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August 6, 2025 Second Quarter 2025 Earnings Presentation
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© 2025 DNOW. All Rights Reserved. 2 Disclosure Statement Statements made in the course of this presentation that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward -looking statements. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward -looking statements is contained from time-to-time in the Company's filings with the U.S. Securities and Exchange Commission (SEC). Any decision regarding the Company or its securities should be made upon careful consideration of not only the information here presented, but also other available information, including the information filed by the Company with the SEC. Copies of these filings may be obtained by contacting the Company or the SEC. In an effort to provide investors with additional information regarding our results as determined by GAAP, we disclose various non-GAAP financial measures in our quarterly earnings press releases and other public disclosures. The non-GAAP financial measures include: (i) earnings before interest, taxes, depreciation and amortization (EBITDA) excluding other costs, (ii) EBITDA excluding other costs as a percentage of revenue, (iii) net income attributable to DNOW Inc. excluding other costs, (iv) diluted earnings per share attributable to DNOW Inc. stockholders excluding other costs, and (v) free cash flow. We use these non-GAAP financial measures to evaluate and manage the Company’s operations because we believe they provide useful supplemental information regarding the financial performance of our business. These non -GAAP financial measures are not intended to replace the GAAP financial measures. Free cash flow is net cash provided by (used in) operating activities adjusted for purchases of property, plant and equipment, and the remaining non-GAAP financial measures exclude the impact of certain other items. Each of these financial measures excludes the impact of certain other costs and therefore has not been calculated in accordance with GAAP. A reconciliation of each non -GAAP financial measure to its most comparable GAAP financial measure can be found in our earnings press release. The Company’s outlook is as of August 6, 2025, and is based on estimates and market conditions on that date. Actual results could differ materially from those projected. 2
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© 2025 DNOW. All Rights Reserved. 3 Company Overview NYSE: DNOW Leading energy and industrial distributor and supply chain solutions company 2,575 E M P L O Y E E S 160 L O C A T I O N S Operating for over 160 years Headquartered in Houston, Texas Comprehensive network of energy centers, customer onsite and process solutions locations, complemented with an online commerce platform Key markets: U.S., Canada, North Sea, Middle East, Asia Pacific
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$628M R E V E N U E $25M G A A P N E T I N C O M E $29M NON - G A A P N E T I N C O M E Up 5% sequentially, at the top- end of our guided range attributable to DNOW Inc; GAAP diluted EPS attributable to DNOW Inc. stockholders of $0.23 attributable to DNOW Inc, excluding other costs; Non- GAAP diluted EPS attributable to DNOW Inc. stockholders excluding other costs of $0.27 $51M E B I T D A 22.9% G R O S S M A R G I N S $19M I N S H A R E S R E P U R C H A S E D 8.1% of revenue, better than expected Up year-over-year and compared to full-year 2024 $27M year-to-date, executing on our newly authorized $160M share repurchase program © 2025 DNOW. All Rights Reserved. 4 Second Quarter 2025 Achievements and Highlights * Excluding other costs (non-GAAP)
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© 2025 DNOW. All Rights Reserved. Capital Allocation Framework Formidable Balance Sheet… … to fund growth and capital allocation program Working Capital Efficiency Efficient use of working capital as a percent of revenue No debt No interest expense burden Ample Liquidity $582M in total liquidity Fund organic growth and efficient operations Working Capital needs Equipment & Technology investments Return capital to shareholders Authorized new $160 million share repurchase program in January 2025 Repurchased $19M shares during 2Q25, $27M YTD as of June 30, 2025 Inorganic growth through acquisitions Patient, disciplined approach Targeting margin accretive businesses Focused on growing U.S. Process Solutions Announced MRC Global merger agreement Closed Natron International acquisition, April 2025 5
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6 COMBINING Value-Creating Transaction for DNOW and MRC Shareholders Creates a Premier Energy and Industrial Solutions Provider Joins Highly Complementary Footprints Across Key Energy and Industrial Hubs in the U.S. Strengthens Global Reach in Attractive Growth Sectors Greatly Increases Scale and Scope Across Diverse Industries and Global Opportunities Combines and Enhances Complementary Product Portfolio Creates Value through Cost Synergies Strong Cash Flow Generation Capabilities and Robust Balance Sheet Provide Liquidity and Capital Allocation Flexibility © 2025 DNOW.All Rights Reserved.
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2Q25 Segment Results (Year-over-Year) United States Revenue increased primarily due to contributions from an acquisition completed in the fourth quarter 2024; partially offset by sector headwinds Operating profit increased primarily due to the increase in revenue Canada Revenue decreased primarily due to weaker project activity, coupled with unfavorable foreign exchange rate impacts Operating profit decreased primarily due to the decline in revenue International Revenue decreased primarily driven by weaker project activity; as expected Operating profit decreased primarily due to a decline in revenue © 2025 DNOW.All Rights Reserved. 7 2Q24 2Q25 Var. Var. % United States $512 $528 $16 3% Canada 56 48 -8 -14% International 65 52 -13 -20% Revenue $633 $628 -$5 -1% United States $28 $30 $2 Canada 2 — -2 International 3 2 -1 Operating Profit $33 $32 -$1 United States 5.5% 5.7% Canada 3.6% 0.0% International 4.6% 3.8% Operating Profit % 5.2% 5.1% % of U.S. Revenue U.S. Energy 74% 72% U.S. Process Solutions 26% 28% ($ in millions)
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$594 $588 $555 $563 $633 $606 $571 $599 $628 22.6% 22.8% 23.4% 22.9%* 21.8%* 22.3% 23.3%* 23.2%* 22.9% 15.0% 17.0% 19.0% 21.0% 23.0% 25.0% 27.0% 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 $27 $28 $24 $23 $28 $22 $27 $24 $29 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Selected Quarterly Results © 2025 DNOW.All Rights Reserved * Includes charges for cost of inventory that was stepped up to fair value during acquisition purchase accounting for 1Q24 ($1M), 2Q24 ($4M), 4Q24 (less than $1M), and 1Q25 (less than $1M) Revenue & Gross Margin Percent ($ in millions) Net Income attributable to DNOW Inc. excl. Other Costs (Non-GAAP) ($ in millions) 8 © 2025 DNOW. All Rights Reserved.
