DNOW Q2 Earnings: Midstream Strength Drives Revenue, MRC Global Merger on Deck

DistributionNOW's Q2 revenue met expectations at $628 million, but sales were flat YoY. The non-GAAP profit of $0.27 per share was 26.6% above analysts' estimates. The company attributed its performance to robust midstream project activity and growing contributions from water management solutions. Management emphasized the importance of integration planning for the merger with MRC Global and diversification into new industrial markets.

DistributionNOW (NYSE:DNOW) announced its Q2 2025 earnings, reporting revenue of $628 million, flat year-over-year (YOY), but exceeding Wall Street's estimates by 2.6%. The company's non-GAAP profit per share was $0.27, which was 26.6% above analyst consensus estimates. DistributionNOW provides distribution and supply chain solutions for the energy and industrial end markets.

The company's annualized revenue growth of 2.2% over the last two years is above its five-year trend but still disappointing. Key segments include the Global SMBT Segment, which grew by 5%, and the SAP Solution Segment, which surged by 11%. However, the Oracle Solution Segment revenue decreased by 7.5% due to a large engagement wind-down. The company's strategic headcount adjustments and AI-assisted implementation tools are expected to mitigate the negative impact on decision-making and client engagement [1].

DistributionNOW also announced a strategic partnership with Salonias, a leading provider of process intelligence software, which is anticipated to accelerate growth and create significant channel expansion opportunities. The company's AI enhancements, particularly in the Gen AI platforms AI XPLR and ZBrain, are expected to attract more clients and strategic partners [1].

The company's strong performance in the midstream sector and growing contributions from water management solutions were highlighted in the earnings call. Management emphasized the importance of integration planning for the merger with MRC Global and diversification into new industrial markets [1].

References:
[1] https://www.ainvest.com/news/dnow-q2-earnings-snapshot-105634275.html