Core Viewpoint - MRC Global Inc. reported first-quarter 2025 adjusted earnings of 14 cents per share, exceeding the Zacks Consensus Estimate of 8 cents, but down from 21 cents per share in the same quarter last year. Total revenues of $712 million also surpassed the consensus estimate of $710 million, although they decreased by 8.4% year over year due to lower sales volumes in specific sectors [1]. Revenue Summary by Product Line - Revenues from carbon pipe, fittings, and flanges decreased by 22.5% year over year to $162 million. - Revenues from valves, automation, measurement, and instrumentation fell by 0.7% year over year to $277 million. - Gas product revenues remained stable year over year at $187 million. - Sales of general products dropped by 28.1% to $46 million, while sales of stainless steel and alloy pipe and fittings increased by 5.3% to $40 million [2]. Revenue Summary by Sector - Revenues from Gas Utilities increased by 3% year over year to $273 million. - Sales in the Downstream, Industrial and Energy Transition (DIET) sector decreased by 17.7% to $220 million. - Sales from the Production & Transmission Infrastructure (PTI) sector fell by 10.6% year over year to $219 million [3]. Revenue Summary by Segment - Sales from the U.S. segment, which represents 83% of total revenues, totaled $591 million, down 11.4% year over year due to reduced demand in DIET and PTI sectors. - Sales from the International segment, accounting for 17% of revenues, grew by 10% year over year to $121 million, driven by higher revenues from the PTI sector [4]. Margin Profile - MRC Global's cost of sales declined by 7.8% year over year to $570 million. - Adjusted gross profit decreased by 10% year over year to $153 million, with an adjusted gross margin of 21.5%, compared to 21.9% in the previous year. - Selling, general, and administrative expenses rose by 3.3% year over year to $124 million, while adjusted EBITDA decreased by 36.8% year over year to $36 million [5]. Balance Sheet and Cash Flow - At the end of the first quarter of 2025, MRC had a cash balance of $63 million, stable compared to December 2024. - Long-term debt, including the current portion, was $367 million, with net debt at $308 million [6]. - The company generated net cash of $14 million from operating activities, down from $38 million in the year-ago period. - Capital expenditures for property, plant, and equipment were $9 million, up 50% year over year, and no dividends were paid on preferred stock compared to $6 million in the previous year [7]. 2025 Outlook - MRC Global anticipates that its second-quarter 2025 revenues will increase in the high-single to low-double-digit range sequentially, driven by growth across its three business sectors [9].

Financial Data and Key Metrics Changes - Revenue increased by 7% sequentially to $712 million, with growth in each end market sector led by gas utilities [10][26] - Adjusted gross profit margins were strong at 21.5%, above the target of 21% [11][29] - Adjusted EBITDA was $36 million, or 5.1% of sales, an improvement over the previous quarter [12][30] - Operating cash flow from continuing operations was $21 million, reflecting strong working capital management [12][31] - Net income from continuing operations was $8 million, or $0.09 per diluted share, compared to a net loss in the previous quarter [30] Business Line Data and Key Metrics Changes - Gas utilities revenue was $273 million, an 8% increase driven by normalized buying patterns and increased capital budgets [27] - Diet sector revenue was $220 million, a 6% increase due to chemical project deliveries and mining activity [27] - PTI sector revenue was $219 million, an 8% increase driven by midstream customer projects [27] Market Data and Key Metrics Changes - U.S. revenue was $591 million, a 9% increase, with all end market sectors improving [28] - International revenue was $121 million, down 1% due to timing of project deliveries [28] Company Strategy and Development Direction - The company is optimistic about growth in the gas utilities sector, which is experiencing a resurgence with a 26% increase in backlog [9][14] - A $125 million share repurchase program has been initiated, reflecting confidence in financial strength [9][10] - The capital allocation strategy focuses on maintaining a healthy balance sheet, targeting a net debt leverage ratio of 1.5 times or lower, and investing in growth opportunities [10][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong sequential revenue improvement in the second quarter, supported by a growing backlog [9][24] - There are concerns about macroeconomic uncertainties impacting the second half of 2025, but no significant changes in customer behavior have been observed [25][32] - The gas utilities sector is expected to be resilient due to limited exposure to tariffs and low commodity prices [33][34] Other Important Information - The company is focused on navigating tariff impacts and supply chain challenges, with over 60% of U.S. product sales sourced domestically [16][17] - The company is targeting operating cash flow of at least $100 million for 2025, with capital expenditures expected to be elevated due to ERP implementation [36][38] Q&A Session Summary Question: How is inflation tracking in the business today? - The tariff situation is dynamic, with significant impacts on steel and aluminum products, particularly from China [44][45] Question: Did inventory step up in the first quarter? - The company strategically increased inventory in anticipation of tariffs and to prepare for the year [49][50] Question: What are the growth opportunities in gas utilities? - The gas utilities business has returned to growth, with opportunities to increase market share and wallet share through new services [52][54] Question: What is the outlook for the diet sector? - The diet sector backlog increased by 16%, primarily driven by refining and chemical projects [68][70] Question: What is the growth outlook for the PTI business internationally? - The company projects growth in the PTI space internationally, particularly in the North Sea and Europe [88] Question: How is the company positioned regarding upstream customers amid lower oil prices? - While lower oil prices may impact activity, the customer base is resilient, and no significant budget reductions are anticipated [77][78]

