DNOW Inc.

The following table summarizes our net cash flows (used in) provided by operating activities, investing activities and financing activities for the periods presented (in millions):

For the three months ended March 31, 2026, net cash used in operating activitieswas $95 million compared to $16 million net cash used in operating activities in the corresponding period of 2025. For the three months ended March 31, 2026, net cash used in operating activities was primarily driven by a net decrease of $115 million in working capital in 2026. The decrease in working capital primarily related to a decrease in accrued liabilities for severance and legal and professional fees associated with the acquisition of MRC Global, along with increases in accounts receivable and inventory and a reduction in income taxes payable. For the three months ended March 31, 2025, net cash used in operating activities was primarily driven by a net decrease of $65 million in working capital in 2025. The decrease in working capital primarily related to a proactive investment of $32 million in inventory to support customer demand, coupled with $52 million growth in accounts receivable due to revenue growth and timing of collections.

For the three months ended March 31, 2026, net cash used in investing activities was $53 million compared to $5 million net cash used in investing activities in the corresponding period of 2025. For the three months ended March 31, 2026, net cash used in investing activities was primarily related to business acquisitions of $46 million and purchases of property, plant and equipment of $8 million. Net cash used in investing activities in the corresponding period of 2025 was primarily related to purchases of property, plant and equipment of $6 million.

For the three months ended March 31, 2026, net cash provided by financing activities was $101 million compared to $17 million net cash used in financing activities in the corresponding period of 2025. For the three months ended March 31, 2026, net cash provided by financing activities primarily related to net borrowings under the revolving credit facility of $160 million, partially offset by share repurchases of $50 million and shares withheld for taxes for employee awards of $5 million. Net cash used in financing activities in the corresponding period of 2025 was primarily related to share repurchases of $8 million and shares withheld for taxes for employee awards of $7 million.