DNOW (DNOW) Q4 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Should l Buy DNOW?
Source: NASDAQ.COM
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Analyst Views on DNOW
Wall Street analysts forecast DNOW stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 12.330
Low
16.00
Averages
17.67
High
19.00
Current: 12.330
Low
16.00
Averages
17.67
High
19.00
About DNOW
DNOW Inc. is a premier energy and industrial solutions provider. It supplies energy and industrial products and packaged, engineered process and production equipment. The Company is a distributor of pipe, valves, fittings (PVF), pumps and fabricated equipment. Its products and services include air compressors and blowers; artificial lift; drilling and completions; electrical; industrial and facilities supplies; instrumentation and measurement; paint and coatings; PVF; power generation and transmission; process and production equipment; pumps and packages; safety and PPE, and tools and welding equipment. Its DigitalNOW platform and supply chain services address intricate operational challenges, bolstered with support from procurement and inventory management to field services. It serves a range of markets, including upstream, midstream and downstream oil and gas, chemical processing, mining, municipal water, manufacturing, engineering, energy evolution and renewables.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Harvey Partners Acquires 1.94 Million Shares in DNOW
- New Investment Disclosure: Harvey Partners disclosed a new position in DNOW, acquiring 1,939,399 shares valued at $25.70 million in Q4 2026, indicating confidence in the company despite DNOW not being among its top five holdings.
- Financial Performance: DNOW reported $2.82 billion in revenue for 2025, with adjusted EBITDA of $209 million, or 7.4% of sales, although reported results were impacted by transaction and inventory step-up charges, highlighting integration risks post-acquisition.
- Market Performance: DNOW's shares have declined 18% over the past year, underperforming the broader market primarily due to integration risks and near-term challenges rather than a collapse in demand, suggesting skepticism about its future potential.
- Strategic Implications: Harvey Partners' investment strategy focuses on cyclical distributors, particularly following DNOW's acquisition of MRC Global, which is expected to expand scale and long-term growth opportunities, prompting investors to consider whether merger synergies can restore margins to historical highs.
See More
DNOW Under Investigation, Shares Plunge 19.1%
- Legal Investigation Launched: The Schall Law Firm has announced an investigation into DNOW for potential violations of securities laws, focusing on whether the company made false or misleading statements that could affect investor rights.
- Financial Performance Decline: DNOW released its Q4 and full-year 2025 financial results on February 20, 2026, indicating a decline in actual performance due to ongoing Enterprise Resource Planning (ERP) challenges, which have negatively impacted core process efficiencies.
- Guidance Delay: The company admitted it would delay its sequential and full-year guidance due to persistent ERP implementation challenges, raising further concerns about its future performance in the market.
- Severe Stock Reaction: Following this news, DNOW's shares plummeted by 19.1% on the same day, reflecting strong investor concerns regarding the company's financial health and operational stability.
See More
Harvey Partners Acquires New Position in DNOW
- New Investment Disclosure: On February 17, 2026, Harvey Partners disclosed a new position by acquiring 1,939,399 shares of DNOW worth $25.70 million, indicating confidence in the company's potential.
- Asset Allocation Insight: This acquisition represents 2.3% of Harvey Partners' reportable assets under management, highlighting DNOW's significance in the investment portfolio and potentially influencing future investment strategies.
- Market Performance Comparison: As of now, DNOW shares are priced at $12.33, down 18% over the past year, significantly underperforming the S&P 500's 16% gain, reflecting market caution regarding its future growth prospects.
- Merger Impact Assessment: DNOW's recent acquisition of MRC Global presents integration risks; however, it may lead to scale benefits and growth opportunities in the long run, prompting investors to monitor the realization of merger synergies.
See More
Rosen Law Firm Investigates DNOW Securities Claims
- Securities Claims Investigation: The Rosen Law Firm has announced an investigation into DNOW Inc. for potential securities claims due to allegations of issuing materially misleading business information, which could significantly impact investor decisions.
- Stock Price Plunge: On February 20, 2026, DNOW reported disappointing Q4 2025 financial results, revealing a significant loss that missed Wall Street expectations, resulting in a 19.1% drop in stock price that day, directly affecting investors' portfolios.
- Class Action Preparation: The Rosen Law Firm is preparing a class action to seek compensation for affected investors, with no out-of-pocket fees required, thereby lowering the barrier for participation in the lawsuit.
- Firm's Track Record: The Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, demonstrating its strong capabilities and successful history in the securities litigation field.
See More
DNOW Inc. Under Investigation for Securities Law Violations
- Investigation Launched: The Schall Law Firm has initiated an investigation into DNOW Inc. to determine if the company issued false or misleading statements or failed to disclose critical information, potentially harming investor rights.
- Financial Results Disclosure: DNOW released its Q4 and full-year 2025 financial results on February 20, 2026, indicating a decline in actual performance due to ongoing Enterprise Resource Planning (ERP) challenges, highlighting severe operational efficiency issues.
- Operational Efficiency Issues: The company admitted that its ERP design architecture is causing inefficiencies in certain core processes, leading to continued negative impacts on both operations and finances, reflecting management's shortcomings in technology implementation.
- Stock Price Plunge: Following this news, DNOW's shares fell by 19.1% on the same day, indicating a pessimistic outlook from the market regarding the company's future prospects and severely undermining investor confidence.
See More
Pomerantz LLP Investigates DNOW for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating claims against DNOW Inc. regarding potential securities fraud, which could undermine investor confidence and lead to stock price volatility.
