Overview

* MRC Global ( MRC ) 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 ( MRC ) 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/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $678 mln $854.60

mln (3

Analysts

)

Q3 Miss $11 mln $28.10

Adjusted mln (3

Net Analysts

Income )

Q3 Net -$9 mln

Income

Q3 Miss $36 mln $61.30

Adjusted mln (2

EBITDA Analysts

)

Q3 Gross $125 mln

Profit

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 ( MRC ) 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:

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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.)