DNOW Reports Q4 2025 Earnings Post-Merger with MRC Global
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
0mins
Should l Buy DNOW?
Source: seekingalpha
- Merger Success: Following the completion of the merger with MRC Global, DNOW reported fourth-quarter revenue of $959 million, a 51% increase from Q3 2025, with MRC Global contributing $388 million, indicating strong growth potential from the merger.
- Accelerated Cost Synergies: Management now expects to achieve $23 million in cost savings in the first year, surpassing the initial target of $17 million, demonstrating improved integration efficiency post-merger that will enhance financial performance.
- ERP Challenges Impact: Despite revenue growth from the merger, approximately 40% of the business is affected by ERP issues inherited from MRC Global, with management mobilizing a comprehensive remediation plan to address critical obstacles and ensure future operational stability.
- Cautious Future Outlook: Management has delayed guidance for 2026 due to ongoing ERP implementation challenges, anticipating flat revenue across the business, reflecting a cautious approach to future growth during the integration phase.
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Analyst Views on DNOW
Wall Street analysts forecast DNOW stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 16.360
Low
16.00
Averages
17.67
High
19.00
Current: 16.360
Low
16.00
Averages
17.67
High
19.00
About DNOW
DNOW Inc. is a premier energy and industrial solutions provider. It supplies energy and industrial products and packaged, engineered process and production equipment. The Company is a distributor of pipe, valves, fittings (PVF), pumps and fabricated equipment. Its products and services include air compressors and blowers; artificial lift; drilling and completions; electrical; industrial and facilities supplies; instrumentation and measurement; paint and coatings; PVF; power generation and transmission; process and production equipment; pumps and packages; safety and PPE, and tools and welding equipment. Its DigitalNOW platform and supply chain services address intricate operational challenges, bolstered with support from procurement and inventory management to field services. It serves a range of markets, including upstream, midstream and downstream oil and gas, chemical processing, mining, municipal water, manufacturing, engineering, energy evolution and renewables.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
DNOW Reports Q4 2025 Earnings Post-Merger with MRC Global
- Merger Success: Following the completion of the merger with MRC Global, DNOW reported fourth-quarter revenue of $959 million, a 51% increase from Q3 2025, with MRC Global contributing $388 million, indicating strong growth potential from the merger.
- Accelerated Cost Synergies: Management now expects to achieve $23 million in cost savings in the first year, surpassing the initial target of $17 million, demonstrating improved integration efficiency post-merger that will enhance financial performance.
- ERP Challenges Impact: Despite revenue growth from the merger, approximately 40% of the business is affected by ERP issues inherited from MRC Global, with management mobilizing a comprehensive remediation plan to address critical obstacles and ensure future operational stability.
- Cautious Future Outlook: Management has delayed guidance for 2026 due to ongoing ERP implementation challenges, anticipating flat revenue across the business, reflecting a cautious approach to future growth during the integration phase.
See More
DNOW ANNOUNCES FOURTH QUARTER AND FULL-YEAR RESULTS FOR 2025
Fourth Quarter Results: The report outlines the financial performance for the fourth quarter of 2025, highlighting key metrics and trends.
Full-Year Performance: A comprehensive overview of the full-year results for 2025, including comparisons to previous years and future projections.
See More
Rosen Law Firm Investigates DNOW Securities Claims
- Securities Claims Investigation: Rosen Law Firm has announced an investigation into DNOW Inc. (NYSE: DNOW) due to potential issuance of materially misleading business information, exposing investors to possible securities claims.
- Stock Price Impact: On February 20, 2026, DNOW's stock plummeted by 19.1% after the company reported disappointing fourth-quarter 2025 results, which missed Wall Street expectations, exacerbating investor loss risks.
- Class Action Preparation: The firm is preparing a class action to seek compensation for affected investors, allowing participation without any upfront costs, thus lowering the barrier for investors to join the lawsuit.
- Firm Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its expertise and resource advantages in handling such cases.
See More
DNOW Shares Plunge 19% Following Disappointing Quarterly Earnings Report
- Earnings Miss: DNOW's fourth quarter and full-year 2025 results revealed nearly doubled revenue at $959 million year-over-year, yet fell short of analyst expectations of $988 million, highlighting integration challenges with MRC Global.
- Declining Net Income: Despite significant revenue growth, DNOW reported a net income of $23 million, or $0.15 per share, which is a decline from $27 million in the same quarter last year, indicating pressure on profitability.
- Integration Challenges: CEO David Cerechinsky acknowledged that the legacy ERP system from MRC Global has created near-term obstacles, and while the company is actively addressing these issues, they may impact long-term growth prospects.
- Market Reaction: Following the disappointing earnings report, DNOW's stock plummeted by 19.16% to $13.22, reflecting heightened investor concerns regarding the company's ability to effectively integrate MRC Global and its future outlook.
