MRC Global Announces Preliminary Second Quarter 2022 Results

MRC Global Inc. announces it has raised its 2022 guidance and provided selected preliminary second quarter 2022 results.

Rob Saltiel, MRC Global’s president and CEO, stated, “I am very pleased with our excellent financial performance in the first half of 2022. The year started off strong and has continued to improve, significantly exceeding our expectations. Robust activity in all our sectors underpins our strong outlook for the full year, supported by continued growth in our order intake and backlog. We are increasing our 2022 targets to $3.3 billion in sales and $230 million of adjusted EBITDA, or 7% of targeted sales.”

Raising 2022 Guidance

Strong results in the first half of the year and a positive outlook for each of the company’s end-markets for the remainder of the year support an upward revision to the company’s 2022 forecast.

Revenue is now targeted to be $3.3 billion, up from the previous guidance of $3.1 billion, which would be a 24% increase in 2022 revenue over 2021.

Adjusted EBITDA is targeted to be $230 million, up from the previous guidance of $200 million, which would be a 58% increase in 2022 adjusted EBITDA over 2021.

Adjusted EBITDA as a percentage of sales is targeted at approximately 7%, up from the previous guidance of 6.5%, which would be a 150 basis-point improvement over 2021.

The company expects third quarter revenue will be higher than the second quarter with a seasonal decline in the fourth quarter.

Preliminary Second Quarter 2022 Results

Based on preliminary results, MRC Global now expects its second quarter 2022 sales to be up approximately 14% over the first quarter, as compared to the high single-digit improvement previously communicated. All four of the company’s end-markets reflect strong sequential revenue growth, led by greater than expected increases in the Gas Utilities and Downstream, Industrial and Energy Transition (DIET) sectors. The adjusted EBITDA margin percentage for the second quarter of 2022 is expected to be approximately 7.5% of sales, which would be the best quarterly adjusted EBITDA margin percentage since 2018.