Why This Matters to Distributors: DNOW’s second-quarter results show improving demand across U.S. energy and industrial markets, especially in pipeline, natural gas utility, and oil and gas businesses. The results also show that acquisitions can temporarily reduce profits even as they help drive sales growth.
DNOW reported sharply higher second-quarter sales as customer demand strengthened across its U.S. energy and industrial markets, though costs tied to recent acquisitions resulted in a quarterly loss.
The Houston-based distributor reported second-quarter revenue of $1.31 billion, up 108.1% from $628 million a year earlier. The company reported a $21 million loss, compared with $14 million in net income in the second quarter of 2025.
For the first six months of 2026, revenue increased to $2.49 billion, up 102.9% from $1.23 billion a year earlier. The company reported a $65 million loss for the first half, compared with $35 million in net income during the same period last year.
Company executives said the loss reflected costs related to recent acquisitions rather than weaker business conditions.
The company generated $133 million in cash from operations, the highest second-quarter total in its history, while profits from day-to-day operations improved from both the previous quarter and a year earlier.
“Our actions are producing encouraging results, and we continue to take decisive steps to position DNOW for long-term success,” says CEO David Cherechinsky, adding that the company expects the momentum to continue through the second half of the year.
The company’s U.S. operations generated $1.11 billion in sales during the quarter, more than double the $528 million reported a year earlier and accounting for about 85% of total company revenue.
Sales in Canada slipped to $47 million from $48 million, while international sales increased to $151 million from $52 million.
Cherechinsky said the company’s pipeline business reached a record pace during the quarter, while natural gas utility and oil and gas customers posted their strongest growth in more than three years.
Sales and gross profit both increased during the quarter, but profits were reduced by expenses related to integrating recently acquired businesses, inventory adjustments and a one-time charge related to office space. The company also recorded a $4 million charge after deciding to permanently vacate leased
DNOW ended the quarter with $114 million in cash and $474 million in long-term debt
Management said improving customer demand and continued work to integrate recent acquisitions should support growth through the rest of 2026.
For distributors serving energy and industrial customers, DNOW’s results add to growing evidence that activity is improving in U.S. pipeline, natural gas utility, and oil and gas markets, even as companies continue to absorb the costs of acquisitions.
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