DNOW

DNOW · NYSE · Industrials · Financials, fiscal 2016 to 2025

DNOW · Last close · November 6, 2026

$13.27

DNOW's revenue rose 18.8% to $2.8 billion in fiscal 2025. Its operating margin was −3.3%, down from 4.6% a year earlier. Free cash flow was $134 million, down 53.6%. It paid out $37 million in dividends and buybacks, 28% of free cash flow. The diluted share count rose 10.0%.

DNOW INC. Latest fiscal year ended December 31, 2025 10-K filed February 26, 2026 · 0001193125-26-072828 Updated November 5, 2026

Revenue

$2.8B

18.8%

Operating margin

−3.3%

7.9 pts

Net income

−$89M

$78M a year earlier

Free cash flow

$134M

53.6%

Return on capital

−4.3%

Market cap

$2.4B

Nov 6 close

P/E

—

Loss: no P/E

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

About these figures. DNOW's 2025 operating loss leaves its earnings before interest, tax, depreciation and amortization negative, so net debt to EBITDA is blank for that year. DNOW's fiscal 2025 net income is as reported in its 10-K (US$-89 million); the four quarters first reported add up to US$-101 million because a later filing restated some of them.

Charts show fiscal years, from the 10-K filings.

What DNOW does

DNOW distributes pipe, valves and fittings and pumps, and builds, assembles and tests process and production equipment. It sells to customers that build and maintain energy and industrial facilities, including oil and gas producers, pipeline and gas utility companies, refineries, chemical plants, mines, water treatment plants, data centers and liquefied natural gas terminals. It is based in Houston, Texas.

It earns money by selling these products, along with supply chain services, technical know-how and digital ordering tools. It works across upstream (production), midstream (transport and gathering), gas utilities, and downstream and industrial markets. Its distribution business is highly fragmented, with both large global and smaller local players.

On November 6, 2025 it completed its all-stock purchase of MRC Global. It keeps MRC Global's brand and its MRCGO digital commerce platform, and says it has a legacy of more than 160 years as a distributor. Its network of approximately 300 locations is staffed by approximately 5,300 employees.

Its biggest risks, as it describes them

Lower spending in the energy industry when oil and gas prices fall.
Volatile oil and gas prices that affect demand.
Gas utility customers cutting back their capital investment.
Holding more inventory than it can sell in a reasonable time.
Competition, including makers that sell directly instead of through distributors.

From DNOW's annual report on Form 10-K, filed February 26, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

From fiscal 2018 to 2024, earnings per share grew 7.1% a year and net income 7.0% a year, as buybacks cut the share count by 1%. DNOW then lost money in fiscal 2025.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	313	212	299	256	164
Debt incl. finance leases	—	—	—	25	440
Net debt (negative means net cash)	—	—	—	−231	276
Net debt to EBITDA	—	—	—	−1.6x	—
Debt to equity	—	—	—	0.0x	0.2x
Interest coverage	—	—	—	—	−23.2x
Current ratio	2.4x	2.3x	2.6x	2.3x	2.3x
Quick ratio	1.7x	1.4x	1.7x	1.5x	1.1x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project DNOW's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open DNOW's projections

Insider trades

Over the 12 months between November 7, 2025 and November 6, 2026, no insider bought DNOW shares on the open market, and 3 insiders sold $7.5 million.

Buys and sells by month

US$ millions, open-market purchases (up) and sales (down) by officers, directors and 10% owners in each month.

BoughtSold

Date	Insider	Trade	Shares	Price	Value	Filing
Aug 10, 2026	David A CherechinskyPresident and CEO, Director	Sold	256,142	$16.73	$4.3 million	Form 4
Aug 10, 2026	Mark B JohnsonSee Remarks	Sold	112,841	$16.79	$1.9 million	Form 4
Aug 10, 2026	Raymond W ChangVP and General Counsel	Sold	76,238	$16.98	$1.3 million	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY23	FY24	FY25
Piotroski F-score	—	—	4 of 9
Rule of 40	16.0%	14.4%	23.6%
Altman Z''	4.05	3.72	2.72
Accruals ratio	4.3%	−13.9%	−8.8%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Fail
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Fail	Fail
Cash from operations exceeds net income	Fail	Pass	Pass
Debt fell relative to assets	—	—	Fail
Current ratio rose	Pass	Fail	Pass
Share count didn't rise	Pass	Pass	Fail
Gross margin rose	Fail	Fail	Fail
Revenue rose relative to assets	Fail	Fail	Pass
F-score	—	—	4 of 9

Companies that report no gross profit are scored on the other eight.

