The strong cash generation and deleveraging are credit-positive signals. Monitor the integration of MRC Global and the trajectory of non-cash charges (LIFO, amortization) which are masking underlying profitability. The $75M YTD buyback signals management confidence.
Price Chart
Executive Summary
DNOW reported Q2 2026 adjusted EPS of $0.12, beating consensus of $0.09 by 33%, on revenue of $1.307B vs $1.27B consensus. Revenue surged 108% YoY to $1.307B, driven by the MRC Global acquisition, while adjusted EBITDA rose 54% sequentially to $60M. The company generated $133M in operating cash flow and reduced net debt leverage to 1.7x, but GAAP net loss was ($21M) due to $44M in non-cash charges (LIFO, amortization, transaction costs). The strong cash generation and deleveraging are credit-positive, but the GAAP loss and heavy non-cash adjustments temper the headline beat.
Key Financial Metrics
Key Facts
- Revenue of $1,307M, up 108% YoY from $628M, driven by the MRC Global acquisition
- Adjusted EPS of $0.12 beat consensus of $0.09 by 33%
- Adjusted EBITDA of $60M, up 54% sequentially from $39M in Q1 2026
- Operating cash flow of $133M, a record second-quarter achievement
- Net debt leverage ratio improved to 1.7x from 2.3x at Q1 2026
- GAAP net loss of ($21M) due to $44M in non-cash charges (LIFO reserve $19M, amortization $7M, transaction costs $6M, impairment $4M)
- Repurchased $25M of common stock in Q2, $75M YTD under $160M buyback program
Financial Impact
Revenue up 108% YoY to $1.307B; adjusted EBITDA up 54% sequentially to $60M; net debt reduced by $95M to $360M
Risk Factors
- GAAP net loss of ($21M) persists due to large non-cash charges
- Integration risks from the MRC Global acquisition
- High YoY revenue growth is largely acquisition-driven, not organic
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-336651 |
| Document: dnow-20260806.htm | 0001193125-26-336651 |
| Document: 0001193125-26-336651-index-headers.html | 0001193125-26-336651 |
| Document: 0001193125-26-336651-index.html | 0001193125-26-336651 |
| Document: 0001193125-26-336651.txt | 0001193125-26-336651 |
| 8-K Data (Synthetic) | 0001193125-26-336651 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 12, 2026 7w ago | Insider Cluster | $16.31 $15.65 | ▼ −4.05% | ▼ −2.30% | $15.28 (−6.32%) |
Aug 10, 2026 7w ago | 144 | $16.66 $16.14 | ▼ −3.12% | ▼ −2.06% | $15.28 (−8.28%) |
Aug 6, 2026 8w ago | 8-K | $15.39 $15.80 | ▲ +2.66% | ▲ +2.06% | $15.28 (−0.71%) |
Jul 30, 2026 9w ago | Press Release | $13.74 $16.28 | ▼ −18.49% | ▼ −14.52% | $15.28 (−11.21%) |
Jun 16, 2026 15w ago | Institutional Cluster | $13.49 $13.12 | ▼ −2.74% | ▼ −2.94% | $15.28 (+13.27%) |
Jun 11, 2026 16w ago | Institutional Cluster | $13.66 $12.84 | ▼ −6.00% | ▼ −7.89% | $15.28 (+11.86%) |
May 7, 2026 21w ago | 8-K | $13.05 $13.23 | ▲ +1.38% | ▼ −1.76% | $15.28 (+17.09%) |
Apr 9, 2026 25w ago | DEFA14A | $12.25 $13.50 | ▲ +10.20% | ▲ +2.64% | $15.28 (+24.73%) |
US Market Status
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