DNOW
DNOW Inc.13.78
-0.30-2.13%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
ERP details, flattish outlook
Q&A unpacked MRC U.S. ERP glitches causing steeper-than-expected Q4 revenue drops in upstream and downstream—versus prior mid-high single-digit growth guide—while gas utilities stayed stable; mitigations include 200 extra field staff, help desks, and fast-tracking SAP migrations for 20 locations. Management sees flattish 2026 organic revenue, balanced by accelerating year-one cost synergies to $23M and $100M-$200M FCF. Sector views refined: upstream flat but water management up, midstream strong. Analysts grilled ERP timing; execs coped via 'sheer force' but eyed next call for visibility. Watch system stabilization for thesis.
Key Stats
Market Cap
2.56BP/E (TTM)
15.84Basic EPS (TTM)
0.87Dividend Yield
0%Recent Filings
8-K
Eads exits DNOW board
DNOW Inc. board member Rodney Eads notified the company on February 25, 2026, of his intent not to stand for reelection at the 2026 annual stockholders' meeting, ending his term then. No disagreements exist with the company on operations, policies, or practices. Board thanks him for service. Smooth transition ahead.
10-K
FY2025 results
DNOW's FY2025 revenue climbed 18.8% to $2.82B, fueled by the November MRC Global acquisition that boosted U.S. sales 22% to $2.29B while Canada dipped 15% on rig declines. Q4 momentum shone through integration synergies, yet GAAP operating loss hit $93M from $135M inventory step-up charges and LIFO's $27M drag—Adjusted EBITDA held steady at 7.4%. Acquisitions drove $574M cash outlay, offset by $411M revolver draw; $424M remains available. Share buybacks totaled $37M, $123M authorized left. MRC ERP stabilization challenges risk quarterly disruptions.
8-K
DNOW-MRC merger boosts results
DNOW completed its all-stock merger with MRC Global on November 6, 2025, driving full-year 2025 revenue to $2,820 million and adjusted EBITDA to $209 million (7.4% of revenue), despite Q4 net loss from $135 million inventory charges. Merger synergies hit $23 million in year one, beating targets by 35%. U.S. MRC ERP transition poses near-term hurdles.
8-K
DNOW completes MRC merger
DNOW closed its acquisition of MRC Global on November 6, 2025, via merger, exchanging 0.9489 DNOW shares per MRC share. It amended its credit facility to $850M revolving (expandable to $1.35B, maturing 2030), boosting borrowing base with rental assets to repay MRC debt. Board added George Damiris and Ronald Jadin; Gillian Anderson joined as VP and Chief Accounting Officer. Deal bolsters distribution scale, yet integration risks loom.
10-Q
Q3 FY2025 results
DNOW posted Q3 revenue of $634M, up 4.6% y/y from $606M, with operating profit jumping to $33M from $23M as U.S. sales rose 9.3% y/y to $527M on midstream growth and acquisitions. Diluted EPS held steady at $0.23 on 106M shares, matching YTD $0.66. Cash climbed to $266M, with $487M revolver availability and no debt; OCF hit $72M YTD yet FCF not disclosed in the 10-Q. Singapore tuck-in closed for $8M (net), adding $3M goodwill. Merger with MRC Global eyes Q4 close. Integration complexities loom large.
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