Core Viewpoint - Dnow Inc. (NYSE: DNOW) has announced a $1.5 billion all-stock acquisition of MRC Global Inc. (NYSE: MRC), which could significantly impact the energy supply chain sector, leading to increased investor interest and an 11% rise in DNOW's stock year-to-date, outperforming the S&P 500's 5% increase [2][3]. Acquisition Details - MRC shareholders will receive 0.9489 shares of DNOW for each MRC share, representing an 8.5% premium to MRC's 30-day volume-weighted average price of $12.77 as of June 25 [3]. - The total enterprise value of the transaction is approximately $3.0 billion, with DNOW shareholders owning about 56.5% of the new entity post-merger [3]. Financial Performance - DNOW's revenues have shown growth, with a 4.7% increase from $2.3 billion to $2.4 billion over the last 12 months, compared to a 5.5% growth for the S&P 500 [9]. - The company has a price-to-sales (P/S) ratio of 0.7, significantly lower than the S&P 500's 3.1, indicating a potentially undervalued stock [8]. Profitability Metrics - DNOW's operating income over the last four quarters was $121 million, resulting in an operating margin of 5.0%, which is below the S&P 500's average of 14.9% [10]. - The net income margin for DNOW stands at 3.4%, compared to 11.6% for the S&P 500, highlighting weaker profitability [10]. Financial Stability - DNOW's debt was reported at $41 million, leading to a low debt-to-equity ratio of 2.6%, which is favorable compared to the S&P 500's 19.4% [11]. - The company holds $219 million in cash, contributing to a strong cash-to-assets ratio of 13.3% [11]. Market Conditions - Despite the positive developments, macroeconomic challenges persist, including a 5% decline in WTI crude prices year-to-date and potential trade tensions that could impact industrial and energy demand [4].

NEW YORK, July 01, 2025 (GLOBE NEWSWIRE) -- Class Action Attorney Juan Monteverde with Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report. The firm is headquartered at the Empire State Building in New York City and is investigating DNOW Inc. (NYSE: DNOW) related to its merger with MRC Global Inc. Upon completion of the proposed transaction, current DNOW shareh ...

Transaction Overview - DNOW 将以全股票合并交易方式收购 MRC[28] - MRC 股东每股 MRC 股份将获得 0.9489 股 DNOW 股份[28] - 合并后的企业价值约为 30 亿美元，包括 MRC 的净债务[28] Financial Synergies and Accretion - 预计在交易完成后三年内实现 7000 万美元的年度成本协同效应[28] - 预计交易完成后第一年调整后的每股收益将实现两位数的增长[28] - 预计交易完成后的 Pro Forma 净杠杆率低于 0.5 倍，并在交易完成后的第一年实现净现金头寸[28] Combined Company Profile - 合并后的公司预计年收入约为 53 亿美元[37, 58, 71] - 调整后的 EBITDA 约为 4.3 亿美元[37] - 调整后的 EBITDA 利润率约为 8.0%[37] - 运营产生的现金流约为 5 亿美元[37] Geographic Reach - DNOW 在美国拥有 165 个分支机构，MRC 在美国拥有 197 个分支机构[32] - 合并后的公司在超过 20 个国家/地区拥有业务[53] - 合并后的公司收入的 82% 来自美国，14% 来自加拿大，4% 来自国际市场[51] Cost Synergies Breakdown - 预计 2026 年实现 1700 万美元的税前运行率协同效应[81] - 预计 2027 年实现 4200 万美元的税前运行率协同效应[81] - 预计 2028 年实现 7000 万美元的税前运行率协同效应[81]

Creating a Premier Energy and Industrial Solutions Provider June 26th, 2025 Disclaimers Forward-Looking Statements This presentation includes "forward-looking statements" as defined under the federal securities laws. All statements other than statements of historical fact included or incorporated by reference in this presentation, including, among other things, statements regarding the proposed business combination transaction between DNOW Inc. ("DNOW") and MRC Global Inc. ("MRC"), future events, plans and ...

