DNOW Inc. (NYSE: DNOW), a leading supplier of energy and industrial products, saw its stock surge over 20% in pre-market trading on Thursday following its impressive fourth quarter and full-year 2024 financial results.

For the fourth quarter, the company reported revenue of $571 million, up 2.88% year-over-year and beating analyst estimates of $553.9 million. Adjusted earnings per share came in at $0.25, a 13.6% increase from $0.22 in Q4 2023 and significantly higher than the consensus estimate of $0.14.

The strong performance was driven by several key factors, including:

• Expanded gross margins and effective cost control initiatives
• Growth in the company's pump rental offering and industrial automation capabilities through the acquisition of Trojan Rentals, LLC for $114 million
• Robust cash flow generation, with free cash flow of $289 million for the full-year 2024, nearly double the company's projections from a year earlier

For the full-year 2024, DNOW reported revenue of $2.373 billion and adjusted earnings per share of $0.91, reflecting the company's resilience and growth in a challenging economic environment.

In a positive sign of confidence in the company's future prospects, DNOW announced a new $160 million share repurchase program, double the size of the previous program successfully completed in 2024. This substantial increase underscores the company's strong cash generation capabilities and its commitment to enhancing shareholder value.

With a robust outlook for continued growth and profitability, DNOW is well-positioned to capitalize on emerging opportunities in the energy and industrial sectors, particularly in the areas of autonomous driving, generative AI, and the energy transition.