MRC Global Reports Full Year and Fourth Quarter 2024 Results

HOUSTON, March 14, 2025 (GLOBE NEWSWIRE) -- MRC Global Inc. (NYSE: MRC) today reported full year and fourth quarter 2024 results. 

Full Year 2024 Financial Highlights:

 ● Operating cash flows from continuing operations of $268 million, highest since 2015

 ● Sales of $3,011 million

 ● Net income from continuing operations of $78 million

 ● Adjusted EBITDA of $202 million, 6.7% of sales

 ● Gross profit, as a percentage of sales, of 20.6%

 ● Adjusted Gross Profit, as a percentage of sales, of 21.9% and the third consecutive year above 21%

 ● Net Debt of $324 million, a 1.6x net debt leverage ratio

Fourth Quarter 2024 Financial Highlights:

 ● Operating cash flows from continuing operations of $73 million

 ● Sales of $664 million

 ● Net loss from continuing operations of ($1) million

 ● Adjusted EBITDA of $32 million, or 4.8% of sales

 ● Gross profit, as a percentage of sales, of 20.3%

 ● Adjusted Gross Profit, as a percentage of sales, of 22.0%

 ● Working capital, as a percentage of sales, of 11.2%, a record low for the company

Rob Saltiel, MRC Global's President and Chief Executive Officer, commented, "We are optimistic about our business outlook for 2025 due to the rebound of our gas utilities business, the return of inflation to our product pricing, the growth of U.S. natural gas infrastructure investment and our penetration into chemicals, mining and data center markets. We are also very excited to announce today our new IMTEC joint venture which simplifies the development of smart meters for our gas utilities customers. We anticipate growth in all three business sectors in 2025 and for revenue to be up low to high-single digits. In addition, we expect to generate at least $100 million in cash from operations, achieve our target net debt leverage ratio of 1.5x by year end and to have ample cash to begin execution of our recently announced $125 million share buyback authorization.”

Mr. Saltiel continued, "Looking back on 2024, I am very pleased with the successful execution of several strategic actions that simplified and strengthened our balance sheet while de-risking our future financing needs. We achieved average annual Adjusted Gross Profit margins that exceeded 21% for the third year in a row. We generated $268 million of operating cash flow from continuing operations, aided by significant improvements in our working capital efficiency, despite a slow finish to the year.”

The company previously delayed the release of its financial results to allow additional time to complete year-end procedures specifically related to inventory cycle counts. The completion of these procedures resulted in no adjustments to either the income statement or balance sheet in 2024 or any restatement of prior periods.

Consistent with the previously announced sale of the Canada business, Canada results are reflected in discontinued operations for all periods presented. Canada discontinued operational losses including operating losses and the loss incurred on the sale, were ($22) million for the fourth quarter of 2024 and ($23) million for the year ended 2024. The sale is scheduled to close this month.

Adjusted Net Income (Loss) from continuing operations, Adjusted Net (Loss) Income Attributable to Common Stockholders, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Gross Profit, Adjusted Gross Profit margin, Net Debt, Net Debt Leverage Ratio and Adjusted selling, general and administrative (SG&A) expense are all non-GAAP measures. Please refer to the reconciliation of each of these measures to the nearest GAAP measure in this release.

Net loss from continuing operations for the fourth quarter of 2024 was ($1) million, or ($0.14) per diluted share, as compared to net income from continuing operations of $22 million, or $0.19 per diluted share, in the fourth quarter of 2023. Net income from continuing operations for the full years 2024 and 2023 was $78 million, or $0.57 per diluted share, and $115 million, or $1.06 per diluted share, respectively. Adjusted net income from continuing operations for the fourth quarter of 2024 and the fourth quarter of 2023 was $4 million, and $27 million, respectively. Adjusted net income from continuing operations for the full year 2024 and 2023 was $86 million and $122 million, respectively.  

MRC Global's fourth quarter 2024 gross profit was $135 million, or 20.3% of sales, as compared to gross profit of $149 million, or 20.1% of sales, in the fourth quarter of 2023. Gross profit for the fourth quarter of 2024 and 2023 includes expense of $1 million and $5 million for the last-in, first out (LIFO) method of inventory cost accounting, respectively. Adjusted Gross Profit, as a percentage of sales, which excludes these items, as well as others, was 22.0% and 22.2% in the fourth quarter of 2024 and 2023, respectively. 

