On February 17, 2026, Harvey Partners disclosed a new position in DNOW (DNOW 4.46%), acquiring 1,939,399 shares worth $25.70 million.
What happened
According to a recent SEC filing dated February 17, 2026, Harvey Partners established a new position in DNOW by acquiring 1,939,399 shares. The quarter-end value of the shares was $25.70 million.
What else to know
- This is a new position; the DNOW stake represents 2.3% of Harvey Partners’ reportable 13F assets under management as of December 31, 2025.
- Top holdings after the filing:
- NYSE: NPO: $53.4 million (4.8% of AUM)
- NASDAQ: GLDD: $48.6 million (4.4% of AUM)
- NASDAQ: MKSI: $46.2 million (4.1% of AUM)
- NASDAQ: ADEA: $45.1 million (4.1% of AUM)
- NASDAQ: LASR: $45.1 million (4.1% of AUM)
- As of Tuesday, DNOW shares were priced at $12.33, down 18% over the past year and well underperforming the S&P 500’s roughly 16% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Price (as of Tuesday) | $12.33 |
| Market capitalization | $2 billion |
| Revenue (TTM) | $2.82 billion |
| Net income (TTM) | ($89 million) |
Company snapshot
- DNOW distributes a broad range of downstream energy and industrial products, including pipes, valves, fittings, safety supplies, instrumentation, and original equipment under the DistributionNOW and DNOW brands.
- The company generates revenue through the sale of consumable maintenance, repair, and operating supplies, as well as supply chain and materials management solutions for energy and industrial sectors.
- It serves upstream, midstream, and downstream energy companies, including drilling contractors, oil and gas producers, refineries, petrochemical firms, utilities, and industrial manufacturers.
DNOW Inc. is a leading distributor of energy and industrial products, operating an extensive network of locations across the United States, Canada, and international markets. The company leverages its supply chain expertise and broad product portfolio to deliver essential solutions to energy infrastructure and industrial clients. DNOW's scale, diverse customer base, and integrated service offerings position it as a key supplier in the oil & gas equipment and services industry.
What this transaction means for investors
Harvey Partners is leaning into a cyclical distributor amid a transformative merger and a messy, but potentially high upside, earnings reset.
In November, DNOW closed its acquisition of MRC Global, a deal management says expands scale and long-term growth opportunities. For 2025, revenue reached $2.82 billion, with adjusted EBITDA of $209 million, or 7.4% of sales. Adjusted net income came in at $104 million, even as reported results were dragged down by transaction and inventory step-up charges.
Shares are now down 18% over the past year, lagging the broader market after a roughly 20% post-earnings drop. But that underperformance likely reflects integration risk and near-term headaches rather than a collapse in underlying demand. Within a portfolio that also holds industrial, semiconductor, and dredging names, this 2% position fits a pattern of buying operationally levered businesses at transitional moments. For long-term investors, the question is whether merger synergies and energy infrastructure spending can lift margins back toward historical highs. If integration delivers, today’s skepticism could look misplaced.
