DNOW earnings analysis
What we found in DNOW's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth vs. Prior Quarter
- Revenue for Q1 2026 reached $1,183 million, up from $599 million in Q1 2025, a 97.5% increase.
- Canada Segment Revenue Decline
- Canada segment revenue fell 17.7% to $51 million compared to Q1 2025.
- Midstream Sector Robust Performance
- Midstream revenue surged 70% year-over-year, driven by growing demand for infrastructure.
- Significantly Increased SG&A Expenses
- SG&A expenses rose to $243 million, up by $134 million primarily from the MRC Global acquisition.
- High Operating Loss
- Operating loss for Q1 2026 was $50 million, compared to a profit of $29 million in Q1 2025.
- Increased Working Capital Usage
- Net cash used in operating activities was $95 million, a significant increase from $16 million in Q1 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- Substantial Debt Post-Acquisition
- As of March 31, 2026, DNOW has $571 million in borrowings against its $850 million revolving credit facility.
- Operational Integration Costs
- Acquisition impacts led to $10 million in other expenses and a $16 million increase in working capital needs.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.24
- Gross margin
- 16.3%
- Segment
- U.S. Segment: $985 million
- Segment
- Canada Segment: $51 million
- Segment
- International Segment: $147 million
What they said about what is next.
Management expects operational adjustments and energy transition investments to improve future revenue.
The filing reads worse than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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