DNOW (DNOW) EnerCom Denver – The Energy Investment Conference summary

Strategic transformation and diversification

• Since becoming public in 2014, diversification has increased, reducing upstream exposure from over 70% to under 40% and expanding into industrial, midstream, and gas utility sectors.

• Recent mergers, notably with MRC Global in November 2025, have broadened sector exposure and product offerings, supporting a more balanced portfolio.

• Acquisitions such as Whitco and Edge Controls have enhanced midstream, automation, and process solutions capabilities.

• Data center build-outs and LNG export growth are driving secular demand, especially in midstream and industrial markets.

• International presence includes the U.S., Canada, U.K., Europe, Middle East, and Southeast Asia.

Financial performance and capital allocation

• Second quarter revenue reached $1.3 billion, a 10% sequential increase, with EBITDA rising 54% to $60 million.

• Record cash flow from operations of $133 million was achieved in Q2, with working capital as a percent of revenue improving from 25.5% to 19%.

• $75 million in share repurchases completed in the first half of 2026; $95 million in debt reduction following MRC Global acquisition.

• Net debt stands at $360 million, with a flexible, opportunistic capital allocation model focused on both organic and inorganic growth.

• Full-year revenue is forecasted just over $5 billion, with EBITDA margin guidance raised to 4.5%.

Operational integration and efficiency

• Integration of MRC Global is ongoing, with ERP system stabilization and optimization underway.

• Cost synergy target of $70 million over three years, with year-one savings upgraded from $17 million to $30 million.

• Focus on margin expansion, product margin growth, and high-grading the business.

• Enhanced digital infrastructure and e-commerce platforms support operational efficiency and customer integration.

• Branch, super center, and RDC models enable scalable, customer-centric inventory management.