DNOW Inc. unveiled its fourth quarter and full-year 2025 earnings presentation, highlighting robust revenue growth fueled by the merger with MRC Global, which closed on November 6, 2025. The company achieved record annual revenue amid integration efforts and operational challenges.3739
Key Financial Results
Fourth quarter revenue climbed to $959 million, marking a 68% year-over-year increase from $571 million and a 51% sequential rise from Q3 2025. Adjusted EBITDA reached $61 million, or 6.4% of revenue, while adjusted net income stood at $23 million, or $0.15 per diluted share. Gross profit margins adjusted to 22.6%.3739
Full-year revenue totaled $2.82 billion, up 19% from $2.37 billion in 2024. Adjusted EBITDA hit a record $209 million at a 7.4% margin, with adjusted net income of $104 million, or $0.86 per share. Legacy DNOW operations delivered $199 million in EBITDA at an 8.2% margin.3736
Cash flow from operations generated $83 million in Q4 and $155 million for the year. The company repurchased $10 million in shares during the quarter, part of a $37 million annual program.36
Merger Progress and Synergies
The MRC Global merger expanded DNOW’s reach across upstream, midstream, gas utilities, downstream, and industrial sectors. Integration advances include a new organizational structure aligned by sectors and initial cross-selling opportunities. Cost synergies accelerated to nearly $23 million in the first year, surpassing the initial target by 35% and representing one-third of the $70 million three-year goal.39
U.S. MRC operations faced ERP transition hurdles from an Oracle system rollout in Q3 2025, leading to revenue impacts and service delays. Management deployed additional resources, including DNOW IT teams and SAP migration, to resolve issues swiftly.38
Strong Balance Sheet
DNOW maintains $588 million in total liquidity, including $164 million in cash and $424 million in credit availability. Net debt stands at $247 million with a leverage ratio of 1.2x. Working capital optimized to 14.9% of revenue, excluding merger effects.39
2026 Outlook
Executives prioritize ERP stabilization, synergy capture, and deleveraging. Organic revenue growth remains flat amid upstream softness, offset by midstream and utilities expansion. Free cash flow projects at $100-200 million, with EBITDA margins targeting a return to 8%. Formal guidance awaits greater operational stability.38
CEO David Cherechinsky stated, “DNOW delivered strong financial results in 2025 generating $2.8 billion in revenue… The merger with MRC Global expands DNOW’s growth opportunities and strategically positions the Company for long-term success.”37
