Now Stock Earnings Reports

DNOW reported Q3 2025 results with revenue of $634 million — the highest quarter since 4Q 2019 — and EBITDA of $51 million (8% of revenue). The company generated $39 million of free cash flow in Q3 and $58 million year-to-date, with management expecting full-year 2025 free cash flow to approach $150 million and full-year EBITDA to approach 8% of revenue. DNOW exited the quarter with zero debt, $266 million in cash and total liquidity of $629 million (cash plus credit availability). Operational highlights include improved inventory turns (5.2x), DSO of 62 days, continued margin expansion (gross margin 22.9%, +60 bps YoY), and steady midstream and Process Solutions demand (midstream = 24% of revenue). Management reiterated capital allocation priorities: organic growth, targeted M&A (Process Solutions focus), and continued share repurchases (historical repurchases of >8.7M shares). The merger with MRC Global has received shareholder and regulatory approvals; management expects the combination to deliver $70 million of annual cost synergies within three years and to enhance earnings durability, cash flow and customer reach. Management acknowledged recent ERP-related execution issues at MRC but characterized them as recoverable and believes the ERP provides a long-term benefit. Outlook: expect normal seasonal Q4 decline sequentially but mid-single-digit revenue growth versus Q4 2024; continued focus on integration planning, gross margin expansion in higher-margin product lines and further free cash flow generation.