DNOW Inc. Reports 108.1% Revenue Growth to $1.307 Billion in Q2 2026

DNOW Inc. reported significant financial growth in its latest quarterly results, with revenues reaching $1.307 billion for the three months ended June 30, 2026, a substantial increase of 108.1% compared to $628 million in the same period last year. For the first half of 2026, the company generated $2.490 billion in revenue, up 102.9% from $1.227 billion in the first half of 2025. The increase in revenue was primarily driven by the acquisition of MRC Global, which was completed in November 2025, contributing to a notable rise in sales across all segments, particularly in the U.S. market.

Despite the revenue surge, DNOW reported a net loss of $21 million for the second quarter of 2026, compared to a net income of $14 million in the same quarter of 2025. The loss for the first half of 2026 totaled $65 million, down from a profit of $35 million in the prior year. The decline in profitability was attributed to increased selling, general, and administrative expenses, which rose to $238 million in the second quarter, largely due to costs associated with the MRC Global acquisition, as well as inventory-related transaction charges and the impact of the Last-In, First-Out (LIFO) inventory costing methodology.

Operationally, DNOW's customer base expanded significantly following the MRC Global acquisition, which enhanced its product offerings and market reach. The company operates approximately 300 locations across the U.S., Canada, and select international markets, employing around 5,100 people. The integration of MRC Global's operations is expected to provide additional revenue synergies, particularly in the energy transition sector, where demand for sustainable solutions is growing.

Looking ahead, DNOW anticipates continued growth driven by strong demand in the gas utilities and midstream sectors, as well as ongoing investments in energy transition projects. The company is also focused on managing its supply chain effectively to navigate potential challenges related to steel pricing and foreign currency fluctuations. With a robust credit facility of $850 million and a commitment to strategic acquisitions, DNOW is positioned to capitalize on emerging opportunities in the energy and industrial markets.