MRC Global Inc (MRC) 2024 Q4 法說會逐字稿

Greetings and welcome to MRC Global's fourth-quarter 2024 earnings conference call. At this time, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

問候並歡迎參加 MRC Global 2024 年第四季財報電話會議。此時，所有參與者都處於只聽模式。正式演講結束後將進行問答環節。（操作員指示）提醒一下，本次會議正在錄音。

I would now like to turn the conference over to your host, Monica Broughton. Thank you. You may begin.

現在我想將會議交給主持人莫妮卡·布勞頓。謝謝。你可以開始了。

Thank you and good morning. Welcome to the MRC Global fourth-quarter and full-year 2024 conference call and webcast. We appreciate you joining us. On the call today, we have Rob Saltiel, President and CEO; and Kelly Youngblood, Executive Vice President and CFO. There will be a replay of today's call available by webcast on our website, mrcglobal.com, as well as by phone until March 28, 2025. The dial-in information is in the release. Please note that the information reported on this call speaks only as of today, March 14, 2025, and therefore you are advised that information may no longer be accurate as of the time of replay.

謝謝，早安。歡迎參加 MRC Global 2024 年第四季和全年電話會議和網路廣播。感謝您的加入我們。參加今天電話會議的有總裁兼執行長 Rob Saltiel；以及執行副總裁兼財務長凱利楊布拉德 (Kelly Youngblood)。今天的電話會議將透過我們的網站 mrcglobal.com 上的網路直播和電話重播，直至 2025 年 3 月 28 日。撥入訊息已在發布中。請注意，本次通話中報告的資訊僅截至今天（2025 年 3 月 14 日），因此請注意，重播時資訊可能不再準確。

In our call today, we will discuss various non-GAAP measures. You are encouraged to read our earnings release and securities filings to learn more about our use of these non-GAAP measures and to see a reconciliation of these measures to the related GAAP items, all of which can be found on our website. Unless we specifically state otherwise, references in this call to EBITDA refer to adjusted EBITDA.

在今天的電話會議中，我們將討論各種非公認會計準則衡量指標。我們鼓勵您閱讀我們的收益報告和證券文件，以了解有關我們對這些非 GAAP 指標的使用的更多信息，並查看這些指標與相關 GAAP 項目的對帳情況，所有這些都可以在我們的網站上找到。除非我們另有明確說明，否則本次電話會議中提到的 EBITDA 均指調整後的 EBITDA。

In addition, the comments made by the management of MRC Global during this call may contain forward-looking statements within the meaning of the United States federal securities laws. These forward-looking statements reflect the current views of the management of MRC Global. However, actual results could differ materially from those expressed today. You are encouraged to read the company's SEC filings for a more in-depth review of the risk factors concerning these forward-looking statements.

此外，MRC Global管理階層在本次電話會議中所作的評論可能包含美國聯邦證券法所定義的前瞻性陳述。這些前瞻性陳述反映了 MRC Global 管理層的當前觀點。然而，實際結果可能與今天表達的結果有重大差異。我們鼓勵您閱讀該公司的美國證券交易委員會 (SEC) 文件，以便更深入地了解與這些前瞻性陳述相關的風險因素。

As a result of the recent announcement related to the sale of our Canada business, Canada results have been reclassified as discontinued operations. Our comments today will reflect revenue and profitability from continuing operations only, unless otherwise stated.

由於最近宣佈出售我們的加拿大業務，加拿大業績已被重新歸類為已終止經營業務。除非另有說明，我們今天的評論僅反映持續經營的收入和盈利能力。

And now, I would like to turn the call over to our CEO, Mr. Rob Saltiel.

現在，我想將電話轉給我們的執行長 Rob Saltiel 先生。

Thank you, Monica. Good morning and welcome to everyone joining today's call. I will begin with addressing the reason for delaying our earnings release before providing an overview of our strategic accomplishments and financial highlights from 2024, followed by current thoughts on our 2025 outlook. Kelly will provide a detailed review of the quarter and guidance before I deliver a brief recap.

謝謝你，莫妮卡。早安，歡迎大家參加今天的電話會議。我將首先解釋推遲發布收益的原因，然後概述我們 2024 年的策略成就和財務亮點，最後介紹我們對 2025 年展望的當前想法。在我進行簡要回顧之前，凱利將對本季度和指導進行詳細的回顧。

As we were on the final stages of closing our books for the year, we detected 2 out of our more than 100 locations in North America where inventory cycle count information was not being entered into our system in accordance with our internal controls. Since this non-compliance was detected very late in the year, we decided to perform physical counts at the majority of our service centers and all seven of our North America regional distribution centers to validate that our inventory balances were correctly stated in our financial statements.

當我們進入年度結帳的最後階段時，我們發現在北美 100 多個地點中，有 2 個地點的庫存循環盤點資訊沒有按照我們的內部控制要求輸入到我們的系統中。由於這項不合規情況是在年底才發現的，我們決定在大多數服務中心和所有七個北美區域配送中心進行實體盤點，以驗證我們的庫存餘額是否在財務報表中正確列示。

Our team members performed heroically in counting over $400 million of North America inventory over four weekends in February. The conclusion from this effort was that no adjustments were made to either our book inventory levels or to our income statement for the fourth quarter, and there are no restatements required for any prior financial reporting periods. We have initiated a remediation plan to ensure that this never happens again.

我們的團隊成員在二月的四個週末內英勇地清點了超過 4 億美元的北美庫存。這項努力的結論是，我們沒有對第四季度的帳面庫存水準或損益表進行任何調整，也不需要對任何先前的財務報告期間進行重述。我們已經啟動了補救計劃，以確保此類事件不再發生。

Turning now to more positive thoughts, 2024 was definitely a pivotal year for our company with many accomplishments that positioned us to achieve higher revenue growth, improved profitability, and attractive shareholder returns. I'm very pleased with the successful execution of several strategic actions as follows:

現在轉向更積極的想法，2024 年無疑是我們公司的關鍵一年，我們取得了許多成就，使我們能夠實現更高的收入成長、提高獲利能力和吸引股東回報。我很高興看到以下幾項策略行動的成功實施：

First, we simplified our capital structure in late October by repurchasing our convertible preferred shares with proceeds from a new Term Loan B that matures in 2031. This action not only eliminated potential equity dilution from the preferred shares being converted, but is also expected to be accretive to both cash generation and earnings in 2025 and beyond.

首先，我們在 10 月下旬透過利用 2031 年到期的新定期貸款 B 的收益回購了可轉換優先股，從而簡化了我們的資本結構。這項措施不僅消除了優先股轉換可能造成的股權稀釋，而且預計還將在 2025 年及以後增加現金產生量和收益。

In conjunction with the new term loan, we extended our asset-based lending facility maturity to 2029, providing us with plenty of liquidity runway and flexibility. This was negotiated at favorable terms and significantly de-risks our exposure to credit markets going forward.

結合新的定期貸款，我們將資產抵押貸款期限延長至 2029 年，為我們提供了充足的流動性和靈活性。這是以有利的條件談判達成的，並大大降低了我們未來在信貸市場的風險。

In December, we announced the sale of our Canada business, allowing us to focus on our key geographies with the strongest revenue growth and profit potential. We expect to close the sale this month and use the proceeds to reduce debt. Furthermore, this divestiture is expected to be accretive to our overall company profitability and margins.

12 月，我們宣佈出售加拿大業務，以便我們能夠專注於收入成長和獲利潛力最強的關鍵地區。我們預計本月完成出售並利用所得款項減少債務。此外，預計此次資產剝離將提高我們公司的整體獲利能力和利潤率。

In early January of this year, we announced a $125 million share buyback program which reflects our confidence in the company's future and the financial flexibility that we now enjoy through the strengthening of our balance sheet over the past few years.

今年 1 月初，我們宣布了一項 1.25 億美元的股票回購計劃，這反映了我們對公司未來的信心，以及透過過去幾年資產負債表的加強而獲得的財務靈活性。

Our three-pronged capital allocation strategy consists of targeting a net debt leverage ratio of less than 1.5 times which we expect to achieve by the end of this year, returning cash to shareholders, and investing in our company's future growth.

我們的三管齊下的資本配置策略包括：將淨債務槓桿率控制在 1.5 倍以下（預計今年年底實現）、向股東返還現金以及投資於公司的未來成長。

And finally, we initiated several new growth initiatives and originated or extended several strategic supply agreements with key customers. Our ability to delight our customers through superior service, quality products, ample inventory, and competitive pricing is industry-leading. It is manifested through our many years of serving our customers in all three of our business sectors and our ability to pursue new business opportunities with a compelling value proposition.

最後，我們啟動了幾項新的成長計劃，並與主要客戶簽訂或延長了多項策略供應協議。我們透過優質的服務、優質的產品、充足的庫存和有競爭力的價格來取悅客戶的能力是業界領先的。這體現在我們多年來為三大業務領域的客戶提供服務，以及我們以引人注目的價值主張尋求新業務機會的能力。

Turning now to our key financial highlights from 2024, I'm extremely pleased that we generated $268 million of operating cash flow from continuing operations for the full year which is one of the highest amounts ever achieved by our company due in large part to the significant progress we've made in improving our working capital efficiency. Our ability to generate strong operating cash flows across the business cycle has underpinned our confidence to initiate our share buyback program.