Summary of DNOW and MRC Global Merger Conference Call Industry and Companies Involved - **Industry**: Energy and Industrial Solutions - **Companies**: DNOW (DistributionNOW) and MRC Global Core Points and Arguments 1. **Merger Announcement**: DNOW and MRC Global announced a transformational merger aimed at creating a premier energy and industrial solutions provider, enhancing long-term sustainable growth and shareholder value [4][5][6] 2. **Transaction Structure**: The merger is an all-stock transaction with an enterprise value of approximately $3 billion. MRC Global shareholders will receive 0.9489 shares of DNOW common stock for each share of MRC Global common stock [7][8] 3. **Ownership Post-Merger**: Upon closing, DNOW and MRC Global shareholders will own approximately 56.5% and 43.5% of the combined company, respectively [7] 4. **Expected Synergies**: The merger is projected to generate annual run rate pretax synergies of $70 million within three years, primarily from operational efficiencies and cost reductions [7][23] 5. **Financial Strength**: The combined company is expected to have revenues of approximately $5.3 billion and a strong balance sheet, with a net cash position anticipated by the end of the first year post-close [13][25] 6. **Geographic and Product Expansion**: The merger will enhance geographic reach and product offerings, allowing the combined entity to serve customers across more than 350 service and distribution locations globally [14][15] 7. **Customer-Centric Approach**: Both companies emphasize a customer-first mindset, aiming to leverage their combined strengths to better serve existing customers and attract new ones [29][30] 8. **Focus on Growth**: The primary focus post-merger will be on organic growth through cross-selling opportunities, with no specific revenue synergy targets established yet [47][48] Additional Important Content 1. **Regulatory Approval**: The companies do not anticipate significant regulatory issues, believing the merger will enhance customer choice and service capabilities [49] 2. **Integration Strategy**: The integration will focus on consolidating duplicate systems and optimizing the distribution network, although immediate priorities will be on revenue growth and talent retention [51][60] 3. **Capital Allocation**: Post-merger capital deployment will prioritize organic growth, followed by inorganic growth through M&A, and maintaining a share repurchase program [58] 4. **Cultural Alignment**: Both companies share a commitment to innovation and operational excellence, which will be foundational in the integration process [29][30] This summary encapsulates the key points discussed during the conference call regarding the merger between DNOW and MRC Global, highlighting the strategic rationale, expected benefits, and future focus areas for the combined entity.

