Overview

* DNOW ( 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 ( 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/Mis Actual Consensu

s s

Estimate

Q2 Beat $628 mln $612.60

Revenue mln (3

Analysts

)

Q2 Beat $0.27 $0.21 (3

Adjusted Analysts

EPS )

Q2 $29 mln

Adjusted

Net

Income

Q2 Net $25 mln

Income

Q2 $51 mln

Adjusted

EBITDA

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 ( DNOW ) 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:

(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.)