DNOW Inc. reported its second quarter 2025 results, generating $628 million in revenue, a 5% sequential increase that reached the top end of its guidance. The company achieved its best second-quarter EBITDA in public company history, totaling $51 million, representing an 8.1% EBITDA margin.
This marks the 13th consecutive quarter where DNOW has delivered EBITDA at or above the 6.9% level, demonstrating consistent operational execution. U.S. revenue for Q2 2025 was $528 million, up 3.1% year-over-year and an 11% sequential gain, primarily driven by midstream strength and water management solutions.
The midstream business now accounts for approximately 27% of DNOW's total revenue, having more than doubled its percentage contribution since the end of 2023. Gross margins remained resilient at 22.9%, and the company generated $41 million in free cash flow during the quarter, bringing the last 12 months' total to $210 million.
DNOW maintains an exceptionally strong balance sheet with $232 million in cash and no debt, complemented by $350 million in additional credit facility availability. The company reaffirmed its full-year 2025 guidance for revenues to be flat to up in the high-single-digit percentage range, with full-year EBITDA approaching 8% of revenue and targeting $150 million in free cash flow.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.