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DNOW TM Second Quarter 2026 Earnings Presentation DNOW August 6 , 2026
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2© 2026 DNOW. All Rights Reserved. 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) Adjusted Gross Profit, (ii) Adjusted Gross Profit as a percentage of revenue, (iii) Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization and Excluding Other Costs (Adjusted EBITDA), (iv) Adjusted EBITDA as a percentage of revenue, (v) Adjusted Net Income Attributable to DNOW Inc., (vi) Adjusted Diluted Earnings Per Share Attributable to DNOW Inc. Stockholders, (vii) Net Debt and (viii) Net Debt Leverage Ratio and (ix) 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. 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. 2
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3© 2026 DNOW. All Rights Reserved. R E V E N U E A D J U S T E D E B I T D A1 N E T C A S H P R O V I D E D B Y O P E R A T I N G A C T I V I T I E S $1,307M +10% sequential growth +13% growth in the U.S. $60M +54% increase from first quarter $133M a second quarter record 2Q 2026 Highlights 1. See reconciliation of GAAP to Non-GAAP measures in the appendix 2. Working capital, less cash, as a percent of revenue, annualized for the second quarter CAPITAL ALLOCATION $25M share repurchases in 2Q 2026, $75M for 1H 2026 Reduced Net Debt1 by $95M in the 2Q 2026 WORKING CAPITAL % 2 Improved to 19%
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4© 2026 DNOW. All Rights Reserved. 16% 21% 24% 39% 4% 11% 85% Consolidated Revenue Composition — 2Q 2026 By Geographic Segment By Sector Canada $47M International $151M United States $1,109M Upstream $508M Gas Utilities $310M Midstream $272M Downstream & Industrial $217M
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5© 2026 DNOW. All Rights Reserved. Upstream Gas Utilities Midstream Downstream & Industrial Upstream Downstream & Industrial Midstream Upstream Downstream & Industrial Midstream 2% Gas Utilities Revenue by End-Market Sector & by Segment — 2Q 2026 United States $1,109M, 85% of total International $151M, 11% of total Canada $47M, 4% of total 13% 23% 28% 36% 5% 44% 51% 11% 11% 76%
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6© 2026 DNOW. All Rights Reserved. DNOW MRC Global Integration & Synergy Update 2Q 2026 Progress $70M $42M $17M $30M 2028 2027 2026 Revised Plan 23% 27% 50% Corporate & IT Systems Operational & Supply Chain Public Company Annual Cost Synergy Target Timeline Cost Synergies ▪ Expected annualized cost synergies of approximately $30M exit rate by year-end 2026, representing 43% of the $70M three-year target Revenue Growth, Recovery and Retrieval Opportunities ▪ Commercial cross-selling and opportunity sales pipeline collaboration ▪ Using complementary inventory as a commercial lever for growth ▪ Migrating locations in Upstream and Midstream to optimized SAP ERP platform ▪ Combined capabilities unlocking new customers, suppliers and markets ▪ Integrated supply and inventory improving bid competitiveness and capturing incremental revenue Breakdown of Synergy Opportunity 2026 2027 2028
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7© 2026 DNOW. All Rights Reserved. Cash of $114M ◊ Debt of $474M ◊ Net Debt1 of $360M Net Debt Leverage Ratio1 currently at 1.7x 2Q 2026 cash provided by operating activities of $133M Strong Balance Sheet with Financial Flexibility Strong balance sheet while executing a strategy to maximize strategic flexibility through the cycle Ample Liquidity $472M in total liquidity plus access to $500M accordion 1. See reconciliation of GAAP to Non-GAAP measures in the appendix
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8© 2026 DNOW. All Rights Reserved. Disciplined Approach to Capital Allocation Combined with the previous $80M share repurchase program, $192M shares have been repurchased Repurchased $25M of shares during the quarter, with $112M accumulated on the $160M share repurchase program Capex of $9M in the second quarter 2026 to support growth and ERP initiatives Cumulative Share Repurchases $160 million share repurchase program ($ in millions) $8 $27 $27 $37 $87 $112 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26
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9© 2026 DNOW. All Rights Reserved. Outlook 9 Guidance 2Q 2026 3Q 2026 Full-Year 2026 Revenue $1,307 million BEAT guidance Up low-to-mid single digits percentage range from 2Q 2026 RAISE guidance Ranging from $5.0 - $5.1 billion RAISE guidance Adjusted EBITDA1 $60 million BEAT guidance Ranging from 5.0 to 5.5 percent of revenue RAISE guidance Approaching 4.5 percent of revenue RAISE guidance Net Cash Provided by Operating Activities Ranging from $125 - $200 million RAISE guidance 1. See reconciliation of GAAP to Non-GAAP measures in the appendix
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Brad Wise Vice President Digital Strategy & Investor Relations Contact email: ir@dnow.com For the most up to date investor information, please click here Investor Relations
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11© 2026 DNOW. All Rights Reserved. Appendix
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12© 2026 DNOW. All Rights Reserved. Adjusted EBITDA Reconciliation THREE MONTHS ENDED June 30, 2026 ($ millions) Amount % of Revenue Revenue $1,307 Net (loss) attributable to DNOW Inc. $(21) (1.6%) Interest expense, net 9 Income tax provision 12 Depreciation and amortization 23 Increase in LIFO reserve 19 Stock-based compensation 4 Transaction-related charges 6 Inventory-related transaction charges 3 Impairment and other charges 4 Other 1 Adjusted EBITDA $ 60 4.6% Note: Adjusted EBITDA is a non-GAAP measure. For a discussion of the use of Adjusted EBITDA, see our Current Report on Form 8 -K dated August 6, 2026.
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13© 2026 DNOW. All Rights Reserved. Net Debt & Leverage Ratio Calculation ($ millions) June 30, 2026 Long-term debt $474 Plus: current portion of debt obligations - Total debt $474 Less: cash $114 Net Debt $ 360 Net Debt $ 360 Trailing twelve months Adjusted EBITDA $211 Net Debt Leverage Ratio 1.7x Note: Net Debt, Net Debt Leverage Ratio and Adjusted EBITDA are non-GAAP measures. For a discussion of the use of Net Debt, Net Debt Leverage Ratio and Adjusted EBITDA, see our Current Report on Form 8-K dated August 6, 2026.