DNOW Inc. Reports 18.8% Revenue Growth to $2.82 Billion, Faces Net Loss of $89 Million

DNOW Inc. reported a significant increase in revenue for the fiscal year ending December 31, 2025, achieving $2.82 billion, up 18.8% from $2.37 billion in 2024. This growth was primarily driven by the acquisition of MRC Global, which contributed to a 22% increase in revenue from the U.S. segment, totaling $2.29 billion. However, the company experienced a net loss of $89 million, a stark contrast to the net income of $78 million reported in the previous year. The decline in profitability was attributed to increased costs associated with the MRC Global acquisition, inventory-related transaction charges, and the impact of the Last-In, First-Out (LIFO) inventory costing methodology.

In terms of operational metrics, DNOW's gross profit decreased to $478 million, representing 17% of revenue, compared to $531 million or 22.4% of revenue in 2024. Adjusted Gross Profit, a non-GAAP measure, increased to $651 million, maintaining a consistent 23.1% of revenue. The company’s selling, general, and administrative expenses rose to $559 million, largely due to legal and professional fees related to the MRC Global acquisition. The operating loss for the year was $93 million, down from a profit of $109 million in 2024, reflecting the challenges faced during the integration of the acquired business.

DNOW's workforce remained stable, with approximately 5,300 employees supporting operations across 300 locations globally. The company serves a diverse customer base in the energy and industrial sectors, including upstream, midstream, gas utilities, and downstream markets. The acquisition of MRC Global is expected to enhance DNOW's capabilities and market reach, particularly in the gas utilities sector, which is projected to grow due to ongoing infrastructure upgrades and new residential developments.

Looking ahead, DNOW anticipates continued growth driven by investments in energy transition projects and infrastructure modernization. The company is focused on leveraging its supply chain expertise and expanding its product offerings to meet evolving customer needs. However, the outlook remains cautious due to potential volatility in oil and gas prices, regulatory changes, and the ongoing integration challenges following the MRC Global acquisition. The company plans to maintain capital discipline and monitor market dynamics closely as it navigates these challenges.