Industrial PFV and infrastructure supplies distributor MRC Global reported its 2024 third quarter financial results on Nov. 5, showing a decline in sales, both year-over-year and sequentially.
The Houston-based company also announced its board of directors elected Deborah Adams as its new board chair, effective immediately. Adams succeeds Robert Wood, who retired from the board for personal reasons.
MRC posted 3Q sales of $797 million, down 4% year-over-year and down from 2Q24’s $832 million.
The company’s sectors of Gas Utilities, Production and Transmission Infrastructure (PTI) and Downstream, Industrial and Energy Transition (DIET) were all down from the same period a year prior. However, Gas Utilities increased by 3% from 2Q24, while DIET and PTI decreased by 7% and 8% due to declines in the U.S. and Canada, respectively.
MRC’s U.S. 3Q sales of $644 million were down 14% year-over-year and decreased by 5% from 2Q24. Gas Utilities sector revenue fell 6% year-over-year; PTI sales decreased 10%; and DIET sales decreased 10% year-over-year.
The company’s 3Q gross margin of 20.1% was down 50 basis points from the same period a year prior. Adjusted gross margin of 20.8% was also down from 3Q23’s 21.3%.
MRC’s 3Q adjusted EBITDA of $48 million (6.0% margin) was down from the same period a year prior — $70 million (6.9% margin).
On Oct. 29, MRC Global announced it had secured a $350 million term loan B, following earlier moves in October to strengthen the company’s financial capital structure.
“Given our robust cash flow generation, we are raising our guidance for the full year operating cash flow to $220 million or more,” MRC Global’s President and CEO Rob Saltiel said in the company’s financial release. “As recently announced, we repurchased all of our convertible preferred shares through a successful new Term Loan B, and we are in the process of extending the maturity of our asset-based lending facility to 2029. We expect that these transactions will be accretive to earnings and cash flow in 2025 and beyond, and they simplify our capital structure while maintaining a solid balance sheet.”
MRC Global was No. 15 on MDM’s Top Distributor’s List for Industrial Supplies and No. 3 for Industrial PVF.
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