DNOW Reports Third Quarter 2026 Results

Canada's nine-month revenue fell to $154 million from $163 million, despite higher third-quarter sales.

Rhea-AI Summary

DNOW (NYSE: DNOW) reported third-quarter 2026 revenue of $1,337 million, with sales increasing sequentially across all three geographic segments. Revenue compared with $634 million a year earlier and $1,307 million in the second quarter. Net income attributable to DNOW was $26 million, versus $23 million a year earlier, while diluted earnings per share fell to $0.14 from $0.21.

Gross margin was 19.8%, down from 22.6% a year earlier but above 18.6% in the second quarter. Adjusted EBITDA, an earnings measure excluding interest, taxes and certain other costs, reached $76 million. Operating cash flow was $120 million. September 30 cash was $112 million against $377 million of long-term debt, leaving net debt of $265 million. Share repurchases totaled $17 million in the quarter and $92 million year-to-date. The nine-month net loss attributable to DNOW was $39 million, versus net income of $58 million a year earlier.

19 points · 0 major

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 18 points

How the balance works

Positive

• Moderate pointThird-quarter revenue of $1,337 million exceeded $634 million a year earlier and $1,307 million sequentially.
• Moderate pointThird-quarter net income attributable to DNOW of $26 million exceeded $23 million a year earlier, reversing a $21 million second-quarter loss.
• Moderate pointThird-quarter operating profit of $33 million exceeded $31 million a year earlier and $1 million sequentially.
• Moderate pointThird-quarter adjusted EBITDA of $76 million exceeded $51 million a year earlier and $60 million sequentially.
• Moderate pointThird-quarter operating cash flow was $120 million.
• Moderate pointShare repurchases totaled $17 million in the quarter and $92 million year-to-date under the $160 million program.

13 minor points

• Minor pointThird-quarter gross profit of $265 million exceeded $143 million a year earlier and $243 million sequentially.
• Minor pointThird-quarter adjusted net income was $34 million, or $0.18 per diluted share.
• Minor pointLong-term debt fell to $377 million at September 30, 2026, from $411 million at December 31, 2025.
• Minor pointNet debt leverage declined to 1.1 times, with September 30 net debt of $265 million.
• Minor pointU.S. third-quarter revenue of $1,125 million exceeded $527 million a year earlier and $1,109 million sequentially.
• Minor pointCanada third-quarter revenue of $56 million exceeded $53 million a year earlier and $47 million sequentially.
• Minor pointInternational third-quarter revenue of $156 million exceeded $54 million a year earlier and $151 million sequentially.
• Minor pointNine-month revenue of $3,827 million exceeded $1,861 million a year earlier.
• Minor pointNine-month gross profit of $701 million exceeded $410 million a year earlier.
• Minor pointNine-month adjusted EBITDA of $175 million exceeded $148 million a year earlier.
• Minor pointU.S. nine-month revenue of $3,219 million exceeded $1,529 million a year earlier.
• Minor pointInternational nine-month revenue of $454 million exceeded $169 million a year earlier.
• Minor pointThird-quarter selling, general and administrative expenses fell sequentially to $232 million from $238 million, but exceeded $112 million a year earlier.

Negative

• Moderate pointThird-quarter diluted earnings per share fell to $0.14 from $0.21 a year earlier, versus a $0.11 second-quarter loss.
• Moderate pointThird-quarter gross margin of 19.8% fell from 22.6% a year earlier, but improved from 18.6% sequentially.
• Moderate pointThird-quarter adjusted EBITDA margin of 5.7% fell from 8.0% a year earlier, but improved from 4.6% sequentially.
• Moderate pointNine-month net loss attributable to DNOW was $39 million, versus $58 million net income a year earlier.
• Moderate pointNine-month operating loss was $16 million, versus $77 million operating profit a year earlier.
• Moderate pointNine-month inventory-related transaction charges were $44 million, versus zero a year earlier. 1.6% of market cap
• Moderate pointNine-month selling, general and administrative expenses rose to $713 million from $333 million a year earlier.

