Release Details

DNOW Reports Third Quarter 2025 Results

November 5, 2025
PDF Version

Earnings Conference Call
November 5, 2025
8:00 a.m. CT
1 (888) 660-6431 (within North America)
1 (929) 203-2118 (outside of North America)
Access Code: 7372055
Webcast: ir.dnow.com

HOUSTON--(BUSINESS WIRE)--Nov. 5, 2025-- DNOW Inc. (NYSE: DNOW) announced results for the third quarter ended September 30, 2025.

Merger with MRC Global Inc. (NYSE: MRC)

  • On June 26, 2025, DNOW and MRC Global jointly announced a definitive merger agreement under which DNOW will acquire MRC Global in an all-stock transaction valued at approximately $1.5 billion
  • The transaction was unanimously approved by both the DNOW and MRC Global boards of directors and is currently anticipated to close in the fourth quarter of 2025, subject to the satisfaction or waiver of closing conditions

Third Quarter 2025 Highlights

  • Revenue was $634 million
  • Net income attributable to DNOW Inc. was $25 million, or $0.23 per diluted share
  • Non-GAAP net income attributable to DNOW Inc. excluding other costs was $28 million, or $0.26 per diluted share
  • EBITDA excluding other costs was $51 million or 8.0% of revenue
  • Cash provided by operating activities was $43 million
  • Cash and cash equivalents was $266 million and long-term debt was zero at September 30, 2025 with total liquidity of approximately $629 million

David Cherechinsky, President and CEO of DNOW, added, "I am proud of our DNOW team for the impressive results achieved in the third quarter, with $51 million in EBITDA, or 8.0% of revenue. We extended our strong performance into the third quarter, achieving our highest level of revenue since the fourth quarter of 2019.

We are expecting to close our proposed merger to acquire MRC Global Inc. in an all-stock transaction during the fourth quarter. This merger will unite two global and industrial infrastructure organizations with a complementary portfolio of high-quality products, services and supply chain solutions.

We ended the quarter adding to an already stellar balance sheet with $266 million in cash and zero debt. We will continue to focus on what sets DNOW apart, prioritizing customer service, innovation in supply chain management combined with a solutions-oriented approach that delivers value for our customers and suppliers, while maintaining a balance sheet which provides a solid foundation for continued growth.

We believe 2025 will represent our fifth consecutive year of growth and are forecasting our best full-year earnings ever as a public company, in terms of total EBITDA results.

I would like to thank all the women and men of DNOW for their continued hard work and dedication to our pursuit of success."

Prior to the earnings conference call a presentation titled “DNOW Third Quarter 2025 Earnings Presentation” will be available on the Company’s Investor Relations website.

About DNOW

DNOW is a supplier of energy and industrial products and packaged, engineered process and production equipment with a legacy of over 160 years. Headquartered in Houston, Texas, with approximately 2,500 employees and a network of locations, we offer a broad set of supply chain solutions combined with a suite of digital offerings branded as DigitalNOW® that provide customers access to highly complementary digital commerce, data and information management channels. Our locations provide products and solutions to exploration and production, midstream transmission and storage companies, refineries, chemical companies, utilities, mining, municipal water, manufacturers, engineering and construction as well as companies operating in the decarbonization, energy evolution and renewables end market.

Statements made in this press release that are forward-looking in nature are intended to be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and may involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to documents filed by DNOW Inc. with the U.S. Securities and Exchange Commission, which identify significant risk factors which could cause actual results to differ from those contained in the forward-looking statements.

DNOW INC.

