Operations and Distribution - The company operates a global distribution network with a presence in major oil and natural gas regions, segmented into U.S. and International operations [28]. - The company sources products from over 7,100 suppliers across 46 countries, with purchases from the 25 largest suppliers accounting for approximately 46% of total purchases in 2024 [39]. - The company has a customer base of over 8,300, with no single customer representing more than 10% of revenue, indicating a diversified customer portfolio [48]. - The company’s distribution capabilities allow it to serve new customers in various industries, including metals and mining, power generation, and carbon capture [62]. Safety and Compliance - In 2024, the company's Total Recordable Incident Rate (TRIR) was 0.82, significantly lower than the 2023 U.S. Bureau of Labor Statistics average of 3.0 for wholesalers of metal products [30]. - The company maintains a strong focus on safety, with safety programs designed to mitigate risks and improve safety standards across operations [29]. - The company is subject to various environmental laws, but compliance costs have not been material to its financial position [66]. - The company is subject to various legal and liability risks, including product liability and environmental claims, which could result in substantial damages [129]. Financial Performance and Risks - As of December 31, 2024, the company's backlog decreased by $105 million, or 16%, to $558 million compared to $663 million in 2023, primarily due to lower project activity in the U.S. segment [49]. - The company's 25 largest customers represented approximately 60% of sales for the year ended December 31, 2024, highlighting a significant customer concentration risk [96]. - The company’s revenue is sensitive to capital expenditures in the industries it serves, particularly in the Gas Utilities and oil and gas sectors [70]. - The company may face supply cost increases due to unexpected demand, production difficulties, or increases in raw material costs, which could adversely affect profitability [76]. Human Resources and Development - The company employs over 2,600 team members, with approximately 73% located in the U.S. and 27% in the International segment [52]. - The company offers competitive compensation, with hourly team members in the U.S. earning at least $18 per hour starting from their first year of employment [53]. - The company has a robust Learning & Leadership Development program, providing training resources and development opportunities to enhance team member skills [54]. - The company may experience difficulties in attracting and retaining qualified personnel, which could hinder operational effectiveness and growth [97]. Technology and Systems - The company is investing approximately $50 million to modernize its ERP system in the U.S., with an expected full implementation by the end of 2025 [35]. - The company is currently upgrading its information systems, including implementing a new ERP system in the U.S. to enhance operational efficiency [101]. - The company has implemented measures to mitigate cybersecurity risks, but these may not guarantee protection against financial impacts from incidents [103]. Market Dynamics and Competition - The company expects to benefit from industry consolidation, as larger energy companies seek to reduce suppliers and focus on distributors with extensive offerings [48]. - The company may face challenges in maintaining competitive pricing and margins due to competitive actions and market dynamics [95]. - A transition to alternative forms of energy could reduce demand for oil and gas, adversely impacting sales and financial results [86]. Financial Position and Debt - As of December 31, 2024, the company had total debt outstanding of $387 million and excess availability of $460 million under its credit facilities [116]. - The company recorded $407 million of goodwill and other intangible assets on its consolidated balance sheet as of December 31, 2024 [111]. - Changes in the company's credit profile may lead suppliers to shorten payment terms, adversely affecting liquidity and payment capabilities [125]. Legal and Regulatory Risks - The company is currently facing approximately 1,060 asbestos-related lawsuits, which could have a material adverse effect due to uncertainties in potential liabilities and settlements [133]. - Compliance with U.S. and foreign anti-corruption laws is critical, as violations could lead to severe penalties and harm the company's reputation [134]. - Changes in laws and regulations in the countries where the company operates could significantly impact financial performance and operational capabilities [142].

