DNOW Inc. on Wednesday reported stronger sales and earnings in its latest quarter, but the company DNOW is poised to acquire in the coming weeks saw "significant challenges."
DNOW posted revenue of $634 million in the July-September period, up from $606 million in the same window of 2024. The company’s operating profit also climbed over that span, from $23 million up to $33 million, while its net income nearly doubled from $13 million to $25 million.
DNOW President and CEO David Cherechinsky highlighted the company’s highest revenue total in any quarter since the fourth quarter of 2019, and noted that its $51 million in EBITDA was 8% of revenue. The company also reported $266 million in cash and no debt.
“We believe 2025 will represent our fifth consecutive year of growth and are forecasting our best full-year earnings ever as a public company in terms of total EBITDA results,” Cherechinsky said in the earnings statement.
In addition, the company is expected to finalize its $1.5 billion acquisition of fellow Houston distributor MRC Global in the current quarter. MRC, which also reported its Q3 results Wednesday, attributed its downturn to “significant challenges” in the implementation of a new ERP system.
The company reported a net loss of $9 million in the third quarter, and sales fell from $771 million in the same quarter of 2024 down to $678 million. Gross profit, meanwhile, declined from $157 million to $125 million over that span.
MRC President and CEO Rob Saltiel said in a statement that the ERP issues in its U.S. business impacted its revenue, profit and cash flow, although officials said that it was a “one-time isolated event” and that its operations and finances “improved dramatically” by the end of the quarter and into October.
“Due to delays in shipments and invoicing, our U.S. backlog grew in the third quarter compared to the same quarter last year, bucking the normal seasonal trend,” said MRC CFO Kelly Youngblood. “We expect that future quarters will release this backlog growth to revenue, and we anticipate mid-to-high single-digit percentage revenue growth sequentially for the entire company in the fourth quarter of 2025.”
MRC and DNOW ranked at nos. 9 and 11, respectively, on ID’s 2025 Big 50 list.
