DNOW Posts $2.82B 2025 Revenue, Achieves $23M First-Year Synergies
DNOW completed its merger with MRC Global, achieving $23M of first-year cost synergies (35% above plan), and posted full-year revenue of $2.82B with adjusted EBITDA of $209M. Q4 revenue was $959M with adjusted gross profit at 22.6% and net income of $23M; the stock’s beta is 0.79 versus Otis.
1. Merger Completion and Synergies
On November 6, 2025, DNOW finalized its all-stock acquisition of MRC Global, targeting $70M in synergies over three years. Early integration has accelerated first-year cost savings to $23M, 35% above initial targets, as management addresses ERP transition challenges to streamline operations.
2. Full-Year 2025 Financial Highlights
In 2025, combined revenues reached $2.82B with adjusted EBITDA of $209M, marking the highest annual margin in company history at 7.4%. Adjusted net income totaled $104M, or $0.86 per diluted share, while cash flow from operations provided $155M and liquidity stood at roughly $588M.
3. Fourth Quarter 2025 Results
During the fourth quarter, revenue was $959M with adjusted gross profit at 22.6% and adjusted EBITDA of $61M. Adjusted net income amounted to $23M, or $0.15 per diluted share, supported by $83M in operating cash flow and $10M in share repurchases.
4. Risk Profile and Market Comparison
A recent head-to-head analysis positions DNOW’s stock beta at 0.79, indicating lower volatility relative to Otis Worldwide. The comparison evaluates valuation, dividends, institutional ownership and profitability metrics to gauge DNOW’s risk-adjusted investment appeal.