Q2 2024 MRC Global Inc Earnings Call Transcript
Key Points
- MRC Global Inc (MRC) generated $63 million in operating cash flow in Q2 2024 and $101 million for the first half of the year, exceeding expectations.
- Second-quarter revenue was $832 million, a 3% increase over the first quarter, driven by growth in the gas utilities and PTI sectors.
- Adjusted gross margins reached a record high of 22.1%, with adjusted EBITDA margins improving to 7.8% for the second quarter.
- The company's balance sheet is stronger than ever, with a leverage ratio of 0.4x and expectations for further improvement.
- MRC Global Inc (MRC) was chosen as the primary strategic supplier of PVF products and services to ExxonMobil in North America, a significant achievement.
- The DIET sector experienced a slight decline due to lower refinery turnaround and project activity in the US.
- Revenue in the second half of 2024 is expected to be softer than the first half, primarily due to delays in DIET projects and refinery turnarounds.
- Gas utilities project-related work has slowed this year and is expected to recover only in 2025.
- US oilfield spending is expected to be slower in the second half of 2024 before picking up in 2025.
- The company continues to face challenges with customer destocking in the gas utilities sector, which may extend into 2025 for some customers.
Greetings, and welcome to MRC Global's second-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Monica Broughton. Thank you. You may begin.
Thank you, and good morning. Welcome to the MRC Global second-quarter 2024 conference call and webcast. We appreciate you joining us. On the call today, we have Rob Saltiel, President and CEO; and Kelly Youngblood, Executive Vice President and CFO.
There will be a replay of today's call available by webcast on our website, mrcglobal.com, as well as by phone until August 21, 2024. The dial-in information is in yesterday's release. We expect to file our quarterly report on Form 10-Q later today and it will also be available on our website. Please note that the information reported on this call speaks only as of today, August 7, 2024, and therefore, you are advised that information may no longer be accurate as of the time of replay.
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