MRC Global Inc. reported a net loss of $9 million from continuing operations for the third quarter of 2025, while adjusted net income rose to $11 million. Total revenue fell 12 % year‑over‑year to $678 million, a 15 % decline from the $800 million earned in the second quarter. Gross profit dropped to $125 million, or 18.4 % of sales, down from $157 million (20.4 % of sales) a year earlier.
The loss was driven largely by one‑time costs associated with the U.S. ERP rollout and a $6 million legal and consulting expense tied to the pending merger with DNOW. These charges compressed operating margins, while the company’s backlog grew to $571 million— a 4 % year‑over‑year increase— suggesting that the shortfall is largely temporary and that revenue is likely to rebound as the ERP system stabilizes.
Compared with the same quarter last year, revenue and gross margin both slipped, and adjusted earnings per share of $0.13 missed consensus estimates of $0.33, a 60 % shortfall. The company’s adjusted EPS of $0.13 also fell from $0.28 in Q3 2024, underscoring the impact of the ERP‑related expenses and the one‑time legal costs on profitability.
CEO Rob Saltiel said the ERP rollout “has caused significant operational disruptions, but we expect performance to normalize as the system goes live.” CFO Kelly Youngblood added that the revenue shortfall is a one‑time event and that the company is targeting mid‑to‑high single‑digit revenue growth in the fourth quarter, with an adjusted EBITDA margin above 6 % of sales, though the exact margin target was not explicitly disclosed in the guidance. The company also reiterated that the all‑stock merger with DNOW, expected to close in Q4 2025, remains on track and will provide scale and synergies for the combined entity.
The earnings miss and revenue shortfall were well below analyst expectations— revenue of $678 million fell short of the $854.60 million consensus, and adjusted EPS of $0.13 missed the $0.33 estimate. The results highlight the short‑term cost burden of the ERP implementation and the one‑time legal expense, while the growing backlog and the pending merger suggest a potential upside for the company’s long‑term competitive position.
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