olivLaw · US equity research
DNOW Inc. DNOW
Oil & Gas Field Machinery & Equipment · SIC 3533 · Vertical: Oil & Gas Field Machinery & Equipment (SIC 3533)
DNOW Inc. is a global distributor of pipe, valves, fittings and pumps serving the upstream, midstream, gas utilities and industrial markets, following the MRC Global acquisition completed in November 2025. In the second quarter of 2026 the company reported revenue of 1,307 million USD and a net debt leverage ratio of 1.7x, signs that integration and cost management are beginning to pay off.
At the close of 04 Nov 2026, DNOW Inc. (DNOW) stock was 15.37 USD (−4.53% on the day), with market capitalisation 2.8 bn USD, beta 0.98, 52-week range 11.12–16.87 USD. Latest reported quarter (Q2 2026): revenue of 1.3 bn USD (+108.1% YoY), net income of -21.0 m USD (−250.0% YoY), diluted EPS -0.11 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 44.8
- weak (30–45)
- Bollinger (20, 2)
- 14.88 – 16.71
- in the lower half of the band · %B 0.27 · band width 11.6%
- SMA 50 / 200
- 15.80 / 14.11
- mixed trend
- MACD (12, 26, 9)
- 0.09 / 0.11
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −3.3% | −1.1% | −2.2 pp | — |
| 3 months | +8.1% | −0.5% | +8.5 pp | — |
| 6 months | +13.9% | +4.4% | +9.5 pp | — |
| Year to date | +16.0% | +12.3% | +3.7 pp | — |
| 1 year | +5.3% | +13.5% | −8.3 pp | +16.2% |
| 3 years | +41.9% | +76.4% | −34.5 pp | +23.8% |
| 5 years | +61.6% | +63.7% | −2.1 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 606.0 m | 571.0 m | 599.0 m | 628.0 m | 634.0 m | 959.0 m | 1.2 bn | 1.3 bn |
| Cost of revenue | 471.0 m | 442.0 m | 461.0 m | 499.0 m | 489.0 m | 909.0 m | 990.0 m | 1.1 bn |
| Gross profit | — | — | 138.0 m | 129.0 m | — | — | 193.0 m | 243.0 m |
| SG&A | — | — | 109.0 m | 112.0 m | — | — | 243.0 m | 238.0 m |
| Operating income | 23.0 m | 25.0 m | 29.0 m | 17.0 m | 33.0 m | -188.0 m | -50.0 m | 1.0 m |
| Depreciation & amortisation | 8.0 m | 10.0 m | 11.0 m | 10.0 m | 11.0 m | 20.0 m | 23.0 m | 23.0 m |
| Pre-tax income | 22.0 m | 26.0 m | 29.0 m | 17.0 m | 32.0 m | -194.0 m | -60.0 m | -9.0 m |
| Income tax | 9.0 m | 6.0 m | 7.0 m | 3.0 m | 7.0 m | -33.0 m | -16.0 m | 12.0 m |
| Net income | 13.0 m | 20.0 m | 21.0 m | 14.0 m | 25.0 m | -161.0 m | -44.0 m | -21.0 m |
| Diluted EPS | 0.12 | 0.19 ≈ | 0.19 | 0.13 | 0.23 | -1.05 ≈ | -0.24 | -0.11 |
| Operating cash flow | 74.0 m ≈ | 122.0 m | -16.0 m | 45.0 m ≈ | 43.0 m ≈ | 83.0 m | -95.0 m | 133.0 m ≈ |
| Capex | 2.0 m ≈ | 3.0 m | 6.0 m | 4.0 m ≈ | 4.0 m ≈ | 7.0 m | 8.0 m | 9.0 m ≈ |
| Share repurchases | 7.0 m ≈ | 5.0 m | 8.0 m | 19.0 m ≈ | 0 ≈ | 10.0 m | 50.0 m | 25.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.1 bn | 3.0 bn | 1.6 bn | 1.6 bn | 2.1 bn | 2.3 bn | 2.4 bn | 2.8 bn |
| Revenue YoY | +18.1% | −5.6% | −45.1% | +0.8% | +30.9% | +8.7% | +2.2% | +18.8% |
| Net income | 52.0 m | -97.0 m | -427.0 m | 5.0 m | 128.0 m | 250.0 m | 78.0 m | -89.0 m |
| Net income YoY | unavailable | −286.5% | unavailable | unavailable | +2,460.0% | +95.3% | −68.8% | −214.1% |
| Diluted EPS | 0.47 | -0.89 | -3.91 | 0.05 | 1.13 | 2.27 | 0.71 | -0.76 |
| Diluted EPS YoY | unavailable | −289.4% | unavailable | unavailable | +2,160.0% | +100.9% | −68.7% | −207.0% |
| net % | 1.7% | -3.3% | -26.4% | 0.3% | 6.0% | 10.8% | 3.3% | -3.2% |
| Free cash flow | 62.0 m | 212.0 m | 181.0 m | 25.0 m | -9.0 m | 171.0 m | 289.0 m | 134.0 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 164.0 m USD
- Financial debt
- 411.0 m USD
- Net debt
- 247.0 m USD
