Earnings Per Share ("EPS")

12 Months Ended

Dec. 31, 2024

18. Earnings Per Share (“EPS”)

Basic EPS is based on net income attributable to the Company’s earnings and is calculated based upon the daily weighted-average number of common shares outstanding during the periods presented. Diluted EPS includes the above, plus unvested restricted stock awards, unvested restricted units, unvested performance stock awards, and unexercised stock options, to the extent these instruments dilute EPS.

For the years ended December 31, 2024, 2023 and 2022, a total of less than 1 million, 1 million and 2 million, respectively, of dilutive shares were excluded from the computation of diluted earnings per share due to their antidilutive effect.

Basic and diluted EPS are as follows (in millions, except share data):


	Year Ended December 31,
	2024			2023			2022
Numerator:
Net income attributable to DNOW Inc.	$	81		$	247		$	128
Less: net income attributable to participating securities		(1	)		(4	)		(2	)
Net income attributable to DNOW Inc. stockholders	$	80		$	243		$	126
Denominator:
Weighted average basic common shares outstanding		106,354,586			107,395,890			110,676,078
Effect of dilutive securities		793,824			1,026,865			548,311
Weighted average diluted common shares outstanding		107,148,410			108,422,755			111,224,389
Earnings per share attributable to DNOW Inc. stockholders:
Basic	$	0.75		$	2.26		$	1.14
Diluted	$	0.74		$	2.24		$	1.13

Under ASC Topic 260, “Earnings Per Share,” the two-class method requires a portion of net income attributable to DNOW Inc. to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends or dividend equivalents, if declared. Net income attributable to these participating securities was excluded from net income attributable to DNOW Inc. stockholders in the numerator of the earnings per share computation.