DNOW Inc. (DNOW) FY2025 10-K Annual Report
DNOW Inc. (DNOW) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 26, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
DNOW Inc. FY2025 10-K Analysis
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 specific profitability or margin % figures reported in the excerpt provided
- • Segment performance details not disclosed in provided text
- • 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
DNOW Inc. FY2025 Key Financial MetricsXBRL
Revenue
$2.8B
▲ +18.8% YoY
Net Income
-$89M
▼ -209.9% YoY
Gross Margin
17.0%
▼ -543bp YoY
Operating Margin
-3.3%
▼ -806bp YoY
Net Margin
-3.2%
▼ -657bp YoY
ROE
-4.0%
▼ -1119bp YoY
Total Assets
$3.9B
▲ +142.1% YoY
EPS (Diluted)
$-0.76
▼ -202.7% YoY
Operating Cash Flow
$155M
▼ -48.0% YoY
Source: XBRL data from DNOW Inc. FY2025 10-K filing on SEC EDGAR. All figures in USD.
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