11 minor points

• Minor pointThird-quarter adjusted gross margin of 21.2% fell from 23.2% a year earlier, but improved from 20.8% sequentially.
• Minor pointNine-month diluted loss per share was $0.21, versus earnings of $0.54 a year earlier.
• Minor pointNine-month gross margin fell to 18.3% from 22.0% a year earlier.
• Minor pointNine-month adjusted gross margin fell to 21.2% from 23.3% a year earlier.
• Minor pointNine-month adjusted EBITDA margin fell to 4.6% from 8.0% a year earlier.
• Minor pointCash fell to $112 million at September 30, 2026, from $164 million at December 31, 2025.
• Minor pointCanada nine-month revenue fell to $154 million from $163 million a year earlier.
• Minor pointThird-quarter net interest expense was $7 million, versus zero a year earlier.
• Minor pointNine-month net interest expense was $24 million, versus $2 million net interest income a year earlier.
• Minor pointNine-month impairment and other charges were $4 million, versus zero a year earlier.
• Minor pointTransaction-related adjustments were $3 million in the third quarter and $14 million over nine months.

News Explained

At September 30, 2026, DNOW had 180,320,779 shares outstanding, down from 186,125,254 at December 31, 2025; for a holder whose share count stayed constant, that lower total means a larger ownership fraction, all else equal.

Key Figures

Revenue: $1,337 million Net income attributable to DNOW: $26 million Diluted EPS: $0.14 +5 more

Revenue

$1,337 million

Third quarter 2026

Net income attributable to DNOW

$26 million

Third quarter 2026

Diluted EPS

$0.14

Third quarter 2026

Adjusted EBITDA

$76 million

Third quarter 2026

Operating cash flow

$120 million

Third quarter 2026

Net debt leverage ratio

1.1 times

At September 30, 2026

Share repurchases

$17 million

Third quarter 2026

Share repurchases

$92 million

Year-to-date through September 2026

Previous Earnings Reports

2 past events · Latest: Aug 06

Same Type 2 events

1. Aug 06

   Quarterly earnings

   24h Move

   +8.2%

   Reported a net loss alongside $1,307 million revenue and $60 million adjusted EBITDA.

2. May 07

   Quarterly earnings

   24h Move

   -3.3%

   Reported a $44 million net loss, $39 million adjusted EBITDA and $95 million operating cash use.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, non-gaap, lifo, free cash flow

4 terms

adjusted ebitda financial

"adjusted earnings before interest, taxes, depreciation and amortization"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap financial

"The non-GAAP financial measures include:"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

lifo financial

"plus or minus the impact of our Last-In, First-Out (“LIFO”) inventory costing methodology"

An accounting method that assumes the most recently acquired inventory items are sold first, so the newest costs flow into cost of goods sold while older costs stay on the balance sheet. Imagine a stack of boxes where you take from the top; when prices are rising, that top-first approach produces higher reported costs and lower reported profits, which can reduce taxes and change profit margins. Investors watch LIFO because it affects reported earnings, tax liabilities, and how comparable a company’s performance is to peers.

free cash flow financial

"We define Free Cash Flow as net cash provided by (used in) operating activities"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HOUSTON, Nov. 05, 2026 (GLOBE NEWSWIRE) -- DNOW Inc. (NYSE: DNOW) announced results for the third quarter ended September 30, 2026.

Recent Capital Allocation

• Repurchased $17 million of common stock in the third quarter of 2026 and $92 million year-to-date under the Company's $160 million share repurchase program
  

Third Quarter 2026 Highlights

• Revenue was $1,337 million
• Gross profit was $265 million, or 19.8% of revenue, and adjusted gross profit was $283 million, or 21.2% of revenue
• Net income attributable to DNOW Inc. was $26 million, or $0.14 per diluted share, and adjusted net income attributable to DNOW Inc. was $34 million, or $0.18 per diluted share
• Adjusted EBITDA was $76 million, or 5.7% of revenue
• Cash flow from operating activities was $120 million
• Cash and cash equivalents was $112 million and total long-term debt was $377 million at September 30, 2026, resulting in net debt of $265 million, or a net debt leverage ratio of 1.1 times

David Cherechinsky, President and CEO of DNOW Inc., added, “Our team delivered another quarter of outstanding execution, generating third quarter Adjusted EBITDA of $76 million, nearly double our first quarter results, reflecting broad-based strength across the company. Sales increased sequentially in all three geographic segments, with solid growth in the downstream, industrial and midstream businesses, with the gas utilities business achieving its highest quarterly revenue in three years.