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© 2025 DNOW. All Rights Reserved. 9 Selected Quarterly Results EBITDA excl. Other Costs (Non-GAAP) ($ in millions) Free Cash Flow* ($ in millions) *Free Cash Flow is defined as net cash provided by (used in) operating activities, less purchases of property, plant and equipment $79 $0 $103 $80 $18 $72 $119 $(22) $41 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 $47 $46 $44 $39 $50 $42 $45 $46 $51 7.9% 7.8% 7.9% 6.9% 7.9% 6.9% 7.9% 7.7% 8.1% 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 EBITDA excl. Other Costs %
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© 2025 DNOW. All Rights Reserved. 10 Selected Quarterly Results Working Capital excl. Cash and as % of Revenue ($ in millions) Total Liquidity at June 30, 2025 ($ in millions) $232 $350 Cash on hand Credit Availability $371 $416 $351 $395 $414 $380 $330 $388 $393 15.6% 17.7% 15.8% 17.5% 16.4% 15.7% 14.4% 16.2% 15.6% 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 % of Qtr-Annualized Revenue $582 in Total Liquidity
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Strategic Growth Plan to Increase Shareholder Value Inorganic accumulation strategy to grow earnings and FCF Announced DNOW/ MRC Global merger agreement DNOW/MRC Global merger expected to greatly increase scale and scope across diverse industries and global markets, creating a premier energy and industrial solutions provider Continue to evaluate a pipeline of margin accretive companies to expand U.S. Process Solutions business Growth from customer investments tied to decarbonization and energy evolution Provide products for aged infrastructure and methane emission reduction projects Increase revenue from customer investments in CCUS and new energy Extend possibilities from customer investments in renewable fuels Grow revenue within core energy markets Expand suite of offerings to customers in upstream Expand opportunities in midstream market Leverage strengths through supercenters and enhanced service model Support organic growth through free cash flow Low capex business Efficient use of working capital to support organic growth Additional growth through adjacent industrial markets Targeting mining, water and chemical markets that align with our pump supplier agreements to expand and diversify markets Targeting data center construction that requires electrical cable, pumps and PVF for cooling Expand aftermarket service capabilities driving higher margin incremental revenues Share buyback program Repurchased $19M in shares in 2Q25 and $27M YTD, on $160M program approved in January 2025, double the size of the previous buyback program Focused on growing sustainable earnings and free cash flow through the cycle © 2025 DNOW. All Rights Reserved. 11
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© 2025 DNOW. All Rights Reserved. 12 Significantly Strengthened Financial Performance Over Time Key trends and financial performance as market activity changes 1 DNOW spin off as a public company completed late in 2Q14 2 Quarterly averages of rig values based on Baker Hughes Rig Count 3 Quarterly averages of U.S. Completions based on 7/8/25 STEO from EIA 2H 20141 2018 2023 2024 1H 2025 U.S. Rigs2 1,907 1,032 689 600 580 U.S. Completions3 6,865 4,172 3,241 2,950 2,904 WW Rigs2 3,635 2,211 1,814 1,735 1,653 Revenue $2.1B $3.1B $2.3B $2.4B $1.2B EBITDA $97M $125M $184M $176M $97M % of Revenue 4.7% 4.0% 7.9% 7.4% 7.9% Cash $195M $116M $299M $256M $232M Free Cash Flow (FCF) $17M $62M $171M $289M $19M Period of improved earnings and FCF generation capabilities driven by transformed operational model and continued execution of strategic growth plan
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13 2Q 2025 Key Takeaways © 2025 DNOW. All Rights Reserved. Strong first half to 2025, growing second quarter sequential revenue and EBITDA through the continued execution of our growth strategy, despite sector headwinds Continued strength in midstream approximating 27% of revenue in the quarter Generated $41M in free cash flow due to improved earnings and working capital velocity Debt free, $232M in cash with ample liquidity to fund growth, continue to review an active pipeline of M&A opportunities to complement our growth strategy Repurchased $19M of common stock in the second quarter, $27M YTD as of June 30, 2025 Announced merger agreement with MRC Global, creating a premier energy and industrial solutions provider, greatly increasing scale and scope across diverse industries and global markets The Company’s outlook is as of August 6, 2025, and is based on estimates and market conditions on that date. *Excluding other costs (non-GAAP) Outlook 3Q25 revenue expected to increase in the low single-digits percentage range sequentially 3Q25 EBITDA* approaching 8% of revenue Reaffirm full-year 2025 revenue expected to be flat-to-up in the high single-digit percentage range compared to 2024 Reaffirm full-year 2025 EBITDA* approaching 8% of revenue Reaffirm full-year 2025 free cash flow targeted at $150M
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Brad Wise Vice President, Digital Strategy & Investor Relations Contact email: ir@dnow.com For the most recent investor presentation, please click here Investor Relations