MRC Global (MRC) Investor presentation summary

Investment highlights and business overview

• Operates as a leading global distributor of industrial products and supply solutions with a diversified portfolio and long-term growth drivers across all end-market sectors.

• Demonstrates improving financial performance, strong operating cash flow, and a solid balance sheet supporting future growth and significant cash generation.

• Embeds sustainability principles in organizational values and product offerings, including emissions reduction and renewable energy initiatives.

• Maintains a global footprint with 14 regional distribution centers, 27 valve & engineering centers, and 224 service centers across multiple continents.

• Offers scalable capabilities in projects, maintenance, and turnarounds, with expertise in flow-control equipment, value-added services, and integrated supply solutions.

Financial performance and outlook

• Generated $220 million or more in cash flow from operations for 2024, with cumulative cash flow from operations of $698 million+ from 2020-2024E.

• Adjusted gross profit margin reached 21.5% in 2023 and is targeted at approximately 21% for 4Q24.

• Adjusted EBITDA margin improved to 7.3% in 2023, reflecting structural efficiency and cost control.

• Revenue for 3Q24 was $797 million, with adjusted gross profit of $166 million (20.8% margin) and adjusted EBITDA of $48 million (6.0% margin).

• Capital expenditures for 2024 are projected at $35 million, including ERP system investments.

End-market and product diversification

• Revenue by end-market sector: 34% Gas Utilities, 33% Downstream/Industrial/Energy Transition, 33% Production/Transmission/Infrastructure.

• Geographic revenue split: 82% United States, 14% International, 4% Canada.

• Product line revenue: 36% Valve/Automation/Measurement, 28% Carbon Steel Pipe/Fittings/Flanges, 23% Gas Products, 8% General Products, 5% Stainless Steel & Alloy.