MRC Global 2025 Q2 Earnings Misses Targets with Net Income Plummeting 56.7%

MRC Global’s Q2 2025 earnings fell short of expectations, with a sharp decline in net income and EPS. The company reaffirmed full-year guidance but will not provide future financial outlooks due to the pending DNOW merger.

Revenue
MRC Global’s total revenue for Q2 2025 was $798 million, a marginal 0.1% decline from $799 million in the same period in 2024. The PTI segment drove growth with a 26% sequential increase, while the Gas Utilities segment rebounded with 10% sequential growth. The DIET segment contributed $223 million, and U.S.-based Gas Utilities led with $299 million in sales.

Earnings/Net Income
The company’s net income fell to $13 million in Q2 2025, a 56.7% drop compared to $30 million in Q2 2024. Earnings per share (EPS) also declined significantly, from $0.28 in 2024 to $0.15 in 2025, marking a 46.4% decrease.

Price Action
MRC Global’s stock price dropped 5.77% on the latest trading day, 9.59% during the most recent week, and rose 4.04% month-to-date.

Post-Earnings Price Action Review
A strategy of buying MRC shares when earnings beat expectations and holding for 30 days yielded a 221.20% return, outperforming the benchmark by 85.42%. The strategy’s Sharpe ratio of 0.51 indicates strong risk-adjusted returns, with a maximum drawdown of 0.00%, demonstrating effective risk management.

CEO Commentary
Rob Saltiel, President and CEO, highlighted a strong performance in Q2, with 12% sequential revenue growth, driven by robust activity in the PTI and Gas Utilities sectors. He noted a 50% sequential rise in adjusted EBITDA and emphasized the transformative potential of the pending merger with DNOW. Saltiel also mentioned $15 million returned to shareholders through share repurchases at $12.35 per share.

Guidance
MRC Global expects continued growth in Q3, particularly in the DIET and Gas Utilities sectors, and has reaffirmed its full-year guidance from the prior quarter. However, it will not issue future financial guidance due to the pending merger with DNOW.

Additional News
MRC Global announced a definitive merger agreement with DNOW Inc., set to create a premier energy and industrial solutions provider. The all-stock transaction is subject to shareholder and regulatory approvals and is anticipated to close in Q4 2025. The company also returned $15 million to shareholders through strategic share repurchases in Q2 2025 and has suspended its repurchase program due to the pending merger. Additionally, the company reaffirmed its full-year guidance, but will not host a conference call or webcast to discuss Q2 results.