Part I [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents DNOW Inc.'s unaudited consolidated financial statements for Q1 2025 and 2024, accompanied by detailed notes on accounting policies and financial items [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $1,651 million as of March 31, 2025, from $1,621 million at December 31, 2024, primarily driven by increases in receivables and inventories Consolidated Balance Sheets (in millions) | | March 31, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,067 | $1,028 | | **Total assets** | **$1,651** | **$1,621** | | **Total current liabilities** | $460 | $442 | | **Total liabilities** | $507 | $493 | | **Total stockholders' equity** | $1,144 | $1,128 | | **Total liabilities and stockholders' equity** | **$1,651** | **$1,621** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For the first quarter of 2025, revenue increased to $599 million from $563 million year-over-year, with net income attributable to DNOW Inc. at $22 million and diluted EPS at $0.20 Consolidated Statements of Operations (Unaudited, in millions, except per share data) | | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Revenue** | **$599** | **$563** | | Operating profit | $30 | $28 | | Net income attributable to DNOW Inc. | $22 | $21 | | **Diluted EPS** | **$0.20** | **$0.19** | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $16 million in Q1 2025, a significant shift from $81 million provided by operations in Q1 2024, mainly due to increased working capital Consolidated Statements of Cash Flows (Unaudited, in millions) | | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(16) | $81 | | Net cash provided by (used in) investing activities | $(5) | $(188) | | Net cash provided by (used in) financing activities | $(17) | $(4) | | **Net change in cash and cash equivalents** | **$(37)** | **$(111)** | | Cash and cash equivalents, end of period | $219 | $188 | [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) These notes detail DNOW's operations, accounting policies, and significant financial events, including a new share repurchase program, credit facility, and a post-quarter acquisition - DNOW operates as a distributor of energy and industrial products through **165 locations** in the U.S., Canada, and internationally, serving upstream, midstream, and downstream energy sectors as well as other industrial markets[20](index=20&type=chunk)[21](index=21&type=chunk) - The company has a **$500 million** global revolving credit facility maturing in December 2026, with no borrowings and approximately **$434 million** in availability as of March 31, 2025[38](index=38&type=chunk)[40](index=40&type=chunk) - In January 2025, the Board authorized a new share repurchase program for up to **$160 million** of common stock, with **443,806 shares** repurchased for approximately **$8 million** in Q1 2025[42](index=42&type=chunk)[43](index=43&type=chunk) - Subsequent to the quarter's end, the company completed a non-material acquisition in Singapore to expand its electrical supply capabilities in the Asia Pacific region[58](index=58&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses DNOW's Q1 2025 financial performance, highlighting revenue growth, segment contributions, and a strong liquidity position, while addressing market volatility and future growth opportunities Q1 2025 vs Q1 2024 Key Financials (in millions) | Metric | Q1 2025 | Q1 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $599 | $563 | +$36 | +6.4% | | Operating Profit | $30 | $28 | +$2 | +7.1% | | Net Income (DNOW Inc.) | $22 | $21 | +$1 | +4.8% | - The company's outlook is linked to volatile oil and gas prices and geopolitical uncertainty, but DNOW aims to capitalize on energy transition investments and expand into non-oil and gas markets[89](index=89&type=chunk)[90](index=90&type=chunk) Non-GAAP EBITDA Reconciliation (in millions) | | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP net income attributable to DNOW Inc. | $22 | $21 | | **EBITDA excluding other costs** | **$46** | **$39** | | *as a % of revenue* | *7.7%* | *6.9%* | [Operating Environment Overview](index=24&type=section&id=Operating%20Environment%20Overview) The operating environment in Q1 2025 showed mixed signals compared to Q1 2024, with a decrease in worldwide active drilling rigs but a surge in natural gas prices Key Industry Indicators Change (Q1 2025 vs. Q1 2024) | Indicator | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Worldwide Active Drilling Rigs | 1,707 | 1,797 | (5.0%) | | WTI Crude Prices ($/barrel) | $71.84 | $77.56 | (7.4%) | | Natural Gas Prices ($/MMBtu) | $4.15 | $2.13 | 94.8% | | Hot-Rolled Coil Prices ($/short ton) | $753.21 | $961.95 | (21.7%) | [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Total revenue for Q1 2025 increased by 6.4% to $599 million, driven by a 9.0% rise in the U.S. segment due to acquisitions, partially offset by a decline in Canada Revenue by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | United States | $474 | $435 | +9.0% | | Canada | $62 | $66 | (6.1%) | | International | $63 | $62 | +1.6% | | **Total** | **$599** | **$563** | **+6.4%** | Operating Profit by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | United States | $22 | $23 | | Canada | $4 | $3 | | International | $4 | $2 | | **Total** | **$30** | **$28** | - The increase in Warehousing, selling and administrative expenses to **$109 million** from **$101 million** was primarily driven by expenses related to acquisitions completed in 2024[99](index=99&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended Q1 2025 with a strong liquidity position, holding $219 million in cash and no debt, with full availability on its $500 million credit facility - As of March 31, 2025, the company had **$219 million** in cash and cash equivalents, with **$112 million** held by foreign subsidiaries[108](index=108&type=chunk) - The company has a **$500 million** revolving credit facility maturing in Dec 2026, with no borrowings and **$434 million** in availability as of March 31, 2025[109](index=109&type=chunk) - Net cash used in operating activities was **$16 million**, primarily due to a **$32 million** investment in inventory and a **$52 million** increase in accounts receivable[112](index=112&type=chunk) - Under the new **$160 million** share repurchase program, the company repurchased **$8 million** worth of shares in Q1 2025, with **$152 million** remaining authorized[117](index=117&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) DNOW's primary market risks stem from foreign currency fluctuations and commodity steel prices, with a significant portion of sales exposed to currency changes, particularly the Canadian dollar - The company's primary market risks are foreign currency fluctuations and changes in commodity steel prices[119](index=119&type=chunk)[127](index=127&type=chunk) - Approximately **one-fifth** of net sales for Q1 2025 were outside the U.S., with the most significant foreign currency exposure to the Canadian dollar, followed by the British pound[121](index=121&type=chunk) - A sensitivity analysis showed that a hypothetical **10%** adverse change in foreign currency rates would have resulted in an approximate **$1 million** change in net income for Q1 2025[126](index=126&type=chunk) [Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[128](index=128&type=chunk) - No changes occurred during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[129](index=129&type=chunk) Part II [Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details DNOW's Q1 2025 share repurchase activities, including the authorization of a new $160 million program and the shares repurchased during the period Share Repurchases for Q1 2025 | Period | Total Shares Purchased | Average Price Paid | Shares Purchased as Part of Program | Value Remaining in Program (millions) | | :--- | :--- | :--- | :--- | :--- | | Jan 2025 | — | $— | — | $160 | | Feb 2025 | 393,483 | $17.41 | — | $160 | | Mar 2025 | 443,806 | $17.14 | 443,806 | $152 | - On January 24, 2025, the Board of Directors authorized a new share repurchase program for up to **$160 million** of its outstanding common stock[131](index=131&type=chunk) [Other Information](index=26&type=section&id=Item%205.%20Other%20Information) The company reports that during the first quarter of 2025, no director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement - No director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the three months ended March 31, 2025[131](index=131&type=chunk) [Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section provides a list of all exhibits filed with the Form 10-Q, including corporate governance documents, incentive plans, credit agreements, and officer certifications - This section lists the exhibits filed with the report, including the Amended and Restated Certificate of Incorporation, various incentive plan documents, credit agreements, and required officer certifications[132](index=132&type=chunk)