Financial Performance - Full year 2024 sales reached $3,011 million, with operating cash flow from continuing operations of $268 million, the highest since 2015[7] - Fourth quarter 2024 sales were $664 million, a decrease of 10% compared to the fourth quarter of 2023, driven by declines in the Downstream, Industrial and Energy Transition (DIET) and Production & Transmission Infrastructure (PTI) sectors[13] - Net income from continuing operations for full year 2024 was $78 million, or $0.57 per diluted share, compared to $115 million, or $1.06 per diluted share in 2023[8] - Adjusted EBITDA for the fourth quarter of 2024 was $32 million, representing 4.8% of sales, down from $49 million in the same period of 2023[12] - The company expects revenue growth in 2025 to be in the low to high-single digits and anticipates generating at least $100 million in cash from operations[4] - Net loss attributable to common stockholders for Q4 2024 was $34 million, compared to a net income of $15 million in Q4 2023[34] - The company reported a basic loss per common share of $0.40 for Q4 2024, compared to earnings of $0.18 per share in Q4 2023[34] - Adjusted net income from continuing operations for Q4 2024 was $4 million, down from $27 million in Q4 2023[57] - The adjusted net income attributable to common stockholders for the year ended December 31, 2024, was $57 million, or $0.66 per share, compared to $98 million, or $1.15 per share for the year ended December 31, 2023[62] Sales and Revenue Breakdown - The Gas Utilities sector sales in the fourth quarter of 2024 were $253 million, unchanged from the same quarter in 2023, accounting for 38% of total sales[18] - The DIET sector sales decreased by $46 million, or 18%, in the fourth quarter of 2024 compared to the same period in 2023[19] - Sales from the Gas Utilities segment for the year ended December 31, 2024, were $1,098 million, down from $1,193 million in 2023[40] - Total sales for Q4 2024 were $664 million, a decrease of 10.3% from $740 million in Q4 2023[34] Profitability Metrics - The company achieved an average annual Adjusted Gross Profit margin exceeding 21% for the third consecutive year, with an Adjusted Gross Profit margin of 21.9% for the full year 2024[4] - Gross profit for Q4 2024 was $135 million, down 9.4% from $149 million in Q4 2023[34] - Reported gross profit for Q4 2024 was $135 million, representing 20.3% of revenue, compared to $149 million and 20.1% in Q4 2023[44] - Adjusted gross profit for Q4 2024 was $146 million, or 22.0% of revenue, down from $164 million and 22.2% in Q4 2023[44] - For the year ended December 31, 2024, reported gross profit was $620 million, 20.6% of revenue, compared to $670 million and 20.5% in 2023[44] - Adjusted EBITDA for Q4 2024 was $32 million, down from $49 million in Q4 2023, while for the year it was $202 million compared to $251 million in 2023[52] Debt and Cash Position - Net Debt as of December 31, 2024, was $324 million, with a net debt leverage ratio of 1.6x[7] - Long-term debt increased to $384 million in 2024, compared to $9 million in 2023[32] - Cash at the end of 2024 was $63 million, a decrease from $131 million at the end of 2023[36] - The total long-term debt as of December 31, 2024, was $384 million, with a net debt of $324 million after accounting for $63 million in cash[66] Operational Costs - Selling, general and administrative expenses for Q4 2024 were $123 million, slightly up from $121 million in Q4 2023[47] - Adjusted selling, general and administrative expenses for Q4 2024 were $119 million, compared to $120 million in Q4 2023[47] - The company incurred $1 million in transaction costs in Q4 2024, compared to no transaction costs in Q4 2023[52] - The company reported a decrease in LIFO reserve of $2 million for the year ended December 31, 2024, compared to an increase of $2 million in 2023[44] Future Outlook and Strategic Initiatives - MRC Global announced a new joint venture, IMTEC, aimed at developing smart meters for gas utilities customers[4] - The company plans to continue focusing on restructuring efforts and managing costs to improve future financial performance[64]

Core Insights - MRC Global Inc. has formed a joint venture with Frisbie Measurement Services, LLC to create IMTEC Services, which will provide integrated smart meter technical services to the gas utilities sector [1][2] - IMTEC Services aims to enhance the smart meter development process, offering centralized meter capabilities and ensuring quality and safety for customers [2][3] - The joint venture is expected to meet the needs of gas utility customers by providing high-quality meters and compliance with regulatory requirements [4] Company Overview - MRC Global is a leading global distributor of pipe, valves, fittings, and other infrastructure products, serving diversified end-markets including gas utilities and energy transition sectors [5] - The company operates approximately 200 locations worldwide and offers a robust digital platform along with a comprehensive quality assurance program [5] - Frisbie Measurement Services specializes in gas measurement expertise and is recognized as a women-owned business, focusing on customer-centric solutions in the metering space [6]