現在來看看我們 2024 年的主要財務亮點，我非常高興我們全年從持續經營中產生了 2.68 億美元的經營現金流，這是我們公司有史以來取得的最高金額之一，這在很大程度上歸功於我們在提高營運資金效率方面取得的重大進展。我們在整個商業週期中產生強勁經營現金流的能力增強了我們啟動股票回購計畫的信心。

For the third year in a row, we achieved annual adjusted gross profit margins exceeding 21%, a trend that has driven a step-change in our financial performance. We continue to focus on products and services where we can add the most value for our customers which is manifested through higher gross margins.

連續第三年，我們的年度調整後毛利率超過 21%，這一趨勢推動了我們財務表現的顯著變化。我們繼續專注於能夠為客戶增加最大價值的產品和服務，這透過更高的毛利率體現出來。

Our international segment maintained its strong momentum as an increasingly significant contributor to our company's financials, with revenue growing 14% in 2024, the second consecutive year of double-digit growth. We enjoy an advantaged position in select European and Asia Pacific markets through our service to longtime MRO customers, coupled with robust project-related activity in the DIET and PTI sectors. We expect 2025 to be another strong year for our international business, supported by a robust $254 million international backlog entering this year.

我們的國際業務保持強勁勢頭，對公司財務的貢獻越來越大，2024 年營收成長 14%，連續第二年實現兩位數成長。我們透過為長期 MRO 客戶提供服務，加上在 DIET 和 PTI 領域強勁的專案相關活動，在精選的歐洲和亞太市場中佔據優勢地位。我們預計，2025 年將是我們國際業務又一個強勁的一年，這得益於今年強勁的 2.54 億美元國際積壓訂單。

For the full-year 2024, we achieved adjusted EBITDA of $202 million, representing 6.7% of sales. The EBITDA decline compared to 2023 was driven by lower revenue in our U.S. segment, particularly in the second half of the year as a result of project timing delays and a year-end pullback in spending that was more pronounced than the seasonality we usually experience in the fourth quarter. We believe this weakness was due to multiple factors that are temporal in nature, including the uncertain investment environment around national elections, continued digestion of recent acquisitions by domestic E&P customers, and the final throes of destocking for certain of our gas utilities customers.

2024 年全年，我們實現調整後 EBITDA 為 2.02 億美元，佔銷售額的 6.7%。與 2023 年相比，EBITDA 的下降是由於我們美國分部的收入下降，尤其是下半年，由於專案時間延遲以及年底支出回落，其幅度比我們通常在第四季度經歷的季節性因素更為明顯。我們認為，造成這種疲軟的因素有很多，而且都是暫時性的，包括全國大選前後不確定的投資環境、國內 E&P 客戶對近期收購的持續消化，以及某些天然氣公用事業客戶最後的去庫存階段。

As we transition into 2025, we are increasingly optimistic about returning to growth this year. As a result, we are currently projecting a low to upper single-digit percentage revenue increase as compared to 2024. This year is already off to a promising start, which I will describe more fully, and our optimism is underpinned by four factors. First, improving fundamentals in our gas utilities business. Second, a return to an inflationary environment for our products. Third, a strong outlook for the midstream natural gas space. And fourth, our key growth initiatives that should bear fruit as we move through 2025. I will discuss each of these drivers in turn.

隨著我們邁入 2025 年，我們對今年恢復成長越來越樂觀。因此，我們目前預計與 2024 年相比，收入將出現低至高個位數的百分比成長。今年已經有了一個良好的開端，我將對此進行更全面的描述，我們的樂觀情緒基於四個因素。首先，改善我們的瓦斯公用事業業務的基本面。第二，我們的產品重新回到通膨環境。第三，中游天然氣領域前景看好。第四，我們的關鍵成長舉措應該會在 2025 年取得成果。我將依序討論每一個驅動因素。

After two challenging years, we are finally seeing clear signs of improvement in our gas utilities sector, our largest sector by revenue. The inventory destocking cycle has finally run its course as inventory levels held by our customers have returned to normal levels. After two years of fairly lackluster investment in replacing natural gas infrastructure, our major customers are expecting to spend significantly more in replacement CapEx this year driven by regulatory requirements and safety considerations. In addition, several of our largest customers are located in faster-growing economic areas where new natural gas infrastructure is required for residential, commercial, and industrial applications. And this expected growth in gas utilities is not just a 2025 phenomenon.

經過兩年的艱難時期，我們終於看到了天然氣公用事業部門（以收入計算是我們最大的部門）出現明顯改善的跡象。隨著客戶持有的庫存水準恢復到正常水平，庫存去庫存週期終於結束。在經歷了兩年對天然氣基礎設施更換的投資相當低迷之後，出於監管要求和安全考慮，我們的主要客戶預計今年在更換資本支出方面將大幅增加。此外，我們的幾個最大的客戶都位於經濟成長較快的地區，這些地區的住宅、商業和工業應用需要新的天然氣基礎設施。而天然氣公用事業的預期成長不僅僅是2025年的現象。

Based on industry sources, we expect the annual growth rates and capital expenditures for natural gas utilities that we serve to range from 4% to 6% over the next five years, setting us up nicely to return to stronger, consistent growth through the end of this decade.

根據行業消息來源，我們預計未來五年我們所服務的天然氣公用事業的年增長率和資本支出將在 4% 至 6% 之間，這為我們在本世紀末恢復更強勁、持續的增長奠定了良好的基礎。

The second driver for revenue growth this year is that after two years of flat to declining price levels across our major product categories, we expect to see inflation return to the PVF business this year. The application of tariffs on imported products not only increases the cost of those products, but it provides an impetus for competing U.S. manufacturers to increase their pricing due to the protection afforded by the tariffs. Due to the Section 232 tariffs on non-valve steel and aluminum imports from every country, we have seen domestic steel prices rise significantly which has had a direct impact on the prices of line pipe and carbon steel fittings and flanges.

今年營收成長的第二個驅動力是，在主要產品類別的價格水平連續兩年持平或下降之後，我們預計今年 PVF 業務將再次出現通膨。對進口產品徵收關稅不僅增加了這些產品的成本，而且還為美國競爭製造商提供了提高價格的動力，因為關稅提供了保護。由於各國對非閥門鋼材及鋁進口徵收232關稅，導致國內鋼材價格大幅上漲，直接影響管線管、碳鋼配件及法蘭的價格。

Barring a slowdown in the overall economy and absent any pullback on announced tariffs, we expect the current price levels to stick. We have previously communicated that inflation is generally a positive for our business. We have passed through mechanisms with our contract customers that allow periodic updates to our product prices. And the majority of our product sales are based on cost-plus formulas that align our pricing with market conditions.

除非整體經濟放緩且宣布的關稅沒有任何下調，否則我們預計當前價格水準將維持不變。我們之前曾表示，通貨膨脹總體上對我們的業務有利。我們已經與合約客戶建立了機制，可以定期更新我們的產品價格。我們的產品銷售大多是基於成本加成公式，使我們的定價與市場狀況一致。

A third driver for growth this year is the improving commercial and regulatory environment for natural gas-related projects in the U.S. We are bullish on the role that natural gas will play as a primary fuel for electrification to support reshored manufacturing, transportation mobility, and artificial intelligence applications. Our major midstream customers have announced significant investment growth in natural gas infrastructure projects aided by what is expected to be a more favorable and streamlined regulatory approval process under the current administration.

今年成長的第三個動力是美國天然氣相關項目的商業和監管環境的改善。我們看好天然氣作為電氣化主要燃料在支援製造業回流、交通運輸流動性和人工智慧應用方面所發揮的作用。我們的主要中游客戶已宣布對天然氣基礎設施項目的投資將大幅成長，這得益於現任政府預計將採取更有利和簡化的監管審批流程。

The end of the pause on LNG project approvals creates additional opportunities for gas gathering, processing, and transmission, as well as participation in the LNG conversion process itself. The opportunity to monetize the vast natural gas resources in the U.S. oil field offers our country a competitive cost advantage that the current administration is keen to exploit. We know that capital discipline and industry consolidation will remain important themes among major oil and gas producers. But MRC Global's ability to serve larger customers who are less reactive to commodity prices and who have more stringent requirements for quality products, high service levels, systems integration, and geographic coverage plays to our strengths and positions us to gain share in the PTI space.

液化天然氣計畫審批暫停的結束為天然氣收集、加工和輸送以及參與液化天然氣轉化過程本身創造了更多機會。將美國油田豐富的天然氣資源貨幣化的機會為我國帶來了成本競爭優勢，而現任政府也熱衷於利用這一優勢。我們知道，資本紀律和產業整合仍將是主要石油和天然氣生產商的重要主題。但 MRC Global 能夠為那些對商品價格反應不那麼敏感、對產品品質、高服務水準、系統整合和地理覆蓋範圍有更嚴格要求的大型客戶提供服務，這發揮了我們的優勢，並使我們有機會在 PTI 領域獲得份額。

A fourth driver for our growth is several key initiatives we have undertaken that will make increasing contributions to our 2025 revenues. We have spoken previously about our focus on growing our chemicals business, and this continues to be a bright spot for us. Our U.S. chemicals backlog at the end of February 2025 is significantly higher than the same time last year, and we expect revenues this year to be up high single digits over 2024.

