DNOW Inc. (NYSE: DNOW) reported its fourth‑quarter and full‑year 2025 financial results on February 20, 2026. Total revenue for the year reached $2.82 billion, a 19% increase from $2.37 billion in 2024, while adjusted EBITDA margin held steady at 7.4% of sales. The company’s adjusted EBITDA for the year was $61 million, slightly below the consensus estimate of $68.7 million, and the GAAP loss per share was $0.95, compared with an analyst expectation of a $0.15 gain. Adjusted earnings per share came in at $0.15, essentially in line with the $0.153 consensus but a touch below the $0.16 forecast from some analysts. The results exclude the contribution from MRC Global in the fourth quarter, reflecting the ongoing integration of the $1.5 billion all‑stock acquisition completed on November 6, 2025.
In the fourth quarter, revenue totaled $959 million, up 68% from the same period in 2024, yet it fell short of analyst estimates of roughly $985–$988 million, a miss of 2.7% to 3.4%. The quarter’s adjusted EBITDA margin of 6.4% was below the 7.4% full‑year average, and the adjusted EBITDA of $61 million was $7.7 million lower than the $68.7 million consensus. The GAAP loss of $147 million for the quarter, driven largely by merger‑related charges and the transition of the U.S. MRC Global ERP system, underscored the short‑term cost impact of the integration.
Management highlighted the strategic value of the MRC Global merger and the progress of integration efforts. "DNOW delivered strong financial results in 2025 generating $2.8 billion in revenue, with Adjusted EBITDA totaling 7.4% of revenues. Excluding the contribution from MRC Global in the fourth quarter, 2025 marked DNOW's fifth consecutive year of revenue growth and its highest Adjusted EBITDA year ever. The merger with MRC Global expands DNOW's growth opportunities and strategically positions the Company for long‑term success," said President and CEO David Cherechinsky. "While these complexities have created near‑term obstacles, we are actively addressing them and remain focused on positioning the business for long‑term growth. I am humbled to represent the talented women and men of DNOW who work hard every day to serve our customers and compete in the market. Their dedication gives me confidence in our future as we lay the groundwork for 2026 and beyond," he added.
The company noted persistent challenges related to the U.S. MRC Global ERP system transition, which went live in Q3 2025, and emphasized ongoing integration efforts and expected synergy realization over time. Management also highlighted that the first‑year cost synergies are ahead of plan, with $70 million in annual savings projected within three years of the merger. These integration costs and ERP transition challenges contributed to the revenue and earnings misses and delayed the release of 2026 guidance.
With guidance for 2026 withheld pending resolution of ERP integration issues, DNOW remains focused on executing its long‑term growth strategy. The company’s ability to maintain a 7.4% adjusted EBITDA margin amid significant merger‑related expenses signals resilience, while the continued investment in integration and synergy realization positions the combined entity for future profitability.
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