DNOW Reports Q4 Earnings: Revenue Misses Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy DNOW?
Source: seekingalpha
- Earnings Overview: DNOW's Q4 non-GAAP EPS stands at $0.15, aligning with expectations, indicating stability in the company's profitability.
- Revenue Growth: The revenue reached $959 million, marking a 68.0% year-over-year increase, yet it fell short of expectations by $10.5 million, reflecting volatility in market demand.
- Adjusted EBITDA: The adjusted EBITDA was $61 million, representing 6.4% of revenue, showcasing ongoing efforts in cost control and operational efficiency.
- Cash Flow Performance: Cash provided by operating activities amounted to $83 million, indicating a healthy cash management position that supports future investment and expansion plans.
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Analyst Views on DNOW
Wall Street analysts forecast DNOW stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 16.170
Low
16.00
Averages
17.67
High
19.00
Current: 16.170
Low
16.00
Averages
17.67
High
19.00
About DNOW
DNOW Inc. is a premier energy and industrial solutions provider. It supplies energy and industrial products and packaged, engineered process and production equipment. The Company is a distributor of pipe, valves, fittings (PVF), pumps and fabricated equipment. Its products and services include air compressors and blowers; artificial lift; drilling and completions; electrical; industrial and facilities supplies; instrumentation and measurement; paint and coatings; PVF; power generation and transmission; process and production equipment; pumps and packages; safety and PPE, and tools and welding equipment. Its DigitalNOW platform and supply chain services address intricate operational challenges, bolstered with support from procurement and inventory management to field services. It serves a range of markets, including upstream, midstream and downstream oil and gas, chemical processing, mining, municipal water, manufacturing, engineering, energy evolution and renewables.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
DNOW Scheduled to Announce Q4 Earnings on February 20
- Earnings Announcement Date: DNOW is set to release its Q4 2023 earnings on February 20 before market open, with consensus EPS estimate at $0.15, reflecting a 40% year-over-year decline, while revenue is expected to reach $969.5 million, indicating a robust 69.8% year-over-year growth, showcasing the company's strong revenue performance.
- Historical Performance Review: Over the past two years, DNOW has beaten EPS estimates 75% of the time and revenue estimates 50% of the time, indicating a level of stability and reliability in its financial performance that may bolster investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen no upward revisions and two downward adjustments, while revenue estimates experienced two upward revisions with no downward changes, suggesting a market optimism regarding DNOW's future revenue growth and confidence in its post-acquisition integration capabilities.
- Rating Upgrade Impact: Following the MRC acquisition, Susquehanna upgraded DNOW's rating, reflecting a positive market sentiment towards its improving fundamentals, which could attract more investor interest and potentially drive the stock price higher.
See More
DNOW Reports 2025 Earnings and Merger Progress
- Merger Success: DNOW completed its all-stock merger with MRC Global on November 6, 2025, with first-year cost savings projected at $23 million, exceeding targets by 35%, laying a solid foundation for future business integration.
- Financial Performance Review: Total revenue for 2025 reached $2.82 billion with a gross profit of $478 million, translating to a 17% gross margin; despite a net loss of $89 million, adjusted net income stood at $104 million, showcasing resilience amid challenges.
- Cash Flow and Share Buybacks: In 2025, DNOW generated $155 million in cash from operating activities and repurchased $37 million in common stock, reflecting a proactive strategy in liquidity management and shareholder returns.
- Future Outlook and Challenges: While facing short-term challenges related to the MRC Global ERP system transition, DNOW remains committed to long-term growth, with the CEO emphasizing targeted actions to address complexities and ensure sustained business development.
See More
DNOW Reports Q4 Earnings: Revenue Misses Expectations
- Earnings Overview: DNOW's Q4 non-GAAP EPS stands at $0.15, aligning with expectations, indicating stability in the company's profitability.
- Revenue Growth: The revenue reached $959 million, marking a 68.0% year-over-year increase, yet it fell short of expectations by $10.5 million, reflecting volatility in market demand.
- Adjusted EBITDA: The adjusted EBITDA was $61 million, representing 6.4% of revenue, showcasing ongoing efforts in cost control and operational efficiency.
- Cash Flow Performance: Cash provided by operating activities amounted to $83 million, indicating a healthy cash management position that supports future investment and expansion plans.
