MRC Global Annouces Second Quarter 2023 Results

MRC Global Inc., a leading global distributor of pipe, valves, fittings, and infrastructure products and services to diversified energy, industrial, and gas utilities end-markets, has announced tsecond quarter 2023 results.

Second quarter 2023 financial highlights Include the following:

• Sales of $871 million, a 3% improvement compared to the same quarter a year ago.
• Adjusted Gross Profit, as a percentage of sales, of 21.5%, an increase of 30 basis points compared to the first quarter of 2023.
• Adjusted EBITDA of $63 million, or 7.2% of sales, and 5th consecutive quarter above 7%.
• Cash Flow from operations of $20 million during the quarter.

Rob Saltiel, MRC Global’s president and CEO stated, “Our second quarter results delivered revenue growth over last year, better-than-expected cash flow generation and strong adjusted gross profit margins. We expanded our revenue backlog in the quarter, aided by gains in our International segment and our DIET sector.

“We are anticipating lower annual growth in 2023 for our U.S. segment than previously forecast due primarily to a slower ramp-up in our Gas Utilities sector sales during the current construction season. Although the long-term growth fundamentals of this sector remain intact, several key Gas Utilities customers are currently focused on reducing their product inventory levels over the next few quarters due to more certainty in the supply chain and associated lead times. As a result, we expect full-year revenues to increase in the upper single-digit percentage range, compared to 2022 levels, an adjustment to our prior guidance,” Saltiel added.