Overview
- DNOW closed its merger with MRC Global on Nov. 6 and says the combined business is operating as a single company.
- Fourth-quarter 2025 revenue was $959 million, including $388 million from the MRC stub period, with full-year revenue of $2.8 billion and legacy DNOW delivering $199 million of EBITDA at an 8.2% margin.
- Design flaws in MRC Global’s U.S. ERP are slowing processing and impairing service, leading DNOW to migrate select customers to its SAP system and deploy more than 200 additional field personnel.
- First-year cost synergies are now expected to reach $23 million toward a three-year $70 million target, with capital priorities centered on deleveraging and a $160 million share repurchase authorization.
- Merger-related accounting effects include $135 million of Q4 inventory step-up amortization and $50 million of transaction costs, an expected final $41 million step-up in Q1 2026, a $12 million international non-cash charge, and a shift to LIFO for U.S. inventory.