MRC Global Inc. MRC reported first-quarter 2025 adjusted earnings of 14 cents per share, which beat the Zacks Consensus Estimate of eight cents. In the year-ago quarter, it reported earnings of 21 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Total revenues of $712 million surpassed the consensus estimate of $710 million. The top line decreased 8.4% year over year due to the lower volume of sales in the Downstream, Industrial and Energy Transition (DIET) and Production & Transmission Infrastructure (PTI) sectors.

MRC Global Inc. Price, Consensus and EPS SurpriseMRC Global Inc. Price, Consensus and EPS Surprise

MRC Global Inc. price-consensus-eps-surprise-chart | MRC Global Inc. Quote

MRC’s Revenues by Product Line

Based on MRC’s product line, revenues from carbon pipe, fittings and flanges were down 22.5% year over year to $162 million. Revenues from valves, automation, measurement and instrumentation were down 0.7% year over year to $277 million.

Gas product revenues were relatively stable year over year at $187 million. Sales of general products fell 28.1% to $46 million. Sales of stainless steel, alloy pipe and fittings increased 5.3% to $40 million.

MRC’s Revenues by Sector

Based on the sectors served, revenues from Gas Utilities increased 3% year over year to $273 million, while DIET sales were down 17.7% to $220 million. Sales from the PTI sector decreased 10.6% year over year to $219 million.

MRC Global’s Revenues by Segment

Sales generated from the U.S. segment (representing 83% of revenues) totaled $591 million, down 11.4% year over year. The downtick was due to reduced demand in the DIET and PTI sectors.

Sales from the International segment (17%) grew 10% year over year to $121 million, driven by higher revenues from the PTI sector.

MRC’s Margin Profile

MRC Global’s cost of sales declined 7.8% year over year to $570 million. The adjusted gross profit was down 10% year over year to $153 million. The adjusted gross margin was 21.5% compared with 21.9% in the year-ago period.

Selling, general and administrative expenses were up 3.3% year over year to $124 million. Adjusted EBITDA decreased 36.8% year over year to $36 million.

MRC Global’s Balance Sheet and Cash Flow

Exiting first-quarter 2025, MRC had a cash balance of $63 million, relatively stable from the figure reported at the end of December 2024. Long-term debt (including the current portion) was $367 million and net debt was $308 million at the end of the quarter.

In the first three months of 2025, the company generated net cash of $14 million from operating activities compared with $38 million in the year-ago period. Capital spent on purchasing property, plant and equipment was $9 million, up 50% on a year-over-year basis.

In the period, the company did not pay dividends on preferred stock compared with $6 million in the year-ago period.

Story Continues

2025 Outlook

MRC Global expects its second-quarter 2025 revenues to increase in high-single to low-double-digit sequentially, driven by growth across its three business sectors.

Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #4 (Sell). Some better-ranked companies are discussed below:

Insteel Industries IIIN currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

IIIN delivered a trailing four-quarter average earnings surprise of 122.4%. In the past 60 days, the Zacks Consensus Estimate for Insteel Industries’ fiscal 2025 earnings has increased 34.8%.

Unifirst Corporation UNF currently carries a Zacks Rank #2 (Buy). UNF delivered a trailing four-quarter average earnings surprise of 12.3%. In the past 60 days, the consensus estimate for Unifirst’s fiscal 2025 (ending August 2025) earnings has increased 4.1%.

AptarGroup, Inc. ATR presently carries a Zacks Rank of 2. ATR delivered a trailing four-quarter average earnings surprise of 7.3%. In the past 60 days, the consensus estimate for AptarGroup’s 2025 earnings has increased 2.5%.

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