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.)