CONSOLIDATED BALANCE SHEETS

(In millions, except share and per share data)

 

 

 

September 30, 2025

 

 

December 31, 2024

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

266

 

 

$

256

 

Receivables, net

 

 

429

 

 

 

388

 

Inventories, net

 

 

377

 

 

 

352

 

Prepaid and other current assets

 

 

24

 

 

 

32

 

Total current assets

 

 

1,096

 

 

 

1,028

 

Property, plant and equipment, net

 

 

149

 

 

 

157

 

Deferred income taxes

 

 

76

 

 

 

93

 

Goodwill

 

 

235

 

 

 

230

 

Intangibles, net

 

 

60

 

 

 

65

 

Other assets

 

 

44

 

 

 

48

 

Total assets

 

$

1,660

 

 

$

1,621

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

305

 

 

$

300

 

Accrued liabilities

 

 

118

 

 

 

130

 

Other current liabilities

 

 

12

 

 

 

12

 

Total current liabilities

 

 

435

 

 

 

442

 

Long-term operating lease liabilities

 

 

25

 

 

 

29

 

Other long-term liabilities

 

 

15

 

 

 

22

 

Total liabilities

 

 

475

 

 

 

493

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Preferred stock - par value $0.01; 20 million shares authorized; no shares issued and outstanding

 

 

—

 

 

 

—

 

Common stock - par value $0.01; 330 million shares authorized; 105,011,966 and 105,652,963 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

2,001

 

 

 

2,023

 

Accumulated deficit

 

 

(675

)

 

 

(747

)

Accumulated other comprehensive loss

 

 

(145

)

 

 

(153

)

DNOW Inc. stockholders' equity

 

 

1,182

 

 

 

1,124

 

Noncontrolling interest

 

 

3

 

 

 

4

 

Total stockholders' equity

 

 

1,185

 

 

 

1,128

 

Total liabilities and stockholders' equity

 

$

1,660

 

 

$

1,621

 

DNOW INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In millions, except per share data)

 

 

Three months ended

 

 

Nine months ended

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2025

 

 

2024

 

Revenue

$

634

 

 

$

606

 

 

$

628

 

 

$

1,861

 

 

$

1,802

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products

 

489

 

 

 

471

 

 

 

484

 

 

 

1,433

 

 

 

1,400

 

Warehousing, selling and administrative

 

112

 

 

 

107

 

 

 

112

 

 

 

333

 

 

 

313

 

Impairment and other charges

 

—

 

 

 

5

 

 

 

—

 

 

 

—

 

 

 

5

 

Operating profit

 

33

 

 

 

23

 

 

 

32

 

 

 

95

 

 

 

84

 

Other income (expense)

 

(1

)

 

 

(1

)

 

 

—

 

 

 

(1

)

 

 

—

 

Income before income taxes

 

32

 

 

 

22

 

 

 

32

 

 

 

94

 

 

 

84

 

Income tax provision

 

7

 

 

 

9

 

 

 

7

 

 

 

21

 

 

 

25

 

Net income

 

25

 

 

 

13

 

 

 

25

 

 

 

73

 

 

 

59

 

Net income attributable to noncontrolling interest

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Net income attributable to DNOW Inc.

$

25

 

 

$

13

 

 

$

25

 

 

$

72

 

 

$

58

 

Earnings per share attributable to DNOW Inc. stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.23

 

 

$

0.12

 

 

$

0.24

 

 

$

0.66

 

 

$

0.53

 

Diluted

$

0.23

 

 

$

0.12

 

 

$

0.23

 

 

$

0.66

 

 

$

0.53

 

Weighted-average common shares outstanding, basic

 

105

 

 

 

106

 

 

 

105

 

 

 

105

 

 

 

107

 

Weighted-average common shares outstanding, diluted

 

106

 

 

 

107

 

 

 

106

 

 

 

106

 

 

 

107

 

DNOW INC.

SUPPLEMENTAL INFORMATION

BUSINESS SEGMENTS (UNAUDITED)

(In millions)

 

 

Three months ended

 

 

Nine months ended

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2025

 

 

2024

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

$

527

 

 

$

482

 

 

$

528

 

 

$

1,529

 

 

$

1,429

 

Canada

 

53

 

 

 

65

 

 

 

48

 

 

 

163

 

 

 

187

 

International

 

54

 

 

 

59

 

 

 

52

 

 

 

169

 

 

 

186

 

Total revenue

$

634

 

 

$

606

 

 

$

628

 

 

$

1,861

 

 

$

1,802

 