SG&A expenses were $123 million, or 18.5% of sales, for the fourth quarter of 2024 as compared to $121 million, or 16.4% of sales, for the same period of 2023. Adjusted SG&A expense for the fourth quarter of 2024 and 2023 was $119 million, or 17.9% of sales, and $120 million, or 16.2% of sales, respectively.  

For the three months ended December 31, 2024, income tax expense was $4 million with an effective rate of 133%, which was primarily impacted by foreign currency gains on debt restructuring and low pretax income for the quarter. For the three months ended December 31, 2023, income tax expense was $2 million with an effective rate of 8% which was favorably impacted by a net reduction in a foreign valuation allowance provision. Annual effective tax rates for 2024 and 2023 were 26% and 25%, respectively. Our rates generally differ from the U.S. federal statutory rate of 21% as a result of state income taxes, non-deductible expenses and differing foreign income tax rates.

Adjusted EBITDA was $32 million in the fourth quarter of 2024 as compared to $49 million for the same period in 2023. Please refer to the reconciliation of non-GAAP measures (Adjusted EBITDA) to GAAP measures (net income (loss) from continuing operations) in this release.

Sales

The company's sales were $664 million for the fourth quarter of 2024, 10% lower than the fourth quarter of 2023 and a 14% decrease from the third quarter of 2024. As compared to the fourth quarter of 2023, the decrease was driven by the Downstream, Industrial and Energy Transition (DIET) sector followed by the Production & Transmission Infrastructure (PTI) sector. The sequential sales decline was across all sectors.

Sales by Segment

U.S. sales in the fourth quarter of 2024 were $542 million, a $91 million, or 14%, decrease from the same quarter in 2023. Gas Utilities sector sales were consistent with the prior year. DIET sector sales decreased by $48 million, or 25%, due to the conclusion of several projects and lower turnaround spending. PTI sector sales decreased $43 million, or 23%, due to lower customer activity and fewer projects.

Sequentially, U.S. sales in the fourth quarter of 2024, as compared to the third quarter of 2024, were down $102 million, or 16%. The Gas Utilities sector experienced a $41 million, or 14%, decline primarily from typical seasonal buying patterns and deferred spending. PTI sector sales were down $34 million, or 19%, due to lower year-end customer activity and seasonality, and non-repeating projects. The DIET sector was down $27 million, or 16%, due to the conclusion of various projects and lower turnaround activity.

International sales in the fourth quarter of 2024 were $122 million, up $15 million, or 14%, from the same period in 2023 as all sectors experienced growth. The PTI sector increase was driven primarily by multiple projects in Norway. The DIET sector increase was driven primarily by projects in the Middle East and Asia.

Sequentially, International sales in the fourth quarter of 2024, as compared to the third quarter of 2024, were down $5 million, or 4%. The DIET sector decrease was due to lower turnaround activity and timing of project deliveries in Europe and the Nordics. The PTI sector decrease was driven by the timing of project deliveries in Australia, Asia and the U.K.

Sales by Sector

Gas Utilities sector sales, which are primarily U.S based, were $253 million in the fourth quarter of 2024, or 38% of total sales, unchanged from the fourth quarter of 2023. 

Sequentially, Gas Utilities sector sales in the fourth quarter of 2024, as compared to the third quarter of 2024, declined $40 million, or 14%.

DIET sector sales in the fourth quarter of 2024 were $208 million, or 31% of total sales, a decrease of $46 million, or 18%, from the fourth quarter of 2023 driven by the U.S. segment.

Sequentially, DIET sector sales in the fourth quarter of 2024, as compared to the prior quarter, decreased $31 million, or 13%, driven by the U.S. segment.

PTI sector sales in the fourth quarter of 2024 were $203 million, or 31% of total sales, a decreased of $30 million, or 13%, from the fourth quarter of 2023 driven by the U.S. segment.

Sequentially, PTI sector sales in the fourth quarter of 2024, as compared to the previous quarter, decreased $36 million, or 15%, driven by the U.S. segment.

Balance Sheet and Cash Flow

As of December 31, 2024, the company's cash balance was $63 million, long-term debt (including current portion) was $387 million, and Net Debt was $324 million. Cash provided by operations from continuing operations was $73 million in the fourth quarter of 2024 resulting in $268 million of cash provided by operations from continuing operations for the full year 2024. Availability under the company's ABL facility was $460 million, and liquidity was $523 million as of December 31, 2024. Please refer to the reconciliation of non-GAAP (Net Debt) to GAAP measures (long-term debt, net) in this release.

