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Business Wire
06-08-2025
- Business
- Business Wire
DNOW Reports Second Quarter 2025 Results
HOUSTON--(BUSINESS WIRE)--DNOW Inc. (NYSE: DNOW) announced results for the second quarter ended June 30, 2025. Merger Agreement with MRC Global Inc. (NYSE: MRC) On June 26, 2025, DNOW and MRC Global jointly announced a definitive merger agreement under which DNOW will acquire MRC Global in an all-stock transaction valued at approximately $1.5 billion The transaction was unanimously approved by both the DNOW and MRC Global boards of directors and is currently anticipated to close in the fourth quarter of 2025, subject to shareholder approvals, regulatory approvals and other customary closing conditions Financial Highlights Revenue was $628 million for the second quarter of 2025 Net income attributable to DNOW Inc. was $25 million, or $0.23 per diluted share, for the second quarter of 2025 Non-GAAP net income attributable to DNOW Inc. excluding other costs was $29 million, or $0.27 per diluted share, for the second quarter of 2025 EBITDA excluding other costs was $51 million or 8.1% of revenue for the second quarter of 2025 Cash provided by operating activities was $45 million for the second quarter of 2025 and $225 million for the trailing four quarters ending June 30, 2025 Repurchased $19 million of common stock in the second quarter of 2025, and $27 million year-to-date ending June 30, 2025 Cash and cash equivalents was $232 million and long-term debt was zero at June 30, 2025, with total liquidity of approximately $582 million David Cherechinsky, President and CEO of DNOW, added, 'Our team continues to execute our strategic plan, generating $628 million in revenue for the second quarter of 2025, up 5% sequentially, at the top-end of our guided range, while producing our best second-quarter EBITDA results in our public-company history, at $51 million dollars, or 8.1% of revenue. We also recently announced an important milestone in the strategic advancement of DNOW, agreeing to combine with MRC Global. This transaction will create a premier energy industrial solutions provider with a highly complementary, balanced portfolio of business and a diversified customer base fortifying long-term profitability and cash flow generation. Together, we will have enhanced opportunities in artificial intelligence infrastructure, alternative energy, electrification, LNG, mining and other attractive industrial sectors, bringing additional opportunities to drive value creation. Our team remains focused on advancing our strategy while planning for our future together with MRC Global. As a result of our solid first-half performance, we are reaffirming our full-year 2025 revenue and EBITDA guidance and reaffirming 2025 free cash flow guidance targeted at $150 million. I want to recognize and thank our DNOW team for their relentless focus on delighting the customer. This is truly an exciting period in DNOW's history, and I am energized by the opportunities ahead and confident in our ability to create lasting value for our shareholders.' Prior to the earnings conference call a presentation titled 'DNOW Second Quarter 2025 Earnings Presentation' will be available on the Company's Investor Relations website. A bout DNOW DNOW is a supplier of energy and industrial products and packaged, engineered process and production equipment with a legacy of over 160 years. Headquartered in Houston, Texas, with approximately 2,575 employees and a network of locations, we offer a broad set of supply chain solutions combined with a suite of digital offerings branded as DigitalNOW® that provide customers access to highly complementary digital commerce, data and information management channels. Our locations provide products and solutions to exploration and production, midstream transmission and storage companies, refineries, chemical companies, utilities, mining, municipal water, manufacturers, engineering and construction as well as companies operating in the decarbonization, energy evolution and renewables end markets. Statements made in this press release that are forward-looking in nature are intended to be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and may involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to documents filed by DNOW Inc. with the U.S. Securities and Exchange Commission, which identify significant risk factors which could cause actual results to differ from those contained in the forward-looking statements. DNOW INC. SUPPLEMENTAL INFORMATION (CONTINUED) U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) TO NON-GAAP RECONCILIATIONS In an effort to provide investors with additional information regarding our results as determined by GAAP, we disclose various non-GAAP financial measures in our quarterly