DNOW Q3 Earnings Call Highlights

Impact · against what's priced in

DNOW shows strong operational momentum with a significant beat on synergy targets and an ambitious 2027 EBITDA target of up to $350 million. While a seasonal Q4 dip is expected, the expansion in gross margins to 21.2% and a push toward the top end of cash flow guidance suggest improving efficiency and pricing power.

DNOW+0.50

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In context

The company significantly raised its first-year cost synergy estimates from $17 million to $32 million and outlined a potential 2027 adjusted EBITDA upside of $350 million, well above the $300 million annualized run rate.

Read from the article alone

• guidance
• earnings
• cash flow
• DNOW
• debt reduction
• downstream
• energy infrastructure
• freight costs
• gas utilities
• margins
• midstream