Core Viewpoint - MRC Global Inc. is optimistic about its business outlook for 2025, driven by a rebound in the gas utilities sector, inflation returning to product pricing, and growth in U.S. natural gas infrastructure investment. The company anticipates revenue growth in all business sectors and plans to execute a $125 million share buyback authorization [4]. Full Year 2024 Financial Highlights - Total sales for 2024 were $3,011 million, a decrease from $3,266 million in 2023 [8][39]. - Net income from continuing operations for 2024 was $78 million, down from $115 million in 2023 [7][32]. - Adjusted EBITDA for 2024 was $202 million, representing 6.7% of sales [8][46]. - Average annual adjusted gross profit margins exceeded 21% for the third consecutive year, with adjusted gross profit at 21.9% of sales [8][42]. Fourth Quarter 2024 Financial Highlights - Sales for Q4 2024 were $664 million, a 10% decrease from $740 million in Q4 2023 [13][37]. - The net loss from continuing operations for Q4 2024 was ($1) million, compared to a net income of $22 million in Q4 2023 [7][32]. - Adjusted EBITDA for Q4 2024 was $32 million, down from $49 million in Q4 2023 [12][46]. - Gross profit for Q4 2024 was $135 million, or 20.3% of sales, compared to $149 million, or 20.1% of sales in Q4 2023 [9][41]. Sales by Segment - U.S. sales in Q4 2024 were $542 million, a decrease of $91 million, or 14%, from Q4 2023 [14][37]. - International sales in Q4 2024 were $122 million, an increase of $15 million, or 14%, from Q4 2023 [16][37]. - Gas Utilities sector sales were $253 million in Q4 2024, unchanged from Q4 2023 [18][37]. - DIET sector sales decreased by $46 million, or 18%, to $208 million in Q4 2024 [19][37]. - PTI sector sales decreased by $30 million, or 13%, to $203 million in Q4 2024 [20][37]. Balance Sheet and Cash Flow - As of December 31, 2024, the company's cash balance was $63 million, with long-term debt of $387 million and net debt of $324 million [21][30]. - Operating cash flows from continuing operations for the full year 2024 were $268 million, the highest since 2015 [8][34]. - The company achieved a net debt leverage ratio of 1.6x [8][21]. Management Commentary - The CEO expressed satisfaction with the execution of strategic actions that strengthened the balance sheet and improved working capital efficiency [4]. - The company is excited about the new IMTEC joint venture aimed at developing smart meters for gas utilities customers [4].

Core Viewpoint - MRC Global Inc. is optimistic about its business outlook for 2025, driven by a rebound in the gas utilities sector, inflation returning to product pricing, and growth in U.S. natural gas infrastructure investment. The company anticipates revenue growth in all business sectors and plans to execute a $125 million share buyback authorization [4]. Financial Highlights Full Year 2024 Financial Highlights - Total sales for 2024 were $3,011 million, a decrease from $3,266 million in 2023 [8][33]. - Net income from continuing operations for 2024 was $78 million, down from $115 million in 2023 [7][33]. - Adjusted EBITDA for 2024 was $202 million, representing 6.7% of sales [8][33]. - Operating cash flow from continuing operations was $268 million, the highest since 2015 [8][21]. Fourth Quarter 2024 Financial Highlights - Sales for Q4 2024 were $664 million, a 10% decrease from $740 million in Q4 2023 [8][13]. - Net loss from continuing operations for Q4 2024 was ($1) million, compared to a net income of $22 million in Q4 2023 [7][33]. - Adjusted EBITDA for Q4 2024 was $32 million, down from $49 million in Q4 2023 [12][50]. - Gross profit for Q4 2024 was $135 million, or 20.3% of sales, compared to $149 million, or 20.1% of sales in Q4 2023 [9][33]. Sales Performance Sales by Segment - U.S. sales in Q4 2024 were $542 million, a decrease of $91 million, or 14%, from Q4 2023 [14]. - International sales in Q4 2024 were $122 million, an increase of $15 million, or 14%, from Q4 2023 [16]. - Gas Utilities sector sales were $253 million in Q4 2024, unchanged from Q4 2023 [18]. Sales by Sector - DIET sector sales in Q4 2024 were $208 million, a decrease of $46 million, or 18%, from Q4 2023 [19]. - PTI sector sales in Q4 2024 were $203 million, a decrease of $30 million, or 13%, from Q4 2023 [20]. Balance Sheet and Cash Flow - As of December 31, 2024, the company's cash balance was $63 million, with long-term debt of $387 million and net debt of $324 million [21][30]. - The company generated $268 million in operating cash flow from continuing operations for the full year 2024 [21][35]. Strategic Initiatives - The company announced a new joint venture, IMTEC, aimed at simplifying the development of smart meters for gas utilities customers [4]. - MRC Global plans to achieve a net debt leverage ratio of 1.5x by year-end 2025 and expects to generate at least $100 million in cash from operations [4].