Compare

Put DNOW side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
DNOW	FY25	18.8%	−3.3%	4.8%	−4.3%	—	4
DXP Enterprises	FY25	11.9%	8.8%	2.7%	13.4%	2.6x	7	Compare
MSC Industrial Direct	FY26	6.4%	8.0%	5.6%	13.2%	1.0x	8	Compare
Applied Industrial Technologies	FY26	8.8%	11.1%	9.3%	20.8%	0.2x	7	Compare
Watsco	FY25	−5.0%	9.9%	7.4%	20.1%	−0.3x	6	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	2,107	2,648	3,127	2,951	1,619	1,632	2,136	2,321	2,373	2,820
Revenue growth	−30.0%	25.7%	18.1%	−5.6%	−45.1%	0.8%	30.9%	8.7%	2.2%	18.8%
Gross profit	345	501	630	586	292	357	506	539	531	478
Research and development	—	—	—	—	—	—	—	—	—	—
Operating income	−222	−41	73	−83	−420	9	131	144	109	−93
Net income	−234	−52	52	−97	−427	5	128	250	78	−89
Diluted EPS (US$)	−2.18	−0.48	0.47	−0.89	−3.91	0.05	1.13	2.27	0.71	−0.76
Diluted shares (millions)	107	108	109	109	109	110	111	108	107	118
Cash flow
Cash from operations	235	−115	73	224	189	30	0	188	298	155
Capital expenditure	4	4	11	12	8	5	9	17	9	21
Free cash flow	231	−119	62	212	181	25	−9	171	289	134
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	0	0	0	0	0	0	7	50	23	37
Acquisitions	175	4	0	8	0	96	80	32	299	574
Stock-based compensation	23	20	16	13	6	8	11	15	13	29
Balance sheet at fiscal year end
Cash and short-term investments	106	98	116	183	387	313	212	299	256	164
Debt incl. finance leases	109	197	—	—	—	—	—	—	25	440
Total assets	1,603	1,749	1,795	1,591	1,008	1,104	1,320	1,532	1,621	3,924
Total liabilities	420	564	581	447	309	392	476	466	493	1,686
Shareholders' equity	1,183	1,185	1,214	1,144	699	711	842	1,060	1,124	2,233
Margins and ratios
Gross margin	16.4%	18.9%	20.1%	19.9%	18.0%	21.9%	23.7%	23.2%	22.4%	16.9%
Operating margin	−10.5%	−1.6%	2.3%	−2.8%	−25.9%	0.6%	6.1%	6.2%	4.6%	−3.3%
Net margin	−11.1%	−2.0%	1.7%	−3.3%	−26.4%	0.3%	6.0%	10.8%	3.3%	−3.2%
Free cash flow margin	11.0%	−4.5%	2.0%	7.2%	11.2%	1.5%	−0.4%	7.4%	12.2%	4.8%
Rule of 40 (growth + FCF margin)	−19.0%	21.2%	20.1%	1.6%	−34.0%	2.3%	30.5%	16.0%	14.4%	23.6%
Return on capital	−13.0%	−2.6%	—	—	—	—	—	—	—	−4.3%
Return on equity	−18.1%	−4.4%	4.3%	−8.2%	−46.3%	0.7%	16.5%	26.3%	7.1%	−5.3%
Return on assets	−13.6%	−3.1%	2.9%	−5.7%	−32.9%	0.5%	10.6%	17.5%	5.0%	−3.2%
Net debt to EBITDA	—	11.0x	—	—	—	—	—	—	−1.6x	—

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: DNOW's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with DNOW.