MRC Global Inc ( (MRC) ) has released its Q3 earnings. Here is a breakdown of the information MRC Global Inc presented to its investors.
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MRC Global Inc., headquartered in Houston, Texas, is a leading global distributor of pipe, valves, fittings, and other infrastructure products and services, catering to diverse sectors including gas utilities, downstream, industrial, and energy transition.
In its third quarter of 2024 earnings report, MRC Global announced a net income attributable to common stockholders of $23 million, or $0.27 per diluted share, a slight decrease from the $29 million, or $0.33 per diluted share, reported in the same period in 2023. The company reported sales of $797 million, a decline from previous quarters, attributed to reduced activity in the U.S. oilfields and project delays in their DIET sector.
Key financial highlights from the third quarter include a gross profit of $160 million, representing 20.1% of sales, and an adjusted EBITDA of $48 million, or 6.0% of sales. The company also set a new record low for net working capital as a percentage of sales at 14.3%. Despite challenges, MRC Global generated significant operating cash flow of $96 million and raised its full-year operating cash flow guidance to $220 million or more.
Strategically, MRC Global has repurchased all of its convertible preferred shares, utilizing a new Term Loan B, and is extending the maturity of its asset-based lending facility to 2029. These financial maneuvers, according to CEO Rob Saltiel, are expected to positively impact earnings and cash flow in the future while maintaining a solid balance sheet.
Looking forward, MRC Global remains focused on navigating the current market challenges while leveraging its strong cash flow and strategic investments to bolster future growth and maintain financial stability.