Cash flow from operating activities was incredibly strong at $120 million, fueled by substantial improvements in working capital velocity. As a result, we further strengthened our balance sheet, reducing our net debt leverage ratio to 1.1 times, enhancing our financial flexibility to capitalize on future opportunities. We also remained disciplined in our approach to capital allocation, repurchasing $17 million of DNOW shares during the quarter. Year-to-date repurchases totaled $92 million through September, exceeding the combined amount returned through share repurchases over the prior eleven quarters by 24 percent. This demonstrates our confidence in the business and our commitment to delivering value to shareholders.

Most importantly, these results reflect the foundational dedication, expertise and customer focus of our teams across the organization. Their unwavering commitment to supporting our customers, deepening supplier partnerships and executing with excellence every day continues to be a key driver of our success.

With an even stronger balance sheet, improving end-market fundamentals and positive outlook across our business, we believe we are well positioned to continue gaining share, expanding profitability and creating long-term value for our customers, employees and shareholders. I am excited about the opportunities ahead and confident in our ability to build on this momentum as we move forward.”

Prior to the earnings conference call a presentation titled “DNOW Third Quarter 2026 Earnings Presentation” will be available on the Company’s Investor Relations website.

About DNOW

DNOW is a premier energy and industrial solutions provider with a legacy of over 160 years as a leading distributor of pipe, valves, fittings (PVF), gas products, pumps and fabricated equipment. Headquartered in Houston, Texas, with approximately 5,050 employees and a global network of distribution and engineering locations; we provide a broad mix of quality products our customers require to build and maintain essential infrastructure across the upstream, gas utilities, midstream, downstream and industrial markets. We deliver a comprehensive range of value-added supply chain solutions and technical product expertise, supported by advanced digital offerings. Our products and resources enable our customers to run their operations more efficiently and effectively, helping them to meet and exceed their business goals.

Statements made in this press release that are forward-looking in nature are intended to be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and may involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to documents filed by DNOW Inc. with the U.S. Securities and Exchange Commission, which identify significant risk factors which could cause actual results to differ from those contained in the forward-looking statements.

Contact:
Mark Johnson
Senior Vice President and Chief Financial Officer
(281) 823-4754

Earnings Conference Call
November 5, 2026
8:00 a.m. CT
1 (888) 660-6431 (within North America)
1 (929) 203-2118 (outside of North America)
Access Code: 7372055
Webcast: ir.dnow.com

DNOW INC. CONSOLIDATED BALANCE SHEETS (In millions, except share and par value)
		September 30, 2026				December 31, 2025
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	112			$	164
Receivables, net			878				874
Inventories, net			988				1,192
Prepaid and other current assets			55				48
Total current assets			2,033				2,278
Property, plant and equipment, net			253				264
Operating right-of-use assets			140				160
Deferred income tax assets			10				11
Goodwill			709				617
Intangibles, net			550				565
Other assets			24				29
Total assets		$	3,719			$	3,924
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	708			$	653
Accrued liabilities			255				300
Other current liabilities			15				21
Total current liabilities			978				974
Long-term debt			377				411
Long-term operating lease liabilities			102				129
Deferred income tax liabilities			75				99
Other long-term liabilities			66				73
Total liabilities			1,598				1,686
Commitments and contingencies
Stockholders' equity:
Common stock - par value $0.01; 330 million shares authorized; 180,320,779 and 186,125,254 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively			2				2
Additional paid-in capital			3,117				3,193
Accumulated deficit			(875	)			(836	)
Accumulated other comprehensive loss			(127	)			(126	)
DNOW Inc. stockholders' equity			2,117				2,233
Noncontrolling interests			4				5
Total stockholders' equity			2,121				2,238
Total liabilities and stockholders' equity		$	3,719			$	3,924

