DNOW Sustainability Report | ESG, SASB & TCFD

The information below represents a summarized, at-a-glance view of our 2025 Sustainability Report: Stronger Together. Following the completion of our merger with MRC Global in November 2025, this is our first report covering the combined organization, and 2025 serves as our new baseline year for environmental, energy and workforce data. The information highlights the environmental, social and governance sections within the report, in addition to our SASB, TCFD and U.N. SDG comparison tables. For a complete and more comprehensive view, please download the full document.

Message from Our President & CEO

David Cherechinsky
President & CEO

DNOW is committed to creating positive change through thoughtful corporate stewardship that supports our business and financial goals. As part of that commitment, we focus on using capital and natural resources efficiently, building a culture of sustainability, supporting our customers’ sustainability goals and upholding fair, honest business practices. We are proud to present our 2025 Sustainability Report and share the progress we made over the past year.

The year 2025 was a notable year in DNOW’s history. On November 6, DNOW completed its merger with MRC Global, our 25th acquisition since becoming a public company in 2014. Today, we operate as one company, united by shared values, complementary strengths and a strong culture. Both DNOW and MRC Global built respected, well-established businesses through years of hard work, resilience and success in their markets. As integration continues in 2026, we look forward to serving customers through a broader footprint, expanded capabilities and new growth opportunities that position DNOW for continued success.

The year 2025 represents our fifth consecutive year of growth and our most profitable year since going public. Total revenue was $2.8 billion, up 19% from 2024, and adjusted EBITDA was $209 million, or 7.4% of revenue. Legacy MRC Global's international business delivered its fourth consecutive year of growth, and the combined resources of DNOW and MRC Global opened new, larger opportunities, including cross-selling to our combined customer base in an expanded geographic area. Our teams delivered this performance through a commitment to service dependability, close customer relationships and our differentiated service models.

Combining our sustainability efforts with MRC Global’s allowed us to further expand our product solutions that reduce the environmental impact for our customers and support small and minority-owned vendors. The year 2025 also marked the launch of our DryOxo™ line of natural gas purification systems from EcoVapor, a DNOW Company. This engineered, fabricated solution removes oxygen and water from natural gas streams, preventing pipeline corrosion and leaks to the atmosphere, with the environmental benefit of lowering our customers’ Scope 1 emissions.

We also expanded the charitable impact of our global DNOW Lights program, welcoming the volunteer tradition of MRC Global Cares, including community service, events and fundraising activities that promote education, health, the arts and civic projects. In 2025, DNOW employees contributed over 1,800 volunteer hours and raised over $227,000 for charitable organizations we love. Our employees are eager to serve, and more volunteers means more opportunities to bring light to our communities.

Looking ahead, we remain focused on environmental responsibility, social impact and strong governance. The combination of DNOW and MRC Global creates an opportunity to manage a broader sustainability program than either company could achieve independently. Our teams are aligned, ready for what comes next and pleased to welcome our new colleagues on this journey.

Thank you for your continued confidence and support.

DNOW is a premier energy and industrial solutions provider with more than 160 years of operating history. Headquartered in Houston, Texas, we operate through approximately 300 locations across more than 20 countries with roughly 5,300 employees worldwide. Our digital solutions, DigitalNOW® and MRCGO™, provide customers e-commerce, data analytics and inventory management tools that connect into their procurement and supply chain workflows.

We serve customers across the full energy value chain: upstream drilling and production, midstream transmission and storage, downstream refining and petrochemicals, gas utilities and adjacent industrial markets including chemical processing, mining, municipal water and manufacturing. We also supply products and services to customers working in decarbonization, renewable fuels and energy transition markets. For more information, visit www.dnow.com.

DNOW At-A-Glance

In November 2025, DNOW completed its acquisition of MRC Global, bringing together two complementary businesses with shared commitments to safety, service and responsible operations. Full-year 2025 revenue was $2.82 billion, while adjusted EBITDA was $209 million. These results reflect DNOW on a standalone basis for the full year, combined with MRC Global from the acquisition closing date through December 31, and include integration costs incurred during the period in adjusted EBITDA.

$2.82B

revenue

$209M

adjusted EBITDA

Revenue was $2.82B

for the full-year 2025.

Cash provided by operating activities

was $155M for the full-year 2025.

Net loss income attributable to DNOW was ($89M), or ($0.76) per diluted share, for the full-year 2025.

Non-GAAP adjusted net income attributable to DNOW was $104M, or $0.86 per diluted share, for the full-year 2025.

Adjusted EBITDA

was $209M or 7.4% of revenue, for the full-year 2025.

Cash and cash equivalents

were $164M, with total liquidity of approximately $588M.

Premier 150: Segment Leaders (PVF)

Premier 150: Top Sales Ranking

Wholesaling 100: Overall Ranking

Wholesaling 100: Top PVF

#11

Wholesaling 100: Municipal Water & Utilities

MDM Top Distributors: Industrial PVF

MDM Top Distributors: Fluid Power

MDM Top Distributors: Industrial Supplies

MDM Industry Titan: Industrial PVF

#13

Industrial Distribution: Big 50

#13

Top Industrial Supplies Distributor

#20

Top MRO Industrial Distributors

#77

The Chronicle 100: Publicly Traded Companies

#104

Largest Houston-Area Employers

342 EcoVapor equipment skids deployed in the U.S., with combined design capacity to reduce up to 5.8 million MT CO₂e annually for oil & gas and RNG operators.³

¹ Combined total: 15 under legacy DNOW’s program and 50 under legacy MRC Global’s program.
² Reflects 2025 UPS parcel transportation spend for legacy DNOW U.S. operations only; a small share of parcels shipped through other carriers is excluded. Spend-based measure; does not represent share of parcel shipments or emissions.
³ As of December 31, 2025. These units can collectively process over 100 million standard cubic feet of gas daily. Represents estimated annual emissions reduction design capacity as calculated by a third-party environmental consultant; actual reductions depend on customer operating conditions.

