DNOW Completes MRC Global Merger, Faces ERP Challenges

Legacy DNOW delivers record results, but integration issues impact combined company performance.

Published on Feb. 23, 2026

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DNOW (NYSE:DNOW) executives highlighted the company's strongest standalone results since going public, as well as the early progress and challenges following its November 2025 merger with MRC Global. While legacy DNOW generated record full-year EBITDA in 2025, the combined company faced disruptions from MRC Global's U.S. ERP implementation, which impacted revenues in the third and fourth quarters. DNOW is working to mitigate the ERP issues but has delayed providing guidance until the situation stabilizes.

Why it matters

The DNOW-MRC Global merger creates one of the largest energy and industrial products distributors, with a combined footprint across the life cycle of energy and industrial assets. However, the ERP integration challenges highlight the complexities of merging two large companies and the potential for operational disruptions during the integration process.

The details

DNOW completed the merger with MRC Global on Nov. 6, 2025, and is now 'operating as one company.' The company expects to achieve $70 million in cost savings within three years of closing, with $23 million expected by the end of the first year. However, the U.S. ERP implementation at legacy MRC Global has created inefficiencies, including slowness, impediments to customer service, increased resource needs, higher safety stock, and difficulty processing orders. These issues have led to revenue declines in the third and fourth quarters and are limited to the U.S. MRC Global operations, which represent about 40% of DNOW's business.

  • DNOW completed the merger with MRC Global on Nov. 6, 2025.
  • DNOW expects to achieve $70 million in cost savings within three years of closing, with $23 million expected by the end of the first year (2026).

The players

DNOW

A global distributor of energy and industrial products, serving a broad range of end-markets including oil and gas, petrochemical, power generation, and industrial manufacturing.

MRC Global

A global distributor of pipe, valves, and fittings (PVF) and other infrastructure products and services to diversified end-markets.

David Cherechinsky

President and CEO of DNOW.

Mark Johnson

CFO of DNOW.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

DNOW has decided to delay sequential and full-year guidance, citing ongoing ERP challenges in legacy MRC Global U.S. operations and the 'critical phase' of post-merger integration. The company will reinstate guidance once it has greater stability and predictability.

The takeaway

The DNOW-MRC Global merger highlights the complexities of integrating large companies, as the combined entity faces operational disruptions from MRC Global's U.S. ERP implementation. While legacy DNOW delivered strong standalone results, the integration challenges have impacted the combined company's performance and delayed the provision of forward guidance.