• Revenue: $797 million for Q3 2024, a 4% decline from the previous quarter and a 10% decrease year-over-year.

• Operating Cash Flow: $96 million in Q3 2024; $197 million year-to-date, meeting the 2024 full-year target of $200 million a quarter early.

• Adjusted EBITDA Margin: 6% for Q3 2024.

• Gas Utility Sales: $295 million in Q3 2024, a 3% sequential increase.

• Diet Sector Revenue: $248 million in Q3 2024, a 7% decrease from the previous quarter.

• PTI Sector Revenue: $254 million in Q3 2024, an 8% decrease from the previous quarter.

• International Revenue: $127 million in Q3 2024, a 4% sequential increase.

• Adjusted Gross Profit Margin: 20.8% for Q3 2024.

• SG&A Expense: $123 million or 15.4% of sales for Q3 2024.

• Net Income: $23 million or 27 per diluted share for Q3 2024.

• Leverage Ratio: Pro forma leverage ratio of 1.7 times.

• Cash Flow Guidance: Increased 2024 operating cash flow guidance to $220 million or more.

• Capital Expenditures: Expected to be approximately $35 million for full-year 2024.

• Warning! GuruFocus has detected 4 Warning Sign with MRC.

Release Date: November 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• MRC Global Inc (NYSE:MRC) successfully simplified its capital structure by issuing a new $350 million term loan, which allowed the repurchase of convertible preferred shares at a discount.

• Moody's upgraded MRC Global Inc (NYSE:MRC)'s credit rating following the capital restructuring, indicating improved financial stability.

• The company achieved a record low net working capital to sales ratio of 14.3%, demonstrating efficient working capital management.

• MRC Global Inc (NYSE:MRC) increased its 2024 operating cash flow guidance to $220 million or more, surpassing its initial target a quarter early.

• The international segment showed strong performance with a 21% year-over-year revenue growth, driven by European projects and energy transition initiatives.

Negative Points

• Third quarter revenue declined by 4% sequentially, impacted by slowing oilfield activity in the US and project delays.

• Adjusted EBITDA margins decreased to 6% in the third quarter, down from higher levels earlier in the year due to lower sales and gross margins.

• The PTI sector experienced an 8% revenue decline, primarily due to reduced US oilfield activity and project completions.

• The company anticipates a seasonal revenue decline in the fourth quarter, with expectations of an upper single-digit percentage drop.

• US LNG-related activity faced challenges due to permitting delays, affecting the diet sector's performance.