Nov 5, 2026, 6:57 AM ETEnergy

DNOW — Third Quarter 2026 Earnings Summary

DNOWDNOW INC

Financial Performance

Revenue for the three months ended September 30, 2026, was $1,337 million, compared to $634 million in the same period in 2025.
Gross profit was $265 million (19.8% of revenue), compared to $143 million (22.6% of revenue) in the prior year period; adjusted gross profit was $283 million (21.2% of revenue).
Net income attributable to DNOW Inc. was $26 million ($0.14 per diluted share), compared to $23 million ($0.21 per diluted share) in the prior year period.
Adjusted net income attributable to DNOW Inc. was $34 million ($0.18 per diluted share), compared to $28 million ($0.26 per diluted share) in the prior year period.
Adjusted EBITDA was $76 million (5.7% of revenue), compared to $51 million (8.0% of revenue) in the prior year period.
Cash flow from operating activities was $120 million.
Free cash flow for the quarter was $106 million.
Cash and cash equivalents were $112 million at September 30, 2026, down from $164 million at December 31, 2025.
Total long-term debt was $377 million at September 30, 2026, down from $411 million at December 31, 2025.
Net debt was $265 million, resulting in a net debt leverage ratio of 1.1 times based on trailing twelve-month Adjusted EBITDA of $236 million.
For the nine months ended September 30, 2026, revenue was $3,827 million compared to $1,861 million in the same period in 2025.

Management stated the company is well-positioned to continue gaining share, expanding profitability, and creating long-term value.
The company cited an improving balance sheet, improving end-market fundamentals, and a positive outlook across the business as drivers for future growth.
Management expressed confidence in building on current momentum.

Sales increased sequentially in all three geographic segments: United States, Canada, and International.
The gas utilities business achieved its highest quarterly revenue in three years.
Solid growth was reported in downstream, industrial, and midstream businesses.
Revenue for the three months ended September 30, 2026, by region was: United States $1,125 million, Canada $56 million, and International $156 million.

The company operates in upstream, gas utilities, midstream, downstream, and industrial markets.
Management indicated a belief in the ability to gain market share.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from expectations, as detailed in documents filed with the SEC.
The company recognized $4 million in impairment charges related to the decision to permanently vacate its leased corporate office in Houston, Texas.
Foreign currency losses of $2 million were included in other expense, net for the quarter.

President and CEO David Cherechinsky described the quarter as one of "outstanding execution" with broad-based strength across the company.
Management highlighted that Adjusted EBITDA was nearly double the first quarter results.
Cash flow from operating activities was described as "incredibly strong," fueled by substantial improvements in working capital velocity.
Management noted that year-to-date share repurchases of $92 million exceeded the combined amount returned through repurchases over the prior eleven quarters by 24 percent.
The tone was confident, emphasizing the foundational dedication of teams, deepening supplier partnerships, and commitment to customer support.

The company repurchased $17 million of common stock in the third quarter of 2026.
Year-to-date share repurchases totaled $92 million under the $160 million share repurchase program.
The company changed its inventory valuation method for U.S. inventories from the moving average cost method to the LIFO method in the fourth quarter of 2025, with effects retrospectively applied to all periods presented.
Inventory-related transaction charges of $44 million were included in cost of products for the nine months ended September 30, 2026, related to inventory step-up and write-downs.
The company has approximately 5,050 employees and a global network of distribution and engineering locations.