Financial Data and Key Metrics Changes - Revenue increased by 7% sequentially to $712 million, with growth in each end market sector led by gas utilities [11][27] - Adjusted gross profit margins were strong at 21.5%, above the target of 21% [12][30] - Adjusted EBITDA was $36 million, or 5.1% of sales, an improvement over the previous quarter [13][31] - Operating cash flow from continuing operations was $21 million, reflecting strong working capital management [13][32] - Net income from continuing operations was $8 million, or $0.09 per diluted share, compared to a net loss in the previous quarter [31] Business Line Data and Key Metrics Changes - Gas utilities revenue was $273 million, an 8% increase driven by normalized buying patterns and increased capital budgets [28] - Diet sector revenue was $220 million, a 6% increase due to chemical project deliveries and mining activity [28] - PTI sector revenue was $219 million, an 8% increase driven by midstream customer projects [28] Market Data and Key Metrics Changes - U.S. revenue was $591 million, a 9% increase, with all end market sectors improving [29] - International revenue was $121 million, down 1% due to timing of project deliveries [29] Company Strategy and Development Direction - The company is optimistic about growth in the gas utilities sector, which is experiencing a resurgence [10][15] - A $125 million share repurchase program has been initiated, reflecting confidence in financial strength [10][11] - The capital allocation strategy focuses on maintaining a healthy balance sheet, targeting a net debt leverage ratio of 1.5 times or lower [11][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong sequential revenue improvement in the second quarter, supported by a growing backlog [10][25] - The gas utilities sector is expected to be resilient amid macroeconomic uncertainties, with a 26% increase in backlog year-to-date [15][35] - Management acknowledged potential risks in the second half of 2025 due to tariffs and lower oil prices but maintained the annual guidance [26][33] Other Important Information - The company is focused on navigating tariff impacts and supply chain challenges, with over 60% of U.S. product sales sourced domestically [17][18] - The mining sector is expected to grow at a compound annual rate of approximately 10% over the next three to five years [24] Q&A Session Summary Question: How is inflation tracking in the business today? - Management noted that tariff impacts are primarily seen in steel products and emphasized efforts to mitigate costs for customers [46][47] Question: Did inventory step up in the first quarter? - Management confirmed a strategic increase in inventory to prepare for tariffs and the upcoming construction season [51][52] Question: Any updates on opportunities in gas utilities? - Management highlighted growth opportunities in gas utilities, including market share expansion and new services through the MTech Services joint venture [53][55] Question: What is the outlook for the diet sector? - Management indicated that the backlog increase is primarily in refining and chemical spaces, with growth driven by turnaround activities [71][72] Question: How is the international PTI business performing? - Management projected growth in the international PTI space, particularly in the North Sea and Europe, driven by project-related revenues [91][92]