earnings press releases and other public disclosures. The non-GAAP financial measures include: (i) earnings before interest, taxes, depreciation and amortization (EBITDA) excluding other costs, (ii) EBITDA excluding other costs as a percentage of revenue, (iii) net income attributable to DNOW Inc. excluding other costs, (iv) diluted earnings per share attributable to DNOW Inc. stockholders excluding other costs, and (v) free cash flow. We use these non-GAAP financial measures to evaluate and manage the Company's operations because we believe they provide useful supplemental information regarding the financial performance of our business. These non-GAAP financial measures are not intended to replace the GAAP financial measures. Free cash flow is net cash provided by (used in) operating activities adjusted for purchases of property, plant and equipment, and the remaining non-GAAP financial measures exclude the impact of certain other items. A reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure is included in the schedules herein. Totals in the schedules herein may not foot due to rounding. (In millions) Three Months Ended Six Months Ended June 30, March 31, June 30, 2025 As a % of revenue 2024 As a % of revenue 2025 As a % of revenue 2025 As a % of revenue 2024 As a % of revenue GAAP net income attributable to DNOW Inc. $ 25 4.0 % $ 24 3.8 % $ 22 3.7 % $ 47 3.8 % $ 45 3.8 % Net income attributable to noncontrolling interest − 1 1 1 1 Interest expense (income), net (1 ) (1 ) (1 ) (2 ) (3 ) Income tax provision 7 8 7 14 16 Depreciation and amortization 10 9 11 21 16 Other costs: Stock-based compensation (1) 4 4 3 7 6 Other (2) 6 5 3 9 8 EBITDA excluding other costs $ 51 8.1 % $ 50 7.9 % $ 46 7.7 % $ 97 7.9 % $ 89 7.4 % Expand NET INCOME ATTRIBUTABLE TO DNOW INC. TO NON-GAAP NET INCOME ATTRIBUTABLE TO DNOW INC. EXCLUDING OTHER COSTS RECONCILIATION (UNAUDITED) (In millions) Three Months Ended Six Months Ended June 30, March 31, June 30, 2025 2024 2025 2025 2024 GAAP net income attributable to DNOW Inc. $ 25 $ 24 $ 22 $ 47 $ 45 Other (2) 6 5 3 9 8 Other tax expense (benefit) (3) (2 ) (1 ) (1 ) (3 ) (2 ) Other, net of tax (4)* 4 4 2 6 6 Net income attributable to DNOW Inc. excluding other costs $ 29 $ 28 $ 24 $ 53 $ 51 Expand * Totals may not foot due to rounding. Expand DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO DNOW INC. STOCKHOLDERS TO NON-GAAP DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO DNOW INC. STOCKHOLDERS EXCLUDING OTHER COSTS RECONCILIATION (UNAUDITED) Three Months Ended Six Months Ended June 30, March 31, June 30, 2025 2024 2025 2025 2024 GAAP diluted earnings per share attributable to DNOW Inc. stockholders $ 0.23 $ 0.21 $ 0.20 $ 0.43 $ 0.41 Other, net of tax (4) 0.04 0.04 0.02 0.06 0.05 Diluted earnings per share attributable to DNOW excluding other costs $ 0.27 $ 0.25 $ 0.22 $ 0.49 $ 0.46 Expand NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW RECONCILIATION (UNAUDITED) Three Months Ended Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, 2025 2025 2024 2024 2024 2025 2024 Net cash provided by (used in) operating activities $ 45 $ (16 ) $ 122 $ 74 $ 21 $ 29 $ 102 Less: Purchases of property, plant and equipment (4 ) (6 ) (3 ) (2 ) (3 ) (10 ) (4 ) Free cash flow $ 41 $ (22 ) $ 119 $ 72 $ 18 $ 19 $ 98 Expand (1) For the three and six months ended June 30, 2025, stock-based compensation excludes less than $1 million and $1 million, respectively, as such amounts were reported in Other. (2) For the three and six months ended June 30, 2025, Other primarily included approximately $6 million and $8 million, respectively, of transaction-related charges and less than $1 million and $1 million, respectively, of International restructuring charges, both of which were included in warehousing, selling, and administrative. For the three and six months ended June 30, 2024, Other was primarily related to transaction-related charges, of which approximately $1 million and $3 million, respectively, were included in warehousing, selling and administrative, and approximately $4 million and $5 million, respectively, were included in cost of products. For the three months ended March 31, 2025, Other primarily included approximately $2 million of transaction-related charges and $1 million of International restructuring charges, both of which were included in warehousing, selling, and administrative. Transaction-related charges include transaction costs, inventory fair value step-up, retention bonus accruals and integration expenses associated with acquisitions. (3) For the three and six months ended June 30, 2025, Other tax expense (benefit) represents tax benefit of approximately $2 million and $3 million, respectively, related to Other. For the three and six months ended June 30, 2024, Other tax expense (benefit) represents tax benefit of approximately $1 million and $2 million, respectively, related to Other. For the three months ended March 31, 2025, Other tax expense (benefit) represents tax benefit of approximately $1 million related to Other. The tax effect of Other is calculated based on the nature of the item and/or the tax jurisdiction in which the item has been incurred and applying the specific tax rate or tax treatment to each item included in Other. (4) Other, net of tax comprises Other and Other tax expense (benefit). See footnotes (2) and (3) for details. Expand


