DNOW reported fourth-quarter revenue of $959 million, a 51% sequential increase driven by $388 million of MRC Global contributions in the stub period, and full-year revenue of $2.8 billion, up 19% from 2024. Adjusted Q4 EBITDA was $61 million (6.4% margin) and adjusted net income was $23 million, or $0.15 per share.

Legacy DNOW delivered a record full-year EBITDA of $199 million, representing an 8.2% margin that exceeded the near-8% target. Management now expects to achieve $23 million in cost synergies by the end of the first year post-merger, up from an initial forecast of $17 million, on track for $70 million within three years.

Management highlighted significant ERP implementation challenges in U.S. MRC Global operations, citing system slowness, process inefficiencies, and higher safety stock that weighed on upstream and downstream segments. To mitigate, DNOW has rerouted orders through legacy systems, added over 200 field personnel, launched a dedicated help desk, and deployed operational excellence teams to address issues.

DNOW has postponed issuing 2026 guidance until ERP stability improves, but provided directional views: upstream activity is expected to be flat to down with water management opportunities, midstream growth driven by gas infrastructure and LNG projects, and continued demand for gas utility modernization and data center solutions.