MRC Global Inc. (NYSE: MRC) has announced a new $125 million share repurchase program, which will be effective until January 2, 2028. This decision reflects the company's confidence in its future and financial flexibility, following the strengthening of its balance sheet over the past few years.
The program allows the company to repurchase its outstanding common shares through various means, including open market transactions, block purchases, privately negotiated transactions, or other methods in compliance with applicable federal securities laws. The program may be modified, discontinued, or suspended at any time without prior notice.
Rob Saltiel, President & CEO of MRC Global, stated that the company's capital allocation strategy consists of targeting a net debt leverage ratio of less than 1.5x, returning cash to shareholders, and investing in the company's future growth. He emphasized that the company's streamlined capital structure, efficient operating model, and anticipated ability to deliver consistent cash flow generation make this the right time to introduce a share repurchase program, with plans to begin execution in the second quarter.
The timing, manner, number, and value of shares repurchased under the program will be determined by management at its discretion and will depend on various factors, including the market price of MRC Global common stock, general market and economic conditions, applicable requirements, and other business considerations.
MRC Global Inc., headquartered in Houston, Texas, is the leading global distributor of pipe, valves, fittings (PVF), and other infrastructure products and services to diversified end-markets, including gas utilities, downstream, industrial and energy transition, and production and transmission infrastructure sectors. The company has over 100 years of experience and provides customers with innovative supply chain solutions, technical product expertise, and a robust digital platform from a worldwide network of over 200 locations, including valve and engineering centers. MRC Global's quality assurance program offers over 300,000 SKUs from over 8,500 suppliers, simplifying the supply chain for approximately 10,000 customers. As a result of these announcements, the company's shares have moved 4.8% on the market, and are now trading at a price of $13.3. For the full picture, make sure to review MRC Global's 8-K report.
