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