Why This Matters to Distributors: DNOW’s sales increased from the second quarter across all three geographic businesses, supported by gas utility, industrial and energy infrastructure customers. Its acquisition of MRC Global substantially expanded the company, making comparisons with the preceding quarter a useful measure alongside year-over-year results.
DNOW Inc. returned to profitability in the third quarter as sales strengthened across its U.S., Canadian and international businesses and gas utility revenue reached its highest quarterly level in three years.
The Houston-based energy and industrial products distributor that sales increased 2.3% from the second quarter to $1.34 billion. Net income attributable to DNOW totaled $26 million, reversing a $21 million loss in the preceding quarter.
Compared with a year earlier, sales increased 110.9% from $634 million, while net income rose 13% from $23 million. The sales comparison reflects a substantially larger company following DNOW’s acquisition of MRC Global, completed Nov. 6, 2025, after the year-earlier reporting period. The increase therefore does not represent growth from the same set of businesses.
“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,” CEO David Cherechinsky said.
DNOW supplies pipe, valves, fittings, gas products, pumps and fabricated equipment. Its customers include oil and gas producers, utilities, pipeline operators, refiners and industrial businesses.
For the first nine months of 2026, sales increased 105.6% to $3.83 billion from $1.86 billion a year earlier. The company reported a net loss attributable to DNOW of $39 million, compared with net income of $58 million.
The nine-month results included $44 million in acquisition-related inventory charges, $14 million in transaction-related costs and a $4 million charge associated with permanently vacating a leased corporate office in Houston. Operating expenses also increased as the company expanded.
DNOW revised its 2025 earnings figures to reflect a change in how it calculates inventory costs. The year-over-year comparisons use those revised figures.
U.S. third-quarter sales totaled $1.13 billion, compared with $527 million a year earlier and $1.11 billion in the second quarter. Canadian sales reached $56 million, up from $53 million a year earlier and $47 million in the preceding quarter.
International sales totaled $156 million, compared with $54 million a year earlier and $151 million in the second quarter. The release did not separate acquisition contributions from other sources of year-over-year sales growth.
Inventory declined to $988 million at Sept. 30 from $1.19 billion at the end of 2025. Long-term debt fell to $377 million from $474 million at the end of the second quarter, while cash totaled $112 million.
Cherechinsky said employees’ work with customers and suppliers remains central to the company’s efforts to win business.
Management expressed confidence in improving customer markets but did not provide a numerical sales or earnings forecast in the release. DNOW employs approximately 5,050 people across its distribution and engineering network.
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