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Now (DNOW) Q3 2026 Earnings Report

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MX:DNOW Q3 2026 EPS Results

Actual EPS
MXN 3.35
Consensus EPS
MXN 2.75
Beat/Miss
Beat by +MXN 0.60
One Year Ago EPS
MXN 4.84

MX:DNOW Q3 2026 Revenue Results

Actual Revenue
MXN 24.87B
Expected Revenue
MXN 25.12B
Beat/Miss
Missed by -MXN 252.07M
YoY Revenue Growth
+110.88%

Earnings Announcement Details

Quarter
Q3 2026
Date
11/05/2026
Time
Before Open
Conference Call
Thursday, November 5, 2026
MX:DNOW Upcoming Earnings

Now's next earnings date is estimated for February 18, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

MX:DNOW Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Nov 05, 2026|% Change Since:-17.18%|
Earnings Call Sentiment|Positive

The call was strongly positive, supported by sequential revenue growth across all geographies, significant adjusted EBITDA improvement, record third-quarter operating cash flow, lower leverage, improved working capital, cost synergies ahead of plan and progress in recovering ERP-related revenue. Management also described broad-based demand and constructive 2027 opportunities. The main negative factors were international project delays, elevated logistics costs, expected seasonal fourth-quarter revenue pressure, selective upstream revenue reductions and ongoing system-related work. Highlights significantly outweighed the lowlights.

Company Guidance

Fourth-quarter revenue is expected to be down sequentially in the high single-digit percentage range, with EBITDA targeted at 4.5%; international revenue is expected to show modest growth, fourth-quarter depreciation and amortization expense is expected to be approximately $25 million, and fourth-quarter capital expenditures are expected to look similar to the third quarter’s $14 million. Full-year 2026 cash flow from operations could now approach $200 million, while the full-year 2026 GAAP effective tax rate is expected to be in the mid-to-high teens range. First-year cost synergies are expected to be closer to $32 million as DNOW exits 2026 versus the original estimate of $17 million. For 2027, scenarios range from $300 million to $350 million in EBITDA, with revenue growth in the 6%-7% range contemplated if the discussed growth occurs; the company could be below a 1x net debt as it relates to four quarters of EBITDA and, except for additional M&A, could get close to net cash by the end of next year.

