DNOW Q4 revenue slightly misses; addressing challenges from US ERP system transition

DNOW

20/02/2026 11:54

Overview

Energy solutions provider's Q4 revenue slightly missed analyst expectations

Adjusted EPS for Q4 met analyst expectations

Company completed merger with MRC Global, projecting $23 mln in first-year synergies

Outlook

Company expects synergy initiatives to create meaningful value over time

DNOW addressing challenges from U.S. ERP system transition

Company focused on positioning for long-term growth

Result Drivers

MERGER SYNERGIES - DNOW reported first-year merger cost synergies with MRC Global are projected at $23 mln, 35% above target

ERP SYSTEM CHALLENGES - Co is addressing challenges related to the U.S. MRC Global ERP system transition, which went live in Q3 2025

REVENUE GROWTH - Excluding MRC Global, 2025 marked DNOW's fifth consecutive year of revenue growth and its highest Adjusted EBITDA year ever

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Miss*
$959 mln
$962.25 mln (4 Analysts)
Q4 Adjusted EPS
Meet
$0.15
$0.15 (4 Analysts)
Q4 Adjusted Net Income
$23 mln
Q4 Net Income
-$147 mln
Q4 Adjusted EBITDA
$61 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "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 $18.00, about 10% above its February 19 closing price of $16.36

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBwfHZSxa

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(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.)