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

Reuters02-20
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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)

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