- Equity
- 2.2 bn USD
- Total assets
- 3.9 bn USD
- Debt / equity
- 0.18x
- Current ratio
- 2.34x
- ROE
- -5.3%
- ROA
- -3.2%
- FCF margin
- 4.8%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.6 bn | 1.6 bn | 2.1 bn | 2.3 bn | 2.4 bn | 2.8 bn | SEC (XBRL)· 26 Feb 2026verified |
| Cost of revenue | 1.3 bn | 1.3 bn | 1.6 bn | 1.8 bn | 1.8 bn | 2.3 bn | SEC (XBRL)· 26 Feb 2026verified |
| Gross profit | 292.0 m ≈ | 357.0 m ≈ | 506.0 m ≈ | 539.0 m | 531.0 m | 478.0 m | SEC (XBRL)· 26 Feb 2026verified |
| SG&A | — | — | — | 395.0 m | 416.0 m | 559.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Operating income | -420.0 m | 9.0 m | 131.0 m | 144.0 m | 109.0 m | -93.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Depreciation & amortisation | 28.0 m | 23.0 m | 19.0 m | 26.0 m | 34.0 m | 52.0 m | SEC (XBRL)· 26 Feb 2026verified |
| EBITDA | -392.0 m ≈ | 32.0 m ≈ | 150.0 m ≈ | 170.0 m ≈ | 143.0 m ≈ | -41.0 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Pre-tax income | -430.0 m | 12.0 m | 139.0 m | 142.0 m | 110.0 m | -100.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Income tax | -3.0 m | 7.0 m | 10.0 m | -109.0 m | 31.0 m | -12.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Net income | -427.0 m | 5.0 m | 128.0 m | 250.0 m | 78.0 m | -89.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Diluted EPS | -3.91 | 0.05 | 1.13 | 2.27 | 0.71 | -0.76 | SEC (XBRL)· 26 Feb 2026verified |
| Weighted average diluted shares | 109.4 m | 110.5 m | 111.2 m | 108.4 m | 107.1 m | 117.9 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 387.0 m | 313.0 m | 212.0 m | 299.0 m | 256.0 m | 164.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Inventories | 262.0 m | 250.0 m | 381.0 m | 366.0 m | 352.0 m | 1.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | 861.0 m | 883.0 m | 1.0 bn | 1.1 bn | 1.0 bn | 2.3 bn | SEC (XBRL)· 26 Feb 2026verified |
| Property, plant & equipment, net | 98.0 m | 111.0 m | 119.0 m | 131.0 m | 157.0 m | 264.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Goodwill | 0 | 67.0 m | 116.0 m | 139.0 m | 230.0 m | 617.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Intangibles (excl. goodwill) | 0 | 9.0 m | 25.0 m | 28.0 m | 65.0 m | 565.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | 1.0 bn | 1.1 bn | 1.3 bn | 1.5 bn | 1.6 bn | 3.9 bn | SEC (XBRL)· 26 Feb 2026verified |
| Accounts payable | 172.0 m | 235.0 m | 304.0 m | 288.0 m | 300.0 m | 653.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Long-term debt | — | — | — | — | 0 | 411.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Current liabilities | 272.0 m | 369.0 m | 439.0 m | 418.0 m | 442.0 m | 974.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Total liabilities | 309.0 m | 392.0 m | 476.0 m | 466.0 m | 493.0 m | 1.7 bn | SEC (XBRL)· 26 Feb 2026verified |
| Equity | 699.0 m | 712.0 m | 844.0 m | 1.1 bn | 1.1 bn | 2.2 bn | SEC (XBRL)· 26 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 189.0 m | 30.0 m | 0 | 188.0 m | 298.0 m | 155.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Capex | 8.0 m | 5.0 m | 9.0 m | 17.0 m | 9.0 m | 21.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Free cash flow | 181.0 m ≈ | 25.0 m ≈ | -9.0 m ≈ | 171.0 m ≈ | 289.0 m ≈ | 134.0 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Investing cash flow | 22.0 m | -96.0 m | -87.0 m | -48.0 m | -304.0 m | -590.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Financing cash flow | -8.0 m | -6.0 m | -10.0 m | -55.0 m | -33.0 m | 339.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Share repurchases | 0 | 0 | 7.0 m | 50.0 m | 23.0 m | 37.0 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
- score weight coverage: 43.8% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 2.8 bn USD
Key indicators
Coverage and freshness
Score by group
44% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · the base of the ratio is not positive
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 43.8% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | -7.0% | 17 (vs peers) | 24% |
| Net margin · Quality | -4.9% | 13 (vs peers) | 14% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 9.7% | 81 (on a fixed band) | 19% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.1x | 100 (on a fixed band) | 10% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 4.9% | 61 (on a fixed band) | 19% |
| Shareholder yield (distributions) · Returns | 3.1% | 44 (on a fixed band) | 14% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/3 factors with a value
- Growth· partial81/100 · 1/2 factors with a value
- Quality15/100 · 2/3 factors with a value
- Returns· partial44/100 · 1/2 factors with a value
- Valuation· partial61/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
DNOW INC. (DNOW). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 2.8 bn USD in 2025; YoY growth 18.8%; net margin -4.9%; ROE -12.4%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (score weight coverage: 43.8% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Revenue CAGR 3Y: 9.7%
- Current ratio: 2.1x
What contradicts it
- ROIC: -7.0%
- Net margin: -4.9%
Not assessed (insufficient data or a ratio without meaning): FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, P/E (TTM), EV/EBITDA, Payout ratio (FCF).
Versus the vertical median
Oil & Gas Field Machinery & Equipment (SIC 3533) · same industry (4-digit SIC) · compared with 15 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BKRBaker Hughes Company | 49.5 bn | 17.1 | 15.1% | 10.1% | −0.3% | −1% / +48% |
| FTITechnipFMC plc | 25.1 bn | 20.3 | 38.6% | 12.0% | +9.4% | +43% / +211% |
| NOVNov Inc. | 6.4 bn | 45.2 | 2.3% | 1.6% | −1.4% | +17% / −4% |
| WFRDWeatherford International plc | 6.2 bn | 15.3 | 23.0% | 8.6% | −10.8% | +15% / −5% |
| WHDCactus, Inc. | 4.3 bn | 23.6 | 14.7% | 12.0% | −4.5% | +35% / +37% |
| DNOWDnow Inc. | 2.8 bn | — | -12.4% | -4.9% | +18.8% | +5% / +42% |
| INVXInnovex International, Inc. | 1.8 bn | 37.1 | 4.5% | 4.8% | +48.0% | +16% / +15% |
| FETForum Energy Technologies, Inc. | 845.3 m | 28.8 | 9.8% | 3.5% | −3.1% | +135% / +238% |
| OISOil States International, Inc | 510.2 m | — | -16.8% | -16.5% | −3.4% | +35% / +24% |
| OMSEOMS Energy Technologies Inc. | 167.2 m | 3.3 | 43.5% | 22.0% | unavailable | −16% / unavailable |
| LSELeishen Energy Holding Co., Ltd. | 75.4 m | 55.4 | 2.9% | 2.6% | −30.0% | −14% / unavailable |
| DTIDrilling Tools International Corporation | 52.9 m | — | -2.5% | -2.0% | +3.4% | −38% / −56% |
| STAKSTAK Inc. | 27.5 m | 71.5 | 2.9% | 1.5% | +13.2% | +202% / unavailable |
| GPUSHyperscale Data, Inc. | 247.1 k | — | -159.8% | -71.0% | −4.3% | −89% / −100% |
| SEISolaris Energy Infrastructure, Inc. | — | — | 8.4% | 7.2% | +98.7% | +20% / +573% |
| FLOCFlowco Holdings Inc. | — | 17.7 | 12.5% | 6.4% | +41.9% | +15% / unavailable |
1- and 3-year price returns: for DNOW from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
