DNOW Inc. (DNOW) Faces Investor Scrutiny Amid Reality Check Against November Comments About MRC Global ERP Issues, Stock Down 19% On News – Hagens Berman
SAN FRANCISCO, April 20, 2026 (GLOBE NEWSWIRE) -- Investors in DNOW Inc. (NYSE: DNOW), a leading distributor of PVF, pumps and fabricated equipment, saw the price of their shares fall about 19% on February 20, 2026 after reporting its Q4 and FY 2025 financial results and revealing surprising, adverse, information.
The developments have prompted national shareholder rights firm Hagens Berman to commence an investigation into whether DNOW’s disclosures before February 20 may have violated federal securities laws.
The firm encourages DNOW investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist the investigation to contact its attorneys.
Visit: www.hbsslaw.com/investor-fraud/dnow
Contact the Firm Now: DNOW@hbsslaw.com
844-916-0895
DNOW Inc. (DNOW) Investigation:
The investigation is focused on the propriety of DNOW’s disclosures about certain enterprise resource planning (“ERP”) issues faced by its acquisition target, MRC Global Inc., leading up to- and after- the acquisition closed on November 6, 2025.
On November 5, 2025, the day before the acquisition closed, DNOW held its Q3 2025 earnings call. DNOW management assured investors about MRC’s ERP deployment, stating “[i]t’s a state-of-the-art system that really lends itself to improved inventory management and visibility, order processing efficiency, supply chain optimization, improved financial control, customer service enhancement and certainly more data-driven solutions.”
While noting that “ERP implementation is a complicated exercise[,]” DNOW management emphasized that “MRC characterized their issues with implementing the ERP as an isolated one-time event[]” and “they just implemented a world-class ERP.”
Investors’ expectations were dashed on February 20, 2026. That day, DNOW reported its Q4 and FY 2025 financial results.
Among the disappointments, DNOW revealed that MRC revenues declined in the fourth quarter “due to persistent ERP challenges[]” and that “the MRC Global ERP project […] is fair to characterize as an obstacle.”
In addition, in contrast to DNOW’s November assurances, management said “[d]esign architecture is resulting in inefficiencies for certain core processes, continuing negative operating and financial impacts.” Further, “[o]bserved limitations across the system are guided as it is slow, impedes customer service, requires more resources, increases safety stock, and difficulty processing orders.” As a result, post-acquisition, DNOW revealed that it needed to invest more money to remediate ERP issues previously characterized as “an isolated one-time event.”
Of additional concern, DNOW delayed sequential and full year 2026 guidance, blaming “persistent challenges related to our ERP implementation within legacy MRC Global US operations.”
The market swiftly reacted, sending the price of DNOW shares down 19% and lopping off over $580 million of market capitalization in just one day.
“We’re focused on whether DNOW management may have known about MRC’s ongoing, persistent ERP implementation problems that, as management acknowledged a few months later, presented obstacles to efficiency,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.
If you invested in DNOW and have substantial losses, or have knowledge that will assist the firm’s investigation, submit your losses now.
If you’d like more information and answers to frequently asked questions about the firm’s DNOW investigation, read more »
Whistleblowers: Persons with non-public information regarding DNOW should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email DNOW@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895