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MRC Global
🇺🇸 NYSE:MRC
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•
Dec 31, 2023

MRC Global Q4 2023 Earnings Report

Reported a decrease in sales, but maintained strong gross and adjusted EBITDA margins.

Key Takeaways

MRC Global reported a decrease in sales by 12% compared to Q4 2022. Net income attributable to common stockholders was $15 million, or $0.17 per diluted share. The company expects revenue to be flat to modestly lower than 2023 levels.

Sales of $768 million, a decrease of 12% compared to the same quarter of 2022.

Net income attributable to common stockholders for the fourth quarter of 2023 was $15 million, or $0.17 per diluted share.

Adjusted net income attributable to common stockholders for the fourth quarter of 2023 was $20 million, or $0.23 per diluted share.

Adjusted EBITDA was $48 million, 6.3% of sales.

Total Revenue
$768M
Previous year: $869M
-11.6%
EPS
$0.23
Previous year: $0.32
-28.1%
Adjusted EBITDA
$49M
Previous year: $66M
-25.8%
Gross Profit
$153M
Previous year: $158M
-3.2%
Cash and Equivalents
$131M
Previous year: $32M
+309.4%
Free Cash Flow
$84M
Previous year: $7M
+1100.0%
Total Assets
$1.89B
Previous year: $1.9B
-0.5%

MRC Global

MRC Global

MRC Global Revenue by Segment

Forward Guidance

In 2024, the company expects revenue to be flat to modestly lower than 2023 levels and targets to generate $200 million in cash from operations.

Positive Outlook

  • Expect a pick-up in business activity in the second half of the year.
  • Improving economy and lower interest rates support projects and oil and gas investments.
  • Targeting to generate $200 million in cash from operations.
  • Further improvements in working capital efficiency.
  • Expect to reduce overall SG&A expenses in 2024.

Challenges Ahead

  • Revenue to be flat to modestly lower than 2023 levels.
  • Gas Utilities sector sales were down $61 million, or 19%, as a result of non-recurring sales, deferred activity as well as certain customers destocking.
  • PTI sector sales decreased $35 million, or 16%, due to non-recurring projects and lower customer activity.
  • Canada sales in the fourth quarter of 2023 were down $18 million, or 39%, from the same quarter in 2022 driven by the PTI sector from non-recurring projects and year end curtailment in customer spending.
  • The Gas Utilities sector experienced a $59 million, or 19%, decline from customer's destocking, seasonal declines, non-recurring projects and decreased product purchases due to higher interest rates and construction cost inflation.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View MRC Global