DNOW (NYSE:DNOW), the Houston-based energy and industrial distributor, reported fourth-quarter results on Friday that highlighted the initial impact of its massive $1.5 billion acquisition of MRC Global.
While the company recorded a GAAP net loss due to one-time merger costs, its adjusted earnings and accelerated synergy targets signaled a strong start for the newly combined entity.
For the quarter ended December 31, 2025, DNOW reported revenue of $959 million, a significant jump from previous quarters as it integrated MRC Global’s operations following the November 6, 2025 closing.
On a GAAP basis, the company saw a net loss of $147 million ($0.95 per share), primarily driven by one-time transaction charges.
However, adjusted net income—stripping out those merger-related costs—came in at $23 million, or $0.15 per share, meeting analyst expectations.
The merger has already begun delivering financial efficiency.
CEO David Cherechinsky revealed that first-year cost synergies are now projected at $23 million, roughly 35% ahead of the initial target, though the company remains committed to its long-term goal of $70 million in annual savings within three years.
Despite the integration heavy-lifting, DNOW maintained a robust balance sheet, generating $83 million in operating cash flow during the quarter and ending the year with $588 million in total liquidity.
To further signal confidence to the market, DNOW repurchased $10 million of its common stock during the quarter, bringing its total 2025 buybacks to $37 million under its expanded $160 million authorization.