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Infrastructure Distributors Q2 Earnings: DistributionNOW (NYSE:DNOW) Simply the Best

By: StockStory

September 28, 2025 at 23:35 PM EDT

DNOW Cover Image

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at infrastructure distributors stocks, starting with DistributionNOW (NYSE: DNOW).

Focusing on narrow product categories that can lead to economies of scale, infrastructure distributors sell essential goods that often enjoy more predictable revenue streams. For example, the ongoing inspection, maintenance, and replacement of pipes and water pumps are critical to a functioning society, rendering them non-discretionary. Lately, innovation to address trends like water conservation has driven incremental sales. But like the broader industrials sector, infrastructure distributors are also at the whim of economic cycles as external factors like interest rates can greatly impact commercial and residential construction projects that drive demand for infrastructure products.

The 4 infrastructure distributors stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 1%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.9% since the latest earnings results.

Best Q2: DistributionNOW (NYSE: DNOW)

Spun off from National Oilwell Varco, DistributionNOW (NYSE: DNOW) provides distribution and supply chain solutions for the energy and industrial end markets.

DistributionNOW reported revenues of $628 million, flat year on year. This print exceeded analysts’ expectations by 2.6%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS and EBITDA estimates.

DistributionNOW scored the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 1.8% since reporting and currently trades at $15.50.

Is now the time to buy DistributionNOW? Access our full analysis of the earnings results here, it’s free.

MRC Global (NYSE: MRC)

Producing bomb casings and tracks for vehicles during WWII, MRC (NYSE: MRC) offers pipes, valves, and fitting products for various industries.

MRC Global reported revenues of $798 million, flat year on year, outperforming analysts’ expectations by 1.7%. The business had a strong quarter with an impressive beat of analysts’ EBITDA estimates and EPS in line with analysts’ estimates.

The market seems content with the results as the stock is up 1.7% since reporting. It currently trades at $14.62.

Is now the time to buy MRC Global? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Watsco (NYSE: WSO)

Originally a manufacturing company, Watsco (NYSE: WSO) today only distributes air conditioning, heating, and refrigeration equipment, as well as related parts and supplies.

Watsco reported revenues of $2.06 billion, down 3.6% year on year, falling short of analysts’ expectations by 7.2%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Watsco delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 14.3% since the results and currently trades at $398.01.

Read our full analysis of Watsco’s results here.

Core & Main (NYSE: CNM)

Formerly a division of industrial distributor HD Supply, Core & Main (NYSE: CNM) is a provider of water, wastewater, and fire protection products and services.

Core & Main reported revenues of $2.09 billion, up 6.6% year on year. This number missed analysts’ expectations by 1%. Overall, it was a disappointing quarter as it also logged full-year EBITDA guidance missing analysts’ expectations.

Core & Main scored the fastest revenue growth among its peers. The stock is down 20.9% since reporting and currently trades at $52.65.

Read our full, actionable report on Core & Main here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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