pump business generally, our water, wastewater business, specifically, and other mining and other.

我們稱之為能源進化，這是一項五年策略，專注於追求這些較新的能源的成長，我們在該領域取得了良好的進展，並希望這種勢頭能夠繼續下去。就鄰接性而言，我們今天考慮的大多數交易都具有一些鄰接優勢，這將有助於我們整體發展我們的泵浦業務，特別是我們的水、廢水業務，以及其他採礦業和其他業務。

And markets that we're focusing on and outside of strict oil and gas, but where we're seeing, the most benefit to offset some of the upstream declines which, we talked about last quarter and we're still experiencing today, we're seeing nice gains in midstream.

我們關注的市場不僅限於石油和天然氣市場，我們還看到，在這些市場中，最大的收益可以抵消部分上游的下滑，我們上個季度討論過這些下滑，今天我們仍在經歷這些下滑，我們看到中游市場出現了不錯的增長。

And we've aligned our inventory, our sales focus, our most recent, our largest acquisition in our history, the purchase of Whitco, to focus on growing our position there. So we're becoming a real powerhouse in that area and we expect that to pick up some of the slack we lose in the upstream focused areas. Brad, anything you want to add there?

我們調整了庫存、銷售重點，以及我們歷史上最近的、最大的收購，即對 Whitco 的收購，以專注於提升我們在那裡的地位。因此，我們正在成為該領域真正的強者，我們希望這能彌補我們在上游重點領域所失去的一些不足。布拉德，你還有什麼要補充的嗎？

No, I think you captured it. Okay.

不，我想你抓住了它。好的。

David, you've talked about a couple of produced water projects, I think this quarter and maybe last is that an opportunity for DNOW to expand its activity with producers or some of the water businesses just on the production side of the equation?

大衛，您談到了幾個生產水項目，我認為本季度甚至上個季度是否是 DNOW 擴大與生產商或一些水務企業在生產方面的合作的機會？

Jeff, I'll take that one this is Brad. Yeah, I think, we, we've, since our flex flow acquisition, a few years ago and then the PMF acquisition on top of that, we've been very interested in the produced water side, especially in the oily areas, obviously, with a large amount of produced water that has to be.

傑夫，我接受這個，這是布拉德。是的，我認為，自從幾年前收購 flex flow 以及隨後收購 PMF 以來，我們一直對採出水方面非常感興趣，特別是在油田區域，顯然，那裡需要大量的采出水。

Either transferred, recycled, or reinjected in the subsurface with an SWD, traditionally with our fabricated business, we've sold permanent units, permanent SWD units. We've supplied, kind of permanent water transfer units, but we haven't been on the rental side and. As customers are looking to preserve cash and save CapEx, they're increasingly more interested in leasing and rentals.

無論是透過 SWD 轉移、回收或重新註入地下，傳統上在我們的製造業務中，我們出售的是永久性裝置、永久性 SWD 裝置。我們提供過永久性輸水裝置，但我們沒有從事租賃業務。由於客戶希望保留現金並節省資本支出，他們對租賃和出租的興趣越來越大。

And so, getting involved in that rental business with FlexFlow and PMF was timely and I think it's really paying dividends for us. And then on top of that is the Trojan acquisition we did late last year. Which really kind of fit a GAAP in our portfolio with a combination of lay flat hose, combination of water transfer pumping units that are highly portable.

因此，與 FlexFlow 和 PMF 合作涉足租賃業務是及時的，我認為這確實為我們帶來了回報。除此之外，我們去年年底也收購了 Trojan。它確實符合我們產品組合中的 GAAP，結合了扁平軟管和高度便攜的輸水泵送裝置。

In addition to an automation package that allows us to turnkey the solution for lot of these water kind of mid what produced water companies out there that are offering water management as a turnkey service for the operators, those companies have become, a big piece of our customer base in addition to the operators, but we see that business, as long as completions are active and continuing.

除了自動化軟體包使我們能夠為許多水中產水公司提供交鑰匙解決方案之外，這些公司還為運營商提供水管理交鑰匙服務，這些公司除了運營商之外，還成為我們客戶群的重要組成部分，但只要完井活動活躍且持續進行，我們就會看到業務。

We're going to have to deal with water whether it's recycle or re-injection and then. Those businesses lend themselves to adjacent markets. I mean, we've rented a few units in the downstream refining applications for a flex flow business. We talked about Trojan getting into the agricultural processing business so that we really like the portability of the solution into these.

我們必須處理水，無論是循環或重新註入。這些業務適合鄰近市場。我的意思是，我們已經在下游煉油應用中租用了一些單元，用於彈性流業務。我們討論了 Trojan 進軍農業加工業務的情況，因此我們非常欣賞該解決方案的可移植性。

Industrial adjacent markets and it's really just a matter of, getting our sales team focused on, those industrial opportunities in addition to the kind of the upstream, opportunities as well.

