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The results show meaningful improvement in cash flow, deleveraging progress toward a 1.7x leverage, and sizable buybacks, which can support the stock if transmitted into earnings quality over 2H2026. The strong U.S. midstream momentum provides a bullish backdrop versus prior quarters.
What happened, with direct paths to the underlying reporting
DNOW reported Q2 2026 revenue of $1.307B with gross margins of 18.6% (20.8% adjusted). The company posted a GAAP net loss of $21M but delivered $133M of operating cash flow and adjusted EBITDA of $60M on $1.307B revenue. Net debt was $360M, with a 1.7x leverage, while buybacks totaled $25M in Q2 and $75M in H1. The U.S. midstream segment surpassed $1B annualized revenue for the first time, supporting a constructive outlook for H2 and capital returns.
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