Our Approach to ESG

DNOW’s Environmental, Social and Governance (ESG) program has evolved alongside the business since the publication of our first sustainability report in 2019. This 2025 report is the first to reflect DNOW and MRC Global as a single organization. The acquisition roughly doubled our workforce, expanded our operational footprint and increased our presence in downstream, gas utility and industrial end markets.

That expansion also changes how we report. We are aligning data systems, reporting processes and metrics the two organizations developed independently; reporting boundaries during this transition are described in Report Boundary below.

The topics and metrics in this report were selected for their relevance to our business, informed by shareholder and stakeholder input gathered through the channels described in Shareholder Engagement (page 12) and by the cross-functional ESG Committee (page 13). As integration progresses, DNOW intends to refresh its assessment of priority sustainability topics to reflect the combined organization's expanded geographic and end-market profile.

Report Boundary

This report aligns with the Sustainability Accounting Standards Board (SASB) Standards and incorporates guidance from the Task Force on Climate-related Financial Disclosures (TCFD). The SASB Index begins on page 48 and the TCFD Index on page 53.

Because 2025 is the first reporting year following the MRC Global acquisition, reporting boundaries vary by data category during the integration period. Environmental data, including greenhouse gas (GHG) emissions and energy consumption, cover the full 2025 calendar year for the combined organization and establish a new consolidated inventory. Prior-year environmental figures reflect legacy DNOW only and are not directly comparable.

Safety, training, workforce and certain other operational metrics are reported for legacy DNOW only unless otherwise noted; legacy MRC Global data for these categories appears in the Appendix (page 60) if available. Future reports are expected to present fully consolidated disclosures across the combined organization.

Our Guiding Principles

Integrity

We hold ourselves to the highest ethical standards in all that we do.

Safety

We act with the highest priority on health and safety in our workplace and communities.

Teamwork

We collaborate with our suppliers, our customers and one another to optimize the sum of all individual efforts, while being active participants in the communities where we live and work.

Excellence

We are passionate about being the best in the industry, making our customers priority one and creating long-term value for our stakeholders.

The information in this report is subject to DNOW's policies and controls governing the disclosure of financial and non-financial information. Financial information is derived from the Company's Form 10-K filed with the SEC on February 26, 2026 and its fourth-quarter 2025 earnings release. Non-financial information has not been subject to third-party assurance. DNOW will obtain independent assurance over its GHG emissions where required and is scoping assurance readiness for future reporting cycles. Questions or feedback regarding this Report may be directed to Investor Relations at ir.dnow.com.

Basis of Presentation for Emissions

DNOW prepared its greenhouse gas (GHG) emissions inventory for the year ended December 31, 2025, in accordance with the GHG Protocol standards and guidance developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD).

Scope 1 emissions are reported in accordance with the GHG Protocol Corporate Accounting and Reporting Standard (revised edition).
Scope 2 emissions are reported in accordance with the GHG Protocol Scope 2 Guidance.

Emissions are reported using the operational control approach, which includes operations where DNOW has the authority to implement operating policies.

To establish a representative baseline for the combined organization, the 2025 GHG inventory includes MRC Global operations for the full calendar year, including the period prior to the acquisition close in November 2025. This approach is consistent with GHG Protocol guidance regarding operational changes and the treatment of base-year emissions.

Unless otherwise noted, prior-year environmental data reflect legacy DNOW operations only and are not directly comparable to the 2025 combined-organization inventory (see Report Boundary, page 7).

DNOW expects its sustainability disclosures to continue evolving as reporting frameworks advance and integration of the combined organization progresses.

Use of Estimates and Estimation Uncertainties

The presentation of non-financial data within this Report requires management to make estimates and assumptions that affect data reported within this Report. DNOW bases our estimates and methodologies on historical experience and trends, available information and various other assumptions that we believe to be reasonable. Emissions data presented are subject to measurement and uncertainties resulting from limitations inherent in the nature of and methods used for determining such data. The selection of different but acceptable measurement techniques can result in materially different measurements. The precision of different measurement techniques may also vary.

Neither DNOW, nor its affiliates or representatives, makes any representation or warranty (express or implied) with respect to the information contained in this Report (including, without limitation, information obtained from third parties) and each of DNOW and their respective affiliates and representatives expressly disclaim any and all liability based on or relating to the information contained in, or errors or omissions from this Report, based on or relating to the reader of this Report, or any other written or oral communications transmitted to the readers of this Report.

Forward-Looking Statements

Certain information contained in this Sustainability Report may constitute forward-looking statements within the meaning of applicable securities laws, including, but not limited to, statements regarding our plans to: move forward with identified climate change opportunities, foster programs regarding diversity and inclusion and plans to seek opportunities to further integrate sustainability factors into investment decisions. Readers are cautioned not to place undue reliance on forward-looking statements, as they are subject to assumptions and known and unknown risks and uncertainties that may cause the actual results, performance or achievements of DNOW to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

The forward-looking statements contained herein are made as of the date of this document. We also describe risks and uncertainties in our reports filed with the SEC, including our Form 10-K for the year-ended December 31, 2025, (under the headings “Note About Forward-Looking Statements” and “Risk Factors” and elsewhere) and our subsequent reports, which are available through the SEC’s EDGAR system at www.sec.gov and on our investor website at ir.dnow.com. DNOW assumes no obligation to update or otherwise revise these forward-looking statements, whether as a result of new information, future events or otherwise.

2025 Sustainability Report: Stronger Together

Message from Our President & CEO