我們成長的第四個動力是我們採取的幾項關鍵舉措，這些舉措將為我們 2025 年的收入做出越來越大的貢獻。我們之前曾談到我們專注於發展化學品業務，這對我們來說仍然是一個亮點。截至 2025 年 2 月底，我們的美國化學品積壓訂單量明顯高於去年同期，我們預計今年的營收將比 2024 年成長高出個位數。

We've expanded our presence in the U.S. mining sector by opening a new service center in Arizona in 2024 and significantly increasing our sales and marketing efforts across the western U.S. We expect this business to grow at a compound annual rate of approximately 10% over the next three to five years.

我們於 2024 年在亞利桑那州開設了新的服務中心，並大幅加強了我們在美國西部的銷售和行銷力度，從而擴大了我們在美國採礦業的影響力。我們預計，未來三到五年，這項業務的複合年增長率將達到約 10%。

We've also recently expanded our product offerings to include commercial-grade PVF products used in the cooling systems for data centers. Although we have only been focusing on this exciting high-growth business for less than six months, we have already secured commitments of more than $10 million in sales to-date and we have many large revenue opportunities in the data center pipeline.

我們最近也擴大了我們的產品範圍，包括用於資料中心冷卻系統的商業級 PVF 產品。儘管我們專注於這項令人興奮的高成長業務還不到六個月，但迄今為止我們已經獲得了超過 1000 萬美元的銷售承諾，並且在資料中心管道中我們擁有許多巨大的收入機會。

One of our most exciting growth prospects for 2025 is our IMTEC joint venture which we are announcing on today's call. Among other services, IMTEC will incorporate automatic meter-reading technology on the natural gas meters to allow for the wireless transmission of gas usage data from the meter to the utility. This assembly step in the smart meter development process has been cumbersome for utilities and manufacturers alike. and it opens up a strong avenue to increase our gas meter sales by tens of millions of dollars where we currently have relatively low penetration versus our other gas products. Our partner in this joint venture understands the technical requirements for smart meters through previous OEM experience and also qualifies the JV as a diverse supplier to purchasing utilities who are often subject to state level public utility commission diversity contracting goals. We have pre-marketed our service offering to our major customers and expect a strong reception.

我們在今天的電話會議上宣布的 2025 年最令人興奮的成長前景之一是我們的 IMTEC 合資企業。除其他服務外，IMTEC 還將在天然氣表上採用自動抄表技術，以便將天然氣使用資料從表無線傳輸到公用事業單位。智慧電錶開發過程中的這個組裝步驟對於公用事業公司和製造商來說都很麻煩。它為我們的燃氣表銷售額增加數千萬美元開闢了一條強有力的途徑，目前，我們的燃氣表銷售額相對於其他燃氣產品而言滲透率相對較低。我們在該合資企業中的合作夥伴透過先前的 OEM 經驗了解智慧電錶的技術要求，並且還使合資企業有資格成為採購公用事業的多元化供應商，而這些公用事業通常受制於州級公用事業委員會的多元化承包目標。我們已經向主要客戶預先推銷了我們的服務，並期待得到熱烈的反響。

I mentioned previously that we are off to a good start this year, so let me share some of these early results. We have seen our average daily intake or bookings through mid-March increase 11% compared to the fourth quarter 2024 average. In addition, our total backlog in the same period is also up 11% compared to year end with all three business sectors increasing.

我之前提到過，今年我們有一個好的開端，所以讓我分享一些早期的成果。截至 3 月中旬，我們的每日平均接待量或預訂量與 2024 年第四季的平均值相比成長了 11%。此外，我們同期的總積壓訂單量也比年底成長了 11%，三個業務部門都有所成長。

First quarter revenue is expected to improve by a low single-digit percentage compared to the fourth quarter, but the building backlog and increasing intake levels give us confidence that we will see stronger double-digit sequential growth to materialize in the second quarter.

與第四季度相比，預計第一季營收將成長較低的個位數百分比，但建築積壓​​和不斷增加的攝取量使我們相信，第二季將實現更強勁的兩位數連續成長。

In closing, we begin 2025 with an improving business climate and a simplified and strengthened balance sheet. Our focus is on returning to revenue growth in 2025 by expanding our market presence in our existing business lines while pursuing higher growth opportunities, including data centers, chemicals, and mining. We remain committed to generating significant operating cash flow across the business cycle. This cash generation capability, along with our improved capital structure, provides us with significant flexibility to further reduce our leverage, return cash to shareholders, and invest in growth initiatives for our future.

最後，我們將以不斷改善的商業環境和簡化且強化的資產負債表迎接 2025 年。我們的重點是擴大現有業務線的市場份額，同時尋求資料中心、化學品和採礦等更高的成長機會，在 2025 年恢復收入成長。我們始終致力於在整個商業週期中創造大量的經營現金流。這種現金創造能力，加上我們改善的資本結構，為我們提供了極大的靈活性，可以進一步降低槓桿率，向股東返還現金，並投資於未來的成長計畫。

And with that, I will now hand it over to Kelly.

現在我將把發言權交給凱利。

Thanks, Rob. And good morning, everyone. My comments today will be primarily focused on sequential results comparing the fourth quarter of 2024 to the third quarter of 2024 unless otherwise stated.

謝謝，羅布。大家早安。除非另有說明，我今天的評論將主要集中在比較 2024 年第四季與 2024 年第三季的連續結果。

Also, as mentioned by Monica, our Canada results are now reflected in discontinued operations, so unless stated otherwise, my comments will be referring to the company's financial results from continuing operations.

此外，正如莫妮卡所提到的，我們的加拿大業績現在反映在已終止經營的業務中，因此，除非另有說明，否則我的評論將指的是公司持續經營的財務業績。

Total company sales for the fourth quarter were $664 million, a 14% sequential decrease and 10% lower than the same quarter a year ago. From a sector perspective, gas utilities sales were $253 million in the fourth quarter, a $40 million or 14% decline. The decline was primarily driven by reduced customer activity resulting from higher-than-normal fourth quarter seasonality and delayed spending that is expected to materialize in 2025.

第四季公司總銷售額為 6.64 億美元，季減 14%，比去年同期下降 10%。從產業角度來看，第四季天然氣公用事業銷售額為 2.53 億美元，下降 4,000 萬美元，降幅為 14%。下降的主要原因是第四季度季節性因素高於正常水平，導致客戶活動減少，以及預計在 2025 年實現的支出延遲。

As we said, coming into 2024, this was anticipated to be a transitional period for our gas utilities customers due to destocking and reduced project activity. However, we are now encouraged to see increases in new order intake and backlog to-date in 2025. Also noteworthy, our recent capital spending projections for the gas utilities market reflecting mid-single-digit increases in spend for not only 2025, but for the next five years as well.

正如我們所說，進入 2024 年，由於庫存減少和專案活動減少，預計這將是我們天然氣公用事業客戶的過渡期。然而，我們現在很高興看到 2025 年迄今新訂單量和積壓訂單量將會增加。同樣值得注意的是，我們最近對天然氣公用事業市場的資本支出預測不僅反映了 2025 年的中等個位數成長，也反映了未來五年的支出成長。

The DIET sector fourth quarter revenue was $208 million, a decrease of $31 million or 13%, primarily due to the timing of project deliveries and turnaround activity declines at the end of the year. We expect projects and turnaround activity to pick up significantly in 2025, supported by year-to-date increases in our backlog. PTI sector revenue for the fourth quarter was $203 million, a decrease of $36 million or 15% due to reduced upstream activity and a more pronounced year-end seasonal pullback.

DIET 部門第四季營收為 2.08 億美元，減少 3,100 萬美元，降幅 13%，主要原因是專案交付時間和年底週轉活動減少。我們預計，在年初至今積壓訂單增加的支持下，2025 年專案和周轉活動將大幅增加。第四季 PTI 部門營收為 2.03 億美元，由於上游活動減少和年底季節性回落更為明顯，減少了 3,600 萬美元，降幅為 15%。

From a geographic segment perspective, U.S. revenue was $542 million in the fourth quarter, a $102 million or 16% decrease from the previous quarter. And as Rob previously mentioned, we expect to return to growth in 2025 for our U.S. business driven by the growth initiatives that he outlined.

從地理區域來看，第四季美國營收為5.42億美元，較上一季減少1.02億美元，降幅16%。正如 Rob 之前提到的，我們預計在 2025 年，我們的美國業務將在他概述的成長計畫的推動下恢復成長。

International revenue was $122 million in the fourth quarter, down $5 million or 4% from lower turnaround activity and timing of project deliveries. Our international business had another impressive year with a 14% year-on-year revenue growth in 2024, the second year in a row with double-digit growth. And the outlook for the international segment remains positive with expectations for solid revenue growth in 2025 as well.

第四季國際營收為 1.22 億美元，由於週轉活動減少和專案交付時間縮短，下降了 500 萬美元，降幅為 4%。我們的國際業務又取得了令人印象深刻的一年，2024 年營收年增 14%，這是連續第二年實現兩位數成長。國際業務前景依然樂觀，預計 2025 年營收也將穩健成長。

Now turning to margins. Adjusted gross profit for the fourth quarter was $146 million or 22.0% compared to $163 million or 21.1% in the third quarter. The 90-basis-point improvement is largely due to favorable product mix. And also notable is the positive impact to adjusted gross profit due to the removal of Canada's results. The margin of improvement for the full-year 2024 related to the Canada divestment was approximately 30 to 40 basis points.

