Industrial PVF and infrastructure supplies distributor MRC Global reported its 2024 first quarter financial results on May 8, showing a sequential sales improvement and a continued year-over-year decline.

The Houston-based company posted total 1Q sales of $806 million, down 9% year-over-year and up 4.9% from 4Q23. It was a considerable sequential rebound from 4Q23’s 12% sales decline.

Sequentially, all MRC sectors were up from 4Q23, led by the Downstream, Industrial and Energy Transition (DIET) and Gas Utilities sectors. Year-over-year, all sectors declined, driven by the Gas Utilities and Production and Transmission Infrastructure (PTI) sectors.

U.S. 1Q sales of $667 million were down 10% year-over-year and increased 5% from 4Q23. Gas Utilities sector revenue fell 13% year-over-year; PTI sales fell 11%; and DIET sales fell 3.8%.

MRC’s 1Q gross margin of 20.2% was identical to a year earlier. Adjusted gross margin of 21.6% topped the 21.2% of a year earlier.

MRC’s 1Q adjusted EBITDA of $57 million (7.1% margin) and trailed the $69 million of a year earlier. 1Q net profit of $19 million likewise trailed the $28 million of a year earlier.

“Our commitment to improving capital returns, maintaining cost discipline and generating cash across the market cycle is reflected in our excellent results this quarter,” MRC Chief Executive Rob Saltiel said in the company’s financial release. “We exceeded our expectations with sequential revenue growth of 5% and adjusted EBITDA margins of 7.1%. We believe that our business has turned the corner after the lower activity levels of the fourth quarter of 2023.”