DNOW Q2 Revenue Beats at $1.31B, Adjusted EPS $0.12 Tops Estimates; Record Operating Cash Flow of $133M
DNOW sits 39% above its 52-week low of $10.935.
Summary
DNOW reported Q2 2026 revenue of $1.31 billion, beating estimates, with adjusted EPS of $0.12 and record operating cash flow of $133 million. The strong cash generation enabled $25 million in share repurchases and improved leverage to 1.7x.
Key Events · Earnings and Guidance · DNOW
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Revenue Beat
Driven by a 10% sequential increase and 13% growth in the U.S. segment, Q2 revenue of $1.307 billion exceeded the $1.27 billion consensus.
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Record Operating Cash Flow
Cash flow from operations reached $133 million, a record for any second quarter, enabling significant debt reduction and share buybacks.
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Adjusted EPS Tops Estimates
Adjusted net income was $21 million, or $0.12 per diluted share, beating analyst expectations.
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Share Repurchases Accelerate
DNOW bought back $25 million of stock in Q2, bringing year-to-date repurchases to $75 million under its $160 million program.
Analysis · DNOW · Energy & Transportation
A strong second quarter for DNOW saw revenue of $1.31 billion beat the $1.27 billion consensus, while adjusted EPS of $0.12 topped estimates. The standout metric is record second-quarter operating cash flow of $133 million, which drove net debt leverage down to 1.7x. The company also repurchased $25 million in stock during the quarter, bringing year-to-date buybacks to $75 million under its $160 million program. The results mark a sharp sequential improvement from Q1's net loss and negative free cash flow, signaling that integration and cost initiatives are gaining traction.
At the time of this filing, DNOW was trading at $15.24 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $2.6B. The 52-week trading range was $10.94 to $17.26. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.