Core Insights - The company reported a fourth-quarter 2025 revenue of $959 million, a 51% increase sequentially, and a full-year revenue of $2.8 billion, up 19% from 2024 [1] - The legacy DNOW business achieved a record full-year EBITDA of $199 million in 2025, with an EBITDA margin of 8.2%, surpassing the company's target [2] - The merger with MRC Global is expected to enhance scale, sector reach, and operational efficiencies, with management targeting $70 million in cost savings within three years [3][4] Financial Performance - Adjusted EBITDA for Q4 was $61 million, representing 6.4% of revenue, while full-year EBITDA totaled $209 million, or 7.4% of revenue [6] - The company reported a net loss of $147 million in Q4, impacted by transaction-related costs and a non-cash charge related to foreign currency translation losses [9] - U.S. revenue for Q4 was $765 million, with $298 million from MRC Global, while legacy DNOW U.S. revenue was $467 million, down about 10% sequentially [10] Merger and Integration - The merger with MRC Global was completed on November 6, and the company is now operating as one entity, emphasizing cultural alignment and technical expertise [5] - Management acknowledged challenges with the U.S. ERP implementation at legacy MRC Global, which has created inefficiencies and impacted revenue [11][12] - The company plans to mitigate ERP issues by enhancing customer service and integrating legacy systems [13] Market Outlook - The company has delayed guidance for 2026 due to ongoing ERP challenges but provided commentary on market conditions, expecting flat to down activity in upstream sectors and growth in midstream and gas utilities [15][16] - Consolidated organic growth is anticipated to be "flattish," with potential upside from cost synergies and integration initiatives [17] - Capital allocation priorities include investing in growth areas, deleveraging debt, pursuing strategic M&A, and share repurchases [18] Liquidity and Cash Flow - DNOW ended the year with $588 million in liquidity, including $164 million in cash, and total debt of $411 million [19] - The company generated $83 million in operating cash flow in Q4 and $155 million for the full year, with capital expenditures of $25 million for 2025 [19] - Management expects to generate cash in the range of $100 million to $200 million in 2026, highlighting opportunities from pent-up inventory and uncollected receivables [20]