With a blockbuster merger looming in 2025’s fourth quarter, oilfield and energy sector supplies distributors DNOW and MRC Global both reported their fiscal 2Q results on Aug. 6, and they included similar top-line figures.

The two Houston-based companies announced June 27 that they will merge in a transaction valued at $1.5 billion in which DNOW acquires MRC, resulting in a company with an enterprise value of about $3 billion.

MDM’s 2Q25 M&A Report (store link) 

DNOW 2Q Results

At DNOW, 2Q sales of $628 million were down approximately 1% year-over-year but up 5% sequentially. Sales in the U.S. (84% of total) were up 3% year-over-year, while Canada and International were down 14% and 20%, respectively. DNOW noted that the U.S. revenue increase was primarily acquisition-driven, partially offset by sector headwinds, while weaker project activity was cited for Canada International.

Operating profit of $32 million on 5.1% margin likewise trailed the $32 million and 5.2% of a year earlier. Gross margin of 22.9% was up 110 basis points year-over-year and down 30 bps sequentially. Net profit of $29 million topped the $28 million of a year earlier and 1Q25’s $24 million, while EBITDA of $51 million on 8.1% margin was the company’s second best 2Q performance in the company’s 11-year public history.

MDM’s 2Q25 MarketPulse Report (store link) 

MRC 2Q Results

At MRC, sales of $798 million were flat year-over-year but up 12% sequentially, with year-over-year sales in the company’s Downstream, Industrial and Energy Transition (DIET) sector at a slight decline, offset by growth in its Production and Transmission Infrastructure (PTI) and Gas Utilities sectors. Sequentially, sales were up in all sectors, led by PTI.

MRC’s 2Q U.S. sales (82% of total) fell 3% year-over-year and were up 11% sequentially. Year-over-year sales in DIET were down 14%, PTI was down 2% and Gas Utilities was up 4%. International sales increased 15% year-over-year and improved 16% sequentially.

MRC’s 2Q gross margin of 18.9% was down 230 basis points year-over-year and flat sequentially. Operating profit of $13 million on 1.6% margin trailed the $30 million/3.8% of a year earlier but topped 1Q25’s $8 million/1.1%. EBITDA of $54 million on 6.8% margin trailed the $65 million/8.1% of a year earlier but topped 1Q25’s $36 million/5.1%.