See More
DNOW Reports Revenue Surge but Stock Plummets
- Significant Revenue Growth: DNOW's fourth-quarter revenue nearly doubled year-over-year to $959 million from $571 million, primarily driven by the acquisition of MRC Global last November, indicating initial success from its acquisition strategy.
- Declining Profitability: Despite the substantial revenue increase, DNOW reported a net income of $23 million, or $0.15 per share, down from $27 million in the same quarter last year, reflecting challenges in integrating the new business.
- Negative Market Reaction: DNOW's stock plummeted over 19% on Friday due to quarterly results that missed analyst expectations, highlighting growing investor concerns about the company's ability to integrate MRC Global effectively, which may impact its short-term market performance.
- Management's Response Strategy: CEO David Cerechinsky stated that while the legacy ERP system of MRC Global has created near-term obstacles, the company is actively addressing these complexities and remains focused on positioning the business for long-term growth, demonstrating management's confidence in future prospects.
See More
DNOW (DNOW) Q4 2025 Earnings Call Transcript
See More
DNOW Reports Q4 2025 Earnings Post-Merger with MRC Global
- Merger Success: Following the completion of the merger with MRC Global, DNOW reported fourth-quarter revenue of $959 million, a 51% increase from Q3 2025, with MRC Global contributing $388 million, indicating strong growth potential from the merger.
- Accelerated Cost Synergies: Management now expects to achieve $23 million in cost savings in the first year, surpassing the initial target of $17 million, demonstrating improved integration efficiency post-merger that will enhance financial performance.
- ERP Challenges Impact: Despite revenue growth from the merger, approximately 40% of the business is affected by ERP issues inherited from MRC Global, with management mobilizing a comprehensive remediation plan to address critical obstacles and ensure future operational stability.
- Cautious Future Outlook: Management has delayed guidance for 2026 due to ongoing ERP implementation challenges, anticipating flat revenue across the business, reflecting a cautious approach to future growth during the integration phase.
See More
DNOW ANNOUNCES FOURTH QUARTER AND FULL-YEAR RESULTS FOR 2025
Fourth Quarter Results: The report outlines the financial performance for the fourth quarter of 2025, highlighting key metrics and trends.
Full-Year Performance: A comprehensive overview of the full-year results for 2025, including comparisons to previous years and future projections.
See More
Rosen Law Firm Investigates DNOW Securities Claims
- Securities Claims Investigation: Rosen Law Firm has announced an investigation into DNOW Inc. (NYSE: DNOW) due to potential issuance of materially misleading business information, exposing investors to possible securities claims.
- Stock Price Impact: On February 20, 2026, DNOW's stock plummeted by 19.1% after the company reported disappointing fourth-quarter 2025 results, which missed Wall Street expectations, exacerbating investor loss risks.
- Class Action Preparation: The firm is preparing a class action to seek compensation for affected investors, allowing participation without any upfront costs, thus lowering the barrier for investors to join the lawsuit.
- Firm Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its expertise and resource advantages in handling such cases.
See More
DNOW Shares Plunge 19% Following Disappointing Quarterly Earnings Report
- Earnings Miss: DNOW's fourth quarter and full-year 2025 results revealed nearly doubled revenue at $959 million year-over-year, yet fell short of analyst expectations of $988 million, highlighting integration challenges with MRC Global.
- Declining Net Income: Despite significant revenue growth, DNOW reported a net income of $23 million, or $0.15 per share, which is a decline from $27 million in the same quarter last year, indicating pressure on profitability.
- Integration Challenges: CEO David Cerechinsky acknowledged that the legacy ERP system from MRC Global has created near-term obstacles, and while the company is actively addressing these issues, they may impact long-term growth prospects.
- Market Reaction: Following the disappointing earnings report, DNOW's stock plummeted by 19.16% to $13.22, reflecting heightened investor concerns regarding the company's ability to effectively integrate MRC Global and its future outlook.
See More
DNOW Reports Revenue Surge but Stock Plummets
- Significant Revenue Growth: DNOW's fourth-quarter revenue nearly doubled year-over-year to $959 million from $571 million, primarily driven by the acquisition of MRC Global last November, indicating initial success from its acquisition strategy.
- Declining Profitability: Despite the substantial revenue increase, DNOW reported a net income of $23 million, or $0.15 per share, down from $27 million in the same quarter last year, reflecting challenges in integrating the new business.
- Negative Market Reaction: DNOW's stock plummeted over 19% on Friday due to quarterly results that missed analyst expectations, highlighting growing investor concerns about the company's ability to integrate MRC Global effectively, which may impact its short-term market performance.
- Management's Response Strategy: CEO David Cerechinsky stated that while the legacy ERP system of MRC Global has created near-term obstacles, the company is actively addressing these complexities and remains focused on positioning the business for long-term growth, demonstrating management's confidence in future prospects.
See More
DNOW (DNOW) Q4 2025 Earnings Call Transcript
See More
