We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MRC Global Q2 Earnings & Revenues Beat Estimates, Decrease Y/Y
Read MoreHide Full Article
Key Takeaways
{\"0\":\"MRC reported Q2 adjusted EPS of $0.25, topping estimates but down from $0.31 a year earlier.\",\"1\":\"Total revenues of $798M fell slightly year over year despite growth in Gas Utilities and PTI sectors.\",\"2\":\"Gross margin fell to 21.6% from 22.5%, as the DIET sector decline and cost increases impacted profitability.\"}
MRC Global Inc. (MRC - Free Report) reported second-quarter 2025 adjusted earnings of 25 cents per share, which beat the Zacks Consensus Estimate of 23 cents. In the year-ago quarter, it reported earnings of 31 cents per share.
Total revenues of $798 million surpassed the consensus estimate of $772 million. The top line decreased 0.1% year over year due to the lower volume of sales in the Downstream, Industrial and Energy Transition (DIET) sector.
MRC’s Revenues by Product Line
Based on MRC’s product line, revenues from carbon pipe, fittings and flanges were down 11.9% year over year to $200 million. Revenues from valves, automation, measurement and instrumentation were up 3.5% year over year to $294 million.
Gas product revenues were up 8.3% year over year at $209 million. Sales of general products increased 1.7% to $61 million. Sales of stainless steel, alloy pipe and fittings decreased 2.9% to $34 million.
MRC’s Revenues by Sector
Based on the sectors served, revenues from Gas Utilities increased 4% year over year to $299 million, while DIET sales were down 13% to $223 million. Sales from the PTI sector increased 8% year over year to $276 million.
MRC Global’s Revenues by Segment
Sales generated from the U.S. segment (representing 82% of revenues) totaled $658 million, down 3% year over year. The downtick was due to reduced demand in the DIET and PTI sectors.
Sales from the International segment (18%) grew 15% year over year to $140 million, driven by higher revenues from the PTI sector.
MRC Global’s cost of sales increased 2.7% year over year to $647 million. The adjusted gross profit was down 4.4% year over year to $172 million. The adjusted gross margin was 21.6% compared with 22.5% in the year-ago period.
Selling, general and administrative expenses were up 6.6% year over year to $130 million. Adjusted EBITDA decreased 16.9% year over year to $54 million.
MRC Global’s Balance Sheet and Cash Flow
Exiting second-quarter 2025, MRC had a cash balance of $75 million compared with $63 million reported at the end of December 2024. Long-term debt (including the current portion) was $449 million and net debt was $374 million at the end of the quarter.
In the first six months of 2025, the company used net cash of $30 million in operating activities compared with $101 million cash used in the year-ago period. Capital spent on purchasing property, plant and equipment was $24 million, up 71.4% on a year-over-year basis.
In the period, the company did not pay dividends on preferred stock compared with $12 million in the year-ago period.
2025 Outlook
MRC Global expects its 2025 revenues to increase in the low to high-single-digit range on a year-over-year basis.
MRC’s Zacks Rank
The company currently carries a Zacks Rank #2 (Buy).
Dover Corporation (DOV - Free Report) reported earnings of $2.44 per share in second-quarter 2025, beating the Zacks Consensus Estimate of $2.39. This compares with earnings of $2.36 per share a year ago.
Dover posted revenues of $2.05 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $2.18 billion.
Teck Resources Limited (TECK - Free Report) came out with earnings of $0.27 per share in the second quarter of 2025, beating the Zacks Consensus Estimate of $0.2. This compares with earnings of $0.58 per share a year ago.
Teck Resources posted revenues of $1.46 billion in the quarter, missing the Zacks Consensus Estimate by 8.7%. This compares with year-ago revenues of $2.83 billion.
Packaging Corporation of America (PKG - Free Report) reported earnings of $2.48 per share, beating the Zacks Consensus Estimate of $2.44. This compares with earnings of $2.2 per share a year ago.
