DNOW Inc. Reports Q2 2025 Financial Results with Revenue Decline and Net Income Increase

DNOW Inc. reported its financial results for the second quarter of 2025, revealing a slight decline in revenue but an increase in net income compared to the same period last year. The company generated revenue of $628 million for the three months ended June 30, 2025, a decrease of 0.8% from $633 million in the same quarter of 2024. However, net income attributable to DNOW Inc. rose to $25 million, up from $24 million in the prior year. For the first half of 2025, revenue increased by 2.6% to $1.227 billion, while net income grew to $47 million from $45 million.

The company's operating profit for the second quarter was $32 million, slightly down from $33 million in the same quarter of 2024. For the first half of the year, operating profit remained stable at $62 million, compared to $61 million in the previous year. The decrease in revenue was attributed to weaker project activity in Canada and international markets, which offset gains in the U.S. segment, where revenue increased by 3.1% to $528 million. The Canadian segment saw a 14.3% decline in revenue, while the international segment experienced a 20% drop.

In terms of strategic developments, DNOW completed an acquisition in Singapore for approximately $8 million, enhancing its electrical supply capabilities in the Asia Pacific region. The company also announced a definitive merger agreement to acquire MRC Global in an all-stock transaction valued at approximately $1.5 billion, expected to close in the fourth quarter of 2025, pending shareholder and regulatory approvals. This merger aims to expand DNOW's market presence and product offerings in the energy transition and industrial sectors.

Operationally, DNOW reported a total of 160 locations across the U.S., Canada, and select international markets, employing approximately 2,575 individuals. The company’s inventory increased to $383 million as of June 30, 2025, up from $352 million at the end of 2024, reflecting proactive investments to support customer demand. The company also maintained a strong liquidity position, with cash and cash equivalents totaling $232 million, and no borrowings against its $500 million revolving credit facility.

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 anticipates that ongoing economic and geopolitical uncertainties will continue to influence market conditions. DNOW plans to leverage opportunities in energy transition investments and expand its customer base in non-oil and gas markets, aiming to adapt to the evolving energy landscape while optimizing operations and maintaining strategic vendor relationships.