DNOW Inc. Under Investigation for Potential Securities Claims
Rosen Law Firm has announced an investigation into potential securities claims on behalf of shareholders of DNOW Inc. (NYSE: DNOW). The probe stems from allegations that the energy distribution company may have issued materially misleading business information to the investing public. The firm is encouraging investors to inquire about a potential class action.
- The investigation follows a significant 19.1% drop in DNOW's stock price on February 20, 2026. This steep decline occurred after the company announced disappointing financial results for the fourth quarter of 2025, which included a substantial loss and failed to meet Wall Street expectations. - For the full year of 2025, DNOW reported a GAAP net loss of $89 million, a stark contrast to the $78 million in net income it earned in 2024. The fourth-quarter results were heavily impacted by a net loss of $147 million, largely due to charges related to its recent merger with MRC Global. - DNOW's President and CEO, David Cherechinsky, acknowledged that despite 2025 being the company's fifth consecutive year of revenue growth, there were significant challenges with the implementation of an ERP system at the recently acquired MRC Global business in the U.S. - The company's fourth-quarter revenue was $959 million, which was below analysts' expectations of approximately $970 million to $988 million. - Rosen Law Firm, the firm conducting the investigation, has a history of securing large settlements in securities class-action lawsuits, including recovering over $438 million for investors in 2019 alone. - Despite the recent quarterly loss, DNOW's revenue for the full year 2025 increased to $2.82 billion, up from $2.37 billion in 2024, and the company reported a record full-year adjusted EBITDA of $199 million.
