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Spotting Winners: MRC Global (NYSE:MRC) And Infrastructure Distributors Stocks In Q1

By: StockStory

July 22, 2025 at 23:33 PM EDT

MRC Cover Image

Looking back on infrastructure distributors stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including MRC Global (NYSE: MRC) and its peers.

Focusing on narrow product categories that can lead to economies of scale, infrastructure distributors sell essential goods that often enjoy more predictable revenue streams. For example, the ongoing inspection, maintenance, and replacement of pipes and water pumps are critical to a functioning society, rendering them non-discretionary. Lately, innovation to address trends like water conservation has driven incremental sales. But like the broader industrials sector, infrastructure distributors are also at the whim of economic cycles as external factors like interest rates can greatly impact commercial and residential construction projects that drive demand for infrastructure products.

The 4 infrastructure distributors stocks we track reported a satisfactory Q1. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 4.1% on average since the latest earnings results.

MRC Global (NYSE: MRC)

Producing bomb casings and tracks for vehicles during WWII, MRC (NYSE: MRC) offers pipes, valves, and fitting products for various industries.

MRC Global reported revenues of $712 million, down 8.4% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a solid beat of analysts’ EPS estimates and a decent beat of analysts’ adjusted operating income estimates.

Rob Saltiel, MRC Global’s President and CEO stated, “First quarter results were strong across all of our key metrics, consistent with our recent press release. Our business has continued to perform well into the second quarter, with our backlog as of April 30, 2025, up 13% over year-end levels, with solid gains across all three market sectors. This backlog growth, along with increasing intake levels and improving visibility on near-term project deliveries, reinforces our outlook that second quarter revenues should increase sequentially by a high-single to a low-double digit percentage.

MRC Global delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 16.9% since reporting and currently trades at $14.28.

Is now the time to buy MRC Global? Access our full analysis of the earnings results here, it’s free.

Best Q1: DistributionNOW (NYSE: DNOW)

Spun off from National Oilwell Varco, DistributionNOW (NYSE: DNOW) provides distribution and supply chain solutions for the energy and industrial end markets.

DistributionNOW reported revenues of $599 million, up 6.4% year on year, outperforming analysts’ expectations by 1.9%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.6% since reporting. It currently trades at $15.12.

Is now the time to buy DistributionNOW? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Watsco (NYSE: WSO)

Originally a manufacturing company, Watsco (NYSE: WSO) today only distributes air conditioning, heating, and refrigeration equipment, as well as related parts and supplies.

Watsco reported revenues of $1.53 billion, down 2.2% year on year, falling short of analysts’ expectations by 7.3%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Watsco delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 4.7% since the results and currently trades at $480.29.

Read our full analysis of Watsco’s results here.

Core & Main (NYSE: CNM)

Formerly a division of industrial distributor HD Supply, Core & Main (NYSE: CNM) is a provider of water, wastewater, and fire protection products and services.

Core & Main reported revenues of $1.91 billion, up 9.8% year on year. This print beat analysts’ expectations by 3.5%. It was a strong quarter as it also logged an impressive beat of analysts’ organic revenue estimates and a decent beat of analysts’ adjusted operating income estimates.

Core & Main delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 9.7% since reporting and currently trades at $65.03.

Read our full, actionable report on Core & Main here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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