MRC Global’s year-on-year sales continue to decline, but EBITDA improves

Industrial PVF and infrastructure materials distributor MRC Global reported second-quarter 2024 financial results on Aug. 6 that showed sequential sales improvement while year-over-year declines continued.

The Houston-based company reported total sales of $832 million in the second quarter, down 4% year over year and up 3% compared to the first quarter of 2024.

MRC’s Gas Utilities and Production and Transmission Infrastructure (PTI) sectors were up compared to 1Q24. However, Downstream, Industrial and Energy Transition (DIET) was down 3% compared to the previous quarter, driven by declines in the U.S. segment. In contrast, DIET was up year-over-year across all geographies, while Gas Utilities and PTI were down year-over-year.

The company’s U.S. sales in the second quarter were $677 million, down 7% year over year and up 1% compared to the first quarter of 2024. Gas Utilities revenues were down 11% year over year; PTI sales were down 11%; and DIET sales were up 5%.

MRC’s gross margin in Q2 was 20.8%, up from a year earlier. Adjusted gross margin of 22.1% exceeded the prior-year figure of 21.5%, setting a new company record.

MRC’s second-quarter adjusted EBITDA was $65 million (7.8% margin), exceeding $63 million in the prior year, while second-quarter net income was $18 million, down from $27 million in the prior year.

“We delivered sequential growth in revenue, adjusted EBITDA and operating cash flow in the second quarter, despite a slowdown in U.S. oilfield activity and project delays in our DIET business,” said Rob Saltiel, president and CEO of MRC Global, in the company’s earnings release. “We generated $101 million in operating cash flow in the first half of 2024 and are on track to meet or exceed our annual operating cash flow target of $200 million.”

MRC Global was ranked 15th in the MDM Top Distributors list in the Industrial Products category and 3rd in the Industrial PVF Film category.