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 nine months ended September 30, 2026, net cash provided by operating activitieswas $158 million, compared to $72 million provided in the corresponding period of 2025. The increase in net cash provided by operating activities was primarily attributable to a net reduction in working capital of $77 million, driven primarily by lower inventory levels, higher accounts payable balances and improved collections of accounts receivable compared to the corresponding period of 2025, partially offset by reductions in accrued liabilities related to severance costs and legal and professional fees associated with the acquisition of MRC Global. For the nine months ended September 30, 2025, net cash provided by operating activities was primarily driven by net income adjusted for non-cash items, including depreciation and amortization, changes in LIFO reserve, deferred income taxes and stock-based compensation, partially offset by a net decrease in working capital, primarily attributable to a proactive investment of $24 million in inventory to support customer demand, coupled with $35 million increase in accounts receivable due to revenue growth.

For the nine months ended September 30, 2026, net cash used in investing activities was $71 million, compared to $19 million used in the corresponding period of 2025. For the nine months ended September 30, 2026, the increase in net cash used in investing activities compared to the corresponding period of 2025 was primarily related to an increase in cash paid for business acquisitions of $38 million and higher 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 $14 million and business acquisitions of $8 million.

For the nine months ended September 30, 2026, net cash used in financing activities was $137 million, compared to $45 million used in the corresponding period of 2025. The increase in net cash used in financing activities was primarily attributable to a $65 million increase in share repurchases and $34 million of net payments under the revolving credit facility compared to the corresponding period of 2025. Net cash used in financing activities for the corresponding period of 2025 was primarily attributable to share repurchases of $27 million and shares withheld for taxes for employee awards of $8 million.