工業相鄰市場，這其實只是一個問題，讓我們的銷售團隊專注於那些工業機會以及上游機會。

And I think you said digital solutions represented about 53% of SAP revenue. It was that, is that, and I think you said that's a high water mark, is that correct?

我認為您說過數位解決方案約佔 SAP 收入的 53%。就是這樣，是嗎？我想你說的那是一個最高水位線，對嗎？

Yeah, I believe so. That's a high water mark. That's on our SAP revenue, which is roughly about 80% of our total revenue that will fluctuate with customer activity on a quarterly basis. I believe the last the prior period we were below 50%, but we were pleased to see that number slowly tick up if you trend it over, 8 to 12 quarters, we're seeing that number increase.

是的，我相信如此。這是一個高水位線。這是我們的 SAP 收入，大約占我們總收入的 80%，並且會隨著客戶活動每季波動。我相信上一期我們的這一比例低於 50%，但我們很高興看到這一數字緩慢上升，如果按照趨勢來看，8 到 12 個季度後，我們會看到這一數字正在增加。

Our Digital transformation and IT teams are working hard with customers to continually look for solutions to integrate to make doing business with DNA much more efficient, much more easier, and so we're seeing both sides really our customer and us are seeing kind of the benefits of that and really increased efficiencies and higher levels of productivity.

我們的數位轉型和 IT 團隊正在與客戶一起努力，不斷尋找整合解決方案，使 DNA 業務更加高效、更加輕鬆，因此我們看到雙方都真正看到了這樣做的好處，效率和生產力水平確實提高了。

Is that what underlies Dave your comment about in some ways growing with your customer by being able to offer them more efficient procurement solutions which lowers the cost of the transaction to them and generates more business opportunity for DO?

戴夫，您所說的在某種程度上與客戶共同成長，透過為客戶提供更有效率的採購解決方案來降低交易成本，為 DO 創造更多商機，這是否是根本原因？

I think so, and I think it's, most important and the timing is great for what's happening generally with price indexing across all imported products.

我認為是這樣，而且我認為最重要的是，現在的時機非常好，因為所有進口產品的價格指數都在改變。

Thank you.

謝謝。

Thank you, Jeff.

謝謝你，傑夫。

Thank you. Our last question comes from the line of Josh Jayne from Daniel Energy Partners. Please go ahead, sir.

謝謝。我們的最後一個問題來自 Daniel Energy Partners 的 Josh Jayne。先生，請繼續。

Thanks, good morning. First question, just when we think about what's going on in the US and, it was helpful for you guys to lay out your guidance for not only Q2 but for the full year, could you remind us first how much of your US business today.

謝謝，早安。第一個問題，當我們考慮美國正在發生的事情時，您不僅為第二季度而且為全年制定指導方針，這對我們很有幫助，您能否首先提醒我們您今天在美國的業務佔比有多少。

Is upstream levered and then second embedded in your guidance what are you expecting from the rig count or completions count in the second half of this year as we've heard some operators come out and start to cut CapEx? Thanks.

上游槓桿和第二個嵌入是否在您的指導中？由於我們聽說一些業者開始削減資本支出，您對今年下半年的鑽機數量或完井數量有何預期？謝謝。

Our US business is probably in the 70% range in terms of upstream. And now it's, there's some commingling with midstream. Sometimes we're not exactly sure what is midstream and upstream, but we see that midstream piece as a key target for growth in terms of. What was the second half of the question?

就上游而言，我們的美國業務大概佔70%左右。現在，有一些與中游的混合。有時我們不會完全確定什麼是中游，什麼是上游，但我們認為中游部分是成長的關鍵目標。問題的後半部是什麼？

The second half was just, given that you have some positives going on in your in your business so when we think about midstream and then then also terrorist positively in fact impacting the business but I'm just curious what your assumption was and how you're thinking about activity in the back half of the year on the recount and completion count in the US.

下半年只是，考慮到您的業務中發生了一些積極的進展，所以當我們考慮中游時，恐怖分子實際上也會對業務產生積極影響，但我只是好奇您的假設是什麼，以及您如何看待下半年美國的重新計票和完成計票活動。

Yeah, thanks for reminding me. So in terms of rig counts, there are various estimates of what could happen to rigs over the coming quarters from, one report we read the other day and I think it came from your firm Josh's, rig counts could drop 60% to 75% by year end, if you factor that in, that could mean a recount decline of 10%, which could mean, there's not a perfect correlation with our revenues.

是啊，謝謝你提醒我。因此，就鑽機數量而言，對於未來幾個季度鑽機數量可能發生的情況，存在各種估計，我們前幾天讀到的一份報告，我認為它來自貴公司 Josh，到年底鑽機數量可能會下降 60％ 至 75％，如果將這一因素考慮在內，則可能意味著重新計數下降 10％，這可能意味著與我們的收入並不完全相關。

But that could drive some revenue declines there. Although we've seen support outside of rigs for completions and for total production, so it's probably even a lesser correlation, but we could see some revenue declines there. In the meantime, we have tariffs coming into play that could offset completely the impacts of any kind of rig count declines which haven't yet begun.

