)
Overview
<ul>
<li>Energy solutions provider’s Q4 revenue slightly missed analyst expectations</li>
<li>Adjusted EPS for Q4 met analyst expectations</li>
<li>Company completed merger with MRC Global, projecting $23 mln in first-year synergies</li>
</ul>
Outlook
<ul>
<li>Company expects synergy initiatives to create meaningful value over time</li>
<li>DNOW addressing challenges from U.S. ERP system transition</li>
<li>Company focused on positioning for long-term growth</li>
</ul>
Result Drivers
<ul>
<li>MERGER SYNERGIES - DNOW reported first-year merger cost synergies with MRC Global are projected at $23 mln, 35% above target</li>
<li>ERP SYSTEM CHALLENGES - Co is addressing challenges related to the U.S. MRC Global ERP system transition, which went live in Q3 2025</li>
<li>REVENUE GROWTH - Excluding MRC Global, 2025 marked DNOW’s fifth consecutive year of revenue growth and its highest Adjusted EBITDA year ever</li>
</ul>
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q4 Slight $959 mln $962.25
Revenue Miss* mln (4
Analysts
)
Q4 Meet $0.15 $0.15 (4
Adjusted Analysts
<h3>EPS )</h3>
Q4 $23 mln
Adjusted
Net
Income
Q4 Net -$147
Income mln
Q4 $61 mln
Adjusted
<h3>EBITDA</h3>
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
<ul>
<li>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”</li>
<li>The average consensus recommendation for the industrial machinery &amp; equipment peer group is “buy”</li>
<li>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</li>
<li>The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago</li>
</ul>
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (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.)

DNOW

DNOW's Q4 revenue slightly missed analyst expectations at $959 million, while adjusted EPS met expectations at $0.15. The company completed its merger with MRC Global, projecting $23 million in first-year synergies. DNOW is addressing challenges from the U.S. ERP system transition and aims for long-term growth. The average analyst rating is "buy," with a median 12-month price target of $18.00, reflecting a 10% increase from its recent closing price of $16.36. The stock trades at 15 times the next 12-month earnings.

Reuters

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