Financial Data and Key Metrics Changes - Revenue increased by 7% sequentially to $712 million, with growth in each end market sector led by gas utilities [9][25] - Adjusted gross profit margins were strong at 21.5%, above the target of 21% [10][29] - Adjusted EBITDA was $36 million, or 5.1% of sales, an improvement from the previous quarter [11][30] - Net income from continuing operations was $8 million, or $0.09 per diluted share, compared to a net loss in the previous quarter [30] Business Line Data and Key Metrics Changes - Gas utilities revenue was $273 million, an 8% increase driven by normalized buying patterns and increased capital budgets [26] - Diet sector revenue was $220 million, a 6% increase due to chemical project deliveries and mining activity [26] - PTI sector revenue was $219 million, an 8% increase attributed to U.S. midstream customer projects [26] Market Data and Key Metrics Changes - U.S. revenue was $591 million, a 9% increase, with all end market sectors improving [27] - International revenue was $121 million, down 1% due to reduced diet sector revenue [28] - The outlook for the international segment remains positive, expecting solid revenue growth for the fourth consecutive year [28] Company Strategy and Development Direction - The company is optimistic about the gas utilities business, forecasting strong demand growth and a significant backlog increase [12][34] - A $125 million share repurchase program has been initiated, reflecting confidence in financial strength [8][39] - The capital allocation strategy focuses on maintaining a healthy balance sheet, returning cash to shareholders, and investing in growth opportunities [9][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong sequential revenue improvement in the second quarter, despite macroeconomic uncertainties [23][24] - The gas utilities sector is expected to be resilient, with a backlog increase of 26% year-to-date [34] - The company is monitoring macroeconomic conditions closely, particularly regarding tariffs and oil prices, but has not seen significant changes in customer behavior [32][80] Other Important Information - The company generated $21 million of operating cash flow from continuing operations, reflecting strong working capital management [11][31] - Capital expenditures for the first quarter were $9 million, above historical averages due to ERP implementation [30][38] - The company targets operating cash flow of at least $100 million for 2025 [37] Q&A Session Summary Question: How is inflation tracking in the business today? - The tariff situation is dynamic, with significant impacts on steel and aluminum products, particularly from China [48][49] Question: Did inventory step up in the first quarter? - The company strategically increased inventory in anticipation of tariffs and to prepare for the year [53][54] Question: Any updates on opportunities in gas utilities? - The gas utilities business has returned to growth, with opportunities to increase market share and wallet share [55][56] Question: What is the outlook for the diet sector? - The diet sector backlog increased by 16%, primarily in refining and chemical spaces, with growth in mining initiatives [70][72] Question: How is the PTI business performing internationally? - The company projects growth in the PTI space internationally, particularly in the North Sea and Europe [88][89] Question: What is the impact of lower oil prices on upstream customers? - Lower oil prices may impact activity, but the customer base is resilient and not indicating significant budget reductions [80][81]

Core Viewpoint - MRC Global reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, but down from $0.20 per share a year ago, indicating a 75% earnings surprise [1][2] Financial Performance - The company posted revenues of $712 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.28%, but down from $806 million year-over-year [2] - Over the last four quarters, MRC has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - MRC shares have declined approximately 5.3% since the beginning of the year, compared to a decline of 3.9% for the S&P 500 [3] - The current Zacks Rank for MRC is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $782.4 million, and for the current fiscal year, it is $0.97 on revenues of $3.01 billion [7] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [6] Industry Context - MRC operates within the Steel - Pipe and Tube industry, which is currently ranked in the bottom 6% of over 250 Zacks industries, suggesting potential challenges ahead [8]

MRC Global Announces First Quarter 2025 Results Houston, TX – May 6, 2025 – MRC Global Inc. (NYSE: MRC) today announced first quarter 2025 results from continuing operations. First Quarter 2025 Financial Highlights: Rob Saltiel, MRC Global's President and CEO stated, "First quarter results were strong across all of our key metrics, consistent with our recent press release. Our business has continued to perform well into the second quarter, with our backlog as of April 30, 2025, up 13% over year-end levels, ...

