DNOW Inc. Reports 4.6% Revenue Growth to $634 Million in Q3 2025

DNOW Inc. reported a solid financial performance for the third quarter of 2025, with revenue reaching $634 million, a 4.6% increase from $606 million in the same period last year. For the nine months ending September 30, 2025, revenue totaled $1.861 billion, up 3.3% from $1.802 billion in 2024. The company’s net income attributable to DNOW Inc. was $25 million for the quarter, compared to $13 million in the prior year, and $72 million for the nine months, up from $58 million. This resulted in earnings per share of $0.23 for the third quarter, compared to $0.12 in 2024.

The company experienced notable changes in its operating expenses, with costs of products increasing to $489 million for the third quarter, up from $471 million a year earlier. Warehousing, selling, and administrative expenses also rose to $112 million from $107 million. The operating profit for the quarter was $33 million, an increase from $23 million in the same period last year, while the nine-month operating profit rose to $95 million from $84 million. The effective tax rate for the third quarter was 21.9%, significantly lower than the 40.9% reported in the same quarter of 2024, primarily due to the absence of foreign currency translation losses that impacted the previous year.

Strategically, DNOW completed an acquisition in Singapore for approximately $8 million, enhancing its electrical supply capabilities in the Asia Pacific region. This acquisition is expected to bolster the company’s offerings in both traditional and renewable energy markets. Additionally, DNOW is in the process of acquiring MRC Global in an all-stock transaction valued at approximately $1.5 billion, which is anticipated to close in the fourth quarter of 2025, pending customary closing conditions.

Operationally, DNOW operates through three segments: United States, Canada, and International. The U.S. segment generated $527 million in revenue for the third quarter, a 9.3% increase from the previous year, while the Canadian segment saw a decline in revenue to $53 million, down 18.5%. The International segment also reported a decrease in revenue to $54 million, down 8.5%. The company’s total assets increased to $1.660 billion as of September 30, 2025, compared to $1.621 billion at the end of 2024, with cash and cash equivalents rising to $266 million.

Looking ahead, DNOW's outlook remains closely tied to fluctuations in crude oil and natural gas prices, as well as global drilling and completion activities. The company is focused on supporting its customers through ongoing economic and geopolitical uncertainties while also expanding its product offerings to meet evolving energy transition needs. The management anticipates that the strategic acquisitions and investments in new energy solutions will position DNOW favorably in the market moving forward.