MRC Global (MRC) Announces Full Year And Fourth Quarter 2024 Earnings Results

MRC Global Inc. (MRC) today announced its financial results for the latest quarter, revealing a challenging period for the company. The reported earnings per share (EPS) came in at a loss of $0.14, significantly missing the estimated EPS of $0.0775. Additionally, the company posted quarterly revenue of $664 million, falling short of the anticipated $726.9 million. These results highlight a notable miss in both earnings and revenue expectations for MRC Global Inc.

Key Highlights:

• MRC Global reported full-year 2024 sales of $3,011 million and a net income of $78 million.
• The company achieved an adjusted EBITDA of $202 million, representing 6.7% of sales.
• MRC Global’s net debt was $324 million, with a net debt leverage ratio of 1.6x.
• Fourth-quarter 2024 sales were $664 million, with a net loss of $1 million.
• The company anticipates growth in 2025, driven by the rebound of its gas utilities business and increased investment in U.S. natural gas infrastructure.
• MRC Global announced a new joint venture, IMTEC, to develop smart meters for gas utilities.
• The company expects to generate at least $100 million in cash from operations in 2025 and plans a $125 million share buyback.

Summary:

MRC Global Inc. reported its financial results for the full year and fourth quarter of 2024, highlighting a strong performance with sales reaching $3,011 million and a net income of $78 million. The company achieved an adjusted EBITDA of $202 million, which is 6.7% of sales, and maintained a net debt of $324 million with a leverage ratio of 1.6x. Despite a net loss of $1 million in the fourth quarter, MRC Global’s adjusted gross profit remained robust at 22.0% of sales. The company is optimistic about its business outlook for 2025, driven by the rebound of its gas utilities business, the return of inflation to product pricing, and growth in U.S. natural gas infrastructure investment. Additionally, MRC Global is expanding into chemicals, mining, and data center markets.

Rob Saltiel, President and CEO of MRC Global, expressed confidence in the company’s future, stating, “We anticipate growth in all three business sectors in 2025 and for revenue to be up low to high-single digits.” The company also announced a new joint venture, IMTEC, aimed at simplifying the development of smart meters for gas utilities customers. MRC Global expects to generate at least $100 million in cash from operations in 2025, achieve a target net debt leverage ratio of 1.5x by year-end, and execute a $125 million share buyback. The company remains committed to strategic actions that simplify and strengthen its balance sheet while de-risking future financing needs.

MRC Global Inc. (MRC) has experienced a turbulent period in the stock market, with its share price declining by 2.11% over the past week and a more significant drop of 15.13% in the last month. Over the past three months, the stock has fallen by 15.96%, contributing to a six-month decline of 8.86% and a year-long decrease of 9.01%. Despite these price challenges, MRC maintains a price-to-earnings ratio of 12.16, suggesting that the stock might still be reasonably valued compared to its earnings. However, the company’s earnings per share (EPS) has seen a negative two-year compound annual growth rate (CAGR) of -3.46%, indicating potential struggles in profitability. On a brighter note, MRC’s revenue has grown slightly with a two-year CAGR of 0.36%, and the company boasts a respectable return on invested capital of 11.38%, reflecting efficient use of its capital. The net profit margin stands at 3.08%, which, while modest, shows that the company is still generating profit from its operations. Overall, while MRC faces headwinds in its stock performance, its fundamental metrics suggest a company that is managing to maintain profitability amidst challenging market conditions.

MRC Global Inc., through its subsidiaries, distributes pipes, valves, fittings, and other infrastructure products and services to the energy, industrial, and gas utility end-markets in the United States, Canada, and internationally. It offers ball, butterfly, gate, globe, check, diaphragm, needle, and plug valves; and other products, such as lined corrosion resistant piping systems, control valves, valve automation, and top work components, as well as valve modification services; and measurement, steam, and instrumentation products. The company also provides carbon steel fittings and flanges comprising carbon weld fittings, flanges, and piping components; stainless steel, alloy and corrosion resistant pipes, tubing, fittings, and flanges; and carbon line pipes. In addition, it offers natural gas distribution products, including risers, meters, polyethylene pipes and fittings, and various other components and industrial supplies; oilfield and industrial supplies and completion equipment, such as high density polyethylene pipes, fittings, and rods; and specialized production equipment comprising tanks and separators. Further, the company provides various services, such as product testing, manufacturer assessments, multiple daily deliveries, volume purchasing, inventory and zone store management and warehousing, technical support, training, just-in-time delivery, truck stocking, order consolidation, product tagging and system interfaces, and valve inspection and repair services; and various other services under the ValidTorque and FastTrack names. Its products are used in the construction, maintenance, repair, and overhaul of equipment used in extreme operating conditions, including high pressure, high/low temperature, and high corrosive and abrasive environments. The company was formerly known as McJunkin Red Man Holding Corporation and changed its name to MRC Global Inc. in January 2012. MRC Global Inc. was founded in 1921 and is headquartered in Houston, Texas.