See More
DNOW Reports Strong Q4 and Full-Year 2025 Results Post-MRC Global Merger
- Significant Revenue Growth: DNOW generated $2.8 billion in revenue for 2025, a 19% increase from 2024, with Adjusted EBITDA representing 7.4% of revenues, indicating strong momentum post-merger.
- Successful Merger Strategy: The merger with MRC Global not only expands DNOW's market opportunities but also strategically positions the company for long-term success, with early integration efforts showing promise for creating substantial value.
- Addressing Challenges: Despite facing near-term challenges related to the U.S. MRC Global ERP system transition, DNOW has implemented targeted actions to tackle these complexities, ensuring the company's long-term growth potential into 2026 and beyond.
- Increased Shareholder Equity: As of December 31, 2025, DNOW's shareholder equity reached $2.233 billion, a 98% increase from 2024, reflecting significant improvements in the company's financial health and market competitiveness.
See More
U.S. Stocks Decline as Fear Index Rises, Market Sentiment Weakens
- Fear Index Rises: The CNN Money Fear & Greed Index registered at 38.5 on Thursday, remaining in the 'Fear' zone and slightly down from 39, indicating heightened market anxiety that could lead to increased risk aversion among investors.
- Stock Market Weakness: The Dow Jones fell over 250 points, closing at 49,395.16, while the S&P 500 dropped 0.28% to 6,861.89, and the Nasdaq Composite declined 0.31% to 22,682.73, reflecting investor concerns over potential military intervention in Iran.
- Widening Trade Deficit: The U.S. trade deficit expanded to $70.3 billion in December from $53 billion, significantly exceeding market expectations of a $55.5 billion gap, suggesting pressures in the international trade environment that could negatively impact economic growth.
- Jobless Claims Decline: Initial jobless claims in the U.S. decreased by 23,000 to 206,000 during the second week of February, below market estimates of 225,000, indicating a relatively strong labor market that may support economic recovery.
See More
DNOW Inc. to Report Q4 Earnings on Feb 20, Analysts Expect 15 Cents EPS
- Earnings Release Date: DNOW Inc. is set to release its fourth-quarter earnings before the market opens on February 20, with analysts projecting a decline in earnings per share from 25 cents last year to 15 cents, indicating potential profitability challenges for the company.
- Revenue Expectations: Analysts estimate DNOW's quarterly revenue will reach $969.5 million, a significant increase from $571 million in the same period last year, highlighting the company's sales recovery capabilities, although the decline in earnings raises concerns about profitability.
- Stock Performance: As of Thursday, DNOW shares rose by 1.2% to close at $16.36, reflecting cautious optimism among investors regarding the company's future performance despite the downward revision in earnings expectations, suggesting confidence in potential recovery.
- Analyst Ratings: The latest analyst ratings from Benzinga indicate a diverse outlook on DNOW stock, with investors encouraged to access the analyst ratings page for detailed insights, reflecting the market's keen interest in the company's future developments.
See More
DNOW Scheduled to Announce Q4 Earnings on February 20
- Earnings Announcement Date: DNOW is set to release its Q4 2023 earnings on February 20 before market open, with consensus EPS estimate at $0.15, reflecting a 40% year-over-year decline, while revenue is expected to reach $969.5 million, indicating a robust 69.8% year-over-year growth, showcasing the company's strong revenue performance.
- Historical Performance Review: Over the past two years, DNOW has beaten EPS estimates 75% of the time and revenue estimates 50% of the time, indicating a level of stability and reliability in its financial performance that may bolster investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen no upward revisions and two downward adjustments, while revenue estimates experienced two upward revisions with no downward changes, suggesting a market optimism regarding DNOW's future revenue growth and confidence in its post-acquisition integration capabilities.
- Rating Upgrade Impact: Following the MRC acquisition, Susquehanna upgraded DNOW's rating, reflecting a positive market sentiment towards its improving fundamentals, which could attract more investor interest and potentially drive the stock price higher.
See More
DNOW Reports 2025 Earnings and Merger Progress
- Merger Success: DNOW completed its all-stock merger with MRC Global on November 6, 2025, with first-year cost savings projected at $23 million, exceeding targets by 35%, laying a solid foundation for future business integration.
