Industrial PVF products distributor MRC Global reported its 2022 second-quarter financial results on Aug. 8, which showed a considerable acceleration in sequential sales while profit margin slipped.
The Houston-based company reported 2Q total sales of $848 million, up 24% year-over-year and up 14% from 1Q. MRC’s 2Q gross profit of $151 million and margin of 17.8% topped the $112 million and 16.3% of a year earlier, while margin trailed 1Q’s 18.3%.
Net profit of $8 million reversed the $2 million loss of a year ago and trailed 1Q’s $10 million.
The company said strong double-digit growth in each of its end-market sectors drove the year-over-year and sequential sales improvement, while adjusted EBITDA margin of 7.7% was its best quarterly result since 2014. The gas utilities and downstream, industrial and energy transition (DIET) sectors led the sequential improvement and combined represent 68% of MRC’s revenue for the quarter.
In the U.S., 2Q sales of $717 million jumped 28% year-over-year and improved 16% from 1Q. Gas utilities sales increased 16% year-over-year; DIET sales increased 46%; Upstream production sales increased 44%; and Midstream pipeline sales increased 23%. 2Q Canada sales of $40 million increased 33% year-over-year and dipped 7% sequentially, while International sales of $91 million dipped 7% year-over-year and increased 12% sequentially.
MRC said its backlog ended 2Q up 12% from the end of 1Q, with U.S. backlog up 50% through the first six months of 2022.