Does DNOW’s (DNOW) Record Quarter and MRC Deal Redefine Its Energy-Supply Role?

• Earlier this year, DNOW delivered record Q3 2025 revenue of US$634.00 million, up 4.6% year on year, with EBITDA margins expanding to 8% and earnings exceeding analyst expectations.
• The announced acquisition of MRC Global is set to broaden DNOW’s distribution footprint and customer base, potentially reinforcing its supply-chain role across energy and industrial markets.
• We’ll now explore how DNOW’s record quarter and the MRC Global acquisition reshape its existing investment narrative and future prospects.

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DNOW Investment Narrative Recap

To own DNOW, you need to believe it can turn its energy and industrial distribution scale into durable cash generation, even as rig activity and customer spending remain cyclical. The record Q3 2025 revenue and margin expansion support that thesis near term, but they do not eliminate the key risk that weaker drilling and completion activity could still pressure volumes and earnings if U.S. rig counts retrench.

The planned acquisition of MRC Global is the most relevant recent development, as it significantly extends DNOW’s reach and product breadth across energy and industrial customers. For investors focused on catalysts, this deal ties directly into DNOW’s inorganic growth ambitions and its use of a strengthened balance sheet to support expansion, while also interacting with the same end market and pricing pressures that drive the core risk story.

Yet even with record quarterly revenue, investors should be aware that DNOW’s exposure to U.S. rig count trends and project deferrals could still...

Read the full narrative on DNOW (it's free!)

DNOW’s narrative projects $2.5 billion revenue and $61.4 million earnings by 2027. This implies 2.5% yearly revenue growth but a steep earnings decline of $161.6 million from $223.0 million today.

Uncover how DNOW's forecasts yield a $17.00 fair value, a 26% upside to its current price.

Exploring Other Perspectives

Two members of the Simply Wall St Community currently place DNOW’s fair value between US$17 and about US$34.68, showing how far views can stretch. Against that wide spread, the recent record Q3 results and the MRC Global acquisition highlight how scale and supply chain execution could matter more than headline revenue alone for DNOW’s performance, so it can be useful to compare several of these viewpoints before deciding how the stock fits your portfolio.

Explore 2 other fair value estimates on DNOW - why the stock might be worth over 2x more than the current price!

Build Your Own DNOW Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your DNOW research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free DNOW research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate DNOW's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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