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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.
MRC Global
MRC Global
MRC Global Revenue by Segment
MRC Global Revenue by Geographic Location
Revenue by Segment
U.S. Sales Revenue
CapyFin.comInternational Sales Revenue
CapyFin.comRevenue by Geographic Location
Gas Utilities Revenue
CapyFin.comDIET Revenue
CapyFin.comPTI Revenue
CapyFin.com 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.
- DIET sector sales declined $8 million primarily due to non-recurring projects.
- Adjusted EBITDA decreased to $57 million in the first quarter of 2024 compared to $69 million for the same period in 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income