DNOW reported record second-quarter operating cash flow and a major milestone in its U.S. midstream business, where revenue surpassed a $1 billion annualized run rate for the first time in company history.
Second-quarter operating cash flow reached $133 million, which DNOW described as a record for the period. Free cash flow was $124 million after $9 million of capital expenditures.
Revenue reached $1.307 billion, increasing 10% sequentially. U.S. segment revenue increased 13% sequentially, while gas utility and upstream sector revenue each delivered their strongest sequential quarterly percentage growth since 2022.
Adjusted EBITDA reached $60 million, up 54% sequentially, reflecting stronger volumes and benefits from integration and cost-management initiatives.
DNOW’s balance sheet also improved during the quarter. Net debt was $360 million at June 30, resulting in a net debt leverage ratio of 1.7x.
The company continued returning capital to shareholders, repurchasing $25 million of stock during Q2 and $75 million during the first half. Management noted that it purchased more shares during the first two quarters of 2026 than during the previous 10 quarters combined.
KEY QUOTES:
“I am thrilled with our significantly improved performance during the second quarter of 2026, highlighted by $133 million of cash flow from operating activities, a record second-quarter achievement.”
“Second-quarter U.S. midstream revenues surpassed $1 billion on an annualized basis for the first time in our history, while both the gas utility and upstream sector revenues delivered their strongest sequential quarter percentage growth since 2022.”
David Cherechinsky, President and CEO of DNOW
