NOW Inc

DNOW Inc. delivered a strong second-quarter 2026 beat across the board, with adjusted EPS of $0.12 clearing the $0.09 consensus by 41.18% and revenue of $1.31 billion topping estimates of $1.27 billion by 3.19%, more than doubling year-over-year from $628 million, a gain of 108.1%. The primary catalyst was the completed Whitco Supply acquisition, which dramatically expanded the company's U.S. segment to $1.11 billion in quarterly revenue, a 13% sequential increase, while U.S. midstream revenues crossed $1 billion on an annualized run rate. Adjusted EBITDA reached $60 million, or 4.6% of revenue, up 54% sequentially, and the company generated exceptional free cash flow of $124 million, fueled by tighter receivables management and inventory streamlining. On a GAAP basis, DNOW posted a net loss of $21 million, weighed down by non-cash charges including a $19 million LIFO reserve increase and $7 million in intangibles amortization. Management repurchased $75 million in shares year-to-date and expressed confidence in continued integration progress and cost discipline heading into the second half of 2026.