DNOW Reports Q1 Net Loss of $44M, Repurchases $50M in Shares
DNOW sits 18% above its 52-week low of $10.935.
Summary
DNOW Inc. reported a net loss of $44 million for Q1 2026, alongside $95 million in cash used from operations, but also repurchased $50 million of common stock and completed a $46 million acquisition.
Key Events · Earnings and Guidance · DNOW
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Q1 2026 Financial Results
Reported a net loss attributable to DNOW Inc. of $44 million ($0.24 per diluted share) and adjusted net income of $3 million ($0.01 per diluted share) on $1.18 billion in revenue for the quarter ended March 31, 2026.
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Cash Flow and Liquidity
Used $95 million in cash from operating activities, ending the quarter with $116 million in cash and cash equivalents and $571 million in long-term debt, with total liquidity of approximately $379 million.
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Share Repurchase Program
Repurchased $50 million of common stock under the existing $160 million share repurchase program, demonstrating active capital allocation.
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Strategic Acquisition Completed
Completed the acquisition of Edge Controls for $46 million in February, expanding the company's automation and controls capabilities within U.S. Process Solutions.
Analysis · DNOW · Energy & Transportation
DNOW Inc.'s first-quarter results present a mixed financial picture. While the company reported a net loss of $44 million and significant cash usage from operations, it achieved a positive adjusted net income of $3 million. Management highlighted progress in integrating MRC Global, sequential revenue growth in specific sectors, and early traction from new data center awards. The company also demonstrated a commitment to capital allocation by repurchasing $50 million in shares under its existing program and completing a strategic $46 million acquisition. Investors will likely weigh the ongoing net losses and cash burn against the strategic initiatives and shareholder returns. The mention of "targeted, decisive actions to enhance system performance" related to an ERP conversion suggests operational improvements are underway.
At the time of this filing, DNOW was trading at $12.91 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $2.5B. The 52-week trading range was $10.94 to $17.26. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.