10-K · February 26, 2026
DNOW completed the all-stock acquisition of MRC Global on November 6, 2025 and reported FY2025 revenue of $2.82 billion (sum of quarterly revenue), up from $2.373 billion in FY2024. Q4 integration-related disruption…
Earnings analysis · 10-Q
DNOW earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
DNOW's Q1 2026 results show a dramatic revenue increase to $1.183 billion, representing a 97.5% rise from Q1 2025. However, the company reported a diluted EPS loss of -$0.24 due to high operational costs, particularly…
Read full summary
DNOW's Q1 2026 results show a dramatic revenue increase to $1.183 billion, representing a 97.5% rise from Q1 2025. However, the company reported a diluted EPS loss of -$0.24 due to high operational costs, particularly from the MRC Global acquisition. Despite the challenges, management remains optimistic about future revenue synergies and growth opportunities in energy transition projects.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.24
- Gross margin
- 16.3%
What stood out
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Revenue Growth vs. Prior Quarter
Revenue for Q1 2026 reached $1,183 million, up from $599 million in Q1 2025, a 97.5% increase.
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Canada Segment Revenue Decline
Canada segment revenue fell 17.7% to $51 million compared to Q1 2025.
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Midstream Sector Robust Performance
Midstream revenue surged 70% year-over-year, driven by growing demand for infrastructure.
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Significantly Increased SG&A Expenses
SG&A expenses rose to $243 million, up by $134 million primarily from the MRC Global acquisition.
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High Operating Loss
Operating loss for Q1 2026 was $50 million, compared to a profit of $29 million in Q1 2025.
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Increased Working Capital Usage
Net cash used in operating activities was $95 million, a significant increase from $16 million in Q1 2025.
What to watch
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Net Loss Attributable to DNOW
Net loss attributable to DNOW Inc. was $44 million for Q1 2026, compared to a profit of $21 million in Q1 2025.
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Substantial Debt Post-Acquisition
As of March 31, 2026, DNOW has $571 million in borrowings against its $850 million revolving credit facility.
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Operational Integration Costs
Acquisition impacts led to $10 million in other expenses and a $16 million increase in working capital needs.
Management's outlook
Management expects operational adjustments and energy transition investments to improve future revenue.
Earlier filings 4
10-Q · November 5, 2025
DNOW reported revenue of $634.0M in Q3 2025, up from $606.0M in Q3 2024, with gross margin expanding to ~22.9% and operating profit rising to $33M. Diluted EPS was $0.23 (vs $0.12 in Q3 2024). Balance sheet shows…
10-Q · August 6, 2025
DNOW reported Q2 revenue of $628 million, a slight decrease of $5 million (-0.8%) versus Q2 2024 revenue of $633 million, while diluted EPS rose to $0.23 from $0.21. Gross margin expanded to 22.9% (gross profit $144…
10-Q · May 7, 2025
DNOW reported Q1 revenue of $599.0M (up $36.0M or 6.4% vs. Q1 2024 revenue of $563.0M) with operating profit of $30.0M (vs. $28.0M) and diluted EPS of $0.20 (vs. $0.19). Gross margin ticked up to ~23.2% from ~22.9% a…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.