  • Revenue Growth Across Geographic SegmentsThird-quarter revenue was $1.34 billion, up $30 million, or 2.3% sequentially, with growth across all geographic segments. U.S. revenue was $1.1 billion, up $16 million sequentially; Canada revenue was $56 million, up $9 million, or 19%; and international revenue was $156 million, up $5 million, or 3% sequentially.
  • Adjusted EBITDA and Margin ImprovementAdjusted EBITDA increased to $76 million, or 5.7% of revenue, up $16 million sequentially and nearly double the first-quarter result. Adjusted gross profit was $283 million, and adjusted gross margin improved 40 basis points sequentially to 21.2%, supported by favorable geographic and sector mix and margin-enhancement initiatives.
  • Strong Cash Flow and Working Capital ExecutionCash flow from operations was $120 million in the third quarter, the company's best third quarter since 2015, bringing year-to-date operating cash flow to $158 million. Inventory declined $74 million sequentially to $988 million, inventory turns improved to 4.3 times, DSO improved by two days to 60 days, and working capital as a percentage of annualized revenue improved to 17.6%. Full-year 2026 operating cash flow is now expected to approach $200 million.
  • Debt Reduction and Financial FlexibilityDNOW reduced net debt by $95 million for the second consecutive quarter and ended the quarter with $265 million of net debt and a 1.1-times trailing 12-month net leverage ratio. Total debt declined by $97 million during the quarter, while total liquidity was $568 million, including $112 million of cash and $456 million of revolving-credit availability.
  • Share Repurchases ContinuedThe company repurchased $17 million of shares during the third quarter. Year-to-date repurchases totaled $92 million through September, which was 24% higher than the combined amount returned through share repurchases over the prior 11 quarters. The company has repurchased $129 million under the current program and $209 million cumulatively across the current and previous programs.
  • Cost Synergies Ahead of Original ExpectationsFirst-year cost synergies are expected to approximate $32 million exiting 2026, significantly above the original year-one exit-rate estimate of $17 million. SG&A declined $6 million sequentially to $232 million, benefiting from continued synergy realization and lower system-related support requirements.
  • Broad-Based Demand in Midstream, Utilities, Downstream and Industrial MarketsGrowth was driven primarily by midstream infrastructure, gas utilities, downstream industrial customers, infrastructure projects, maintenance programs, facility upgrades, water infrastructure investments and capital projects. Midstream customers continued investing in gathering, processing and transmission infrastructure, while industrial demand was supported by LNG infrastructure and data-center-related opportunities.
  • Record Process Solutions RevenueProcess Solutions delivered the strongest quarterly revenue performance in its history, with consistent growth across revenue and earnings metrics. Demand remained strong for produced-water management, water infrastructure, fabricated equipment, automation and controls, pumps, rentals and services.
  • Gas Utilities Revenue Reached a Three-Year HighGas utilities revenue grew 4% sequentially on top of an exceptionally strong prior quarter, reaching the highest quarterly level in three years. Growth was driven by seasonal construction activity, higher capital spending by key customers, infrastructure modernization and customer investment. The company also reported increased momentum and interest in its IMTEC gas meter offering.
  • Downstream and Industrial Revenue ImprovedDownstream and industrial revenue increased 10% sequentially, reaching the highest revenue quarter of 2026. Activity increased as customers prepared for upcoming turnaround work, while LNG and other energy infrastructure opportunities provided additional growth. U.S. downstream and industrial activity was described as positive and trending positively.
  • ERP Transition Improved OperationsAll upstream and midstream locations were transitioned from the newly adopted MRC ERP platform to SAP. Management reported significantly improved customer response time, improved inventory management and increased sales, while the transition also relieved pressure on the Oracle system used by the gas utilities and downstream businesses. Additional Oracle investments are improving functionality, speed and customer responsiveness.
  • Revenue Recapture ProgressManagement said it was confident that any midstream revenue lost during the ERP transition had been fully retrieved, with midstream growing by approximately $20 million in the third quarter and exceeding a $1 billion annualized revenue run rate. Gas utilities was either at or on the verge of retrieving all lost revenue, and downstream delivered its best revenue quarter in the third quarter.
  • Improving Downstream Turnaround VisibilityVisibility into the 2027 turnaround season continued to improve across refining and chemical customers. The company was preparing for several large turnarounds, had begun receiving some pre-buys, and reported that backlog and core customer booking activity were improving.
  • Constructive Upstream and International OpportunitiesU.S. land activity levels were beginning to improve, with customer efficiency gains supporting demand for flow lines, line pipe, pumps, valves, fittings, fabricated equipment, controls and related infrastructure. Internationally, management cited a constructive demand environment, multi-year opportunities, North Sea and Norway projects, and a supportive macro backdrop, particularly in downstream markets.
  • Potential 2027 EBITDA FrameworkManagement presented a framework of approximately $300 million to $350 million of EBITDA for 2027, while emphasizing that customers had not yet published their budgets and that this was not formal guidance. Third-quarter EBITDA of $76 million annualizes to approximately $300 million, and the higher end of the framework reflects potential growth in upstream, gas utilities and midstream, revenue recovery and further margin improvement.
  • Disciplined Capital Allocation and Investment CapacityManagement said stronger cash generation and lower leverage were enhancing its capacity to invest in the business, return capital to shareholders and pursue strategic opportunities that meet return criteria. The company also began adding inventory at selected locations and plans to add inventory, salespeople and operations talent to support potential 2027 growth.

MX:DNOW Earnings History

MX:DNOW earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Feb 18, 20272026 (Q4)1.25-2.79――
Nov 05, 20262026 (Q3)2.753.354.84-30.77% (-1.49)
Aug 06, 20262026 (Q2)1.752.235.02-55.56% (-2.79)
May 07, 20262026 (Q1)1.340.194.09-95.45% (-3.91)
Feb 20, 20262025 (Q4)2.792.794.65-40.00% (-1.86)
Sep 30, 20252025 (Q3)4.334.843.9123.81% (+0.93)
Aug 06, 20252025 (Q2)3.965.024.658.00% (+0.37)
May 07, 20252025 (Q1)3.224.093.914.76% (+0.19)
Feb 13, 20252024 (Q4)2.424.654.0913.64% (+0.56)
Nov 07, 20242024 (Q3)3.913.914.65-16.00% (-0.74)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed