MRC Global (MRC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $712 million, up 7% sequentially but down 8% year-over-year, with all major sectors expanding sequentially and Gas Utilities leading the resurgence.

• Net income from continuing operations was $8 million ($0.09 per diluted share), compared to a net loss of $1 million in Q4 2024 and $20 million in Q1 2024; net loss attributable to common stockholders was $22 million due to a $30 million loss from discontinued Canadian operations.

• Adjusted EBITDA was $36 million (5.1% of sales), down from $57 million (7.3%) in Q1 2024 but up from $32 million (4.8%) in Q4 2024.

• $125 million share repurchase program launched, reflecting confidence in financial strength and capital returns; execution began in Q2 2025.

• Sale of Canadian operations completed in March 2025, generating $17 million in cash proceeds and a $30 million loss from discontinued operations.

Financial highlights

• Adjusted gross profit margin was 21.5%, above the 21% target but down from 21.9% in Q1 2024; gross profit was $142 million (19.9% margin).

• SG&A expenses were $124 million (17.4% of sales), up from $120 million (15.4%) year-over-year.

• Operating cash flow from continuing operations was $21 million in Q1; net working capital was 11.7% of sales.

• Liquidity stood at $570 million, including $507 million ABL availability and $63 million cash.

• Net debt leverage ratio at 1.7x, targeting 1.5x.

Outlook and guidance

• Q2 2025 revenue expected to increase by high single- to low double-digit percentage sequentially, supported by strong backlog and order intake.

• Full-year 2025 guidance unchanged: projecting low to high single-digit year-over-year revenue growth and adjusted gross margin of 21% or higher.

• Targeting at least $100 million in operating cash flow for 2025; CapEx expected at $45 million due to ERP implementation.

• Effective tax rate projected at 26–28% for 2025.

• Management notes uncertainty around tariffs, energy transition incentives, and U.S. policy changes.