Short answer
DNOW Inc. (DNOW) filed its fiscal 2025 10-K annual report with the SEC on Feb 26, 2026. It reported revenue of $2.8B (+18.8% year over year) and net income of −$89M.
- Top risk flagged: Legal risk: Exposure to asbestos-related lawsuits with potential material adverse effects on DNOW's financials
FY2025 key financial metrics · XBRL
- Revenue
- $2.8B
- +18.8% YoY
- Net income
- −$89M
- −209.9% YoY
- Operating margin
- -3.3%
- −8.1 pp YoY
- Gross margin
- 17.0%
- −5.4 pp YoY
- EPS (diluted)
- −$0.76
- −202.7% YoY
- ROE
- -4.0%
- −11.2 pp YoY
- Operating cash flow
- $155M
- −48.0% YoY
Source: XBRL data from the DNOW Inc. (DNOW) FY2025 10-K on SEC EDGAR. USD.
DNOW Inc. FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Distributor of energy sector products and services across Upstream, Midstream, Gas Utilities, and Downstream/Industrial markets
- New acquisition emphasized: November 2025 acquisition of MRC Global expanding international footprint and product offerings, especially in Midstream and Gas Utilities
- Strategic shift: Focus on energy transition investments and expanding into non-oil and gas markets like mining and data centers, partnering for new energy solutions
- Quantitative highlight: Revenue up 18.8% to $2.82B driven by acquisitions; Midstream sector revenue grew 31%, Downstream/Industrial up 41%; adjusted gross profit increased by $102M
- Noteworthy fact: Despite revenue gains, 2025 operating loss of $93M vs prior year $109M profit due to inventory transaction charges, LIFO inventory effects, and acquisition costs
Management Discussion & Analysis
- Revenue not explicitly stated; key drivers include oil/gas demand, commodity prices, energy infrastructure modernization, and economic conditions
- No cash flow, buybacks, dividends or capex amounts mentioned
- Forward outlook highlights risks from commodity price fluctuations, supply chain disruptions, and transition to alternative energy sources
Risk Factors
- Legal risk: Exposure to asbestos-related lawsuits with potential material adverse effects on DNOW's financials
- Macroeconomic threat: U.S. rig count fell from 589 to 546 rigs in 2025, impacting capital expenditures and product demand
- Supply chain vulnerability: No long-term contracts with most suppliers risks inventory shortages and cost increases
- Competitive risk: Risk from manufacturers selling directly to customers, bypassing DNOW’s distribution channel
- Financial risk: Dependence on acquiring additional capital with no assurance of availability on acceptable terms
Generated from the filing text; verify against the original. How to read a 10-K
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