DNOW Posts $1.34B Q3 Revenue; Adjusted EPS Beats Estimate

Energy and industrial distributor DNOW Inc. reported third-quarter revenue of $1.337 billion and net income attributable to the company of $26 million, or 14 cents a diluted share, the Houston company said Thursday in results for the period ended Sept. 30.

Adjusted net income was $34 million, or 18 cents a share, according to the company release. An Associated Press snapshot using Zacks Investment Research data said that adjusted figure beat the average estimate of three analysts, which stood at 15 cents a share. Gross profit was $265 million, or 19.8% of revenue; adjusted gross profit was $283 million, or 21.2%.

Cash flow and balance sheet

Adjusted EBITDA was $76 million, or 5.7% of revenue, nearly double the first-quarter level, President and CEO David Cherechinsky said in the release. Cash flow from operating activities was $120 million. Cash stood at $112 million and long-term debt at $377 million, for net debt of $265 million and a net debt leverage ratio of 1.1 times.

The company repurchased $17 million of common stock in the quarter and $92 million year-to-date under its $160 million buyback authorization. Sales rose sequentially in all three geographic segments, with the gas utilities business posting its highest quarterly revenue in three years, Cherechinsky said.

Segment mix

United States revenue was $1.125 billion, Canada $56 million and International $156 million. For the nine months, revenue was $3.827 billion and the company recorded a net loss attributable to DNOW of $39 million, or 21 cents a share. Shares trade on the New York Stock Exchange under the ticker DNOW.

Related: VSE Posts Record $541M Q3 Revenue, Raises 2026 Outlook.

Sources: DNOW via Nasdaq, Associated Press via Yahoo Finance