但這可能會導致那裡的收入下降。儘管我們已經看到鑽機之外對完井和總產量的支持，因此它們的相關性可能更小，但我們可能會看到那裡的收入下降。同時，我們將實施關稅，這可能會完全抵消尚未開始的任何鑽井數量下降的影響。

So I think it's speculative for me to guess at what rigs could do. But I think you know there there are two kind of competing realities. One is cost increases, driving price increases, which could be offset partially by a decline in rigs, but guessing what that decline if it occurs, could be is, we don't have a feel for that yet lot of customers saying they're going to maintain production.

因此，我認為猜測鑽孔機能做什麼只是推測而已。但我想你知道有兩種相互競爭的現實。一是成本增加，推動價格上漲，這可能會因鑽機數量的下降而被部分抵消，但如果出現下降，猜測可能是什麼，我們還沒有感覺到很多客戶表示他們將維持生產。

Some customers are saying they're going to reduce the rig and reduce their budget, by a small percentage. So it's early, I think the thing driving that is of course, is oil prices and that, that's a tentative new metric which which can change. One of the things about uncertainties is it cuts both ways and that we could see oil prices go back up in the next 30 days for other reasons. So, don't have a good read on what that impact could be, Josh.

一些客戶表示，他們將減少鑽孔機數量並減少少量預算。所以現在還為時過早，我認為推動這項進程的因素當然是油價，而這是一個可能會改變的試探性新指標。不確定性的一個特點是它是雙向的，我們可能會看到油價在未來 30 天內因其他原因回升。所以，喬希，不要太擔心這會造成什麼影響。

Understood thanks and then maybe just one follow up you obviously closed the acquisition and then I believe you highlighted that the M&A market could potentially be active in the US over the course of this year. I'm just curious maybe you could comment on. When we do see some volatility like this in the energy market, does that make things more difficult to get across the finish line?

明白，謝謝，然後也許只需跟進一下，您顯然已經完成了收購，然後我相信您強調了併購市場今年可能會在美國活躍起來。我只是好奇，也許您可以發表評論。當我們看到能源市場出現這樣的波動時，這是否會使事情變得更難突破？

Have you seen an increase in opportunities? Maybe just speak to them in a landscape in a little more detail would be great.

您是否發現機會增加了？也許只要在風景中更詳細地與他們交談就很好了。

Thanks. Well, in terms of the landscape where we're at right now, we have, several active conversations. Varying degrees of interest and seriousness. Sometimes we're a natural operator and we can come to terms on price and we can get a deal done in, a number of months.

謝謝。嗯，就我們目前所處的情況而言，我們已經進行了幾次積極的對話。興趣和認真程度各不相同。有時我們是天生的經營者，我們可以就價格達成一致，並且可以在幾個月內完成交易。

And sometimes we're not necessarily the natural operator, but we have similar customers and overlaps with suppliers, and we could make a deal work at the right price. So there are various levels of conversations happening with. No, I do think people are going to be a little cautious about the timing of completing a sale.

有時我們不一定是天生的運營商，但我們擁有相似的客戶並與供應商重疊，我們可以以合適的價格達成交易。因此，存在著各種層次的對話。不，我確實認為人們對於完成銷售的時機會有點謹慎。

We're not necessarily seeing that, but I think this would be a time where there'd be a little bit of caution in terms of timing, primarily from the oil price news, which is, really fairly fresh. So, but otherwise I think, the conversations we're having are active and kind of a normal level of activity there. So no real tangible evidence of a seller is sitting on the sidelines, but I think naturally there'd be a little caution.

我們不一定會見到這種情況，但我認為現在在時機方面應該稍微謹慎一些，主要是從油價新聞來看，這確實是相當新鮮的。所以，但除此之外，我認為我們正在進行的對話是活躍的，並且是一種正常的活動水平。因此，沒有真正的確鑿證據表明賣家在袖手旁觀，但我認為自然會有些謹慎。

Appreciate you taking my questions. Thanks. I'll turn it back

感謝您回答我的問題。謝謝。我會把它轉回去

Okay, thanks Josh.

好的，謝謝喬希。

Thank you.

謝謝。

Thank you. There are no further questions at this time, Mr. Brad Wise. I'll turn the call over back to you.

謝謝。目前沒有其他問題，布拉德懷斯先生。我會把電話轉回給你。

Well, thank you everyone for joining us today and you're interested DNOW. We look forward to discussing our second quarter 2025 results on our next earnings conference call in August. Hope everyone has a wonderful Wednesday, and with that, we'll turn it back to the operator and conclude the call. Thank you.

好吧，感謝大家今天加入我們，並且你們對 DNOW 感興趣。我們期待在 8 月的下一次財報電話會議上討論 2025 年第二季的業績。希望大家度過一個美好的星期三，然後我們將把電話轉回給接線員並結束通話。謝謝。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。