Core Insights - MRC Global Inc. reported second-quarter 2025 adjusted earnings of 25 cents per share, exceeding the Zacks Consensus Estimate of 23 cents, but down from 31 cents per share in the same quarter last year [1][7] - Total revenues reached $798 million, surpassing the consensus estimate of $772 million, although this represented a slight decrease of 0.1% year over year due to lower sales volumes in the Downstream, Industrial and Energy Transition (DIET) sector [1][7] Revenue Breakdown by Product Line - Revenues from carbon pipe, fittings, and flanges decreased by 11.9% year over year to $200 million [2] - Revenues from valves, automation, measurement, and instrumentation increased by 3.5% year over year to $294 million [2] - Gas product revenues rose by 8.3% year over year to $209 million [2] - Sales of general products increased by 1.7% to $61 million [2] - Sales of stainless steel and alloy pipe and fittings decreased by 2.9% to $34 million [2] Revenue Breakdown by Sector - Revenues from Gas Utilities increased by 4% year over year to $299 million [3] - DIET sales declined by 13% to $223 million [3] - Sales from the PTI sector increased by 8% year over year to $276 million [3] Revenue Breakdown by Segment - Sales from the U.S. segment, which represents 82% of total revenues, totaled $658 million, down 3% year over year due to reduced demand in the DIET and PTI sectors [4] - Sales from the International segment, accounting for 18% of revenues, grew by 15% year over year to $140 million, driven by higher revenues from the PTI sector [4] Margin Profile - MRC Global's cost of sales increased by 2.7% year over year to $647 million [5] - Adjusted gross profit decreased by 4.4% year over year to $172 million, resulting in an adjusted gross margin of 21.6%, down from 22.5% in the previous year [5][7] - Selling, general, and administrative expenses rose by 6.6% year over year to $130 million [5] - Adjusted EBITDA decreased by 16.9% year over year to $54 million [5] Balance Sheet and Cash Flow - As of the end of the second quarter 2025, MRC had a cash balance of $75 million, up from $63 million at the end of December 2024 [6] - Long-term debt, including the current portion, was $449 million, with net debt at $374 million [6] - In the first half of 2025, the company used net cash of $30 million in operating activities, compared to $101 million used in the same period last year [6] 2025 Outlook - MRC Global anticipates its 2025 revenues to increase in the low to high-single-digit range on a year-over-year basis [9]

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].