MRC 3Q Sales Growth Slows Again to 2%

On Nov. 7, Houston, Texas-based industrial PVF products distributor MRC Global announced its 2023 third-quarter earnings, which included sales of $888 million, a 2% increase sequentially and year-over-year.

YoY sales growth dropped slightly from 2Q 2023, when it was 3%. Compared with 3Q 2022, the Production and Transmission Infrastructure (PTI) sector led with 10% growth, followed by the Downstream, Industrial and Energy Transition (DIET) sector at 1%, offset by the Gas Utilities sector, which declined 13%. Sequentially, the DIET sector increased offsetting decreases in the Gas Utilities and PTI sectors.

U.S. sales in 3Q 2023 were $745 million, down $23 million, or 3%, from the same quarter in 2022. PTI sector sales increased by $20 million, or 10%, resulting from increased customer infrastructure activity in the Permian and Rockies. DIET sector sales increased $1 million.

The Gas Utilities sector revenue decreased $44 million, or 12%, driven by “decreased capex spending for modernization and replacement activity as customers focus on reducing their own product inventory levels as well as delayed customer projects due to higher interest rates and inflation in construction costs,” according to a news release.

Canada sales were $38 million, up $1 million, or 3%, from the same quarter in 2022. International sales were $105 million, up $6 million, or 6%, from the same period in 2022.

Adjusted EBITDA for 3Q 2023 was $70 million, or 7.9% of sales and the company’s sixth consecutive quarter above 7%.

A Bloomberg report from October stated that Engine Capital — an active investor for pipes, valves and fittings distributor MRC Global — is urging the publicly-traded company to consider selling to a private buyer. With $3.4 billion in 2022 revenue, MRC Global was No. 15 on MDM’s 2023 Top Industrial Distributors List and No. 3 for top PVF distributors.