DNOW Raises Outlook After 2Q Beats Expectations & MRC ERP Restoration Advances

Houston-based industrial PVF distributor DNOW reported second-quarter gross sales of $1.31 billion, up 10% sequentially from 1Q, together with 13% development in its U.S. section.

Gross revenue was $243 million — 18.6% of gross sales — whereas adjusted gross revenue was $272 million, or 20.8%. DNOW posted a $21 million web loss, enhancing from a $44 million loss within the first quarter. Adjusted EBITDA climbed 54% sequentially to $60 million and 4.6% of gross sales. Working money move reached $133 million, an organization second-quarter report. DNOW repurchased $25 million of shares and lowered web debt by $95 million throughout the quarter to $360 million.

The sequential gross sales enhance exceeded the mid-to-high single-digit development forecast issued with DNOW’s 1Q outcomes, whereas the corporate additionally characterised its $60 million of adjusted EBITDA as above steering.

U.S. gross sales totaled $1.11 billion, representing 85% of firm income. Worldwide gross sales elevated 3% sequentially to $151 million, whereas Canada decreased 8% to $47 million amid seasonal spring breakup situations. By finish market, upstream accounted for $508 million of gross sales, adopted by gasoline utilities at $310 million, midstream at $272 million and downstream and industrial at $217 million.

President and CEO David Cherechinsky mentioned U.S. midstream gross sales exceeded a $1 billion annualized tempo for the primary time, whereas gasoline utilities and upstream posted their strongest sequential proportion development since 2022.

DNOW elevated its anticipated 2026 year-end annualized cost-synergy run charge to roughly $30 million, up from an unique $17 million goal. That will characterize 43% of its $70 million three-year MRC integration purpose.

For 3Q26, DNOW expects income to extend within the low-to-mid single digits sequentially, with adjusted EBITDA at 5.0%-5.5% of gross sales. The corporate raised its full-year outlook to $5.0-$5.1 billion in income, with adjusted EBITDA approaching 4.5% of gross sales

MRC International ERP Replace

DNOW additionally reported additional progress stabilizing and optimizing MRC International’s U.S. Oracle ERP system following its $1.5 billion acquisition of MRC in November 2025. Administration mentioned warehouse selecting, paperwork processing and back-office evaluation all improved throughout the quarter.

“Principally, pace has been the good points we’ve made over the past 90 days,” Cherechinsky informed analysts.

Premium: Amid MRC International Integration, DNOW Wrestles with Challenges from ERP Transition (February 2026)

DNOW has transitioned 17 MRC areas to its SAP platform, primarily serving upstream and midstream markets. Cherechinsky mentioned the transformed areas are exhibiting higher responsiveness, success and customer-level income retention. System-related bill delays have been resolved, serving to days gross sales excellent enhance by seven days sequentially. ERP stabilization bills totaled about $8.5 million in 2Q, with administration anticipating these prices to say no by roughly $1 million in 3Q and one other $1 million in 4Q.