DNOW Inc.
DNOW Inc. distributes pipe, valves, fittings, pumps, and related process equipment used to build and maintain energy and industrial infrastructure. The company also fabricates, assembles, and tests production and process equipment, and supports customers with supply-chain services and digital procurement tools across North America and international markets.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueDistribution of pipe, valves, fittings, gas products and related infrastructure materials.
Pumps plus fabricated, assembled and tested production and process equipment.
Consumables, maintenance items and general industrial products used in operations.
Value-added sourcing, logistics, inventory management and technical support.
Online ordering and procurement tools, including DigitalNOW and MRCGO.
Customers
DNOW sells to customers that need mission-critical industrial and energy infrastructure components, especially where downtime or equipment failure is costly. Its core buyers are upstream, midstream, downstream, gas utility and industrial operators, but it also serves energy-transition and non-oil-and-gas end markets that need similar supply-chain and equipment support.
Buys PVF, pumps and production equipment for drilling, completions and field operations.
Buys pipe, valves, fittings and fabricated systems for pipelines, gathering and processing.
Buys process equipment and maintenance supplies for refineries and chemical plants.
Buys gas products and infrastructure materials for distribution and energy projects.
Buys supply-chain and equipment solutions for power, data centers, CCUS and water.
Strategy
DNOW is using acquisitions, cross-selling and digital tools to broaden its product set and deepen customer relationships. Management is also pushing into energy-transition and adjacent industrial end markets to reduce dependence on drilling cycles and capture growth from infrastructure and decarbonization projects.
The combined platform should expand customer reach, product breadth and supply-chain scale.
Diversification reduces exposure to drilling cycles and opens new demand pools.
Digital ordering and technical support improve customer stickiness and margin mix.
Geography
Q1/2026DNOW operates through three reportable segments: the United States, Canada and International. The company has a large North American base, with about 105 U.S. locations and roughly 15 locations outside the U.S. and Canada, plus international operations in markets such as Australia, Europe, Kuwait, Singapore and the UAE.
Share of the revenue the company reports by geography.
Risks
DNOW is exposed to cyclical energy spending, so lower oil and gas prices or reduced drilling and completions activity can quickly weaken demand. The company also faces integration, supply-chain, cyber and balance-sheet risks, especially after the MRC Global acquisition and given its reliance on inventory, logistics and IT systems.
- Cyclical energy spendingImpact: HighLikelihood: Medium
Customer demand depends on drilling, completions, refining and project activity.
Exposure: Lower oil and gas prices or delayed capex can reduce order volumes.
- MRC Global integration riskImpact: HighLikelihood: Medium
The company must combine systems, controls and operations after a large acquisition.
Exposure: Delays could reduce expected synergies and create reporting/control issues.
- Cybersecurity and IT disruptionImpact: HighLikelihood: Medium
Order processing, inventory and receivables management rely on complex systems.
Exposure: A breach or outage could disrupt operations and damage customer trust.
- Supply chain and supplier pricingImpact: MediumLikelihood: Medium
DNOW depends on third-party manufacturers and transportation providers.
Exposure: Shortages or cost inflation may not be fully passed through to customers.
- Goodwill impairmentImpact: MediumLikelihood: Low
Acquisitions create goodwill that must be tested against market and cash-flow assumptions.
Exposure: A downturn in oilfield activity could trigger non-cash impairment charges.
Accounting
Judgemental itemsGoodwill is tested annually and more often if oil and gas markets weaken.
Impact: A write-down would reduce earnings but not cash flow.
The company holds inventory to support customer demand and project timing.
Impact: Reserve changes can affect gross margin and working capital.
Customers operate in cyclical industries and payment risk can rise in downturns.
Impact: Higher provisions would reduce operating income.
The MRC Global acquisition requires valuation of acquired assets and liabilities.
Impact: Allocation affects goodwill, amortization and future impairment risk.
Merger-related tax carryforwards and limitations can affect effective tax rates.
Impact: Tax estimates may be volatile after the acquisition.
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Last updated: 24/09/2026