Associated Press
06-08-2025
- Business
- Associated Press
DNOW Reports Second Quarter 2025 Results
HOUSTON--(BUSINESS WIRE)--Aug 6, 2025-- DNOW Inc. (NYSE: DNOW) announced results for the second quarter ended June 30, 2025. Merger Agreement with MRC Global Inc. (NYSE: MRC) Financial Highlights David Cherechinsky, President and CEO of DNOW, added, 'Our team continues to execute our strategic plan, generating $628 million in revenue for the second quarter of 2025, up 5% sequentially, at the top-end of our guided range, while producing our best second-quarter EBITDA results in our public-company history, at $51 million dollars, or 8.1% of revenue. We also recently announced an important milestone in the strategic advancement of DNOW, agreeing to combine with MRC Global. This transaction will create a premier energy industrial solutions provider with a highly complementary, balanced portfolio of business and a diversified customer base fortifying long-term profitability and cash flow generation. Together, we will have enhanced opportunities in artificial intelligence infrastructure, alternative energy, electrification, LNG, mining and other attractive industrial sectors, bringing additional opportunities to drive value creation. Our team remains focused on advancing our strategy while planning for our future together with MRC Global. As a result of our solid first-half performance, we are reaffirming our full-year 2025 revenue and EBITDA guidance and reaffirming 2025 free cash flow guidance targeted at $150 million. I want to recognize and thank our DNOW team for their relentless focus on delighting the customer. This is truly an exciting period in DNOW's history, and I am energized by the opportunities ahead and confident in our ability to create lasting value for our shareholders.' Prior to the earnings conference call a presentation titled 'DNOW Second Quarter 2025 Earnings Presentation' will be available on the Company's Investor Relations website. About DNOW DNOW is a supplier of energy and industrial products and packaged, engineered process and production equipment with a legacy of over 160 years. Headquartered in Houston, Texas, with approximately 2,575 employees and a network of locations, we offer a broad set of supply chain solutions combined with a suite of digital offerings branded as DigitalNOW® that provide customers access to highly complementary digital commerce, data and information management channels. Our locations provide products and solutions to exploration and production, midstream transmission and storage companies, refineries, chemical companies, utilities, mining, municipal water, manufacturers, engineering and construction as well as companies operating in the decarbonization, energy evolution and renewables end markets. Statements made in this press release that are forward-looking in nature are intended to be 'forward-looking statements' within the meaning of Section 21E of the Securities Exchange Act of 1934 and may involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to documents filed by DNOW Inc. with the U.S. Securities and Exchange Commission, which identify significant risk factors which could cause actual results to differ from those contained in the forward-looking statements. In an effort to provide investors with additional information regarding our results as determined by GAAP, we disclose various non-GAAP financial measures in our quarterly earnings press releases and other public disclosures. The non-GAAP financial measures include: (i) earnings before interest, taxes, depreciation and amortization (EBITDA) excluding other costs, (ii) EBITDA excluding other costs as a percentage of revenue, (iii) net income attributable to DNOW Inc. excluding other costs, (iv) diluted earnings per share attributable to DNOW Inc. stockholders excluding other costs, and (v) free cash flow. We use these non-GAAP financial measures to evaluate and manage the Company's operations because we believe they provide useful supplemental information regarding the financial performance of our business. These non-GAAP financial measures are not intended to replace the GAAP financial measures. Free cash flow is net cash provided by (used in) operating activities adjusted for purchases of property, plant and equipment, and the remaining non-GAAP financial measures exclude the impact of certain other items. A reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure is included in the schedules herein. Totals in the schedules herein may not foot due to rounding. View source version on CONTACT: Mark Johnson Senior Vice President and Chief Financial Officer (281) 823-4754 KEYWORD: UNITED STATES NORTH AMERICA TEXAS INDUSTRY KEYWORD: OIL/GAS ALTERNATIVE ENERGY ENERGY OTHER ENERGY UTILITIES SOURCE: DNOW Inc. Copyright Business Wire 2025. PUB: 08/06/2025 06:45 AM/DISC: 08/06/2025 06:47 AM
