NOW(NYSE) DNOW

DNOW Inc. sells parts energy companies need for oil and gas. They help utility companies keep their natural gas pipes working safely. They also provide supplies for factories and chemical plants.

Essential Solutions for Energy Markets

• Upstream Solutions: Pipes, valves, and fittings (PVF) used for oil and gas extraction and water disposal; accounts for 39% of revenue.
• Gas Utility Products: Smart meters and pipeline parts for residential and commercial natural gas networks; accounts for 23% of revenue.
• Midstream Infrastructure: Equipment for large pipelines and storage facilities that move oil and gas; accounts for 20% of revenue.
• Downstream and Industrial: Supplies for refineries, chemical plants, and maintenance, repair, and operating (MRO) items; accounts for 18% of revenue.

Expansion Through Strategic Moves

• Completed the acquisition of MRC Global on Nov. 6, 2025, to significantly increase market share in the utility and midstream sectors.
• Entered the data center market by negotiating service agreements for cooling system components and pipe installation projects.
• Expanded offerings in the energy transition sector to include parts for carbon capture, hydrogen processing, and renewable natural gas (RNG).
• Authorized a $160 million share repurchase program in Jan. 2025 and bought back $75 million in stock through June 30, 2026.

A Broad Network of Support

The company maintains a network of approximately 300 strategic locations to provide parts quickly to energy and industrial customers. It uses specialized technical services like valve automation to help clients maintain aging infrastructure and move toward new energy sources.

Key Performance Figures

• Revenue was $2.49 billion in the six-month period ended June 30, 2026, up 102.9% year over year.
• Net loss was $65 million in the six-month period ended June 30, 2026, compared to a $35 million profit in 2025.
• Market capitalization was $1.7 billion as of the most recent reporting period.
• Borrowings under the revolving credit facility reached $474 million as of June 30, 2026.
• Non-GAAP Adjusted EBITDA was $99 million in the six-month period ended June 30, 2026.

Bottom Line

DNOW has transformed from a traditional oilfield supplier into a broad distributor across the entire energy and industrial value chain. Its integration of large acquisitions and expansion into sectors like data centers has widened its reach beyond traditional oil and gas markets.