The following is a summary of the MRC Global Inc. (MRC) Q1 2024 Earnings Call Transcript:
Financial Performance:
In Q1, MRC Global generated $38 million in operating cash flow with an expectation of $200 million for the year.
The company reported a 5% increase in revenue over Q4 2023, with a total of $806 million.
Adjusted gross margins were reported at 21.6%, with a net income of $13 million or $0.15 per diluted share on an average cost basis.
The company plans on early repayment of its term loan to reduce ongoing interest expense by 150 basis points for the remaining balance on its ABL facility.
MRC Global anticipates double-digit revenue growth in its international business and plans to invest $40 to $45 million in CapEx this year with the aim of achieving a 7% EBITDA margin goal.
Business Progress:
There was growth in all sectors, including DIET, Gas Utility, and PTI.
66% of the company's U.S orders were placed digitally in Q1, showing progress in digital strategy.
MRC Global is undergoing an Oracle cloud-based ERP project to improve efficiency and customer integration.
The Gas Utilities sector plans on reducing inventory to achieve natural growth of 5% to 7% by 2025.
The company's entrance into the chemical market has seen positive feedback through successful integration in customers' MRO business and new projects.
Some projects have shifted schedules and despite the positively achieved strides, MRC Global remains conservative about raising guidance.
More details: MRC Global IR
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