DNOW INC (NYSE:DNOW) Q3 2025 Earnings: EPS Beats, Revenue Misses Estimates

Last update: Nov 5, 2025

DNOW INC (NYSE:DNOW) reported financial results for the third quarter of 2025, delivering a performance that presented a mixed picture for investors. The company's earnings per share surpassed analyst forecasts, while its top-line revenue fell short of expectations, leading to a negative reaction in pre-market trading.

Earnings and Revenue Performance Versus Estimates

The company's third-quarter results showed a clear divergence between its profitability and revenue generation when measured against Wall Street's expectations.

Earnings Per Share (EPS): DNOW reported a non-GAAP EPS of $0.26. This exceeded the analyst consensus estimate of $0.238.
Revenue: The company posted revenue of $634 million for the quarter. This came in below the estimated $649.9 million.

The market's immediate reaction reflected this mixed outcome. In pre-market trading, DNOW's stock was down approximately 4.8%, indicating investor concern over the revenue miss outweighing the positive earnings surprise.

Third Quarter 2025 Financial and Operational Highlights

Beyond the headline earnings and revenue figures, the company's press release highlighted several key achievements and strategic developments.

Profitability and Cash Flow: The company reported net income of $25 million and generated EBITDA excluding other costs of $51 million, representing a strong 8.0% of revenue. Operating cash flow for the quarter was $43 million.
Balance Sheet Strength: DNOW maintained a robust financial position, ending the quarter with $266 million in cash and cash equivalents and zero long-term debt. Total liquidity stood at approximately $629 million.
Proposed Merger with MRC Global: A significant forward-looking announcement was the reaffirmation of the planned all-stock acquisition of MRC Global Inc., valued at approximately $1.5 billion. The transaction, unanimously approved by both boards, is anticipated to close in the fourth quarter of 2025.
Management Commentary: David Cherechinsky, President and CEO of DNOW, expressed pride in the team's performance, noting it was the company's highest quarterly revenue since the fourth quarter of 2019. He stated that DNOW is forecasting its "best full-year earnings ever as a public company" for 2025.

Forward Outlook and Analyst Estimates

While the press release expressed confidence for the full year, it did not provide a specific quantitative financial outlook for the fourth quarter. This leaves investors to rely on existing analyst projections for future performance.

Analyst Estimates for Q4 2025: For the upcoming quarter, analysts are forecasting revenue of $610.4 million and an EPS of $0.207.
Analyst Estimates for FY 2025: For the full 2025 year, the consensus sales estimate stands at $2.51 billion with an EPS of $0.954.

The company's own optimism for record annual EBITDA results will be measured against these figures as the year concludes.

Market Performance Context

The stock's negative pre-market move following the earnings report stands in contrast to its recent performance. Prior to the announcement, the stock had shown relative stability over the past two weeks and a slight decline over the past month. The sharp drop suggests the market is penalizing the company for the revenue shortfall in the near term.

For a more detailed look at historical earnings and future analyst estimates for DNOW, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any security. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.