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Sep 30, 2024
MRC Global Q3 2024 Earnings Report
Reported a decline in revenue and adjusted EBITDA due to slowing activity in the U.S. oilfield and project delays, but generated robust operating cash flow.
Key Takeaways
MRC Global's third quarter 2024 results showed a decrease in sales and adjusted EBITDA compared to the previous year, primarily due to slowing activity in the U.S. oilfield and project delays in the DIET sector. However, the company generated strong operating cash flow and raised its full-year guidance for operating cash flow.
Net income attributable to common stockholders was $23 million, or $0.27 per diluted share.
Sales were $797 million, a 10% decrease compared to the third quarter of 2023.
Adjusted EBITDA was $48 million, or 6.0% of sales.
Cash provided by operations was $96 million.
Revenue by Geographic Location
Forward Guidance
MRC Global is raising its guidance for the full year operating cash flow to $220 million or more.
Positive Outlook
- Accretive to earnings and cash flow in 2025 and beyond.
- Simplify capital structure.
- Maintaining a solid balance sheet.
- Successful new Term Loan B.
- Extending the maturity of asset-based lending facility to 2029.
Challenges Ahead
- Slowing activity in the U.S. oilfield.
- Project delays in our DIET sector.
- Revenue declined in the third quarter.
- Adjusted EBITDA declined in the third quarter.
- Backlog declined 9% from the previous quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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