Financial Data and Key Metrics Changes - The first quarter of 2025 saw EBITDA of $46 million, up 2% sequentially and 18% year over year, marking the second-best first quarter EBITDA results in the company's history [9][10] - Revenue for Q1 2025 was $599 million, an increase of 4.9% from Q4 2024 and 6.4% year over year [10][26] - Gross margins remained resilient at 23.2%, better than expected [11][28] - Net income attributable to DNOW Inc. for Q1 was $22 million or $0.20 per fully diluted share [30] Business Line Data and Key Metrics Changes - U.S. revenue totaled $474 million, up $23 million or 5% sequentially, with U.S. energy centers contributing approximately 69% of total U.S. revenue [26][27] - U.S. Process Solutions achieved a new quarterly revenue record, contributing approximately 31% to total U.S. revenue [27] - Canadian revenue was $62 million, down $4 million sequentially, while international revenue was $63 million, up $9 million or 17% sequentially [22][27] Market Data and Key Metrics Changes - In the U.S., revenue growth was driven by increased midstream demand, particularly from the Witco business [18] - Internationally, revenue growth was attributed to increased project activity, with a notable $15 million project not expected to repeat in Q2 [23][27] - The company reported that approximately 70% of products sold in U.S. operations are sourced domestically, reducing dependence on international sources [13] Company Strategy and Development Direction - The company is focused on diversifying its market mix and investing in core markets while capturing additional revenues from energy evolution opportunities [11] - A small international acquisition was completed in April to enhance the McLean International brand, expanding its market presence in Singapore and the Asia Pacific region [12] - The company aims to balance growth with capital returns, having repurchased $16 million in shares year-to-date under a new $160 million share repurchase program [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of tariffs and macroeconomic uncertainties but noted that customer spending has not significantly declined [35][36] - For Q2, the company expects flat to mid-single-digit percentage growth in revenues, driven by increased midstream activity [37] - Full-year guidance for 2025 remains flat to up in the high single-digit percentage range from 2024 levels, with EBITDA potentially approaching 8% of revenue [38] Other Important Information - The company has zero debt and a cash position of $219 million, with total liquidity of $567 million [30][31] - The effective tax rate for 2025 is estimated to be approximately 26% to 29%, with no material U.S. Federal cash income taxes expected due to available NOL carryforwards [29] Q&A Session Summary Question: How is inflation tracking in the business? - Management noted that inventory costs are currently low, but normal inflationary pressures are resuming, with some products seeing price increases of 3% to 35% due to tariffs [43][44][46] Question: Are smaller competitors staying rational in the market? - Management indicated that competitors are being careful with inventory, but there is still intense bidding on projects, maintaining a competitive environment [47][48] Question: What are the opportunities for market share gains? - The company has significant global buying power, allowing it to leverage volume for better product availability and cost advantages against smaller competitors [50][51] Question: What is the outlook for geographic growth? - Management expects flat growth internationally, with stronger performance anticipated in the U.S. driven by midstream activity and the Trojan acquisition [66][67] Question: How does the company plan to navigate potential drilling and completion activity curtailments? - The focus is on growing with E&C customers and expanding the energy transition business, which is expected to offset upstream declines [80] Question: What is the current state of the M&A landscape? - Management reported active conversations regarding potential acquisitions, with some caution expected due to oil price volatility [101][102]