DNOW INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In millions, except per share data)
	Three months ended												Nine months ended
	September 30,								June 30,				September 30,
	2026				2025				2026				2026				2025
Revenue	$	1,337			$	634			$	1,307			$	3,827			$	1,861
Cost of products		1,072				491				1,064				3,126				1,451
Gross profit		265				143				243				701				410
Selling, general and administrative expenses		232				112				238				713				333
Impairment and other charges		—				—				4				4				—
Operating profit (loss)		33				31				1				(16	)			77
Other expense, net		(10	)			(1	)			(10	)			(30	)			(1	)
Income (loss) before income taxes		23				30				(9	)			(46	)			76
Income tax (benefit) provision		(3	)			7				12				(7	)			17
Net income (loss)		26				23				(21	)			(39	)			59
Net (loss) income attributable to noncontrolling interests		—				—				—				—				1
Net income (loss) attributable to DNOW Inc.	$	26			$	23			$	(21	)		$	(39	)		$	58
Earnings (loss) per share attributable to DNOW Inc. stockholders:
Basic	$	0.14			$	0.21			$	(0.11	)		$	(0.21	)		$	0.54
Diluted	$	0.14			$	0.21			$	(0.11	)		$	(0.21	)		$	0.54
Weighted-average common shares outstanding, basic		181				105				182				183				105
Weighted-average common shares outstanding, diluted		182				106				182				183				106

DNOW INC. SUPPLEMENTAL INFORMATION BUSINESS SEGMENTS (UNAUDITED) (In millions)
	Three months ended												Nine months ended
	September 30,								June 30,				September 30,
	2026				2025				2026				2026				2025
Revenue:
United States	$	1,125			$	527			$	1,109			$	3,219			$	1,529
Canada		56				53				47				154				163
International		156				54				151				454				169
Total revenue	$	1,337			$	634			$	1,307			$	3,827			$	1,861

U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) TO NON-GAAP RECONCILIATIONS

In an effort to provide investors with additional information regarding our results as determined by GAAP, we disclose various non-GAAP financial measures in our quarterly earnings press releases and other public disclosures. The non-GAAP financial measures include: (i) adjusted gross profit, (ii) adjusted gross profit as a percentage of revenue, (iii) adjusted earnings before interest, taxes, depreciation and amortization and excluding other costs (Adjusted EBITDA), (iv) Adjusted EBITDA as a percentage of revenue, (v) Adjusted Net Income attributable to DNOW Inc., (vi) Adjusted Diluted Earnings Per Share Attributable to DNOW Inc. Stockholders, (vii) Net Debt, (viii) Net Debt Leverage Ratio and (ix) Free Cash Flow. We use these non-GAAP financial measures to evaluate and manage the Company’s operations because we believe they provide useful supplemental information regarding the financial performance of our business. These non-GAAP financial measures are not intended to replace the GAAP financial measures. The Company defines Adjusted Gross Profit as revenue, less cost of products, plus amortization of intangibles, plus inventory-related charges incremental to normal operations, plus transaction related adjustments associated with acquisitions, such as inventory fair value step-up or write-downs and plus or minus the impact of our Last-In, First-Out (“LIFO”) inventory costing methodology. We define Adjusted EBITDA as net (loss) income plus interest, taxes, depreciation and amortization and excluding other costs, such as stock-based compensation, restructuring and exit costs, transaction-related adjustments, net, inventory-related charges incremental to normal operations, long-lived asset impairments (including goodwill and intangible assets) and plus or minus the impact of our LIFO inventory costing methodology. Transaction-related adjustments, net include transaction costs and recoveries, inventory fair value step-up, retention bonus accruals and integration expenses associated with acquisitions. We define Net Debt as total long-term debt, including current portion, minus cash. We define our Net Debt Leverage Ratio as Net Debt divided by trailing twelve months Adjusted EBITDA. The Company believes Net Debt is an indicator of the extent to which the Company’s outstanding debt obligations could be satisfied by cash on hand and a useful metric for investors to evaluate the Company’s leverage position. We believe the Net Debt Leverage Ratio is a commonly used metric that management and investors use to assess the borrowing capacity of the Company. We define Free Cash Flow as net cash provided by (used in) operating activities adjusted for purchases of property, plant and equipment. The Company believes Free Cash Flow is a useful metric for investors to measure a company's financial flexibility and ability to generate cash after considering normal operating expenses and capital expenditures. A reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure is included in the schedules herein. Totals in the schedules herein may not foot due to rounding.