- Financial Performance Review: Total revenue for 2025 reached $2.82 billion with a gross profit of $478 million, translating to a 17% gross margin; despite a net loss of $89 million, adjusted net income stood at $104 million, showcasing resilience amid challenges.
- Cash Flow and Share Buybacks: In 2025, DNOW generated $155 million in cash from operating activities and repurchased $37 million in common stock, reflecting a proactive strategy in liquidity management and shareholder returns.
- Future Outlook and Challenges: While facing short-term challenges related to the MRC Global ERP system transition, DNOW remains committed to long-term growth, with the CEO emphasizing targeted actions to address complexities and ensure sustained business development.
See More
DNOW Reports Q4 Earnings: Revenue Misses Expectations
- Earnings Overview: DNOW's Q4 non-GAAP EPS stands at $0.15, aligning with expectations, indicating stability in the company's profitability.
- Revenue Growth: The revenue reached $959 million, marking a 68.0% year-over-year increase, yet it fell short of expectations by $10.5 million, reflecting volatility in market demand.
- Adjusted EBITDA: The adjusted EBITDA was $61 million, representing 6.4% of revenue, showcasing ongoing efforts in cost control and operational efficiency.
- Cash Flow Performance: Cash provided by operating activities amounted to $83 million, indicating a healthy cash management position that supports future investment and expansion plans.
See More
DNOW Reports Strong Q4 and Full-Year 2025 Results Post-MRC Global Merger
- Significant Revenue Growth: DNOW generated $2.8 billion in revenue for 2025, a 19% increase from 2024, with Adjusted EBITDA representing 7.4% of revenues, indicating strong momentum post-merger.
- Successful Merger Strategy: The merger with MRC Global not only expands DNOW's market opportunities but also strategically positions the company for long-term success, with early integration efforts showing promise for creating substantial value.
- Addressing Challenges: Despite facing near-term challenges related to the U.S. MRC Global ERP system transition, DNOW has implemented targeted actions to tackle these complexities, ensuring the company's long-term growth potential into 2026 and beyond.
- Increased Shareholder Equity: As of December 31, 2025, DNOW's shareholder equity reached $2.233 billion, a 98% increase from 2024, reflecting significant improvements in the company's financial health and market competitiveness.
See More
U.S. Stocks Decline as Fear Index Rises, Market Sentiment Weakens
- Fear Index Rises: The CNN Money Fear & Greed Index registered at 38.5 on Thursday, remaining in the 'Fear' zone and slightly down from 39, indicating heightened market anxiety that could lead to increased risk aversion among investors.
- Stock Market Weakness: The Dow Jones fell over 250 points, closing at 49,395.16, while the S&P 500 dropped 0.28% to 6,861.89, and the Nasdaq Composite declined 0.31% to 22,682.73, reflecting investor concerns over potential military intervention in Iran.
- Widening Trade Deficit: The U.S. trade deficit expanded to $70.3 billion in December from $53 billion, significantly exceeding market expectations of a $55.5 billion gap, suggesting pressures in the international trade environment that could negatively impact economic growth.
- Jobless Claims Decline: Initial jobless claims in the U.S. decreased by 23,000 to 206,000 during the second week of February, below market estimates of 225,000, indicating a relatively strong labor market that may support economic recovery.
See More
DNOW Inc. to Report Q4 Earnings on Feb 20, Analysts Expect 15 Cents EPS
- Earnings Release Date: DNOW Inc. is set to release its fourth-quarter earnings before the market opens on February 20, with analysts projecting a decline in earnings per share from 25 cents last year to 15 cents, indicating potential profitability challenges for the company.
- Revenue Expectations: Analysts estimate DNOW's quarterly revenue will reach $969.5 million, a significant increase from $571 million in the same period last year, highlighting the company's sales recovery capabilities, although the decline in earnings raises concerns about profitability.
- Stock Performance: As of Thursday, DNOW shares rose by 1.2% to close at $16.36, reflecting cautious optimism among investors regarding the company's future performance despite the downward revision in earnings expectations, suggesting confidence in potential recovery.
- Analyst Ratings: The latest analyst ratings from Benzinga indicate a diverse outlook on DNOW stock, with investors encouraged to access the analyst ratings page for detailed insights, reflecting the market's keen interest in the company's future developments.
See More
