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Mar 31, 2024
MRC Global Q1 2024 Earnings Report
MRC Global's financial performance improved with sequential revenue growth and strong cash flow generation.
Key Takeaways
MRC Global reported a net income of $13 million, or $0.15 per diluted share, and sales of $806 million for Q1 2024. The company saw a 5% increase in sales compared to the previous quarter and generated $38 million in operating cash flow. Adjusted EBITDA was $57 million, representing 7.1% of sales.
Sales increased by 5% compared to the fourth quarter of 2023.
Adjusted EBITDA reached $57 million, or 7.1% of sales.
Operating cash flow was $38 million, putting the company on track to meet or exceed its $200 million cash flow guidance for the year.
The company intends to repay its Term Loan B in the second quarter of 2024.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
MRC Global is on track to meet or exceed its cash flow guidance of $200 million for the year and expects to repay its Term Loan B in the second quarter, exiting 2024 with minimal net debt.
Positive Outlook
- The company expects to generate significant cash over the next few years.
- Sequential revenue growth of 5% was achieved.
- Adjusted EBITDA margins reached 7.1%.
- The company is on track to meet or exceed its cash flow guidance of $200 million this year.
- The company intends to repay its Term Loan B in the second quarter.
Challenges Ahead
- All sectors declined compared to the first quarter of 2023.
- Gas Utilities sector revenue decreased $41 million, or 13%, due to customers reducing product inventory levels.
- PTI sector sales decreased by $24 million, or 11%, primarily due to lower line pipe sales.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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