DNOW INC.
SUPPLEMENTAL INFORMATION (CONTINUED)
U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) TO NON-GAAP RECONCILIATIONS

In an effort to provide investors with additional information regarding our results as determined by GAAP, we disclose various non-GAAP financial measures in our quarterly earnings press releases and other public disclosures. The non-GAAP financial measures include: (i) earnings before interest, taxes, depreciation and amortization (EBITDA) excluding other costs, (ii) EBITDA excluding other costs as a percentage of revenue, (iii) net income attributable to DNOW Inc. excluding other costs, (iv) diluted earnings per share attributable to DNOW Inc. stockholders excluding other costs, and (v) free cash flow. We use these non-GAAP financial measures to evaluate and manage the Company’s operations because we believe they provide useful supplemental information regarding the financial performance of our business. These non-GAAP financial measures are not intended to replace the GAAP financial measures. Free cash flow is net cash provided by (used in) operating activities adjusted for purchases of property, plant and equipment, and the remaining non-GAAP financial measures exclude the impact of certain other items. A reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure is included in the schedules herein. Totals in the schedules herein may not foot due to rounding.

NET INCOME ATTRIBUTABLE TO DNOW INC. TO NON-GAAP EBITDA EXCLUDING OTHER COSTS RECONCILIATION (UNAUDITED)

(In millions)

 

 

Three months ended

 

 

Nine months ended

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

2025

 

As a % of revenue

 

2024

 

As a % of revenue

 

 

2025

 

As a % of revenue

 

 

2025

 

As a % of revenue

 

2024

 

As a % of revenue

 

GAAP net income attributable to DNOW Inc.

$

25

 

 

3.9

%

$

13

 

 

2.1

%

 

$

25

 

 

4.0

%

 

$

72

 

 

3.9

%

$

58

 

 

3.2

%

Net income attributable to noncontrolling interest

 

—

 

 

 

 

—

 

 

 

 

 

—

 

 

 

 

 

1

 

 

 

 

1

 

 

 

Interest expense (income), net

 

—

 

 

 

 

(1

)

 

 

 

 

(1

)

 

 

 

 

(2

)

 

 

 

(4

)

 

 

Income tax provision

 

7

 

 

 

 

9

 

 

 

 

 

7

 

 

 

 

 

21

 

 

 

 

25

 

 

 

Depreciation and amortization

 

11

 

 

 

 

8

 

 

 

 

 

10

 

 

 

 

 

32

 

 

 

 

24

 

 

 

Other costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation (1)

 

4

 

 

 

 

3

 

 

 

 

 

4

 

 

 

 

 

11

 

 

 

 

9

 

 

 

Other (2)

 

4

 

 

 

 

10

 

 

 

 

 

6

 

 

 

 

 

13

 

 

 

 

18

 

 

 

EBITDA excluding other costs

$

51

 

 

8.0

%

$

42

 

 

6.9

%

 

$

51

 

 

8.1

%

 

$

148

 

 

8.0

%

$

131

 

 

7.3

%

NET INCOME ATTRIBUTABLE TO DNOW INC. STOCKHOLDERS TO NON-GAAP NET INCOME ATTRIBUTABLE TO DNOW INC. STOCKHOLDERS EXCLUDING OTHER COSTS RECONCILIATION (UNAUDITED)

(In millions)

 

 

Three months ended

 

 

Nine months ended

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2025

 

 

2024

 

GAAP net income attributable to DNOW Inc.

$

25

 

 

$

13

 

 

$

25

 

 

$

72

 

 

$

58

 

Other (2)

 

4

 

 

 

10

 

 

 

6

 

 

 

13

 

 

 

18

 

Other tax expense (benefit) (3)

 

(1

)

 

 

—

 

 

 

(2

)

 

 

(4

)

 

 

(2

)

Other, net of tax (4)*

 

3

 

 

 

9

 

 

 

4

 

 

 

9

 

 

 

15

 

Net income attributable to DNOW Inc. excluding other costs

$

28

 

 

$

22

 

 

$

29

 

 

$

81

 

 

$

73

 

*   Totals may not foot due to rounding.