現在轉向利潤。第四季調整後毛利為 1.46 億美元，年增 22.0%，第三季調整後毛利為 1.63 億美元，年增 21.1%。90 個基點的改善主要歸功於良好的產品組合。同樣值得注意的是，取消加拿大的業績對調整後的毛利產生了積極影響。與加拿大資產剝離相關的 2024 年全年改善約為 30 至 40 個基點。

Reported SG&A for the fourth quarter was $123 million or 18.5% of sales as compared to $120 million or 15.6% for the third quarter. Adjusted SG&A for the fourth quarter of 2024 was $119 million, slightly lower than the third quarter's $120 million, reflecting our commitment to cost discipline and optimization initiatives undertaken this year.

第四季報告的銷售、一般及行政費用為 1.23 億美元，佔銷售額的 18.5%，而第三季為 1.2 億美元，佔銷售額的 15.6%。2024 年第四季調整後的銷售、一般及行政費用為 1.19 億美元，略低於第三季的 1.2 億美元，反映了我們對今年採取的成本控制和優化措施的承諾。

Adjusted EBITDA for the fourth quarter was $32 million or 4.8% of sales. We achieved an adjusted EBITDA for the full year of $202 million or 6.7%. This performance demonstrates our operational resilience despite market headwinds in the second half of the year.

第四季調整後的 EBITDA 為 3,200 萬美元，佔銷售額的 4.8%。我們全年調整後的 EBITDA 達到 2.02 億美元，成長 6.7%。這項業績表明，儘管下半年市場面臨阻力，我們仍具有強大的營運韌性。

Tax expense in the fourth quarter was $4 million as compared to $3 million of expense in the third quarter. The fourth quarter taxes were primarily impacted by currency exchange gains related to an intercompany debt restructuring project and lower pretax income for the quarter.

第四季的稅費為 400 萬美元，而第三季的稅費為 300 萬美元。第四季稅收主要受到與公司間債務重組項目相關的貨幣兌換收益以及本季稅前收入下降的影響。

For the fourth quarter, net loss from continuing operations was $1 million or $0.14 per diluted share as compared to net income from continuing operations of $29 million or $0.27 per diluted share in the third quarter of 2024. Adjusted net income from continuing operations was $4 million and $25 million for the fourth quarter and third quarters of 2024, respectively.

第四季度，持續經營淨虧損為 100 萬美元，即每股攤薄虧損 0.14 美元，而 2024 年第三季持續經營淨收入為 2,900 萬美元，即每股攤薄虧損 0.27 美元。2024 年第四季和第三季的調整後持續經營淨收入分別為 400 萬美元和 2,500 萬美元。

Our capital expenditures came in a little lower than we had expected at $28 million due to capital spending related to our ERP project shifting from 2024 into 2025. And in the fourth quarter we generated $73 million in cash flow from continuing operations. We also had an exceptional cash flow performance for the full year of 2024 with operating cash flow from continuing operations reaching $268 million, our highest level in years and greatly exceeding our original annual target of $200 million.

我們的資本支出略低於預期的 2,800 萬美元，原因是與我們的 ERP 項目相關的資本支出從 2024 年轉移到 2025 年。第四季度，我們從持續經營業務中產生了 7,300 萬美元的現金流。2024 年全年我們的現金流表現也十分出色，持續經營業務的經營現金流達到 2.68 億美元，為多年來的最高水平，大大超過了我們最初設定的 2 億美元年度目標。

Working capital efficiency this quarter exceeded expectations with a record low 11.2% net working capital-to-sales ratio. Both inventory reductions and strong cash collections during the quarter contributed to this exceptional result.

本季營運資本效率超出預期，淨營運資本與銷售額比率創歷史新低，為 11.2%。本季庫存減少和強勁的現金回款促成了這一出色的業績。

Moving to liquidity and our capital structure. During the fourth quarter, we made significant changes to our capital structure to provide a stable platform to grow our business and return cash to shareholders. We entered into a new $350 million senior secured Term Loan B with a 2031 maturity, with the proceeds used to repurchase all of the convertible preferred shares at a slight discount. This action eliminated potential equity dilution concerns from conversion of the preferred shares into common shares. And it also eliminated the $24 million in non-tax deductible preferred dividends that were paid each year. We were able to implement this new simplified capital structure with terms that are expected to be accretive to both cash generation and earnings in 2025 and beyond.

轉向流動性和資本結構。在第四季度，我們對資本結構進行了重大調整，為業務成長和向股東返還現金提供了穩定的平台。我們簽訂了一項新的 3.5 億美元優先擔保定期貸款 B，到期日為 2031 年，所得款項用於以略微折扣回購所有可轉換優先股。此舉消除了優先股轉換為普通股可能帶來的股權稀釋擔憂。它還取消了每年支付的 2,400 萬美元不可免稅的優先股股息。我們能夠實施這種新的簡化資本結構，其條款預計將在 2025 年及以後增加現金產生和收益。

In conjunction with our term loan launch, Moody's upgraded our corporate family rating one notch from B2 to B1, with a stable outlook, a clear validation of our improving financial strength reflecting our moderate leverage, ample interest coverage, and outstanding operating performance. Additionally, S&P Global affirmed our B rating with a stable outlook, specifically highlighting our recent preferred equity repurchase as leveraged neutral and beneficial for our financial flexibility.

結合我們定期貸款的推出，穆迪將我們的企業家族評級從 B2 上調至 B1，展望穩定，這清楚地證明了我們不斷提升的財務實力，反映了我們適度的槓桿率、充足的利息覆蓋率和出色的經營業績。此外，標準普爾全球確認我們的 B 級評級，前景穩定，並特別強調我們最近的優先股回購對槓桿率中立且有利於我們的財務靈活性。

Another big achievement was successfully amending our asset-based lending facility, extending its maturity to 2029 with a committed borrowing capacity of $750 million. The facility maintains the highly competitive borrowing rates of our previous facility. And this extension complements our Term Loan B and substantially strengthens and de-risks our capital structure by reducing our exposure to capital markets.

另一項重大成就是成功修改了我們的資產抵押貸款工具，將其期限延長至 2029 年，承諾借款能力為 7.5 億美元。該貸款維持了我們先前貸款的極具競爭力的借貸利率。此次延期是對我們的定期貸款 B 的補充，透過減少我們在資本市場的曝險，大大加強了我們的資本結構並降低了風險。

We finished the year with strong liquidity of $523 million, including $460 million of availability on our ABL and $63 million of cash at year end. Our leverage ratio based on net debt of $324 million was 1.6 times. And our total debt balance was $387 million. We believe we are on track to achieve our target leverage ratio of 1.5 times or lower by the end of 2025 while also allowing us to return cash to shareholders and maintain strong credit metrics.

我們以 5.23 億美元的強勁流動性結束了這一財年，其中包括 4.6 億美元的 ABL 可用資金和年底的 6,300 萬美元現金。我們的淨債務為 3.24 億美元，槓桿率為 1.6 倍。我們的債務總額為 3.87 億美元。我們相信，到 2025 年底，我們預計將達到 1.5 倍或更低的目標槓桿率，同時也能向股東返還現金並維持強勁的信用指標。

Now I'll cover our outlook. Looking ahead to 2025, we expect low to upper single-digit revenue growth for the total company. We are also currently forecasting all three business sectors to deliver revenue increases this year, with each sector experiencing growth at a similar range as the total company.

現在我將介紹我們的展望。展望 2025 年，我們預期整個公司的營收成長率將達到低至高個位數。我們目前也預測所有三個業務部門今年的收入都將增加，每個部門的成長幅度與整個公司相似。

We are also targeting the following key metrics for 2025. First, we expect to generate operating cash flow of at least $100 million, maintaining our strong cash generation profile. Our adjusted gross margin is projected to average approximately 21%. We anticipate adjusted SG&A expenses to range between 15% to 16% of total revenue as we maintain operational discipline while supporting growth initiatives.

我們也設定了 2025 年以下關鍵指標的目標。首先，我們預計將產生至少 1 億美元的營運現金流，維持強勁的現金產生能力。我們的調整後毛利率預計平均約為21%。我們預計調整後的銷售、一般及行政費用將佔總收入的 15% 至 16%，因為我們在支援成長計畫的同時保持營運紀律。

Capital expenditures are expected to be approximately $45 million for the year, elevated from our normal levels as we expect to go live with our ERP implementation in the second half of this year. Post-implementation, we expect our annual CapEx to return to the historic run rate of approximately $15 million. We are on budget and on schedule with the ERP project and are very excited about the benefits it is expected to yield.

預計今年的資本支出約為 4500 萬美元，高於我們的正常水平，因為我們預計今年下半年將開始實施 ERP。實施後，我們預計年度資本支出將恢復到約 1500 萬美元的歷史運作率。我們的 ERP 專案按預算和計劃進行，並且對它預期產生的效益感到非常興奮。

We expect our effective tax rate in 2025 to be in the range of 26% to 28%. And we expect first quarter revenue to be up low single digits compared sequentially to the fourth quarter. But we believe we will have a strong double-digit improvement in revenue in the second quarter based on the current trends we are seeing in our backlog and intake that are very encouraging. We would then expect the typical cadence and revenues with the third quarter as our strongest quarter of the year, followed by a seasonal decline in the fourth quarter.

我們預計 2025 年的有效稅率將在 26% 至 28% 之間。我們預計第一季的營收將比第四季環比成長個位數。但根據我們目前看到的積壓訂單和收入趨勢，我們相信，第二季我們的營收將實現強勁的兩位數成長，這是非常令人鼓舞的。我們預計，第三季將是本年度表現最強勁的季度，而第四季將出現季節性下滑，這是典型的節奏和收入下滑趨勢。

Reported SG&A in the first quarter is expected to be slightly elevated compared to the fourth quarter due to the typical increase at the beginning of the year in employee-related taxes and benefits and elevated expenses related to our delayed filing.

由於年初員工相關稅費和福利的典型增長以及我們延遲申報相關費用的增加，預計第一季報告的銷售、一般及行政費用將較第四季度略有上升。

Finally, we remain committed to achieving our target net debt leverage ratio of 1.5 times before year end 2025. This disciplined approach to balance sheet management, combined with our strong cash flow generation, will enable us to begin executing this year on our $125 million share repurchase program that we announced in early January, while also maintaining ample financial flexibility for future growth opportunities.

最後，我們仍致力於在 2025 年底之前實現 1.5 倍的目標淨負債槓桿率。這種嚴謹的資產負債表管理方法，加上我們強勁的現金流產生能力，將使我們能夠在今年開始執行我們在 1 月初宣布的 1.25 億美元股票回購計劃，同時為未來的成長機會保持充足的財務靈活性。

Our focus on operational excellence and strategic positioning in our growing markets, coupled with our strengthened capital structure, gives us confidence in our ability to achieve these targets.

我們專注於卓越營運和在不斷增長的市場中的策略定位，再加上我們加強的資本結構，使我們對實現這些目標的能力充滿信心。

And with that, I'll turn it back over to Rob.

說完這些，我會把話題還給 Rob。

Thanks, Kelly. As we conclude today's call, I want to emphasize the significant progress we've made in positioning MRC Global for sustained success. 2024 was transformative for our capital structure by simplifying and strengthening our balance sheet and creating a more efficient and flexible financial foundation. We generated $268 million in operating cash flow from continuing operations, the highest in many years, as we continue to achieve high gross margins on our sales and improve our working capital efficiency. The strategic decision to divest our Canada operations further enhances our margin profile and allows us to focus resources on our highest growth opportunities.

謝謝，凱利。在今天的電話會議結束時，我想強調我們在定位 MRC Global 持續成功方面取得的重大進展。 2024年透過簡化和加強我們的資產負債表並創建更有效率、更靈活的財務基礎，改變了我們的資本結構。由於我們繼續實現高銷售毛利率並提高營運資本效率，我們從持續經營業務中產生了 2.68 億美元的營運現金流，這是多年來的最高水準。剝離加拿大業務的策略決策進一步提高了我們的利潤率，並使我們能夠將資源集中在最高的成長機會上。

For 2025, we see encouraging signs of growth across all business sectors driven by four factors that include improving fundamentals for gas utilities, product price inflation, a bullish natural gas midstream outlook, and several key growth initiatives already bearing fruit.

展望2025年，我們看到所有業務領域都出現了令人鼓舞的成長跡象，這主要得益於四個因素，包括天然氣公用事業基本面的改善、產品價格上漲、天然氣中游前景看好以及幾項已經取得成果的關鍵增長舉措。

We expect to maintain adjusted gross margins of approximately 21%. We further expect to generate at least $100 million in operating cash flow. Our three-pronged capital allocation strategy includes our commitment to a strong balance sheet, our new $125 million share repurchase program, and several growth initiatives.

我們預計調整後的毛利率將維持在約 21%。我們也預計將產生至少 1 億美元的營運現金流。我們的三管齊下的資本配置策略包括致力於強勁的資產負債表、新的 1.25 億美元股票回購計畫以及多項成長計畫。

2025 has started well with strong momentum, and we are well-positioned to deliver value for our shareholders while maintaining our industry leadership position.

2025 年開局良好，勢頭強勁，我們有能力為股東創造價值，同時保持行業領先地位。

And with that, we will now take your questions. Operator?

現在，我們將回答大家的提問。操作員？

Thank you. At this time we'll be conducting a question-and-answer session. (Operator Instructions) One moment please, while we poll for questions.

謝謝。這次我們將進行問答環節。（操作員指示）請稍等片刻，我們正在調查問題。

Nathan Jones, Stifel.

內森瓊斯（Nathan Jones），Stifel。

Good morning, everyone.

大家早安。

Good morning, Nathan.

早安，內森。

I guess I'll start with a question around revenue. Fourth quarter was a bit below expectations and the first quarter is seasonally in line with the 4Q to 1Q normal progression. So again, a bit low, I guess. And so the revenue guidance really hinges on that step-up from 1Q to 2Q. And I know you talked about better order rates and a building backlog in the first quarter. But I'm hoping you could just go into a bit more detail on where you're seeing that strength, what gives you confidence in the sustainability of that strength that will then carry through into the back half of the year.

我想我將從一個有關收入的問題開始。第四季略低於預期，第一季與第四季至第一季的正常走勢相符。所以，我猜，又有點低了。因此，收入預期實際上取決於從第一季到第二季的成長。我知道您談到了第一季更好的訂單費率和建築積壓訂單。但我希望您能更詳細地說明一下您在哪裡看到了這種優勢，是什麼讓您對這種優勢的可持續性充滿信心，並相信這種優勢將持續到今年下半年。

Yeah. Thanks, Nathan. I'll start this off and see if Kelly has anything to add. But clearly, what really drove our weakness last year was the U.S. segment. And as we said in our prepared comments, we're really off to a strong start this year. In the U.S. segment alone, we're up about 19% in backlog where we sit today relative to year end. And that is just a really tremendous increase, but it also really points out how we were struggling to book business at the end of the last year. And I gave the reasons for that in our prepared comments. But we really are seeing strength across all three of our sectors in the U.S. segment. And we expect to continue to see our backlog grow as we go through the year. We're getting a lot of positive signals from customers.

是的。謝謝，內森。我將開始討論這個問題，看看凱利是否還有什麼要補充的。但顯然，去年導致我們業績疲軟的真正原因是美國市場。正如我們在準備好的評論中所說的那樣，今年我們的開局確實很強勁。光是在美國市場，我們目前的積壓訂單量與年底相比就增加了約 19%。這是一個巨大的成長，但也凸顯了我們在去年年底的業務預訂方面有多麼困難。我在準備好的評論中解釋了其中的原因。但我們確實看到美國市場三個部門都表現強勁。我們預計，隨著時間的推移，我們的積壓訂單將繼續成長。我們從客戶那裡得到很多正面的訊號。

And as we talked about, the drivers for our business, we're through the destocking on the gas utilities finally, which is really making us very excited about this year relative to the last couple of years for that sector. The tariffs situation and the inflation that accompany that is giving us some real optimism for additional revenue and gross margins certainly against average cost that will support the business going forward. And then the whole bullishness around the midstream space and the monetization of natural gas assets in the U.S. has been extremely exciting and we're already seeing a lot of opportunities and activity in that midstream space.

正如我們所談到的，我們業務的驅動力是我們終於完成了天然氣公用事業的去庫存化，這讓我們對今年相對於過去幾年該行業的表現感到非常興奮。關稅狀況和隨之而來的通貨膨脹讓我們對額外收入和毛利率抱持真正的樂觀態度，這肯定會相對於平均成本支持未來的業務發展。然後，美國中游領域和天然氣資產貨幣化的整體看漲情緒極其令人興奮，我們已經看到中游領域的許多機會和活動。

And then as I also mentioned, the chemicals, the mining, and the data center businesses that we're working on are all showing additional signs of growth.

正如我所提到的，我們正在進行的化學品、採礦和資料中心業務都顯示出額外的成長跡象。

So the year is going to start off a little slower in terms of the relative increases just because the first quarter is somewhat determined by the backlog that we had in the prior two quarters. But as we build the backlog significantly as we're doing right now, you're going to see that manifest itself in higher revenues and profitability in future quarters. And that's why we're bullish on a double-digit improvement in revenue for the second quarter sequentially over the first. Kelly, anything you want to add to that?

因此，從相對成長來看，今年的開局會稍微慢一些，因為第一季的成長在一定程度上取決於前兩個季度的積壓訂單。但隨著我們現在大量增加積壓訂單，您將看到未來幾季的收入和獲利能力將有所提高。這就是為什麼我們看好第二季營收將比第一季環比成長兩位數。凱利，你還有什麼要補充的嗎？

You pretty well covered it, Rob. The only thing I would add is that when you look at that 19% growth and backlog in the U.S., it is a double-digit improvement that we're seeing in all three sectors. And then, the Q4 fall-off that we saw, as we talked about in the prepared remarks, that was due to timing of projects and kind of delay or pullbacks just greater than the normal seasonality. But the visibility we have of those projects that were originally intended to hit in '24, now we're seeing a lot of that hitting both projects and turnaround activity hitting in the second quarter. And so the visibility we have, supported by the backlog, gives us a lot of confidence in that Q2 double-digit improvement.

