MRC Global on Friday posted a loss in its latest fiscal quarter and a drop in annual sales amid declines in its downstream and infrastructure divisions.
The Houston pipe, valve and fittings distributor — no. 10 on ID’s 2024 Big 50 — reported just more than $3 billion in 2024 sales, down from $3.26 billion in 2023. Gross profit and operating income also slipped — from $670 million and $188 million, respectively, down to $620 million and $135 million — while full-year net income dropped by more than 50% from $114 million to $55 million last year.
In the final quarter of the year, MRC’s $664 million in sales represented a 10% decline compared to the same quarter in 2023 as the company reported a quarterly net loss of $23 million, although most of the latter total was due to the sale of its Canadian operations; MRC’s net loss from continuing operations came in at $1 million.
Quarterly gross profit and operating income were also down year-over-year.
MRC officials cited projects ending and “lower turnaround spending” in its downstream, industrial and energy transition division, as well as lower activity and fewer projects in its production and transmission infrastructure segment.
MRC President and CEO Rob Saltiel said the company conducted several “strategic actions” during the year that “simplified and strengthened our balance sheet while de-risking our future financing needs.” He added that the company anticipates growth across each of its segments this year and is optimistic about the business overall. Saltiel said the company expects full-year revenue to be “up low to high-single digits.”
MRC was originally scheduled to issue its Q4 and 2024 results in mid-February, but postponed that announcement to complete certain “year-end audit procedures.” The delay resulted in “no adjustments to either the income statement or balance sheet,” the company said.
MRC also announced Friday that it has formed a new joint venture known as IMTEC Services with Cleveland, Ohio, gas measurement firm Frisbie Measurement Services. The venture will provide integrated smart meter technical services to gas utilities.
