Pipes and valves distributor MRC Global's Q3 sales miss expectations

MRC Global

05/11/2025 11:52

Overview

MRC Global Q3 sales of $678 mln missed analyst expectations

Company reports net loss of $9 mln due to ERP system challenges

Adjusted EBITDA of $36 mln missed analyst estimates

Outlook

Company anticipates mid-to-high single-digit revenue growth in Q4 2025

MRC Global expects improved cash flow outlook for 2026

Merger with DNOW expected to close in Q4 2025

Result Drivers

ERP SYSTEM CHALLENGES - Implementation issues in the U.S. segment negatively impacted revenues and profitability, per CEO Rob Saltiel

BACKLOG INCREASE - U.S. backlog grew 21% year-on-year due to ERP-related delays, expected to convert to revenue in future quarters, per CFO Kelly Youngblood

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$678 mln
$854.60 mln (3 Analysts)
Q3 Adjusted Net Income
Miss
$11 mln
$28.10 mln (3 Analysts)
Q3 Net Income
-$9 mln
Q3 Adjusted EBITDA
Miss
$36 mln
$61.30 mln (2 Analysts)
Q3 Gross Profit
$125 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

Wall Street's median 12-month price target for MRC Global Inc is $16.00, about 13.5% above its November 4 closing price of $13.84

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX46tR21

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)