羅布，你講得很好。我唯一想補充的是，當你看到美國 19% 的成長和積壓訂單時，我們會發現這三個領域都出現了兩位數的成長。然後，正如我們在準備好的評論中談到的那樣，我們看到第四季度的下滑是由於專案的時間安排以及某種程度的延遲或回調，其幅度超過了正常的季節性。但是，我們對最初計劃在 24 年啟動的項目有了一定的了解，現在我們看到很多項目都在第二季度啟動，並且扭虧為盈活動也已經開始。因此，在積壓訂單的支持下，我們的可見度讓我們對第二季兩位數的成長充滿信心。

So you said 19% increase in backlog from the end of the year, I would guess that backlog typically does increase from the end of the year to now. Is 19% materially above what a normal seasonal increase in backlog would look like?

所以你說積壓訂單量從年底開始增加了 19%，我猜積壓訂單量通常會從年底到現在增加。19% 是否明顯高於正常的季節性積壓成長水準？

Yeah. Absolutely. And depending on how much the timing of projects, you don't always see an increase going from the end of the year into the first quarter. And I think that was one of our challenges last year. It was that we had a steady decline in our backlog certainly in the U.S. segment as we went through the year.

是的。絕對地。並且根據專案時間安排的不同，你並不總是能看到從年底到第一季的成長。我認為這是我們去年面臨的挑戰之一。事實是，隨著我們度過這一年，我們的積壓訂單量（尤其是在美國市場）穩步下降。

Our international business, I do want to touch on. Our international business continues to be very strong, both in terms of bookings and billing. And so that's why we continue to expect growth in that business, and that's after a couple of really strong years.

我確實想談談我們的國際業務。我們的國際業務無論是在預訂量還是賬單量方面都繼續保持強勁。這就是為什麼我們繼續預期該業務會成長，而且這是在經歷了幾年非常強勁的成長之後。

But the backlog situation we're seeing in the U.S. right now is really very different from what we saw last year and again, it gives us a lot of confidence in future quarters.

但我們現在在美國看到的積壓情況與去年的情況確實有很大不同，這讓我們對未來幾季充滿信心。

Hey Nathan, I would just add as well if you look at the backlog, where we're at today is over $600 million. And that's where we were back in Q1 of last year. So this is the best backlog we've seen in a 12-month period which is very encouraging.

嘿，內森，我還想補充一點，如果你看一下積壓訂單，你會發現我們今天的訂單已經超過 6 億美元。這就是我們去年第一季的情況。這是我們 12 個月以來看到的最好的積壓情況，這非常令人鼓舞。

Thanks. I guess my follow-up question is going to be on gross margins. Gross margin in 2024, adjusted gross margin in 2024, was right under 22%. And the guidance for 2025 is average of 21%. I would have thought that you have some tailwinds to gross margins in 2025 in terms of tariffs and inflation and things like that, and some growth. So maybe you can talk about what the other side of the equation is that's holding you back a little bit on gross margins in 2025.

謝謝。我想我的後續問題是關於毛利率的。2024 年的毛利率，即 2024 年調整後的毛利率略低於 22%。而2025年的預期平均成長率為21%。我原本以為，2025 年在關稅、通貨膨脹等因素方面，毛利率會有一些上升空間，而且還會有一定的成長。所以也許您可以談談等式的另一邊是什麼，它會稍微阻礙您在 2025 年實現毛利率。

Yeah. Nathan, I'll start. I think there's a couple of things there. In 2024, especially in the first half of the year, we had some large sales. We had accretive margins that we're not expected to repeat. But still feel very confident of achieving 21%-type margin. So that's good for us. The international margins we have are accretive to the overall company average, and so that's going to be very supportive. I think you're hitting on a good point though that if -- the tariffs are a bit of an unknown right now. And if we really start to see a material improvement related to inflation and tariffs, that would certainly suggest an upside to the guidance we have on the margin. So could it be conservative? It certainly could be. Just we'll have to see how it plays out.

是的。內森，我先開始。我認為那裡有幾件事。2024年，特別是上半年，我們有一些大的銷售。我們擁有預期不會重複的增值利潤。但仍對實現 21% 的利潤率充滿信心。這對我們來說是件好事。我們的國際利潤率對整個公司的平均利潤率有增值作用，因此這將非常有幫助。我認為你提出了一個很好的觀點，即如果關稅現在有點未知的話。如果我們真的開始看到與通貨膨脹和關稅相關的實質改善，那肯定意味著我們對利潤率的指導將有所上調。那麼它可能是保守的嗎？這當然有可能。我們只需要看看結果如何。

Okay. Thanks. I'll pass it on. Thanks for taking my questions.

好的。謝謝。我會傳達的。感謝您回答我的問題。

Great. Thanks, Nathan.

偉大的。謝謝，內森。

Chris Dankert, Loop Capital Markets.

Chris Dankert，Loop 資本市場。

Morning, guys. I guess maybe first off just a point of clarification on that gross margin guide, so are you assuming no tariff impact in that 21% guide at this point? Or is there something baked into that number right now?

早安，大家。我想也許首先需要澄清一下毛利率指南，那麼您現在是否假設 21% 的指南中沒有關稅影響？或者現在這個數字已經包含了一些什麼內容？

Yeah. I'll take this one, Chris. Look, I would say that we have a modest amount of inflation built into that. But probably not to the full extent of what you might infer from the tariffs as they're currently being deployed and probably for the full year. I think we would all agree that it's a bit uncertain how many of these tariffs are going to be applied and how long they're going to endure. But to Kelly's comment, I think that there's certainly potential upside in both revenue and adjusted gross margins and profitability if these tariffs continue to hold at current levels and the areas and products covered either hold or extend from where they are today. So I'd say that there's definitely some upside involved and we probably included again a modest assumption around inflation in the numbers we've given.

是的。我要這個，克里斯。瞧，我想說我們已經將適度的通貨膨脹納入其中。但可能不會達到您從目前正在實施的關稅中推斷出的全部程度，而且可能不會達到全年的關稅程度。我想我們都同意，這些關稅中有多少會被實施以及會持續多久都有點不確定。但對於凱利的評論，我認為，如果這些關稅繼續保持在當前水平，並且所涵蓋的地區和產品保持或擴大到目前的水平，那麼收入和調整後的毛利率和盈利能力肯定都有潛在的上升空間。因此，我想說這肯定存在一些好處，而且我們給出的數字中可能再次包含了通貨膨脹的適度假設。

Got it. That's really helpful. Thank you. And then definitely exciting news about the IMTEC JV here. I guess maybe could you flesh out a little bit what the opportunity looks like there? What drove the excitement on the market? Maybe just give us a little bit of a path of what you're seeing there that led you down this road.

知道了。這真的很有幫助。謝謝。這裡絕對有關於 IMTEC JV 的令人興奮的消息。我想你或許可以稍微具體說明一下那裡的機會是什麼樣的呢？是什麼引發了市場的興奮？也許只需向我們稍微介紹一下您在那裡看到的是什麼，並引導您走上這條路。

Yeah, I'm glad you asked the question because we're really excited about this, and we're going to have a dedicated press release on this joint venture coming out later this morning. But as a practical matter, our gas utilities business is our largest sector by revenue. But interestingly, less than 10% of our revenue in the gas utilities sector is involved with meter sales. And only a small handful of our contract customers in the gas utilities space do we provide meters to.

是的，我很高興你問了這個問題，因為我們對此感到非常興奮，我們將在今天上午晚些時候發布關於這個合資企業的專門新聞稿。但實際上，我們的天然氣公用事業業務是我們收入最大的部門。但有趣的是，我們在燃氣公用事業領域的收入中只有不到 10% 來自電錶銷售。我們只向燃氣公用事業領域的少數合約客戶提供電錶。

Typically, when we build our relationships with our customers, we start with more commodity products like polyethylene pipe and even some carbon steel pipe for a number of our customers. But then, getting to the meter sale is something that you graduate to over time. And we just have a small handful of customers and like I say, less than 10% of our revenue that we're accruing today for those sales.

通常，當我們與客戶建立關係時，我們會先為一些客戶提供更多的商品，例如聚乙烯管，甚至一些碳鋼管。但是，隨著時間的推移，你逐漸能夠達到計價器銷售的水平。我們只有少數幾個客戶，而且正如我所說，這些銷售給我們今天帶來的收入不到 10%。

But what this joint venture allows us to do is to really play an integral role in a key process where smart meters are replacing the current sort of manually-read meters. And that process of getting that communications chip joined with the gas meter is cumbersome, logistically challenging, and frankly, a lot of the meter producers don't like doing it.

但透過成立合資企業，我們能夠在智慧電錶取代現有手動抄表電錶這一關鍵過程中發揮真正不可或缺的作用。將通訊晶片與燃氣表連接起來的過程非常繁瑣，在物流方面也極具挑戰性，坦白說，許多燃氣表生產商並不喜歡這樣做。

So we're really filling a void in the market with this joint venture which will be a great service to gas utilities customers, both the ones we currently serve. And then where the real upside is for MRC Global is an opportunity to expand our meter business again from that under 10% to something significantly higher by offering this service to those utilities.

因此，我們透過這個合資企業真正填補了市場空白，這將為我們目前服務的天然氣公用事業客戶帶來優質的服務。對於 MRC Global 來說，真正的好處是我們有機會透過向這些公用事業公司提供這項服務，將我們的電錶業務從不到 10% 擴大到更高的水平。

An added benefit of the joint venture is that our partner qualifies as a diverse owner and manager. And because of that, a number of our utilities that are subject to a public utility commission, diverse purchasing practices, will look on this very favorably.

