DNOW revenue hits $1.18B as Edge Controls acquisition bolsters automation portfolio

DNOW (NYSE:DNOW) delivered a quarter of significant strategic expansion and steady top-line performance, underscored by its entry into new high-margin automation sectors.

The Houston-based energy and industrial distributor reported total revenue of $1,183 million for the first quarter ended March 31, 2026.

The company reported a GAAP net loss attributable to DNOW of $44 million, or ($0.24) per diluted share.

However, after adjusting for one-time costs primarily associated with recent acquisition activity and restructuring, the company posted adjusted net income of $3 million, or $0.01 per diluted share.

Adjusted EBITDA for the period stood at $39 million, representing a 3.3% margin.

A key highlight of the quarter was the February completion of the Edge Controls acquisition for $46 million.

The move is designed to integrate differentiated automation and controls capabilities within DNOW’s U.S. Process Solutions segment, catering to a growing demand for remote monitoring and precision control in energy infrastructure.

Gross profit for the quarter was $193 million, or 16.3% of revenue.

On an adjusted basis, gross profit reached $256 million, or 21.6% of revenue, reflecting the company's ability to maintain pricing discipline despite a dynamic industrial landscape.

Meanwhile, DNOW remained active in its capital return program, repurchasing $50 million of common stock during the quarter.

This activity was conducted under the company’s existing $160 million share repurchase authorization, signaling management's confidence in the firm's long-term valuation and cash-generating potential.

The company’s balance sheet remains geared toward supporting its acquisition-led growth strategy.

As of March 31, 2026, DNOW held $116 million in cash and cash equivalents against $571 million in long-term debt.

Total liquidity, including undrawn credit capacity, was approximately $379 million.