DNOW Inc. on Friday posted a quarterly net loss in its first financial results after acquiring fellow Houston distributor MRC Global, but the company said the integration of the businesses is off to a “strong start” and that initial cost savings are higher than expected.
The newly combined company reported $959 million in revenue in the fourth quarter of the year, which included the period after DNOW closed on its purchase of MRC in early November. The previous fourth quarter saw $571 million in revenue for DNOW.
Company officials said the $147 million net loss was “primarily due to transaction charges” related to the MRC merger, and the company also reported an operating loss of $170 million. Gross profit, meanwhile, fell by nearly 50% to $68 million as a combined distributor.
“The merger with MRC Global expands DNOW's growth opportunities and strategically positions the company for long-term success,” DNOW President and CEO David Cherechinsky said in a statement. “I am encouraged by the strong start to our integration efforts and the early progress of our synergy realization initiatives.”
The energy and industrial products distributor said that savings in the first year of the combined company are now projected to come in at $23 million — 35% more than its initial expectation. DNOW continues to anticipate $70 million in cost savings over three years.
Cherechinsky also said that the company took “targeted actions” to address issues in the overhaul of MRC’s ERP system last year, which impacted that company’s revenues, profits and cash flow in the previous quarter.
“While these complexities have created near-term obstacles, we are actively addressing them and remain focused on positioning the business for long-term growth,” Cherechinsky said.
For the full year, DNOW reported $2.82 million in revenue, up from $2.37 billion in 2024, along with a net annual loss of $88 million. Cherechinsky said that after excluding the MRC deal, 2025 was DNOW’s fifth consecutive year of growth and saw the company’s highest annual adjusted EBITDA to date.
DNOW ranked 13th on ID’s most recent Big 50 list, while MRC ranked 11th.