Financial Data and Key Metrics Changes - The first quarter of 2025 saw EBITDA of $46 million, up 2% sequentially and 18% year over year, marking the second-best first quarter EBITDA results in the company's history [8][10] - Total revenue for the first quarter was $599 million, an increase of 4.9% from the previous quarter and 6.4% year over year [10][26] - Gross margins remained resilient at 23.2%, better than expected [11][29] - Net income attributable to DNOW Inc. for the first quarter was $22 million, or $0.20 per fully diluted share [31] Business Line Data and Key Metrics Changes - U.S. revenue totaled $474 million, up $23 million or 5% sequentially, driven by increased midstream demand [17][27] - U.S. Process Solutions contributed approximately 31% of total U.S. revenue, marking the highest revenue dollar contribution yet for this segment [28] - Canadian revenue was $62 million, down $4 million sequentially, while international revenue was $63 million, up $9 million or 17% sequentially [22][28] Market Data and Key Metrics Changes - In the U.S., revenue growth was driven by a full quarter contribution from the Trojan acquisition and increased midstream demand [17] - Internationally, revenue growth was primarily due to increased project activity, with a notable $15 million project not expected to repeat in the second quarter [23][28] - The company reported that approximately 70% of products sold in U.S. operations are sourced domestically, reducing dependence on international sources [13] Company Strategy and Development Direction - The company is focused on diversifying its market mix and investing in core markets while capturing additional revenues from energy evolution opportunities [11] - A small but strategic acquisition in Singapore was completed to enhance the McLean International brand, allowing for increased revenue synergies [12] - The company aims to balance growth with capital returns, having repurchased $16 million in shares year-to-date under a new $160 million share repurchase program [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the dynamic tariff situation and its potential impact on margins, stating that they are passing supplier cost increases through as quickly as possible [15][37] - The company expects second quarter growth driven by increased midstream activity, despite anticipated declines in Canadian revenue due to seasonal factors [39][68] - Full year guidance for 2025 remains flat to up in the high single-digit percentage range from 2024 levels, with EBITDA potentially approaching 8% of revenue [40] Other Important Information - The company ended the first quarter with zero debt and a cash position of $219 million, providing significant liquidity for future investments [31][32] - The company is actively pursuing opportunities in adjacent markets, including water, wastewater, and data centers, which are expected to contribute to growth [55][58] Q&A Session Summary Question: How is inflation tracking in the business? - Management noted that while normal inflationary pressures are emerging, tariff impacts have not yet significantly affected gross margins [46][47] Question: Are smaller competitors staying rational in the market? - Management indicated that while competitors are cautious about inventory, there is still intense bidding on projects, maintaining a competitive environment [50][51] Question: What are the opportunities for market share gains? - The company highlighted its global buying power as an advantage over smaller competitors, allowing for better product availability and cost management [53] Question: What is the outlook for geographic growth? - Management reaffirmed expectations for U.S. growth, particularly in midstream, while anticipating flat performance in international markets [66][68] Question: How does the company plan to navigate potential declines in drilling and completion activity? - The focus is on growing the energy transition business and leveraging gains in midstream to offset potential upstream declines [80]

Core Insights - DNOW reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, and showing an increase from $0.21 per share a year ago, resulting in an earnings surprise of 15.79% [1] - The company achieved revenues of $599 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.66% and increasing from $563 million year-over-year [2] - DNOW shares have increased approximately 23.2% since the beginning of the year, contrasting with a decline of -4.7% in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.23, with projected revenues of $630.3 million, and for the current fiscal year, the EPS estimate is $0.93 on revenues of $2.48 billion [7] - The estimate revisions trend for DNOW is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Manufacturing - General Industrial industry, to which DNOW belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact DNOW's stock performance [5]

Financial Performance - First quarter revenue reached $599 million, a 5% sequential increase and a 6% year-over-year increase[9] - GAAP Net Income attributable to DNOW Inc was $22 million for the first quarter, with GAAP diluted EPS at $0.20[9] - Non-GAAP Net Income was $24 million for the first quarter, with Non-GAAP diluted EPS at $0.22[9] - EBITDA reached $46 million, representing 7.7% of revenue for the first quarter[9] - Gross margins for 1Q25 were 23.2%[9] Capital Allocation - The company repurchased $8 million in shares during the first quarter and $16 million year-to-date, as part of a newly authorized $160 million share repurchase program[9] - Total liquidity stood at $567 million as of March 31, 2025[29, 32] Market Indicators - DNOW annualized revenue per rig was $1.4 million for 1Q25[11] - U.S completions totaled 2,801 in 1Q25, a 2% sequential decrease[12] Segment Results (Year-over-Year) - United States revenue increased due to acquisitions, offsetting weaker drilling and completion activity[13, 17] - Canada revenue decreased by 6% year-over-year[17] - International revenue increased by 2% year-over-year[17] Outlook - The company expects 2Q25 revenue to increase flat-to-up in the mid-single-digits percentage range sequentially and EBITDA approaching 8% of revenue[49] - Full-year 2025 revenue is expected to be flat-to-up in the high-single-digit percent range from 2024, with EBITDA approaching 8% of revenue and free cash flow targeted at $150 million[49]