DNOW · Dnow Inc.

DNOW Inc. delivered first quarter 2026 revenue of $1,183 million, more than doubling from $599 million in the prior year quarter, driven by the integration of MRC Global operations following its acquisition, with sequential growth in midstream and gas utility sectors and early data center awards. GAAP gross profit was $193 million or 16.3% of revenue, pressured by $41 million in inventory-related transaction charges from step-up adjustments, while adjusted gross profit reached $256 million or 21.6%. Selling, general and administrative expenses rose to $243 million, reflecting integration costs and amortization. This resulted in an operating loss of $50 million and a GAAP net loss of $44 million ($0.24 per diluted share), contrasting with adjusted net income of $3 million ($0.01 per share) after excluding LIFO reserve increases, transaction charges, and tax effects. Adjusted EBITDA of $39 million (3.3% margin) was down from 7.7% prior year, signaling integration headwinds. Balance sheet shows cash at $116 million, long-term debt at $571 million, and net debt of $455 million with a 2.3x leverage ratio on trailing twelve months Adjusted EBITDA of $202 million. Management highlighted disciplined capital allocation, repurchasing a record $50 million in shares under the $160 million program—the highest to date—and completing the $46 million Edge Controls acquisition to bolster U.S. Process Solutions automation capabilities. CEO David Cherechinsky noted ahead-of-schedule synergies from MRC integration, ERP enhancements for efficiencies, and a shift to a more diversified, less cyclical profile. No forward guidance was provided in the release.