PVF, gas products, pumps and fabricated equipment distributor DNOW reported its 1Q26 financial results on May 7, alongside announcing a February acquisition and updates on the progress of the company’s $1.5 billion acquisition of MRC Global that completed in November.

Edge Controls Acquisition

Houston-based DNOW shared that in February, it completed a $46 million acquisition of Edge Controls — a Midland, TX-based provider of automation and controls solutions for energy and adjacent industries. 

Founded in 2019, the company specializes in motor, variable frequency drives, horizontal pump sales and service that caters to industrial and oil & gas applications such as water logistics, saltwater disposals, pump jacks, pipelines and oil facilities.

It marks the 26th acquisition in DNOW’s history since it was spun off from National Oilwell Varco in in 2014.

1Q26 Results

1Q26 marked DNOW’s first full quarter since completing its $1.5 billion acquisition of like distributor MRC Global that essentially doubled the size of the business. Given the scale of that transaction, a year-over-year or sequential comparison of the financials wouldn’t be prudent.

DNOW’s 1Q was led by:

• Sales of $1.183 billion
• Gross margin of 16.3% (21.6% adjusted)
• Net loss of $44 million (+$3 million adjusted)
• Adjusted EBITDA of $39 million on 3.3% margin

MRC’s ERP Conversation Update

Back on Nov. 5 — one day before the MRC acquisition was completed — MRC reported that its 3Q25 financial results saw a 15% sequential revenue decline attributed to significant challenges encountered during the implementation of its new U.S. ERP system on Oracle — hurting revenues, profitability and cash flows that quarter.

DNOW provided an update on the situation in its 4Q25 report in February in which CEO David Cherichinsky said the project was “fair to criticize as an obstacle” and “much heavier lift than previously known.”

Amid MRC Global Integration, DNOW Wrestles with Challenges from ERP Transition – Feb. 20

In the company’s 1Q earnings report, DNOW said it’s taking targeted, decisive actions to enhance MRC’s ERP system performance and drive operational efficiencies.

“We are confident these actions will strengthen our foundation and deliver meaningful earnings growth and long-term value for the business,” Cherichinsky said in the May 7 report, with the company emphasizing that while much progress has been made, the system is not yet optimized.”