DNOW Inc. is a global distributor of pipe, valves, fittings and pumps serving the upstream, midstream, gas utilities and industrial markets, following the MRC Global acquisition completed in November 2025. In the second quarter of 2026 the company reported revenue of 1,307 million USD and a net debt leverage ratio of 1.7x, signs that integration and cost management are beginning to pay off. 123
SWOT
Strengths
- A history of more than 160 years and an extensive network of locations and distribution centers that enable fast delivery and broad inventory.
- Solid operating cash generation in the second quarter of 2026 and a visible reduction in net debt indicate financing capacity.
- A diversified product and service portfolio, including digital e-commerce platforms, which strengthens relationships with large customers.
Weaknesses
- Net losses in the second quarter of 2026 and in the first half, and reported gross margins below the prior year's levels.
- Dependence on volatile oil and gas capital spending by customers, and a lack of long-term contracts with most customers.
- Reported difficulties in stabilizing the ERP system inherited from MRC Global, which could affect internal control and reporting.
Opportunities
- Growing midstream infrastructure demand linked to data centers and their power needs.
- Synergies from integrating MRC Global, which could improve margins if fully realized.
- Opportunities from infrastructure investment in Venezuela, if American companies engage over the medium term.
Threats
- Falling oil and gas prices could reduce upstream customer spending and sales volumes.
- Changes in trade policy and import tariffs could affect steel prices and competition from imports.
- Manufacturers could sell directly to customers, reducing the distributor's role and pressuring margins.
Risks
- MRC Global integrationhigh
If integration does not proceed efficiently, the announced synergies could be delayed or not realized, and internal control risks could increase. Management already cites difficulties with the inherited ERP system.
- Dependence on the oil cyclehigh
Demand for DNOW's products is sensitive to oil and gas investment levels. A prolonged period of low prices could significantly reduce volumes.
- Tariff and trade risksmedium
Changes in tariffs and trade policies could affect steel prices, margins and import competition, particularly for line pipe.
- Customer credit riskmedium
Customers without long-term contracts and the risk of non-payment could generate losses, especially during periods of price volatility.
- Cybersecurity riskslow
Cyber incidents or disruptions to information systems could affect operations, financial reporting and customer confidence.
Investment thesis
What would need to be true (bull case)
- If the MRC Global synergies materialize, margins could gradually recover, and revenue could benefit from growth in midstream and gas utilities.
- Strong cash generation in the second quarter and lower net debt could allow the company to continue its share repurchase program and targeted investments.
- If demand for infrastructure linked to data centers expands, DNOW could capture part of the growth in midstream equipment.
What would break the thesis
- Net losses in recent quarters and declining gross margins could signal persistent pressure on profitability, even as revenue grows.
- Dependence on oil spending makes revenue vulnerable to lower hydrocarbon prices, and producers' capital discipline could limit volume growth.
- Difficulties integrating inherited systems could delay the announced benefits and create internal control weaknesses.
