The mixed results (revenue beat vs EPS miss) suggest the market will focus on the dilutive impact of the MRC merger and ERP issues. Monitor the upcoming conference call for synergy update and guidance. Elevated net debt (2.3x leverage) limits buyback capacity despite $50M repurchase.
Price Chart
Executive Summary
DNOW reported Q1 2026 revenue of $1.183B (beat consensus of $1.07B by 10.6%) but adjusted EPS of $0.01 missed estimates of $0.06 (-83.3%). GAAP net loss was $44M, driven by integration costs and ERP transition headwinds. Adjusted EBITDA margin fell to 3.3% from 7.7% a year ago, reflecting ongoing challenges from the MRC Global merger.
Key Financial Metrics
Key Facts
- Revenue $1.183B vs $599M YoY (+97.5%, primarily from MRC Global acquisition)
- Adjusted EPS $0.01 vs consensus $0.06 (miss of $0.05)
- GAAP net loss attributable to DNOW Inc. $(44)M or $(0.24) per diluted share
- Adjusted EBITDA $39M (3.3% of revenue) vs $46M (7.7%) in prior Q1
- Repurchased $50M of common stock during the quarter
- Completed acquisition of Edge Controls for $46M
- Cash used in operating activities $95M; net debt leverage ratio 2.3x
Financial Impact
Revenue beat by ~$113M, but adjusted EPS missed by $0.05. Net loss of $44M indicates ongoing integration costs.
Risk Factors
- Integration risks from MRC Global merger and ERP conversion
- Sustained adjusted EBITDA margin compression below 4%
- Further dilution from share issuance if debt refinancing needed
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-210260 |
| Document: dnow-20260507.htm | 0001193125-26-210260 |
| Document: 0001193125-26-210260-index-headers.html | 0001193125-26-210260 |
| Document: 0001193125-26-210260-index.html | 0001193125-26-210260 |
| Document: 0001193125-26-210260.txt | 0001193125-26-210260 |
| 8-K Data (Synthetic) | 0001193125-26-210260 |
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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