GROSS PROFIT TO ADJUSTED GROSS PROFIT RECONCILIATION (UNAUDITED) (In millions)
	Three months ended																				Nine months ended
	September 30,													June 30,							September 30,
	2026			As a % of revenue			2025			As a % of revenue				2026			As a % of revenue				2026			As a % of revenue			2025			As a % of revenue
Gross profit, as reported	$	265			19.8	%	$	143			22.6	%		$	243			18.6	%		$	701			18.3	%	$	410			22.0	%
Amortization of intangibles		7						2							7							20						6
Increase in LIFO reserve		11						2							19							46						18
Inventory-related transaction charges		—						—							3							44						—
Adjusted Gross Profit	$	283			21.2	%	$	147			23.2	%		$	272			20.8	%		$	811			21.2	%	$	434			23.3	%

NET INCOME (LOSS) ATTRIBUTABLE TO DNOW INC. STOCKHOLDERS TO ADJUSTED EBITDA RECONCILIATION (UNAUDITED) (In millions)
	Three months ended																				Nine months ended
	September 30,													June 30,							September 30,
	2026			As a % of revenue			2025(1)			As a % of revenue				2026			As a % of revenue				2026			As a % of revenue			2025(1)			As a % of revenue
Net income (loss) Attributable to DNOW Inc.	$	26			1.9	%	$	23			3.6	%		$	(21	)		(1.6	)%		$	(39	)		(1.0	)%	$	58			3.1	%
Net (loss) income Attributable to noncontrolling interests		—						—							—							—						1
Interest expense (income), net		7						—							9							24						(2	)
Income tax (benefit) provision		(3	)					7							12							(7	)					17
Depreciation and amortization		24						11							23							70						32
Stock-based compensation(2)		6						4							4							14						11
Increase in LIFO reserve		11						2							19							46						18
Transaction-related adjustments, net(3)		3						4							6							14						11
Inventory-related transaction charges(4)		—						—							3							44						—
Impairment and other charges(5)		—						—							4							4						—
Restructuring and exit costs(3)		—						—							—							—						2
Other(6)		2						—							1							5						—
Adjusted EBITDA	$	76			5.7	%	$	51			8.0	%		$	60			4.6	%		$	175			4.6	%	$	148			8.0	%

⁽¹⁾ During the fourth quarter of 2025, the Company changed its inventory valuation method for U.S. inventories from the moving average cost method to the LIFO method. The effects of the change in accounting principle have been retrospectively applied to all periods presented. The three and nine months ended September 30, 2025 includes a change in accounting principle adjustment decreasing the previously reported net income attributable to DNOW Inc. by $2 million and $14 million, respectively.

⁽²⁾ For the three months ended September 30, 2026 and 2025 and June 30, 2026, stock-based compensation excludes less than $1 million, less than $1 million and $1 million, respectively, as such amounts were reported in transaction-related adjustments, net. For the nine months ended September 30, 2026 and 2025, stock-based compensation excludes $2 million and $1 million, respectively, as such amounts were reported in transaction-related adjustments, net.

⁽³⁾ Transaction-related adjustments, net and restructuring and exit costs are included in selling, general and administrative expenses.

⁽⁴⁾ Inventory-related transaction charges are included in cost of products. For the three months ended September 30, 2026 and June 30, 2026 and for the nine months ended September 30, 2026, inventory-related transaction charges includes less than $1 million, $3 million and $44 million, respectively, of charges related to inventory step-up and inventory write-downs.

⁽⁵⁾ For the three and nine months ended September 30, 2026, impairment and other charges includes nil and $4 million of impairment charges related to Company’s decision to permanently vacate the leased corporate office in Houston, Texas during the second quarter of 2026, and recognized an impairment of the related operating right-of-use asset.

⁽⁶⁾ For the three months ended September 30, 2026 and June 30, 2026 and for the nine months ended September 30, 2026, other includes $2 million, $1 million and $5 million, respectively, related to foreign currency losses. Foreign currency losses are included in other expense, net.

