DNOW beats Q2 revenue, adjusted EPS estimates
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:
