DNOW (NYSE:DNOW) Issues Quarterly Earnings Results, Meets Estimates

DNOW (NYSE:DNOW) posted its earnings results on Friday. The oil and gas company reported $0.15 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.15, FiscalAI reports. The company had revenue of $959.00 million during the quarter, compared to analysts’ expectations of $969.50 million. DNOW had a net margin of 3.91% and a return on equity of 9.35%. DNOW’s quarterly revenue was up 68.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.25 earnings per share.

Here are the key takeaways from DNOW’s conference call:

• The company completed the merger with MRC Global (Nov 6, 2025), creating a larger, more diversified platform and is on track for accelerated cost synergies—expecting $23 million of savings in year one and targeting $70 million within three years.
• Persistent ERP implementation issues in U.S. MRC Global (Oracle) materially disrupted Q3–Q4 revenue and operations—management is executing remediation (migrating select locations to DNOW SAP, help desk, added field staff) and has suspended guidance until stabilization.
• Consolidated results show strong scale-driven growth with Q4 revenue of $959 million (+51% QoQ) and full-year 2025 revenue of $2.8 billion (+19%), while legacy DNOW delivered a record full-year EBITDA of $199 million (8.2% margin); liquidity remains solid with $588 million available and net leverage ~1.2x.
• Q4 reported a net loss of $147 million largely due to one-time merger-related charges, including ~$135 million inventory step-up, ~$50 million transaction costs, and $12 million CTA reclassification, although adjusted net income was $23 million ($0.15/share).
• Capital allocation priorities emphasize integration and targeted investments (midstream, gas utilities, data centers), deleveraging toward net cash, selective M&A to bolster pumps/process solutions, and opportunistic share repurchases under a reactivated $160 million program (?$37 million repurchased YTD).

DNOW Trading Down 19.1%

Shares of NYSE:DNOW opened at $13.24 on Friday. DNOW has a 1-year low of $12.01 and a 1-year high of $17.83. The stock has a market capitalization of $1.39 billion, a P/E ratio of -45.64 and a beta of 0.79. The business has a 50-day moving average price of $14.58 and a two-hundred day moving average price of $14.62.

Institutional Investors Weigh In On DNOW

A number of institutional investors and hedge funds have recently modified their holdings of DNOW. Quantinno Capital Management LP raised its position in shares of DNOW by 7.0% during the 2nd quarter. Quantinno Capital Management LP now owns 24,858 shares of the oil and gas company’s stock valued at $369,000 after acquiring an additional 1,634 shares during the last quarter. Freestone Grove Partners LP acquired a new stake in shares of DNOW during the fourth quarter worth $296,000. Public Employees Retirement Association of Colorado increased its holdings in DNOW by 77.3% in the fourth quarter. Public Employees Retirement Association of Colorado now owns 27,118 shares of the oil and gas company’s stock valued at $359,000 after purchasing an additional 11,827 shares during the last quarter. Amundi lifted its stake in DNOW by 12.9% in the third quarter. Amundi now owns 19,640 shares of the oil and gas company’s stock valued at $312,000 after buying an additional 2,238 shares during the period. Finally, Cetera Investment Advisers lifted its stake in DNOW by 102.5% in the fourth quarter. Cetera Investment Advisers now owns 22,155 shares of the oil and gas company’s stock valued at $294,000 after buying an additional 11,215 shares during the period. 97.63% of the stock is owned by institutional investors.

More DNOW News

Here are the key news stories impacting DNOW this week:

• Positive Sentiment: Big top?line growth — revenue rose ~68% YoY, reflecting strong sales expansion compared with Q4 last year. Business Wire: Q4 and Full?Year Results
• Neutral Sentiment: EPS met Street expectations at $0.15, avoiding an outright earnings miss; management hosted an earnings call and provided a slide deck for investors to review. MarketBeat: Earnings / Call Materials
• Neutral Sentiment: Earnings call transcript and summaries are available for details on execution, backlog and working capital — useful to parse whether growth is sustainable. Seeking Alpha: Call Transcript
• Negative Sentiment: Revenue missed consensus by roughly $10.5M ($959.0M vs. $969.5M), a modest shortfall that likely weighed on sentiment. Yahoo Finance: Misses Sales Expectations
• Negative Sentiment: Market commentary highlighted a swing to a loss on the period (appearance of weaker profitability metrics), which triggered an intraday share selloff and higher trading volume. MarketWatch: Shares Drop After Swing to Loss
• Negative Sentiment: Share technicals look pressured: the stock is trading below its 50? and 200?day moving averages and volume is well above average today, amplifying downside momentum. MarketBeat: Price & Volume Snapshot
• Neutral Sentiment: What to watch next: management’s Q1 guidance and margin outlook, free cash flow and working capital trends, backlog/booking commentary from the call, and whether analysts adjust estimates after the minor revenue miss. Yahoo: Call Summary

Analyst Ratings Changes

Several analysts have recently commented on the company. KeyCorp set a $19.00 target price on DNOW in a report on Thursday, December 18th. Wall Street Zen raised shares of DNOW from a “buy” rating to a “strong-buy” rating in a report on Saturday, February 14th. Stifel Nicolaus restated a “buy” rating and issued a $18.00 price objective on shares of DNOW in a research report on Monday, November 24th. Susquehanna raised shares of DNOW from a “neutral” rating to a “positive” rating and set a $16.00 target price for the company in a research note on Friday, November 21st. Finally, Zacks Research raised shares of DNOW from a “hold” rating to a “strong-buy” rating in a research note on Thursday, January 1st. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $17.67.

About DNOW

DistributionNOW (NYSE: DNOW) is a global distributor of energy and industrial products, serving a broad range of end-markets including oil and gas, petrochemical, power generation, and industrial manufacturing. Headquartered in Houston, Texas, the company provides solutions across the life cycle of energy and industrial assets, with an emphasis on safety, reliability and operational efficiency.

The company’s core product portfolio includes piping systems and related components (such as valves, fittings, flanges and gaskets), instrumentation, electrical and automation equipment, fasteners, industrial safety supplies, chemicals and composite products.