Financial Performance - MRC Global reported a net income from continuing operations of $8 million for Q1 2025, down from $20 million in Q1 2024. Adjusted net income from continuing operations was $12 million in Q1 2025 compared to $24 million in Q1 2024 [5][6][12] - The company's sales for Q1 2025 were $712 million, an 8% decrease from $777 million in Q1 2024 but a 7% increase from $665 million in Q4 2024 [11][14][15] - Gross profit for Q1 2025 was $142 million, representing 19.9% of sales, compared to $159 million or 20.5% of sales in Q1 2024. Adjusted gross profit was $153 million or 21.5% of sales in Q1 2025, down from $170 million or 21.9% in Q1 2024 [7][10][44] Market Segments - U.S. sales in Q1 2025 were $591 million, a decrease of $76 million or 11% from Q1 2024, with notable declines in the PTI and DIET sectors. However, Gas Utilities sector revenue increased by $8 million or 3% [15][19] - International sales for Q1 2025 were $121 million, up $11 million or 10% from the same period in 2024, driven by growth in the PTI sector [17][18] Backlog and Future Outlook - As of April 30, 2025, the company's backlog increased by 13% compared to year-end levels, totaling $603 million, indicating strong demand across all market sectors [3][23] - The company anticipates that second quarter revenues will increase sequentially by a high-single to low-double digit percentage due to backlog growth and improving project visibility [3] Cash Flow and Debt - Operating cash flows from continuing operations were $21 million in Q1 2025, with a net debt leverage ratio of 1.7 times as of March 31, 2025 [11][24][68] - The company had a cash balance of $63 million and total long-term debt of $371 million as of March 31, 2025 [24][68] Shareholder Returns - MRC Global has initiated a share buyback program in Q2 2025, taking advantage of recent stock market volatility to repurchase shares at attractive prices [4]

HOUSTON, April 22, 2025 (GLOBE NEWSWIRE) -- MRC Global Inc. (NYSE:MRC) will release its first quarter 2025 results on May 6, 2025, after the market closes. In conjunction with the release, the company will host a conference call and webcast:  What:MRC Global First Quarter 2025 Earnings Conference Call and Webcast    When:Wednesday, May 7, 2025, at 10:00 a.m. Eastern / 9:00 a.m. Central    How:Via phone – Dial 201-689-8261 and ask for the MRC Global call prior to the start time, or  Via webcast – Visit our w ...

HOUSTON, April 22, 2025 (GLOBE NEWSWIRE) -- MRC Global Inc. (NYSE: MRC) will release its first quarter 2025 results on May 6, 2025, after the market closes. In conjunction with the release, the company will host a conference call and webcast: What:MRC Global First Quarter 2025 Earnings Conference Call and Webcast When:Wednesday, May 7, 2025, at 10:00 a.m. Eastern / 9:00 a.m. Central How:Via phone – Dial 201-689-8261 and ask for the MRC Global call prior to the start time, or Via webcast – Visit our ...

Core Insights - MRC Global Inc. reported a strong start to Q1 2025, with revenue and margins exceeding expectations, driven by growth in various segments [3][4] - The company anticipates continued revenue growth in Q2 2025, estimating a high-single to low-double digit percentage increase in sequential sales, supported by a backlog increase of over 20% since the start of the year [3][4] - MRC Global plans to initiate a $125 million share repurchase program in Q2 2025, taking advantage of recent share price volatility [4] Financial Highlights - Revenue for Q1 2025 was approximately $710 million, representing a 7% sequential increase [8] - Net income from continuing operations was approximately $7 million [8] - Adjusted EBITDA was approximately $35 million, or 4.9% of sales [8] - Gross Profit was approximately $142 million, or 20.0% of sales, while Adjusted Gross Profit was approximately $153 million, or 21.5% of sales [8][17] - Cash flow from continuing operations was approximately $20 million [8] Segment Performance - The US segment was a key driver of revenue growth, with DIET growing by 13%, Gas Utilities by 8%, and PTI by 6% [3] - The Gas Utilities business showed a strong rebound, contributing positively to overall performance [4] Company Overview - MRC Global is a leading global distributor of pipe, valves, fittings, and other infrastructure products and services, serving diversified end-markets including gas utilities and industrial sectors [7] - The company operates a network of approximately 200 locations and offers around 200,000 SKUs from over 7,100 suppliers [7]