合資企業的另一個好處是我們的合作夥伴有資格成為多元化的所有者和管理者。正因為如此，我們的許多受公用事業委員會管轄、採用多樣化採購方式的公用事業公司都會對此持非常積極的態度。

So as we said in the prepared comments, this could really unlock tens of millions of dollars of incremental revenue through meter sales that we don't currently have to our gas utilities customer base. We're very excited about this. We've been working on it for a long time. It was coincidental that we were able to bring everything to closure right here as we're doing the earnings call. But we're happy to have a favorable coincidence in this case. And really excited about the future.

因此，正如我們在準備好的評論中所說的那樣，這實際上可以透過電錶銷售釋放數千萬美元的增量收入，而我們目前還沒有向天然氣公用事業客戶群提供這些收入。我們對此感到非常興奮。我們已經為此努力了很長時間。巧合的是，我們在召開收益電話會議時能夠在這裡結束一切。但我們很高興在這種情況下有一個有利的巧合。我對未來充滿期待。

That's really great color. Thank you so much. If I could just follow up one little bit there. I guess my assumption would be metering, there's more engineering content involved. Does that help with the margin as well, that part of why -- again, the gas utilities margin is higher, so this would be generally accretive?

這顏色真是太棒了。太感謝了。如果我可以稍微跟進一下的話。我想我的假設是計量，其中涉及更多的工程內容。這對利潤率也有幫助嗎？部分原因是——天然氣公用事業的利潤率更高，所以通常會增加？

Yeah. I mean, the real opportunity here is to be in the meter business with our customers where we're not currently able to do that. And as I said, I think this joint venture will open that opportunity for us where it doesn't currently exist. The JV itself will also be a profit-making entity. But it's providing a very specific service. And of course, with our ownership being roughly half of the JV, we'll get half of those proceeds. But again, the real opportunity for MRC Global is to create more meter sales, again tens of millions of dollars of revenue, and then the margin that we typically get on our gas products that will accrue in terms of profitability. So that's the real upside for us.

是的。我的意思是，這裡真正的機會是與我們的客戶一起開展電錶業務，而我們目前還無法做到這一點。正如我所說，我認為這家合資企業將為我們打開目前尚不存在的機會。合資企業本身也將是一個獲利實體。但它提供的是非常具體的服務。當然，由於我們擁有合資公司大約一半的所有權，因此我們將獲得一半的收益。但MRC Global的真正機會是創造更多的儀表銷售，再次創造數千萬美元的收入，然後是我們通常在天然氣產品上獲得的利潤，這些利潤將以盈利能力的形式累積。所以這對我們來說是真正的好處。

Understood. Well, thanks for all the detail and congrats on all the changes and upgrades this year.

明白了。好吧，感謝您提供的所有詳細信息，並祝賀今年的所有變化和升級。

Appreciate it. Thank you.

非常感謝。謝謝。

Josh Jayne, Daniel Energy Partners.

喬許·傑恩（Josh Jayne），丹尼爾能源合作夥伴。

Thanks. Good morning. First question I wanted to ask was just on the international markets and outlook into 2025. Could you maybe speak to the bright spots you're seeing versus where things might be a bit softer? and I think you highlighted $254 million of international backlog? How does that typically compare to where we are on a year-over-year basis?

謝謝。早安.我想問的第一個問題是關於國際市場和 2025 年的展望。您能否談談您所看到的亮點以及哪些方面可能比較弱？我認為您強調了 2.54 億美元的國際積壓？這與我們去年同期的情況相比如何？

Yeah. I mean this is about the largest backlog we've had in many years in our international business. And one thing to keep in mind with our international business, unlike our U.S. business, international is driven primarily by projects and it's also driven primarily by valve sales. So that business as a whole tends to be a little lumpier, depending on the project activity, but it also tends to be accretive to margins because of the valve sales versus more commodity product sales.

是的。我的意思是，這是我們多年來國際業務中最大的積壓訂單。我們的國際業務需要記住的一點是，與美國業務不同，國際業務主要由專案驅動，也主要由閥門銷售驅動。因此，根據專案活動的不同，整個業務往往會有些不穩定，但由於閥門銷售與商品產品銷售相比，利潤率也往往會增加。

And we have really carved out an extremely exciting niche in certain of our European markets. Think Norway, the UK, the Netherlands, Central Europe. These areas have been really strong spots for us both in terms of the PTI space, so offshore platforms in the Norwegian and North Sea, as well as the DIET space, again, think refining and chemicals in Central Europe and the UK. So this business has continued to be very strong for us. The other thing that they're still doing more of over there than they are here is energy transition projects. So we still see a lot more involvement of energy transition projects, whether that be wind or sustainable aviation fuel. And I think everybody's clear that a lot of that is slowed down here in the U.S.

我們確實在某些歐洲市場開闢了一個極為令人興奮的利基市場。想想挪威、英國、荷蘭、中歐。就 PTI 領域而言，這些領域對我們來說都是非常強大的領域，因此挪威和北海的海上平台以及 DIET 領域，再次考慮中歐和英國的煉油和化學品。因此，這項業務對我們來說一直非常強勁。他們在那裡比在這裡做更多的另一件事是能源轉型項目。因此，我們仍然看到更多的能源轉型項目的參與，無論是風能還是永續航空燃料。我想大家都清楚，在美國，很多這樣的進程已經放緩。

So we're really excited about our business both in Europe and in Asia Pacific. We're growing that business in the Middle East. And we feel really good about additional growth prospects in the international business this year.

因此，我們對歐洲和亞太地區的業務感到非常興奮。我們正在中東拓展這項業務。我們對今年國際業務的額外成長前景感到非常樂觀。

Thanks for that. And then as my follow-up, maybe we could just talk about capital allocation a bit. And just on the M&A side, valuations really across all sectors have compressed since the beginning of the year in the public space. I'm just curious, has this made M&A opportunities more attractive to you? Or could you speak to where you are on the capital allocation front for M&A versus the $125 million share repurchase program? And just what is of highest priority as you look forward into 2025 and beyond?

謝謝。然後作為我的後續問題，也許我們可以稍微談談資本配置。僅從併購方面來看，自今年年初以來，公共領域所有產業的估值實際上都在壓縮。我只是好奇，這是否讓併購機會對您更有吸引力？或者您能否談談您在併購方面的資本配置情況以及 1.25 億美元的股票回購計畫？展望 2025 年及以後，最優先考慮的是什麼？

Yeah. Well, look, let me just do a little bit of history here first before looking forward. Traditionally, this company has been overlevered and also in possession of a complicated balance sheet with the preferred shares. And I think our team's done an excellent job in delevering and now simplifying the balance sheet with the retirement of the preferred at the end of last year and replacement of that with the term loan.

是的。好吧，看，在展望未來之前，讓我先在這裡講一點歷史。傳統上，該公司槓桿率過高，並且擁有包含優先股的複雜資產負債表。我認為我們的團隊在去槓桿方面做得非常出色，現在我們正在簡化資產負債表，去年年底取消了優先股，並用定期貸款取代。

As we've mentioned in our prepared comments and elsewhere, we do want to maintain prudent leverage. So our goal is to get to 1.5 times net debt leverage ratio at some time in this year. So we definitely want to keep that focus on a prudent balance sheet. We think it makes sense for the risk profile of our business and the cyclicality that sometimes accrues. And again, having been on the other side of that, we definitely want to maintain that low leverage ratio.

正如我們在準備好的評論和其他地方所提到的，我們確實希望保持審慎的槓桿作用。因此我們的目標是在今年某個時候達到 1.5 倍的淨債務槓桿率。因此，我們肯定希望將重點放在審慎的資產負債表上。我們認為這對於我們業務的風險狀況以及有時會產生的周期性來說是有意義的。再說一次，從另一個角度來看，我們肯定希望保持低槓桿率。

In addition to that, we believe that it's time to start returning cash to shareholders which is why we entered into the share buyback program, announced that in January. And through the course of this year, we hope to execute on that. We did say on our announcement of that buyback program that we did not plan to purchase any shares back before the second quarter. That's still obviously going to be the case given where we are right now. But as we go through the year, both systematically and opportunistically, we will look to repurchase shares to the benefit of our shareholders.

除此之外，我們認為現在是時候開始向股東返還現金了，這就是我們在一月宣布實施股票回購計畫的原因。我們希望在今年內實現這一目標。我們在宣布回購計畫時確實說過，我們不打算在第二季之前回購任何股票。考慮到我們目前的狀況，顯然情況仍然如此。但隨著我們度過這一年，我們將有系統地和機會主義地尋求回購股票，以造福我們的股東。

And M&A is something that we continue to look at. We've been somewhat hamstrung with the balance sheet in the past from doing anything significant. I think as our balance sheet continues to improve and we continue to delever even with our capability to return cash to shareholders and investing in growth, we'll have further opportunities to bring M&A back into the fold here. We haven't done M&A for about a decade now. And with the balance sheet where it is and the opportunity for share purchases to continue even while we do M&A, M&A is something that we'll definitely consider.

我們將繼續關注併購。過去，我們因資產負債表問題而無法做任何重大的事情。我認為，隨著我們的資產負債表不斷改善，我們繼續去槓桿，即使我們有能力向股東返還現金並投資於成長，我們也將有進一步的機會將併購重新納入我們的視野。我們已經大約十年沒有進行過併購了。考慮到目前的資產負債表以及在進行併購的同時仍有機會繼續購買股票，因此，併購是我們肯定會考慮的事情。

Thanks for the detail. I'll turn it back.

