NOW Inc
NYSE:DNOW
NOW Inc
Nestled within the industrial landscape, NOW Inc. has carved out its niche as a pivotal player in the distribution of energy and industrial products. Emerging from its spin-off from National Oilwell Varco in 2014, the company leveraged its newfound independence to specialize in the distribution business, unencumbered by manufacturing complexities. Operating under the DistributionNOW brand, it swiftly asserted its identity, meeting the needs of energy sector stakeholders by capitalizing on its extensive supply networks and robust logistics capabilities. With a keen focus on the oil and gas sector, NOW Inc. serves as the conduit through which equipment and consumables flow, covering everything from pipe valves and fittings to safety products, all designed to ensure the smooth-running operations of its clients.
NOW Inc.'s business model thrives on its ability to efficiently manage and distribute an expansive range of products, using its global presence to its advantage. The company generates revenue primarily through the sales of its broad portfolio of industrial supplies, distributed via a sprawling network of strategically located service centers. These centers enable quick turnaround times, an essential factor considering the pressing timelines of energy and industrial operations. In addition to product sales, the company provides value-added services like inventory management and technical support, all designed to enhance the efficiency and cost-effectiveness of its clients’ operations. This comprehensive approach does not just fulfill immediate product needs but also fosters long-term partnerships, ensuring steady revenue streams while fortifying its position as an indispensable ally in the industrial supply chain.
Nestled within the industrial landscape, NOW Inc. has carved out its niche as a pivotal player in the distribution of energy and industrial products. Emerging from its spin-off from National Oilwell Varco in 2014, the company leveraged its newfound independence to specialize in the distribution business, unencumbered by manufacturing complexities. Operating under the DistributionNOW brand, it swiftly asserted its identity, meeting the needs of energy sector stakeholders by capitalizing on its extensive supply networks and robust logistics capabilities. With a keen focus on the oil and gas sector, NOW Inc. serves as the conduit through which equipment and consumables flow, covering everything from pipe valves and fittings to safety products, all designed to ensure the smooth-running operations of its clients.
NOW Inc.'s business model thrives on its ability to efficiently manage and distribute an expansive range of products, using its global presence to its advantage. The company generates revenue primarily through the sales of its broad portfolio of industrial supplies, distributed via a sprawling network of strategically located service centers. These centers enable quick turnaround times, an essential factor considering the pressing timelines of energy and industrial operations. In addition to product sales, the company provides value-added services like inventory management and technical support, all designed to enhance the efficiency and cost-effectiveness of its clients’ operations. This comprehensive approach does not just fulfill immediate product needs but also fosters long-term partnerships, ensuring steady revenue streams while fortifying its position as an indispensable ally in the industrial supply chain.
Revenue Growth: DNOW reported record full-year 2025 revenue of $2.8 billion, up 19% from 2024, with a major contribution from the MRC Global merger.
MRC Global Merger: The November 2025 merger with MRC Global significantly increased DNOW's scale, diversification, and sector reach, but integration has been challenged by ERP system issues.
ERP Headwinds: Persistent ERP system challenges in the U.S. MRC Global business weighed heavily on Q4 and ongoing operations, leading DNOW to delay issuing forward guidance.
Record Profitability: Legacy DNOW achieved its most profitable year ever, with full-year EBITDA at $199 million and margins above targeted levels.
Cost Synergies: DNOW is ahead of schedule on cost synergy capture, expecting $23 million in savings in the first year post-merger versus the original $17 million target.
Guidance Withheld: Due to ERP disruptions and recent merger integration, DNOW is not providing sequential or full-year 2026 guidance until stability improves.
Strong Cash Position: The company ended Q4 with $588 million in liquidity and continues to target deleveraging and opportunistic share buybacks.
