MRC Global Inc. MRC reported first-quarter 2025 adjusted earnings of 14 cents per share, which beat the Zacks Consensus Estimate of eight cents. In the year-ago quarter, it reported earnings of 21 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total revenues of $712 million surpassed the consensus estimate of $710 million. The top line decreased 8.4% year over year due to the lower volume of sales in the Downstream, Industrial and Energy Transition (DIET) and Production & Transmission Infrastructure (PTI) sectors.
MRC Global Inc. Price, Consensus and EPS Surprise
MRC Global Inc. price-consensus-eps-surprise-chart | MRC Global Inc. Quote
MRC’s Revenues by Product Line
Based on MRC’s product line, revenues from carbon pipe, fittings and flanges were down 22.5% year over year to $162 million. Revenues from valves, automation, measurement and instrumentation were down 0.7% year over year to $277 million.
Gas product revenues were relatively stable year over year at $187 million. Sales of general products fell 28.1% to $46 million. Sales of stainless steel, alloy pipe and fittings increased 5.3% to $40 million.
MRC’s Revenues by Sector
Based on the sectors served, revenues from Gas Utilities increased 3% year over year to $273 million, while DIET sales were down 17.7% to $220 million. Sales from the PTI sector decreased 10.6% year over year to $219 million.
MRC Global’s Revenues by Segment
Sales generated from the U.S. segment (representing 83% of revenues) totaled $591 million, down 11.4% year over year. The downtick was due to reduced demand in the DIET and PTI sectors.
Sales from the International segment (17%) grew 10% year over year to $121 million, driven by higher revenues from the PTI sector.
MRC’s Margin Profile
MRC Global’s cost of sales declined 7.8% year over year to $570 million. The adjusted gross profit was down 10% year over year to $153 million. The adjusted gross margin was 21.5% compared with 21.9% in the year-ago period.
Selling, general and administrative expenses were up 3.3% year over year to $124 million. Adjusted EBITDA decreased 36.8% year over year to $36 million.
MRC Global’s Balance Sheet and Cash Flow
Exiting first-quarter 2025, MRC had a cash balance of $63 million, relatively stable from the figure reported at the end of December 2024. Long-term debt (including the current portion) was $367 million and net debt was $308 million at the end of the quarter.
In the first three months of 2025, the company generated net cash of $14 million from operating activities compared with $38 million in the year-ago period. Capital spent on purchasing property, plant and equipment was $9 million, up 50% on a year-over-year basis.
In the period, the company did not pay dividends on preferred stock compared with $6 million in the year-ago period.
2025 Outlook
MRC Global expects its second-quarter 2025 revenues to increase in high-single to low-double-digit sequentially, driven by growth across its three business sectors.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell). Some better-ranked companies are discussed below:
Insteel Industries IIIN currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
IIIN delivered a trailing four-quarter average earnings surprise of 122.4%. In the past 60 days, the Zacks Consensus Estimate for Insteel Industries’ fiscal 2025 earnings has increased 34.8%.
Unifirst Corporation UNF currently carries a Zacks Rank #2 (Buy). UNF delivered a trailing four-quarter average earnings surprise of 12.3%. In the past 60 days, the consensus estimate for Unifirst’s fiscal 2025 (ending August 2025) earnings has increased 4.1%.
AptarGroup, Inc. ATR presently carries a Zacks Rank of 2. ATR delivered a trailing four-quarter average earnings surprise of 7.3%. In the past 60 days, the consensus estimate for AptarGroup’s 2025 earnings has increased 2.5%.
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Today, See These 5 Potential Home Runs >>Unifirst Corporation (UNF) : Free Stock Analysis Report
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MRC Global Inc. (MRC) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