What to watch
- Trend in adjusted gross margin and adjusted EBITDA versus the second quarter of 2026Q3 2026
- Stabilization of the ERP system inherited from MRC Global and its effects on internal controlnext 10-K
- Pace of share repurchases and the evolution of net debtQ3 2026
- Revenue from midstream and gas utilities as indicators of infrastructure demand2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
DNOW Inc., headquartered in Houston, Texas, presents itself as a major provider of energy and industrial solutions, with more than 160 years of history in distributing pipe, valves, fittings (PVF), gas products, pumps and fabricated equipment. The company supplies MRO consumables, process and production equipment, pumping systems and supply chain solutions, supported by its DigitalNOW and MRCGO digital platforms. 1
The MRC Global acquisition, closed on November 6, 2025 in an all-stock transaction, expanded the company's customer base and geographic footprint. DNOW is now working to integrate these operations and capture revenue and cost synergies. It operates three geographic segments: U.S., Canada and International. 12
The stated strategy emphasizes growth through targeted acquisitions in higher-margin markets, diversification across resilient end-markets, cash generation and capital returns to shareholders, and supplying midstream infrastructure linked to data-center power demand. 1
Segments
United States
The U.S. segment generated the largest share of revenue in the second quarter of 2026, at 1,109 million USD, and midstream revenues surpassed one billion dollars on an annualized basis for the first time. 3
Canada and International
The Canada segment was relatively stable, while the International segment grew substantially to 151 million USD in the second quarter of 2026, showing a growing contribution from markets outside the U.S. 3
Market context
The energy and industrial distribution market is fragmented, with large global participants and numerous smaller regional and local competitors. DNOW's demand depends on capital and operating spending by oil and gas operators, hydrocarbon prices and the inventory levels of manufacturers and distributors. 1
The gas utilities and existing infrastructure segment offers a steadier base, since maintenance and modernization of networks depend on customers' annual budgets rather than strictly on commodity prices. Projects can still be delayed by regulatory or economic factors. 12
Trends
- Midstream infrastructure investmenttailwind
Data-center power demand and the expansion of midstream infrastructure could support sales of products for gas transmission and processing, a priority management names explicitly. 13
- Oil prices and capital disciplineheadwind
Volatility in oil and gas prices could reduce upstream customer spending, and producers have remained disciplined in capital expenditure, which limits volume growth. The effect depends on how prices evolve. 1
- Developments in Venezuelamixed
U.S. intervention in Venezuela and the resumption of oil exports could push oil prices lower in the short term, while over the medium to long term they could open opportunities for American companies in Venezuelan oil and gas infrastructure. 1
- Steel costs and import tariffsmixed
Most products distributed contain steel, so swings in steel prices and changes in import tariffs can affect margins. If tariffs change, the U.S. market could receive cheaper imported products. 1
Competitive position
PVF and energy equipment distribution is a fragmented industry, where large global distributors and regional and local firms compete. DNOW's advantages rest on the breadth of its inventory, its network of about 300 locations and its supply chain services. 1
The company says it competes through service quality, global reach and digital solutions, but risks include the loss of significant customers, who have no long-term contracts, and possible direct sales by manufacturers to end customers. 1
- Regional and local PVF distributors
Numerous regional and local operators compete on price and proximity to customers, as described in the annual report.
- Large global industrial distributors
Large global participants in industrial distribution compete broadly on scale and supply capacity.
- Manufacturers selling directly to customers
Manufacturers that sell directly to end customers pose a substitution risk for the distribution channel.
- Supply chain solution providers
Firms offering outsourced procurement and inventory management compete for the same large-customer contracts.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Financial statements and exhibits
- Current report20 May 2026Shareholder vote
- Quarterly report07 May 2026
- Current report07 May 2026Results of operations · Financial statements and exhibits
- Proxy statement09 Apr 2026
- Current report27 Feb 2026Departure or appointment of officers
- Annual report26 Feb 2026
- Current report20 Feb 2026Results of operations · Financial statements and exhibits
- Current report (amendment)16 Jan 2026Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / DNOW Inc. · 26 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / DNOW Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / DNOW Inc. · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.