謝謝你的詳細說明。我會把它轉回去。

Nathan Jones, Stifel.

內森瓊斯（Nathan Jones），Stifel。

You guys gave adjusted gross margin and SG&A guidance, but didn't give specific EBITDA margin guidance. Can you fill in the blanks there for us, either just on what EBITDA margin guidance is, or what you're expecting for a stock comp and DNA for us to get there?

你們給了調整後的毛利率和銷售、一般及行政費用指導，但沒有給出具體的 EBITDA 利潤率指引。您能否為我們填補那裡的空白，無論是關於 EBITDA 利潤率指引是什麼，還是您對股票補償和 DNA 的期望，以便我們達到這個目標？

Yeah. Nathan, I'll take that one. When you kind of run through the model with the guidance that we provided, it pretty much gets you into an EBITDA margin in the mid-6% range, 6.5%-ish. As we've talked about though, I think, if the tariffs of inflation really start to help us out there and our international margins hanging there strong where they have been, I think there's upside to that, to get that that percentage higher. But we're just taking a conservative view right now because the tariff situation seems to change every couple of days. We'll see where it ultimately ends up. I do think there's going to be -- I think as a management team, we believe there is going to be some inflation this year with the tariffs, but just taking a more conservative approach on that until it gets more clear.

是的。內森，我要這個。當您按照我們提供的指導運行模型時，您的 EBITDA 利潤率基本上會達到 6% 中間範圍，也就是 6.5% 左右。不過，正如我們所討論的，我認為，如果通貨膨脹的關稅真的開始幫助我們，並且我們的國際利潤率能夠保持強勁，那麼我認為這樣做是有好處的，可以使這一比例更高。但我們現在只是採取保守的觀點，因為關稅情況似乎每隔幾天就會改變。我們將會看到它最終會如何結束。我確實認為會有——我認為作為管理團隊，我們相信今年關稅會導致一些通貨膨脹，但在情況更加明朗之前，我們只會採取更保守的態度。

And then I just wanted to finish off, the inventory issue, it sounds like when you finished -- I mean, you said you counted $400 million of inventory which is essentially all of your inventory. It sounds like you found that there were no material differences between where it was initially and where it ended up. And this was more of an issue around process and then how that stuff was entered. So maybe you could just put a bow on that and then talk about any reviews you've done for processes to make sure we don't run into any kind of issues like this again. Thanks.

然後我只想結束庫存問題，聽起來當你完成時 - 我的意思是你說你計算了 4 億美元的庫存，這基本上是你所有的庫存。聽起來你發現它最初的位置和最終的位置之間沒有實質的差異。這更多的是一個有關流程以及如何輸入這些內容的問題。因此，也許您可以對此進行總結，然後談談您對流程所做的任何審查，以確保我們不會再次遇到任何類似的問題。謝謝。

Yeah. Nathan, I'll take this. And let me just start at the outset and say that what we do to verify our inventory is very consistent with what other companies in the distribution space do. And that is we perform regular, in fact, daily cycle counts which is basically picking particular products and counting the inventory that day. And then over the summation of the year, you basically counted every item of inventory at least once; and some of items of inventory, particularly the fast moving items, you've counted them multiple times. So this process is a well-used and well-known and respected process for counting inventory. However, it depends on the faithful execution of the process for that to be effective.

是的。內森，我接受這個。首先我要說的是，我們核實庫存的做法與分銷領域其他公司的做法非常一致。也就是說，我們實際上進行定期的、每日的循環盤點，基本上就是挑選特定的產品並盤點當天的庫存。然後在全年總結中，你基本上對每件庫存至少清點一次；對於某些庫存商品，特別是快速週轉的商品，您已經清點過多次。因此，這個過程是一種廣泛使用、眾所周知且受尊重的庫存盤點過程。然而，其有效性取決於流程的忠實執行。

And as I mentioned in our prepared comments, out of over 100 locations, we detected two where the entry of the counts into the system was not being faithfully executed. A couple of deviations on that basically created an issue about the integrity of the process and the integrity of the control. And in order to verify that we didn't have any material errors in our inventory, we decided that we would go back and physically count all these locations. That was a very significant step for us to undertake. As I mentioned, it involved a number of people working diligently over weekends and evenings to make sure that we could get all these counts right. But it was very gratifying to result and the fact that yes, the variances that came out of that were effectively immaterial and that the inventory balances on our balance sheet were substantially and materially correct.

正如我在準備好的評論中提到的那樣，在 100 多個地點中，我們發現有兩個地點的計數輸入系統沒有忠實執行。這方面的一些偏差基本上造成了有關流程完整性和控製完整性的問題。為了驗證我們的庫存中沒有任何材料錯誤，我們決定回去對所有這些位置進行實際清點。這對我們來說是一個非常重要的一步。正如我所提到的，這需要許多人在周末和晚上勤奮工作，以確保我們能夠正確完成所有這些計數。但結果非常令人滿意，事實上，由此產生的差異實際上並不重要，而且我們資產負債表上的庫存餘額基本上正確。

So you're right, I mean, the issue related to the process itself and then the fact that we weren't executing against that process the way we should have been. We've got a remediation plan that we're putting in place. And we're going to make sure this doesn't ever happen again. Kelly, you want to give some details on that?

所以你是對的，我的意思是，問題與流程本身有關，事實上我們沒有按照應有的方式執行該流程。我們已經制定了補救計劃並正在實施。我們將確保這種事情不再發生。凱利，你想詳細說明一下嗎？

Yeah, Nathan. Obviously, as Rob said, the cycle count process will continue like it has been. I mean, even our auditors have said that the process that we had in place is a well-designed process. It was an execution problem on that process is where the issue arose. But I think, as far as remediation, we are planning to have, what I would call, a major step-up in oversight and monitoring of the cycle count process going forward to make sure that nothing like this happens again.

是的，內森。顯然，正如 Rob 所說，循環盤點過程將像以前一樣繼續進行。我的意思是，甚至我們的審計員都說我們實施的流程是精心設計的流程。問題出在該流程的執行。但我認為，就補救措施而言，我們計劃大力加強對循環盤點過程的監督和監控，以確保不再發生類似事件。

We are planning to engage a consulting firm to come in. We think we've got it covered. But just to make sure there's not some best practices out there that other companies are using that we should be considering. So we're going to bring someone in to review and provide recommendations on our current process. We're looking at making some changes in resources to have more expertise and oversight over inventory management and developing these monitoring capabilities around the cycle count process.

我們正計劃聘請一家顧問公司來參與。我們認為我們已經解決了這個問題。但只是為了確保沒有其他公司正在使用的一些最佳實踐值得我們考慮。因此，我們將請人來審查我們目前的流程並提出建議。我們正在考慮對資源進行一些改變，以便在庫存管理方面擁有更多的專業知識和監督權，並圍繞循環盤點流程開發這些監控能力。

And of course training, there's going to be a full-blown training initiative here and retraining to make sure that employees know the importance of this and operational leaders are going to be heavily involved at the same time.

當然還有培訓，這裡將會有一個全面的培訓計畫和再培訓，以確保員工了解這一點的重要性，同時營運領導者也將深度參與其中。

And then the last thing which is really significant is the Oracle implementation. That's going to be going live here in the second half of the year. Just being a more modern, cloud-based system, it's going to have a lot of reporting and monitoring capabilities that we don't have today and just really automate a lot of things like we're going to be using scanner technology a lot more with the new system. So a lot of the manual input that we have in our current system is going to be completely eliminated and be automated going forward, And that in itself, enhances the control environment around the cycle counts. So Oracle will be a major step-up for us in making sure that this is fully remediated as well. So we're going to be all over it and we've got it fully covered. And as Rob said, we feel comfortable this will never happen again.

最後一件真正重要的事情是 Oracle 的實作。這項服務將於今年下半年投入使用。作為一個更現代化的基於雲端的系統，它將擁有許多我們今天所沒有的報告和監控功能，並且真正實現許多事情的自動化，例如我們將在新系統中更多地使用掃描器技術。因此，我們目前系統中的許多手動輸入將被完全消除並實現自動化，而這本身就增強了循環盤點的控制環境。因此，Oracle 將為我們邁出重要一步，確保這一問題也得到全面補救。因此，我們將全面了解它，並將其完全覆蓋。正如羅布所說，我們相信這種事情不會再發生了。

It won't ever happen again.

這種事不會再發生了。

Thanks for taking my questions.

感謝您回答我的問題。

You're welcome. Thank you.

不客氣。謝謝。

We have reached the end of the question-and-answer session. I'd now like to turn the call back to Monica Broughton for closing comments.

問答環節已結束。現在我想把電話轉回給莫妮卡·布勞頓，請她做最後評論。

Thank you for joining us today and for your interest in MRC Global. We look forward to having you join us for our first quarter conference call in May. Have a great day.

感謝您今天加入我們並關注 MRC Global。我們期待您參加我們五月的第一季電話會議。祝你有美好的一天。

This concludes today's conference. You may now disconnect your lines. We thank you for your participation.

今天的會議到此結束。現在您可以斷開線路了。我們感謝您的參與。