DNOW Inc.

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

For the six months ended June 30, 2026, net cash provided by operating activitieswas $38 million compared to $29 million in the corresponding period of 2025. For the six months ended June 30, 2026, net cash provided by operating activities was primarily driven by a net increase of $31 million in working capital, mainly resulting from decreases in accrued liabilities for severance and legal and professional fees associated with the acquisition of MRC Global, as well as an increase in accounts receivable. These impacts were offset by an increase in accounts payable and a decrease in inventory. For the six months ended June 30, 2025, net cash provided by operating activities was primarily driven by a net increase of $70 million in working capital in 2025. The increase reflected a proactive investment of $28 million in inventory to support customer demand, coupled with $45 million increase in accounts receivable due to revenue growth.

For the six months ended June 30, 2026, net cash used in investing activities was $61 million compared to $16 million in the corresponding period of 2025. For the six months ended June 30, 2026, net cash used in investing activities was primarily related to business acquisitions of $46 million and purchases of property, plant and equipment of $17 million. Net cash used in investing activities in the corresponding period of 2025 was primarily related to purchases of property, plant and equipment of $10 million and business acquisitions of $8 million.

For the six months ended June 30, 2026, net cash used in financing activities was $24 million compared to $40 million in the corresponding period of 2025. For the six months ended June 30, 2026, net cash used in financing activities primarily related to share repurchases of $75 million and shares withheld for taxes for employee awards of $5 million, partially offset by net borrowings under the revolving credit facility of $63 million. Net cash used in financing activities in the corresponding period of 2025 was primarily related to share repurchases of $27 million and shares withheld for taxes for employee awards of $8 million.