Dnow Inc (NYSE:DNOW)

Q3 2025 DNOW Inc Earnings Call Transcript

Nov 5, 2025 / 02:00 PM GMT

Release Date Price: $14.56 (-0.27%)

Transcript 10-Q8-K

Key Points

Positve

Dnow Inc (DNOW) achieved its highest revenue quarter since 2019, with a total of $634 million in Q3 2025.
The company reported a significant improvement in EBITDA, reaching $51 million or 8% of revenue, marking the 14th consecutive quarter of approximately 7% EBITDA or better.
Dnow Inc (DNOW) demonstrated strong free cash flow generation, with $39 million in Q3 and a year-to-date total of $58 million, expected to approach $150 million for the full year.
The company has successfully managed working capital, improving inventory turn rates and days sales outstanding, contributing to efficient balance sheet use.
Dnow Inc (DNOW) is well-positioned to capture revenue and market share from midstream sector opportunities, with midstream activity accounting for 24% of overall revenue.

Negative

The merger with MRC Global has not yet closed, although shareholder and regulatory approvals have been received.
US revenue was effectively flat sequentially, with a slight decrease in the US rig count and a 6% decline in US completions in the third quarter.
The company anticipates a seasonal decrease in revenue for the fourth quarter, with international activity expected to be relatively flat.
Dnow Inc (DNOW) faces a hyper-competitive environment, with strong competition focusing on price as a competitive weapon.
The effective tax rate for the full year 2025 is estimated to be higher, at approximately 26% to 27%, compared to 21.9% in Q3.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

DNOW.N - Dnow Inc
Q3 2025 DNOW Inc Earnings Call
Nov 05, 2025 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning. Today. At this time, I would like to welcome everyone to the 3rd quarter 2025 earnings conference call.

All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press par, followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press the pound key.

Thank you. Mr. Brad Weiss, Vice President of Digital Strategy and Investor Relations, you may begin your conference.

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Unidentified_2 [2]
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