 

DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO DNOW INC. STOCKHOLDERS TO NON-GAAP DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO DNOW INC. STOCKHOLDERS EXCLUDING OTHER COSTS RECONCILIATION (UNAUDITED)

 

 

Three months ended

 

 

Nine months ended

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2025

 

 

2024

 

GAAP diluted earnings per share attributable to DNOW Inc. stockholders

$

0.23

 

 

$

0.12

 

 

$

0.23

 

 

$

0.66

 

 

$

0.53

 

Other, net of tax (4)

 

0.03

 

 

 

0.09

 

 

 

0.04

 

 

 

0.09

 

 

 

0.14

 

Diluted earnings per share attributable to DNOW Inc. stockholders excluding other costs

$

0.26

 

 

$

0.21

 

 

$

0.27

 

 

$

0.75

 

 

$

0.67

 

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED)

 

 

 

Three months ended

 

 

Nine months ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

September 30,

 

 

 

2025

 

 

2025

 

 

2025

 

 

2024

 

 

2024

 

 

2025

 

 

2024

 

Net cash provided by (used in) operating activities

 

$

43

 

 

$

45

 

 

$

(16

)

 

$

122

 

 

$

74

 

 

$

72

 

 

$

176

 

Less: Purchases of property, plant and equipment

 

 

(4

)

 

 

(4

)

 

 

(6

)

 

 

(3

)

 

 

(2

)

 

 

(14

)

 

 

(6

)

Free cash flow

 

$

39

 

 

$

41

 

 

$

(22

)

 

$

119

 

 

$

72

 

 

$

58

 

 

$

170

 

(1) 

 

For the three and nine months ended September 30, 2025, stock-based compensation excludes less than $1 million and $1 million, respectively, as such amounts were reported in Other.

 

 

 

For the three months ended June 30, 2025, stock-based compensation excludes less than $1 million as such amounts were reported in Other.

 

(2)

 

For the three and nine months ended September 30, 2025, Other primarily included approximately $4 million and $12 million, respectively, of transaction-related charges and less than $1 million and $1 million, respectively, of International restructuring charges, both of which were included in warehousing, selling, and administrative.

 

 

 

For the three months ended September 30, 2024, Other was primarily related to the International restructuring charges of $8 million, of which approximately $5 million of foreign currency translation losses included in impairment and other charges, approximately $2 million of inventory write-downs included in cost of products and $1 million of other exit costs included in warehousing, selling and administrative; additionally, Other also included transaction-related charges of approximately $2 million recorded in warehousing, selling and administrative.

 

 

 

For the nine months ended September 30, 2024, Other included the International restructuring charges of $8 million mentioned above as well as transaction-related charges of approximately $10 million, of which $5 million were included in cost of products and approximately $5 million included in warehousing, selling and administrative.

 

 

 

For the three months ended June 30, 2025, Other primarily included approximately $6 million of transaction-related charges and less than $1 million of International restructuring charges, both of which were included in warehousing, selling, and administrative.

 

 

 

Transaction-related charges include transaction costs, inventory fair value step-up, retention bonus accruals and integration expenses associated with acquisitions.

 

(3)

 

For the three and nine months ended September 30, 2025, Other tax expense (benefit) represents tax benefit of approximately $1 million and $4 million, respectively, related to Other.

 

 

 

For the three and nine months ended September 30, 2024, Other tax expense (benefit) represents tax benefit of less than $1 million and approximately $2 million, respectively, related to Other.

 

 

 

For the three months ended June 30, 2025, Other tax expense (benefit) represents tax benefit of approximately $2 million related to Other.

 

 

 

The tax effect of Other is calculated based on the nature of the item and/or the tax jurisdiction in which the item has been incurred and applying the specific tax rate or tax treatment to each item included in Other.

 

(4)

 

Other, net of tax comprises Other and Other tax expense (benefit). See footnotes (2) and (3) for details.

 

Mark Johnson
Senior Vice President and Chief Financial Officer
(281) 823-4754

Source: DNOW Inc.