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and ...

HOUSTON, March 12, 2025 (GLOBE NEWSWIRE) -- MRC Global Inc. (NYSE: MRC) will release its financial results for the fourth quarter and full year 2024 on March 14, 2025, before the market opens. The company will also host its conference call to discuss these financial results. What: MRC Global Fourth Quarter and Full Year 2024 Earnings Conference Call and WebcastWhen: Friday, March 14, 2025, at 10:00 a.m. Eastern / 9:00 a.m. CentralHow:Via phone – Dial 201-689-8261 and ask for the MRC Global call prior to the ...

Company Updates - MRC Global Inc. plans to file its 2024 Form 10-K with the SEC on or before March 18, 2025, and will file a Form 12b-25 to notify of the late filing [1] - The company has completed all required physical inventory counts but needs additional time to finalize the analysis and incorporate results into financial statements [2] Financial Performance - MRC Global does not expect a material net inventory adjustment related to 2024 results or a restatement of prior periods based on work completed to date [2] Company Overview - MRC Global is a leading global distributor of pipe, valves, fittings (PVF), and other infrastructure products and services, serving diversified end-markets including gas utilities, downstream, industrial, and energy transition sectors [5] - The company has over 100 years of experience and operates a worldwide network of over 200 locations, offering over 300,000 SKUs from more than 8,500 suppliers [5]

Company Overview - MRC Global Inc. is a leading global distributor of pipe, valves, fittings (PVF), and other infrastructure products and services, serving diversified end-markets including gas utilities, downstream, industrial, energy transition, and production and transmission infrastructure sectors [5] - The company has over 100 years of experience and operates a worldwide network of over 200 locations, including valve and engineering centers [5] - MRC Global offers over 300,000 SKUs from more than 8,500 suppliers, simplifying the supply chain for approximately 10,000 customers [5] Financial Reporting - MRC Global expects to file its 2024 Form 10-K with the SEC on or before March 18, 2025, and will file a Form 12b-25 to allow for the extended filing date [1] - The company has delayed the release of its financial results to complete year-end procedures related to inventory counts, including physical inventory procedures [2] - All required physical inventory counts have been completed, and the company does not expect a material net inventory adjustment related to 2024 results or a restatement of prior periods [2]

Core Insights - The article emphasizes the importance of value investing, highlighting the identification of undervalued companies as a key strategy for investors [2][4][6] - MRC Global and Tenaris are presented as strong investment opportunities, both holding a Zacks Rank of 2 (Buy) and an A grade for Value [4][6][7] Company Analysis: MRC Global - MRC Global has a current P/E ratio of 12.16, which is lower than the industry average of 13.49, indicating potential undervaluation [4] - The Forward P/E for MRC has fluctuated between 9.93 and 16.37 over the past year, with a median of 12.24 [4] - MRC's P/CF ratio stands at 7.41, compared to the industry average of 9.33, suggesting a favorable cash flow outlook [5] - The P/CF for MRC has ranged from 6.43 to 9.29 in the last year, with a median of 7.74 [5] Company Analysis: Tenaris - Tenaris is trading at a forward earnings multiple of 11.91 and a PEG ratio of 0.28, both lower than the industry averages of 13.49 and 0.90, respectively [6] - Over the past year, Tenaris's P/E has varied from 7.61 to 12.59, with a median of 9.37 [6] - The P/B ratio for Tenaris is 1.31, slightly below the industry average of 1.41, indicating relative undervaluation [7] - Tenaris's P/B ratio has fluctuated between 0.95 and 1.38, with a median of 1.16 over the past year [7] Conclusion - Both MRC Global and Tenaris are highlighted as strong value stocks with favorable valuation metrics and solid earnings outlooks, making them attractive options for value investors [4][6][7]