NOW(US:DNOW)2025-11-05 11:54Financial Performance - DNOW reported third quarter 2025 revenue of $634 million, an increase from $606 million in the same quarter of 2024, representing a growth of 4.6% year-over-year[9]. - The company achieved an EBITDA of $51 million, which is 8.0% of revenue, maintaining the same percentage as the previous quarter[9][21]. - Net income attributable to DNOW Inc. was $25 million, or $0.23 per diluted share, compared to $13 million, or $0.12 per diluted share in Q3 2024, reflecting a significant increase of 92.3%[9][16]. - GAAP diluted earnings per share attributable to DNOW Inc. stockholders for Q3 2025 was $0.23, up from $0.12 in Q3 2024, representing a 91.67% increase[24]. - For the nine months ended September 30, 2025, GAAP diluted earnings per share increased to $0.66 from $0.53 in the same period of 2024, marking a 24.53% growth[24]. Cash Flow and Liquidity - DNOW ended the quarter with $266 million in cash and zero debt, contributing to total liquidity of approximately $629 million[9][6]. - Cash provided by operating activities for the quarter was $43 million, demonstrating strong operational cash flow[9]. - Free cash flow for Q3 2025 was $39 million, compared to $41 million in Q2 2025, showing a decrease of 4.88%[25]. - Net cash provided by operating activities for Q3 2025 was $43 million, a decrease from $45 million in Q2 2025, reflecting a decline of 4.44%[25]. - The company experienced a free cash flow of $119 million for the nine months ended September 30, 2025, compared to $72 million in the same period of 2024, an increase of 65.28%[25]. Assets and Financial Health - The company reported total assets of $1.66 billion as of September 30, 2025, an increase from $1.62 billion at the end of 2024[14]. - DNOW's accumulated deficit decreased to $675 million from $747 million, indicating improved financial health[14]. Segment Performance - Revenue from the United States segment was $527 million, up from $482 million in the previous quarter, indicating a growth of 9.3%[18]. Acquisitions and Future Outlook - The company is forecasting its best full-year earnings ever as a public company for 2025, marking the fifth consecutive year of growth[7]. - DNOW is in the process of acquiring MRC Global Inc. in an all-stock transaction valued at approximately $1.5 billion, expected to close in Q4 2025[9][5]. Other Costs and Charges - Other costs for Q3 2025 included approximately $4 million in transaction-related charges and less than $1 million in International restructuring charges[26]. - Total Other costs for the nine months ended September 30, 2024, included $8 million in International restructuring charges and $10 million in transaction-related charges[27]. - The company reported a tax benefit of approximately $1 million related to Other for Q3 2025[29]. - Stock-based compensation for Q3 2025 was less than $1 million, indicating minimal impact on earnings[26]. Capital Expenditures - The total purchases of property, plant, and equipment for Q3 2025 were $4 million, consistent with Q2 2025[25].