- Financial Report Impact: On February 20, 2026, DNOW reported its Q4 and full-year 2025 results, with the CEO acknowledging challenges related to the U.S. MRC Global ERP system transition, indicating short-term obstacles that may affect future performance.
- Stock Price Plunge: Following the financial report, DNOW's stock price fell by $3.13, or 19.13%, closing at $13.23 per share, reflecting market concerns about the company's outlook.
- Potential Legal Consequences: Pomerantz LLP, a prominent securities class action firm, may pursue significant damages if the investigation confirms wrongdoing, potentially impacting DNOW's market position and investor trust.
See More
Harvey Partners Acquires 1.94 Million Shares in DNOW
- New Investment Disclosure: Harvey Partners disclosed a new position in DNOW, acquiring 1,939,399 shares valued at $25.70 million in Q4 2026, indicating confidence in the company despite DNOW not being among its top five holdings.
- Financial Performance: DNOW reported $2.82 billion in revenue for 2025, with adjusted EBITDA of $209 million, or 7.4% of sales, although reported results were impacted by transaction and inventory step-up charges, highlighting integration risks post-acquisition.
- Market Performance: DNOW's shares have declined 18% over the past year, underperforming the broader market primarily due to integration risks and near-term challenges rather than a collapse in demand, suggesting skepticism about its future potential.
- Strategic Implications: Harvey Partners' investment strategy focuses on cyclical distributors, particularly following DNOW's acquisition of MRC Global, which is expected to expand scale and long-term growth opportunities, prompting investors to consider whether merger synergies can restore margins to historical highs.
See More
DNOW Under Investigation, Shares Plunge 19.1%
- Legal Investigation Launched: The Schall Law Firm has announced an investigation into DNOW for potential violations of securities laws, focusing on whether the company made false or misleading statements that could affect investor rights.
- Financial Performance Decline: DNOW released its Q4 and full-year 2025 financial results on February 20, 2026, indicating a decline in actual performance due to ongoing Enterprise Resource Planning (ERP) challenges, which have negatively impacted core process efficiencies.
- Guidance Delay: The company admitted it would delay its sequential and full-year guidance due to persistent ERP implementation challenges, raising further concerns about its future performance in the market.
- Severe Stock Reaction: Following this news, DNOW's shares plummeted by 19.1% on the same day, reflecting strong investor concerns regarding the company's financial health and operational stability.
See More
Harvey Partners Acquires New Position in DNOW
- New Investment Disclosure: On February 17, 2026, Harvey Partners disclosed a new position by acquiring 1,939,399 shares of DNOW worth $25.70 million, indicating confidence in the company's potential.
- Asset Allocation Insight: This acquisition represents 2.3% of Harvey Partners' reportable assets under management, highlighting DNOW's significance in the investment portfolio and potentially influencing future investment strategies.
- Market Performance Comparison: As of now, DNOW shares are priced at $12.33, down 18% over the past year, significantly underperforming the S&P 500's 16% gain, reflecting market caution regarding its future growth prospects.
- Merger Impact Assessment: DNOW's recent acquisition of MRC Global presents integration risks; however, it may lead to scale benefits and growth opportunities in the long run, prompting investors to monitor the realization of merger synergies.
See More
Rosen Law Firm Investigates DNOW Securities Claims
- Securities Claims Investigation: The Rosen Law Firm has announced an investigation into DNOW Inc. for potential securities claims due to allegations of issuing materially misleading business information, which could significantly impact investor decisions.
- Stock Price Plunge: On February 20, 2026, DNOW reported disappointing Q4 2025 financial results, revealing a significant loss that missed Wall Street expectations, resulting in a 19.1% drop in stock price that day, directly affecting investors' portfolios.
- Class Action Preparation: The Rosen Law Firm is preparing a class action to seek compensation for affected investors, with no out-of-pocket fees required, thereby lowering the barrier for participation in the lawsuit.
- Firm's Track Record: The Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, demonstrating its strong capabilities and successful history in the securities litigation field.
See More
DNOW Inc. Under Investigation for Securities Law Violations
- Investigation Launched: The Schall Law Firm has initiated an investigation into DNOW Inc. to determine if the company issued false or misleading statements or failed to disclose critical information, potentially harming investor rights.
- Financial Results Disclosure: DNOW released its Q4 and full-year 2025 financial results on February 20, 2026, indicating a decline in actual performance due to ongoing Enterprise Resource Planning (ERP) challenges, highlighting severe operational efficiency issues.
- Operational Efficiency Issues: The company admitted that its ERP design architecture is causing inefficiencies in certain core processes, leading to continued negative impacts on both operations and finances, reflecting management's shortcomings in technology implementation.
- Stock Price Plunge: Following this news, DNOW's shares fell by 19.1% on the same day, indicating a pessimistic outlook from the market regarding the company's future prospects and severely undermining investor confidence.
See More
Pomerantz LLP Investigates DNOW for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating claims against DNOW Inc. regarding potential securities fraud, which could undermine investor confidence and lead to stock price volatility.
- Financial Report Impact: On February 20, 2026, DNOW reported its Q4 and full-year 2025 results, with the CEO acknowledging challenges related to the U.S. MRC Global ERP system transition, indicating short-term obstacles that may affect future performance.
- Stock Price Plunge: Following the financial report, DNOW's stock price fell by $3.13, or 19.13%, closing at $13.23 per share, reflecting market concerns about the company's outlook.
- Potential Legal Consequences: Pomerantz LLP, a prominent securities class action firm, may pursue significant damages if the investigation confirms wrongdoing, potentially impacting DNOW's market position and investor trust.
See More
