MRC Global Inc.

Revenue was $712 million, up 7% sequentially and down 8% year over year. Adjusted gross profit was $153 million, with adjusted gross margin of 21.5% versus 22.0% in Q4 2024. Adjusted EBITDA was $36 million, or 5.1% of sales, versus $32 million and 4.8% in Q4. Net income from continuing operations was $8 million, or $0.09 per diluted share, versus a net loss of $1 million, or $(0.14) per diluted share, in Q4 2024. Operating cash flow from continuing operations was $21 million, and net working capital was 11.7% of sales. Backlog was $603 million, up 8% sequentially. For Q2, management expects revenue to improve by a high single- to low double-digit percentage sequentially. Full-year 2025 revenue guidance remains low- to high-single-digit growth, and adjusted gross margin is expected to average approximately 21% or higher. The company still targets at least $100 million of operating cash flow in 2025, with CapEx expected at approximately $45 million for the year.

Rob Saltiel struck an upbeat tone, saying the company is off to an excellent start in 2025 and exceeded expectations on all key financial metrics. He emphasized improving demand in gas utilities, chemicals, and midstream, and said the backlog increase gives management confidence in another strong sequential quarter in Q2. He also framed the company’s strategy around disciplined capital allocation, returning cash through buybacks, and investing in growth initiatives like IMTEC services, data centers, and mining.

Kelly Youngblood focused on the quarter’s financial bridge and liquidity. She cited $712 million of sales, $153 million of adjusted gross profit, $36 million of adjusted EBITDA, and $21 million of operating cash flow from continuing operations, plus $63 million of cash and $507 million of ABL availability for total liquidity of $570 million. She said CapEx is expected to be approximately $45 million in 2025 because of the ERP implementation, with 2026 CapEx returning to about $15 million, and reiterated the 1.5x net debt leverage target while the company executes its buyback program.

Analysts pressed management on tariffs, inventory, gas utilities backlog, line pipe margins, lower oil prices, and the PTI outlook. Management said tariffs are most acute on imported steel products and China-sourced items, but MRC is using its supply chain and domestic sourcing mix to mitigate impacts; it also said most tariff effects should show up in future quarters. On gas utilities, management said destocking is behind them, backlog is building into construction season, and the business could gain share through IMTEC services and broader meter work. On oil, management acknowledged lower WTI could pressure US activity, but said its customer base is skewed toward larger, more resilient operators and that midstream-related PTI is helping offset upstream risk.