MRC Global (MRC) Q2 2025 earnings summary

Executive summary

• Announced a definitive merger agreement with DNOW Inc., targeting a leading position in energy and industrial solutions, with $5.3B combined pro forma revenue and $70M in annual cost synergies expected within 3 years; closing anticipated in Q4 2025, subject to regulatory and shareholder approvals.

• Q2 2025 revenue was $798M, up 12% sequentially but nearly flat year-over-year; net income from continuing operations was $13M, down from $30M in Q2 2024.

• Adjusted EBITDA for Q2 2025 was $54M (6.8% of sales), up 50% sequentially but down from $65M (8.1%) year-over-year.

• Completed sale of Canadian operations in March 2025, resulting in a $30M net loss from discontinued operations for the six months ended June 30, 2025.

• $15M in share repurchases executed in Q2 2025; share repurchase program authorized up to $125M, now suspended due to the merger.

Financial highlights

• Q2 2025 sales were $798M, up from $712M in Q1 2025; gross profit was $151M (18.9% margin), adjusted gross profit $172M (21.6% margin), both down year-over-year.

• Net income from continuing operations was $13M (1.6% margin), diluted EPS $0.15, and adjusted net income was $22M ($0.25 per share).

• Adjusted EBITDA for Q2 2025 was $54M (6.8% margin); adjusted SG&A was $124M (15.5% of sales), up from $120M year-over-year, excluding $6M in merger-related costs.

• Net working capital to TTM sales ratio at 14.2%; liquidity of $574M and cash of $75M at quarter end.

• Long-term debt (including current portion) was $449M; net debt at $374M as of June 30, 2025.

Outlook and guidance

• 2025 revenue expected to increase low to high single digits from 2024; adjusted gross profit margin targeted at 21% or better.

• SG&A as a percentage of sales projected at 15–16%; effective tax rate between 26–28%.

• Capital expenditures for 2025 estimated at $47M, including ERP investment; cash flow from continuing operations expected at $100M or better.

• Q3 2025 anticipated to be the highest revenue quarter, with a seasonal decline in Q4 2025.

• No future guidance will be provided due to the pending DNOW merger.