11. Earnings Per Share

For the three months ended March 31, 2025 and 2024, 1 million of shares in both periods were excluded from the computation of diluted earnings per share due to their antidilutive effect.

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


	Three months ended March 31,
	2025			2024
Numerator:
Net income attributable to DNOW Inc.	$	22		$	21
Less: net income attributable to participating securities		(1	)		—
Net income attributable to DNOW Inc. stockholders	$	21		$	21
Denominator:
Weighted average basic common shares outstanding		105,976,409			106,445,323
Effect of dilutive securities		767,580			902,398
Weighted average diluted common shares outstanding		106,743,989			107,347,721
Earnings per share attributable to DNOW Inc. stockholders:
Basic	$	0.20		$	0.20
Diluted	$	0.20		$	0.19

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.