DNOW (NYSE:DNOW) Issues Earnings Results

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

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 Price Performance

DNOW stock traded down $3.12 during mid-day trading on Friday, reaching $13.24. The company had a trading volume of 4,599,087 shares, compared to its average volume of 2,362,857. DNOW has a 52 week low of $12.01 and a 52 week high of $17.83. The company has a market capitalization of $1.39 billion, a price-to-earnings ratio of 15.19 and a beta of 0.79. The stock has a 50 day simple moving average of $14.60 and a two-hundred day simple moving average of $14.64.

Analysts Set New Price Targets

Several analysts have commented on the stock. Wall Street Zen upgraded shares of DNOW from a “buy” rating to a “strong-buy” rating in a research report on Saturday, February 14th. Stifel Nicolaus reissued a “buy” rating and issued a $18.00 target price on shares of DNOW in a research note on Monday, November 24th. Zacks Research upgraded DNOW from a “hold” rating to a “strong-buy” rating in a research report on Thursday, January 1st. KeyCorp set a $19.00 price target on shares of DNOW in a research report on Thursday, December 18th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of DNOW in a report on Monday, December 29th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, DNOW has an average rating of “Buy” and a consensus target price of $17.67.

Institutional Investors Weigh In On DNOW

A number of institutional investors have recently modified their holdings of DNOW. Wellington Management Group LLP raised its holdings in DNOW by 187.2% in the 4th quarter. Wellington Management Group LLP now owns 10,813,205 shares of the oil and gas company’s stock valued at $143,275,000 after buying an additional 7,048,382 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in DNOW by 60.8% in the fourth quarter. Dimensional Fund Advisors LP now owns 10,374,585 shares of the oil and gas company’s stock valued at $137,466,000 after purchasing an additional 3,920,731 shares during the period. Boston Partners raised its position in DNOW by 66.0% during the 4th quarter. Boston Partners now owns 7,859,416 shares of the oil and gas company’s stock worth $104,171,000 after purchasing an additional 3,124,280 shares during the last quarter. State Street Corp boosted its holdings in DNOW by 81.8% in the fourth quarter. State Street Corp now owns 7,440,738 shares of the oil and gas company’s stock valued at $98,590,000 after acquiring an additional 3,347,335 shares during the last quarter. Finally, Renaissance Technologies LLC boosted its stake in shares of DNOW by 42.4% in the 4th quarter. Renaissance Technologies LLC now owns 5,394,325 shares of the oil and gas company’s stock valued at $71,475,000 after purchasing an additional 1,605,411 shares during the last quarter. Institutional investors own 97.63% of the company’s stock.

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.