MRC Global Inc ( (MRC) ) has released its Q1 earnings. Here is a breakdown of the information MRC Global Inc presented to its investors.
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MRC Global Inc., headquartered in Houston, Texas, is a leading global distributor of pipe, valves, fittings, and other infrastructure products and services, primarily serving the gas utilities, downstream, industrial and energy transition, and production and transmission infrastructure sectors. With over a century of experience, the company offers innovative supply chain solutions and technical expertise through a robust digital platform across a worldwide network.
MRC Global Inc. reported its financial results for the first quarter of 2025, highlighting a 7% increase in sales compared to the previous quarter, reaching $712 million. The company achieved an operating cash flow of $21 million from continuing operations and reported a net income of $8 million from these operations. Despite a decrease in net income compared to the same quarter in 2024, the company saw a significant improvement in its backlog, which increased by 8% sequentially.
Key financial metrics for the quarter included a gross profit margin of 19.9% and an adjusted EBITDA of $36 million, representing 5.1% of sales. The company’s net debt leverage ratio stood at 1.7 times, indicating a stable financial position. Sales growth was primarily driven by the Gas Utilities sector, while the Downstream, Industrial, and Energy Transition (DIET) and Production and Transmission Infrastructure (PTI) sectors experienced declines. International sales saw a 10% increase, mainly due to PTI sector growth.
MRC Global’s management expressed optimism about the future, citing a 13% increase in backlog as of April 30, 2025, and anticipated revenue growth in the second quarter. The company has also initiated a share buyback program, taking advantage of market volatility to repurchase shares at attractive prices, thereby returning cash to shareholders.
Looking ahead, MRC Global’s management remains confident in the company’s ability to achieve sequential revenue growth in the coming quarters, supported by a strong backlog and improving project visibility. The company continues to focus on executing its strategic initiatives and navigating market challenges to enhance shareholder value.