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Jun 30, 2025
NOW Q2 2025 Earnings Report
DNOW reported its second quarter 2025 financial results, including revenue of $628 million and net income of $25 million, alongside the announcement of a definitive merger agreement with MRC Global Inc.
Key Takeaways
DNOW delivered a strong second quarter in 2025, achieving $628 million in revenue, a 5% sequential increase, and its best second-quarter EBITDA results in public-company history at $51 million. The company also announced a significant merger agreement with MRC Global, valued at approximately $1.5 billion, aiming to create a premier energy industrial solutions provider.
Revenue for the second quarter of 2025 reached $628 million, marking a 5% sequential increase and hitting the top end of the company's guided range.
Net income attributable to DNOW Inc. was $25 million, with diluted earnings per share at $0.23, while non-GAAP net income was $29 million, or $0.27 per diluted share.
EBITDA excluding other costs was $51 million, representing 8.1% of revenue, the best second-quarter EBITDA in the company's public history.
DNOW announced a definitive merger agreement to acquire MRC Global Inc. for approximately $1.5 billion, expected to close in the fourth quarter of 2025, aiming to enhance opportunities in various industrial sectors.
Revenue by Geographic Location
Forward Guidance
DNOW is reaffirming its full-year 2025 revenue, EBITDA, and free cash flow guidance, targeting $150 million in free cash flow, based on solid first-half performance and strategic advancements including the planned merger with MRC Global.
Positive Outlook
- Reaffirming full-year 2025 revenue guidance.
- Reaffirming full-year 2025 EBITDA guidance.
- Reaffirming 2025 free cash flow guidance targeted at $150 million.
- Strategic advancement through the definitive merger agreement with MRC Global.
- Enhanced opportunities in artificial intelligence infrastructure, alternative energy, electrification, LNG, mining, and other attractive industrial sectors post-merger.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the report.
- The merger with MRC Global is subject to shareholder and regulatory approvals, which could delay or prevent the transaction.
- Integration risks associated with the merger could impact future performance.
Historical Earnings Impact
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