Conference Call

The company will hold a conference call to discuss its fourth quarter and full year 2024 results at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on March 14, 2025. To participate in the call, please dial 201-689-8261 and ask for the MRC Global conference call. To access the conference call, live over the Internet, please log onto the web at www.mrcglobal.com and go to the "Investors” page of the company's website. A replay will be available through March 28, 2025, and can be accessed by dialing 201-612-7415 and using passcode 13752336#. Also, an archive of the webcast will be available shortly after the call at www.mrcglobal.com for 90 days.

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 infrastructure 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 worldwide network of approximately 200 locations including valve and engineering centers. The company's unmatched quality assurance program offers approximately 200,000 SKUs from over 7,100 suppliers, simplifying the supply chain for over 8,300 customers. Find out more at www.mrcglobal.com

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Words such as "will”, "expect”, "expected”, "intend”, "believes” and similar expressions are intended to identify forward-looking statements.

Statements about the company's business, including its strategy, its industry, the company's future profitability, the company's guidance on its sales, adjusted EBITDA, tax rate, capital expenditures, achieving cost savings and cash flow, debt reduction, liquidity, growth in the company's various markets and the company's expectations, beliefs, plans, strategies, objectives, prospects and assumptions are not guarantees of future performance. These statements are based on management's expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, most of which are difficult to predict and many of which are beyond MRC Global's control, including the factors described in the company's SEC filings that may cause the company's actual results and performance to be materially different from any future results or performance expressed or implied by these forward-looking statements.

These risks and uncertainties include (among others) decreases in capital and other expenditure levels in the industries that the company serves; U.S. and international general economic conditions; geopolitical events; decreases in oil and natural gas prices; unexpected supply shortages; loss of third-party transportation providers; cost increases by the company's suppliers and transportation providers; increases in steel prices, which the company may be unable to pass along to its customers which could significantly lower the company's profit; the company's lack of long-term contracts with most of its suppliers; suppliers' price reductions of products that the company sells, which could cause the value of its inventory to decline; decreases in steel prices, which could significantly lower the company's profit; a decline in demand for certain of the products the company distributes if tariffs and duties on these products are imposed or lifted; holding more inventory than can be sold in a commercial time frame; significant substitution of renewables and low-carbon fuels for oil and gas, impacting demand for the company's products; risks related to adverse weather events or natural disasters; environmental, health and safety laws and regulations and the interpretation or implementation thereof; changes in the company's customer and product mix; the risk that manufacturers of the products that the company distributes will sell a substantial amount of goods directly to end users in the industry sectors that the company serves; failure to operate the company's business in an efficient or optimized manner; the company's ability to compete successfully with other companies; the company's lack of long-term contracts with many of its customers and the company's lack of contracts with customers that require minimum purchase volumes; inability to attract and retain employees or the potential loss of key personnel; adverse health events, such as a pandemic; interruption in the proper functioning of the company's information systems; the occurrence of cybersecurity incidents; risks related to the company's customers' creditworthiness; the success of acquisition strategies; the potential adverse effects associated with integrating acquisitions and whether these acquisitions will yield their intended benefits; impairment of the company's goodwill or other intangible assets; adverse changes in political or economic conditions in the countries in which the company operates; the company's significant indebtedness; the dependence on the company's subsidiaries for cash to meet parent company obligations; changes in the company's credit profile; potential inability to obtain necessary capital; the potential share price volatility and costs incurred in response to any shareholder activism campaigns; the sufficiency of the company's insurance policies to cover losses, including liabilities arising from litigation; product liability claims against the company; pending or future asbestos-related claims against the company; exposure to U.S. and international laws and regulations, regulating corruption, limiting imports or exports or imposing economic sanctions; risks relating to ongoing evaluations of internal controls required by Section 404 of the Sarbanes-Oxley Act and a material weakness related to our inventory cycle count control if it remains unremediated; and risks related to changing laws and regulations including trade policies and tariffs.

For a discussion of key risk factors, please see the risk factors disclosed in the company's SEC filings, which are available on the SEC's website at www.sec.gov and on the company's website, www.mrcglobal.com. MRC Global's filings and other important information are also available on the "Investors" page of the company's website at www.mrcglobal.com.

Undue reliance should not be placed on the company's forward-looking statements. Although forward-looking statements reflect the company's good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the company's actual results, performance or achievements or future events to differ materially from anticipated future results, performance or achievements or future events expressed or implied by such forward-looking statements. The company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except to the extent required by law.

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