MRC Global Q2 Earnings & Revenues Beat Estimates, Decrease Y/Y

MRC Global Inc. MRC 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’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 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 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 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research