Packaging Corp. posted revenues of $2.17 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.5%. This compares with year-ago revenues of $2.08 billion.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MRC Global Q2 Earnings & Revenues Beat Estimates, Decrease Y/Y
Key Takeaways
MRC Global Inc. (MRC - Free Report) reported second-quarter 2025 adjusted earnings of 25 cents per share, which beat the Zacks Consensus Estimate of 23 cents. In the year-ago quarter, it reported earnings of 31 cents per share.
Total revenues of $798 million surpassed the consensus estimate of $772 million. The top line decreased 0.1% year over year due to the lower volume of sales in the Downstream, Industrial and Energy Transition (DIET) sector.
MRC’s Revenues by Product Line
Based on MRC’s product line, revenues from carbon pipe, fittings and flanges were down 11.9% year over year to $200 million. Revenues from valves, automation, measurement and instrumentation were up 3.5% year over year to $294 million.
Gas product revenues were up 8.3% year over year at $209 million. Sales of general products increased 1.7% to $61 million. Sales of stainless steel, alloy pipe and fittings decreased 2.9% to $34 million.
MRC’s Revenues by Sector
Based on the sectors served, revenues from Gas Utilities increased 4% year over year to $299 million, while DIET sales were down 13% to $223 million. Sales from the PTI sector increased 8% year over year to $276 million.
MRC Global’s Revenues by Segment
Sales generated from the U.S. segment (representing 82% of revenues) totaled $658 million, down 3% year over year. The downtick was due to reduced demand in the DIET and PTI sectors.
Sales from the International segment (18%) grew 15% year over year to $140 million, driven by higher revenues from the PTI sector.
MRC Global Inc. Price, Consensus and EPS Surprise
MRC Global Inc. price-consensus-eps-surprise-chart | MRC Global Inc. Quote
MRC’s Margin Profile
MRC Global’s cost of sales increased 2.7% year over year to $647 million. The adjusted gross profit was down 4.4% year over year to $172 million. The adjusted gross margin was 21.6% compared with 22.5% in the year-ago period.
Selling, general and administrative expenses were up 6.6% year over year to $130 million. Adjusted EBITDA decreased 16.9% year over year to $54 million.
MRC Global’s Balance Sheet and Cash Flow
Exiting second-quarter 2025, MRC had a cash balance of $75 million compared with $63 million reported at the end of December 2024. Long-term debt (including the current portion) was $449 million and net debt was $374 million at the end of the quarter.
In the first six months of 2025, the company used net cash of $30 million in operating activities compared with $101 million cash used in the year-ago period. Capital spent on purchasing property, plant and equipment was $24 million, up 71.4% on a year-over-year basis.
In the period, the company did not pay dividends on preferred stock compared with $12 million in the year-ago period.
2025 Outlook
MRC Global expects its 2025 revenues to increase in the low to high-single-digit range on a year-over-year basis.
MRC’s Zacks Rank
The company currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Dover Corporation (DOV - Free Report) reported earnings of $2.44 per share in second-quarter 2025, beating the Zacks Consensus Estimate of $2.39. This compares with earnings of $2.36 per share a year ago.
Dover posted revenues of $2.05 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $2.18 billion.
Teck Resources Limited (TECK - Free Report) came out with earnings of $0.27 per share in the second quarter of 2025, beating the Zacks Consensus Estimate of $0.2. This compares with earnings of $0.58 per share a year ago.
Teck Resources posted revenues of $1.46 billion in the quarter, missing the Zacks Consensus Estimate by 8.7%. This compares with year-ago revenues of $2.83 billion.
Packaging Corporation of America (PKG - Free Report) reported earnings of $2.48 per share, beating the Zacks Consensus Estimate of $2.44. This compares with earnings of $2.2 per share a year ago.
Packaging Corp. posted revenues of $2.17 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.5%. This compares with year-ago revenues of $2.08 billion.