NOW Inc

DNOW Inc. delivered a mixed first quarter for fiscal 2026, posting a substantial revenue beat while falling well short on earnings as integration costs from its MRC Global acquisition weighed heavily on the bottom line. Revenue surged 97.5% year-over-year to $1.18 billion, clearing the $1.07 billion consensus estimate by 10.90%, as the MRC Global combination effectively doubled the company's scale. Profitability, however, told a different story: adjusted EPS came in at just $0.01, missing the $0.06 consensus by 83.33%, dragged down primarily by $41.00 million in inventory step-up amortization charges tied to the MRC Global deal, a $16.00 million LIFO reserve increase, and SG&A expenses that more than doubled to $243.00 million from $109.00 million a year ago. On a GAAP basis, DNOW recorded a net loss of $44.00 million, compared to net income of $21.00 million in Q1 2025. Adjusted EBITDA margin compressed to 3.3% from 7.7%, though management indicated synergy capture is running ahead of schedule.