NYSE$MRC

Mrc Global Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

MRC Global's financial performance improved with sequential revenue growth and strong cash flow generation.

MRC Global reported a net income of $13 million, or $0.15 per diluted share, and sales of $806 million for Q1 2024. The company saw a 5% increase in sales compared to the previous quarter and generated $38 million in operating cash flow. Adjusted EBITDA was $57 million, representing 7.1% of sales.

  • Sales increased by 5% compared to the fourth quarter of 2023.
  • Adjusted EBITDA reached $57 million, or 7.1% of sales.
  • Operating cash flow was $38 million, putting the company on track to meet or exceed its $200 million cash flow guidance for the year.
  • The company intends to repay its Term Loan B in the second quarter of 2024.

Headline financials

Total Revenue

$806M

Previous: $885M-8.9%
EPS (adj)

$0.20

Previous: $0.32-37.5%
Capital Expenditures

-$6M

Previous: $3M-300.0%
Free Cash Flow

$38M

Previous: -$33M+215.2%
Net Income

$13M

Previous: $28M-53.6%
Operating Income

$38M

Previous: $34M+11.8%
Gross Profit

$163M

Previous: $179M-8.9%
Stock-Based Comp

$4M

Previous: $3M+33.3%

Revenue & EPS history

MRC Global · Revenue · Quarterly

$806M

Q1 2024-8.9%vs Q1 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

MRC Global · $850M total across 2 segments · Q3 2023

  • U.S. Sales
    $745M-3.0%
  • International Sales
    $105M+6.1%

Forward guidance

MRC Global is on track to meet or exceed its cash flow guidance of $200 million for the year and expects to repay its Term Loan B in the second quarter, exiting 2024 with minimal net debt.

Tailwinds

  • The company expects to generate significant cash over the next few years.
  • Sequential revenue growth of 5% was achieved.
  • Adjusted EBITDA margins reached 7.1%.
  • The company is on track to meet or exceed its cash flow guidance of $200 million this year.
  • The company intends to repay its Term Loan B in the second quarter.

Headwinds

  • All sectors declined compared to the first quarter of 2023.
  • Gas Utilities sector revenue decreased $41 million, or 13%, due to customers reducing product inventory levels.
  • PTI sector sales decreased by $24 million, or 11%, primarily due to lower line pipe sales.
  • DIET sector sales declined $8 million primarily due to non-recurring projects.
  • Adjusted EBITDA decreased to $57 million in the first quarter of 2024 compared to $69 million for the same period in 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 7 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+1.5%

Avg return

Earnings day

+5.7%

Avg return

5 days after

+3.8%

Avg return

30 days after

53%

29 / 55 earnings

Positive

+43.4%

Q1 2020

Best reaction

-19.2%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025
Q2 2025-6.7%-5.9%+5.2%
Q1 2025-6.0%+6.6%+4.5%
Q4 2024+2.4%+6.4%-11.6%
Q3 2024+18.4%+11.8%+13.6%
Q2 2024-3.8%-7.6%-5.2%
Q1 2024+9.4%+18.8%+8.5%
Q4 2023+8.3%+9.7%+11.9%
Q3 2023-5.3%
Q2 2023-16.7%
Q1 2023+0.3%
Q4 2022-3.1%
Q3 2022+8.0%
Q2 2022-13.1%
Q1 2022-19.2%
Q4 2021+13.7%
Q3 2021-9.3%
Q2 2021-4.3%
Q1 2021+5.3%
Q4 2020-7.0%
Q3 2020+4.0%
Q2 2020+0.3%
Q1 2020+43.4%
Q4 2019-8.2%
Q3 2019+22.0%
Q2 2019-3.4%
Q1 2019+7.7%
Q4 2018+9.2%
Q3 2018+10.0%
Q2 2018-3.0%
Q1 2018+2.2%
Q4 2017-1.2%
Q3 2017-2.7%
Q2 2017+0.1%
Q1 2017+4.0%
Q4 2016-1.8%
Q3 2016+2.0%
Q2 2016+6.7%
Q1 2016+1.1%
Q4 2015+15.0%
Q3 2015+14.6%
Q2 2015-0.8%
Q1 2015+14.2%
Q4 2014-5.8%
Q3 2014+3.7%
Q2 2014-6.0%
Q1 2014-0.2%
Q4 2013-13.7%
Q3 2013+4.7%
Q2 2013-9.9%
Q1 2013+6.7%
Q4 2012-6.0%
Q3 2012+3.1%
Q2 2012-1.4%
Q1 2011-0.2%
Q1 2012+1.6%
Q4 2009
Q4 2011
Q3 2011
Q3 2010
Q4 2010
Q2 2011
Q2 2010
Q1 2010

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