NET INCOME (LOSS) ATTRIBUTABLE TO DNOW INC. STOCKHOLDERS TO ADJUSTED NET INCOME ATTRIBUTABLE TO DNOW INC. STOCKHOLDERS RECONCILIATION (UNAUDITED) (In millions)
	Three months ended												Nine months ended
	September 30,								June 30,				September 30,
	2026				2025(1)				2026				2026				2025(1)
Net income (loss) attributable to DNOW Inc.	$	26			$	23			$	(21	)		$	(39	)		$	58
Increase in LIFO reserve		11				2				19				46				18
Transaction-related adjustments, net		3				4				6				14				11
Inventory-related transaction charges		—				—				3				44				—
Impairment and other charges		—				—				4				4				—
Restructuring and exit costs		—				—				—				—				2
Tax (benefit) provision(2)		(6	)			(1	)			10				(11	)			(8	)
Adjusted Net Income Attributable to DNOW Inc.	$	34			$	28			$	21			$	58			$	81

⁽¹⁾ The three and nine months ended September 30, 2025 includes a change in accounting principle adjustment decreasing the previously reported net income attributable to DNOW Inc. by $2 million and $14 million, respectively.

⁽²⁾ The tax effect of non-GAAP reconciling items is based on the nature of the item and/or the tax jurisdiction in which the reconciling item has been incurred and is calculated by applying the specific tax rate or tax treatment to each item.

DILUTED EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO DNOW INC. STOCKHOLDERS TO ADJUSTED DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO DNOW INC. STOCKHOLDERS RECONCILIATION (UNAUDITED)
	Three months ended												Nine months ended
	September 30,								June 30,				September 30,
	2026				2025(1)				2026				2026				2025(1)
Diluted earnings (loss) per share attributable to DNOW Inc. stockholders	$	0.14			$	0.21			$	(0.11	)		$	(0.21	)		$	0.54
Increase in LIFO reserve		0.06				0.02				0.10				0.25				0.17
Transaction-related adjustments, net		0.02				0.04				0.03				0.07				0.10
Inventory-related transaction charges		—				—				0.02				0.24				—
Impairment and other charges		—				—				0.02				0.02				—
Restructuring and exit costs		—				0.01				—				—				0.02
Tax (benefit) provision(2)		(0.04	)			(0.02	)			0.06				(0.06	)			(0.08	)
Adjusted Diluted Earnings Per Share Attributable to DNOW Inc. Stockholders	$	0.18			$	0.26			$	0.12			$	0.31			$	0.75

⁽¹⁾ The three and nine months ended September 30, 2025 includes a change in accounting principle adjustment decreasing the previously reported diluted earnings per share attributable to DNOW Inc. stockholders by $0.02 and $0.12, respectively.

⁽²⁾ The tax effect of non-GAAP reconciling items is based on the nature of the item and/or the tax jurisdiction in which the reconciling item has been incurred and is calculated by applying the specific tax rate or tax treatment to each item.

LONG-TERM DEBT TO NET DEBT AND NET DEBT LEVERAGE RATIO CALCULATION (UNAUDITED) (In millions)
		September 30,
		2026
Long-term debt		$	377
Plus: current portion of debt obligations			—
Total debt			377
Less: cash			112
Net Debt		$	265
Net Debt		$	265
Trailing twelve months Adjusted EBITDA			236
Net Debt Leverage Ratio		1.1x

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED) (In millions)
		Three months ended																				Nine months ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,
		2026				2026				2026				2025				2025				2026				2025
Net cash provided by (used in) operating activities		$	120			$	133			$	(95	)		$	83			$	43			$	158			$	72
Less: purchases of property, plant and equipment			(14	)			(9	)			(8	)			(7	)			(4	)			(31	)			(14	)
Free Cash Flow		$	106			$	124			$	(103	)		$	76			$	39			$	127			$	58

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were DNOW's third-quarter 2026 revenue and earnings?

DNOW reported $1,337 million in revenue and net income attributable to DNOW of $26 million, or $0.14 per diluted share. A year earlier, revenue was $634 million and net income attributable to DNOW was $23 million, or $0.21 per diluted share.

How much stock did DNOW repurchase in the third quarter of 2026?

DNOW repurchased $17 million of common stock during the third quarter and $92 million year-to-date through September under its $160 million share repurchase program.

How did DNOW's inventory accounting change affect its earnings comparisons?

DNOW retrospectively applied its change in U.S. inventory valuation to all periods presented. During the fourth quarter of 2025, it switched from the moving average cost method to the last-in, first-out method, known as LIFO.