DNOW Reports Third Quarter 2026 Results

(NYSE:DNOW) DNOW Inc. reported financial results for the third quarter ended September 30, 2026. The company repurchased $17 million of common stock in the third quarter of 2026 and $92 million year-to-date under its $160 million share repurchase program. Revenue for the third quarter was $1,337 million. Gross profit was $265 million, representing 19.8% of revenue, while 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 for the quarter was $76 million, or 5.7% of revenue. Cash flow from operating activities was $120 million. As of September 30, 2026, cash and cash equivalents totaled $112 million, and total long-term debt was $377 million, resulting in net debt of $265 million and a net debt leverage ratio of 1.1 times. Sales increased sequentially in all three geographic segments, with notable growth in downstream, industrial, and midstream businesses, and the gas utilities business achieved its highest quarterly revenue in three years. Year-to-date share repurchases of $92 million exceeded the combined amount returned through share repurchases over the prior eleven quarters by 24 percent. The company had 180,320,779 shares issued and outstanding at September 30, 2026. U.S. segment revenue for the quarter was $1,125 million, Canada segment revenue was $56 million, and International segment revenue was $156 million. Accounts payable at quarter-end was $708 million, and inventories, net, were $988 million. Property, plant and equipment, net, was $253 million. Total assets as of September 30, 2026, were $3,719 million, and total liabilities were $1,598 million. Stockholders' equity was $2,121 million. For the three months ended September 30, 2026, selling, general and administrative expenses were $232 million. Depreciation and amortization for the quarter was $24 million. The company recognized $11 million increase in LIFO reserve and $7 million amortization of intangibles in the quarter. There were no impairment and other charges in the third quarter, but $4 million was recognized year-to-date related to vacating the leased corporate office in Houston, Texas. Foreign currency losses included in other expense, net, were $2 million for the quarter. The company defines and reconciles several non-GAAP financial measures, including adjusted gross profit, adjusted EBITDA, adjusted net income, net debt, net debt leverage ratio, and free cash flow. A presentation titled “DNOW Third Quarter 2026 Earnings Presentation” was made available on the company’s Investor Relations website prior to the earnings conference call.