Core Viewpoint - MRC Global Inc. reported a decline in adjusted earnings and revenues for the second quarter of 2024, primarily due to lower sales volumes in key sectors, despite beating earnings estimates [1]. Revenue Summary - Total revenues for the second quarter reached $832 million, exceeding the consensus estimate of $822 million, but reflecting a 4.5% year-over-year decline [1]. - Revenues from carbon pipe, fittings, and flanges decreased by 4.9% year over year to $235 million [2]. - Valves, automation, measurement, and instrumentation revenues increased by 1% year over year to $302 million [2]. - Gas product revenues fell by 9.8% year over year to $193 million, while general product sales dropped by 10.7% to $67 million [2]. - Sales of stainless steel and alloy pipe and fittings decreased by 2.8% to $35 million [2]. Sector Performance - Revenues from Gas Utilities decreased by 11.6% year over year to $287 million, while DIET sales increased by 9.4% to $268 million [3]. - Sales from the PTI sector declined by 8.6% year over year to $277 million [3]. Segment Analysis - The U.S. segment, accounting for 81.4% of total revenues, generated $677 million, down 6.9% year over year due to reduced demand in Gas Utilities and PTI sectors [4]. - Revenues from the Canada segment fell by 13.2% year over year to $33 million [4]. - The International segment saw a revenue increase of 15.9% year over year to $122 million, driven by higher revenues from PTI and DIET sectors [4]. Margin Profile - MRC Global's cost of sales decreased by 5.3% year over year to $659 million, with adjusted gross profit down 1.6% to $184 million [5]. - The adjusted gross margin improved to 22.1% from 21.5% in the previous year [5]. - Selling, general, and administrative expenses decreased by 3.1% year over year to $126 million, while adjusted EBITDA increased by 3.2% year over year to $65 million [5]. Balance Sheet and Cash Flow - At the end of the second quarter, MRC had a cash balance of $49 million, down from $131 million at the end of December 2023 [6]. - Total debt at the end of the reported quarter was $152 million [6]. - In the first half of 2024, the company generated net cash of $101 million from operating activities, compared to $10 million used in the same period last year [7]. - Capital expenditures on property, plant, and equipment rose by 180% year over year to $14 million [7]. - Dividends paid on preferred stock remained flat year over year at $12 million [7].

Financial Data and Key Metrics Changes - The company generated $63 million in operating cash flow for Q2 2024 and $101 million for the first half of the year, exceeding expectations due to efficient working capital management [4][5] - Q2 2024 revenue was $832 million, a 3% increase from Q1 2024, driven by gas utilities and PTI sectors [5][16] - Adjusted gross margins reached a record high of 22.1% in Q2 2024, reflecting a strong product mix and international contributions [5][19] - Adjusted EBITDA margins improved to 7.8%, a 70 basis point increase from Q1 2024 [6][20] - The company ended Q2 2024 with $103 million in net debt and a leverage ratio of 0.4x, a record low [6][22] Business Line Data and Key Metrics Changes - Gas utilities revenue was $287 million in Q2 2024, an 8% increase driven by seasonal customer spending [16][17] - DIET sector revenue decreased by 3% to $268 million due to lower U.S. turnaround activity, partially offset by international growth [17] - PTI sector revenue increased by 5% to $277 million, supported by North Sea project activity [18] Market Data and Key Metrics Changes - International revenue grew by 11% to $122 million, driven by PTI sector improvements in the North Sea [19] - Canadian revenue increased by 14% to $33 million, with growth in both DIET and PTI sectors [19] Company Strategy and Development Direction - The company aims to generate $200 million in operating cash flow for the full year and is optimistic about future cash generation potential [5][15] - A new agreement with ExxonMobil positions the company as a primary strategic supplier of PVF products and services in North America, expected to significantly increase business with ExxonMobil [8][50] - The company is focusing on a chemicals growth strategy, which has seen approximately 30% revenue growth since its initiation in 2021 [9] Management's Comments on Operating Environment and Future Outlook - Management views 2024 as a transitional year, with expectations for a softer second half due to project delays in the DIET sector and refinery turnarounds [14][24] - There is confidence in a rebound in project activity and capital spending in 2025, driven by increased customer spending in gas utilities [12][31] - The company anticipates strong demand growth for natural gas, benefiting all three sectors and creating new opportunities [10][11] Other Important Information - The company is on track to implement a new ERP system by the second half of 2025, which is expected to transform various business aspects [24][25] - The effective tax rate for 2024 is expected to be between 26% and 28% [25] Q&A Session Summary Question: Can you discuss the dynamics behind project push-outs in the DIET sector? - Management attributed project delays to high interest rates and confirmed that most projects are delayed rather than canceled, with confidence in execution in 2025 [27][28] Question: What gives you confidence in increased capital spending for gas utilities in 2025? - Management noted that many customers are indicating robust spending projections for 2025, with expected capital expenditure growth of 4% to 6% [30][31] Question: How do you view the recovery in the margin profile for gas utilities? - Management indicated that while gas utilities are slightly dilutive on a gross margin basis, net margins are expected to improve as more business is conducted in this sector [37] Question: What are the plans for utilizing the strong balance sheet going forward? - Management expressed excitement about the strong balance sheet and indicated that capital allocation decisions will be made in concert with the Board, focusing on shareholder benefits [39][40] Question: Is M&A more attractive now than it was six months ago? - Management stated that they continue to scan the market for inorganic growth opportunities but did not see significant changes in the attractiveness of M&A opportunities [42] Question: How does MRC Global benefit from increased power generation demand? - Management highlighted that the demand for natural gas for power generation will require infrastructure development, which will benefit the company's PTI business [45]

MRC Global (MRC) came out with quarterly earnings of $0.31 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 29.17%. A quarter ago, it was expected that this energy products distributor would post earnings of $0.11 per share when it actually produced earnings of $0.20, delivering a surprise of 81.82%. Over the last four quarte ...

Core Insights - MRC Global Inc. reported a net income of $24 million for Q2 2024, an increase from $18 million in Q2 2023, with diluted earnings per share rising to $0.28 from $0.21 [2][4] - The company's sales for Q2 2024 were $832 million, a 4% decrease from Q2 2023 but a 3% increase from Q1 2024 [9][10] - Adjusted gross profit reached a record 22.1% of sales in Q2 2024, compared to 21.5% in Q2 2023 [3][4] Financial Performance - Gross profit for Q2 2024 was $173 million, representing 20.8% of sales, slightly down from $175 million or 20.1% in Q2 2023 [3][4] - Adjusted EBITDA for Q2 2024 was $65 million, or 7.8% of sales, compared to $63 million, or 7.2% of sales in Q2 2023 [6][4] - Cash flow from operations was $63 million for Q2 2024, contributing to a total of $101 million in the first half of 2024 [4][5] Sales Breakdown - U.S. sales in Q2 2024 were $677 million, down 7% from Q2 2023, with the Gas Utilities sector declining by 11% [10][15] - International sales increased by 15% year-over-year to $122 million, driven by the PTI sector in Norway and DIET sector projects in Europe [13][14] - The DIET sector sales were $268 million, a 9% increase from Q2 2023, while PTI sector sales decreased by 9% to $277 million [16][17] Cost Management - Selling, general and administrative (SG&A) expenses were $126 million, or 15.1% of sales, down from $130 million, or 14.9% of sales in Q2 2023 [6][4] - The company repaid its Term Loan B, reducing net debt to an all-time low of $103 million [5][4] - The net debt leverage ratio was 0.4 times, the lowest in the company's history [4] Backlog and Future Outlook - As of June 30, 2024, the company's backlog was $636 million, a 10% decline from the previous quarter due to project activity delays [18] - The company expects to generate significant cash flow over the next few years, enhancing its balance sheet and capital allocation flexibility [5][4]

MRC Global Inc. (MRC) has been benefiting from its diversified presence across several end markets, including upstream production, midstream pipelines, gas utilities and Downstream, Industrial and Energy Transition ("DIET"). The company has been witnessing strength in the DIET sector, driven by an increase in energy transition activities in the United States. It expects revenues from the DIET sector to increase modestly in 2024 on the back of strong level of refinery and chemical plant maintenance activitie ...

Core Viewpoint - MRC Global Inc. is set to release its second quarter 2024 results on August 6, 2024, after market close, followed by a conference call and webcast for investors [1][3]. Company Overview - MRC Global Inc. is the leading global distributor of pipe, valves, fittings (PVF), and other infrastructure products and services, catering to diversified end-markets such as gas utilities, downstream, industrial, energy transition, and production and transmission infrastructure sectors [2]. - The company has over 100 years of experience and operates a worldwide network of 214 locations, including valve and engineering centers, providing innovative supply chain solutions and technical product expertise [2]. - MRC Global offers over 300,000 SKUs from more than 8,500 suppliers, serving approximately 10,000 customers, which simplifies the supply chain [2].

In conjunction with the release, the company will host a conference call and webcast: When: Wednesday, August 7, 2024, at 10:00 a.m. Eastern / 9:00 a.m. Central About MRC Global Inc. Monica Broughton VP, Investor Relations & Treasury MRC Global Inc. Monica.Broughton@mrcglobal.com 832-308-2847 HOUSTON, June 18, 2024 (GLOBE NEWSWIRE) -- MRC Global Inc. (NYSE: MRC) will release its second quarter 2024 results on August 6, 2024, after the market closes. A replay of the call will be available through August 21, ...

The Zacks Consensus Estimate for MRC's 2024 earnings per share is pegged at 95 cents, down 5% over the past 60 days. It has a trailing four-quarter average earnings surprise of 40.1%. Key Picks A couple of better-ranked companies from the same space are discussed below. It has a trailing four-quarter average earnings surprise of 13%. The consensus estimate for VMI's 2024 earnings has improved 6.9% in the past 60 days. MRC Global Inc. (MRC) recently announced that its subsidiary, MRC Global (US) Inc., has se ...

About MRC Global Inc. Headquartered in Houston, Texas, MRC Global (NYSE: MRC) is the leading global distributor of pipe, valves, fittings (PVF) and other infrastructure products and services to diversified end-markets including the gas utilities, downstream, industrial and energy transition, and production and transmission sectors. With over 100 years of experience, MRC Global has provided customers with innovative supply chain solutions, technical product expertise and a robust digital platform from a worl ...

It has been about a month since the last earnings report for MRC Global (MRC) . Shares have added about 0.2% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is MRC due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. MRC Global Q1 Earnings & Revenues Top Estimates, Dow ...