Yahoo
05-08-2025
- Business
- Yahoo
MRC Global Earnings: What To Look For From MRC
Fluid and gas handling company MRC (NYSE:MRC) will be reporting results this Wednesday before market hours. Here's what to expect. MRC Global met analysts' revenue expectations last quarter, reporting revenues of $712 million, down 8.4% year on year. It was a strong quarter for the company, with an impressive beat of analysts' EPS estimates and a decent beat of analysts' adjusted operating income estimates. Is MRC Global a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting MRC Global's revenue to decline 5.7% year on year to $784.6 million, a further deceleration from the 4.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.24 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. MRC Global has missed Wall Street's revenue estimates four times over the last two years. Looking at MRC Global's peers in the industrial distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Watsco's revenues decreased 3.6% year on year, missing analysts' expectations by 7.2%, and FTAI Aviation reported revenues up 52.4%, topping estimates by 5.8%. Watsco traded down 2.7% following the results while FTAI Aviation was up 26.5%. Read our full analysis of Watsco's results here and FTAI Aviation's results here. Investors in the industrial distributors segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. MRC Global is up 8.9% during the same time and is heading into earnings with an average analyst price target of $15.33 (compared to the current share price of $14.01). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
24-07-2025
- Business
- Yahoo
MRC (MRC) Is a Great Choice for 'Trend' Investors, Here's Why
Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it. Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- that could keep the momentum in the stock going. Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness. There are several stocks that passed through the screen and MRC Global (MRC) is one of them. Here are the key reasons why this stock is a solid choice for "trend" investing. A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. MRC is quite a good fit in this regard, gaining 23.9% over this period. However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 11.3% over the past four weeks ensures that the trend is still in place for the stock of this energy products distributor. Moreover, MRC is currently trading at 81.8% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout. Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance. So, the price trend in MRC may not reverse anytime soon. In addition to MRC, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria. This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies. Click here to sign up for a free trial to the Research Wizard today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MRC Global Inc. (MRC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research


Globe and Mail
14-07-2025
- Business
- Globe and Mail
MRC Global Announces Second Quarter 2025 Earnings Release Date
HOUSTON, July 14, 2025 (GLOBE NEWSWIRE) -- MRC Global Inc. (NYSE: MRC) will release its second quarter 2025 results on Wednesday, August 6, 2025, before the market opens. Due to the pending combination with DNOW Inc., MRC Global will not host a conference call or webcast to discuss its second quarter 2025 results. About MRC Global Inc. Headquartered in Houston, Texas, MRC Global (NYSE: MRC) is the leading global distributor of pipe, valves, fittings (PVF) and other infrastructure products and services to diversified end-markets including the gas utilities, downstream, industrial and energy transition, and production and transmission infrastructure sectors. With over 100 years of experience, MRC Global has provided customers with innovative supply chain solutions, technical product expertise and a robust digital platform from a worldwide network of approximately 200 locations including valve and engineering centers. The company's unmatched quality assurance program offers approximately 200,000 SKUs from over 7,100 suppliers, simplifying the supply chain for over 8,300 customers. Find out more at Contact: