DNOW beats Q2 revenue, adjusted EPS estimates

DNOW

06/08/2025 11:56

Overview

DNOW Q2 revenue falls slightly yr/yr to $628 mln, but beats analyst expectations, per LSEG data

Adjusted EPS for Q2 at $0.27 beats estimates, per LSEG data

Co expects to close $1.5 bln merger with MRC Global in Q4 2025

Outlook

DNOW reaffirms full-year 2025 revenue and EBITDA guidance

Company targets 2025 free cash flow at $150 mln

DNOW expects merger with MRC Global to close in Q4 2025

Company sees opportunities in AI, alternative energy, electrification

Result Drivers

SEQUENTIAL REVENUE GROWTH - Revenue increased 5% sequentially, reaching top-end of guided range, per CEO David Cherechinsky

STRATEGIC EXECUTION - CEO attributes strong results to execution of strategic plan

EBITDA RECORD - Achieved best second-quarter EBITDA in public-company history, indicating operational efficiency

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$628 mln
$612.60 mln (3 Analysts)
Q2 Adjusted EPS
Beat
$0.27
$0.21 (3 Analysts)
Q2 Adjusted Net Income
$29 mln
Q2 Net Income
$25 mln
Q2 Adjusted EBITDA
$51 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

Wall Street's median 12-month price target for DNOW Inc is $17.00, about 10.4% above its August 5 closing price of $15.24

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw5xrnbLa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)