NOW Inc

DNOW Inc. delivered a mixed but fundamentally transformed Q4 2025, posting adjusted earnings of $0.15 per diluted share, beating the $0.13 consensus estimate by 20.00%, even as revenue of $959 million fell short of the $1.07 billion analyst expectation by 10.49%. The quarter's financial profile was defined almost entirely by the all-stock merger with MRC Global, completed November 6, 2025, which drove revenue 60.1% higher year-over-year and swelled total assets to $3.92 billion, but also triggered $135 million in inventory step-up charges and $51 million in transaction costs that produced a GAAP net loss of $147 million. Adjusted EBITDA reached $61 million at a 6.4% margin, with adjusted gross margin compressing modestly to 22.6%. The integration is tracking ahead of schedule, with first-year cost synergies now projected at $23 million, 35% above the initial target, though analysts have flagged the ongoing U.S. MRC Global ERP transition as a near-term headwind weighing on operational efficiency and near-term visibility into 2026.