DNOW Inc.

dnow.com

What Do They Do?

Distributes pipe and valves, pumps and fabricated equipment to oil and gas operators and drilling contractors.

How Do They Make Money?

Customers buy DNOW's products, with sales generally tied to when goods ship, are delivered or picked up; DNOW does not offer extended payment terms.

revenue

Segment	Share	How money arrives
Upstream Sold outright	62%	Sold outright
Midstream Sold outright	21%	Sold outright
Gas Utilities Sold outright	6.6%	Sold outright
Downstream and Industrial Sold outright	10%	Sold outright

Who Are Their Customers?

Serves energy and industrial end users through its distribution network and regional and global sales teams; customers can also use its DigitalNOW and MRCGO e-commerce platforms.

Do Revenues Turn Into Profits?

Not on paper. It lost $89M in FY2025, but brought in more cash than it spent: $134M of free cash flow.

Operating income, FY2025

−3% of revenue

▼ Now a loss vs FY2024 ($109M, 5%)

Net income, FY2025

−3% of revenue

▼ Now a loss vs FY2024 ($78M, 3%)

Free cash flow, FY2025

5% of revenue

▼ −54% vs FY2024 ($289M, 12%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +108%; vs $628M in Q2 FY2025
Net income: ▼ Now a loss; vs $14M in Q2 FY2025

Upstream share of revenue vs 65.6% in Q2 FY2025

Growing. Revenue grew 73% in 4 years, from $1.6B in FY2021 to $2.8B in FY2025, about 15% a year.

Added MRC Global The latest report adds MRC Global's distribution business and MRCGO digital commerce platform after its acquisition; the older report describes operations mainly under the DistributionNOW and DNOW brands.

Revenue over time

Upstream Midstream Gas Utilities Downstream and Industrial

$5B$2.5B$0

FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with Ferguson Enterprises, Russel Metals, DXP Enterprises, FloWorks International, W.W. Grainger, HD Supply, Wesco International, MSC Industrial Direct, Applied Industrial Technologies, and Fastenal

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