Matrix Service Company Reports Fiscal Year 2025 Fourth Quarter and Full-Year Results; Issues Fiscal 2026 Revenue Guidance
Matrix Service Company (Nasdaq: MTRX) reported its fiscal Q4 and full-year 2025 results, with Q4 revenue increasing 14% to $216.4 million. The company posted a Q4 net loss of $(0.40) per share and adjusted EBITDA of $(4.8) million. Total backlog stands at $1.4 billion with Q4 project awards of $186.3 million.
For fiscal 2025, Matrix reported revenue of $769.3 million and provided fiscal 2026 revenue guidance of $875-925 million, implying 17% growth at the midpoint. The quarter was impacted by $14.9 million in discrete charges related to labor cost overruns, contract disputes, and restructuring costs. The company maintains strong liquidity of $284.5 million with no outstanding debt.
Matrix Service Company (Nasdaq: MTRX) ha comunicato i risultati del quarto trimestre e dell'intero esercizio fiscale 2025: i ricavi del Q4 sono aumentati del 14% raggiungendo 216,4 milioni di dollari. La società ha registrato una perdita netta per azione del Q4 di $(0,40) e un EBITDA rettificato di $(4,8) milioni. Il portafoglio ordini totale è pari a 1,4 miliardi di dollari, con assegnazioni di progetti nel Q4 per 186,3 milioni.
Per l'esercizio fiscale 2025 Matrix ha riportato ricavi per 769,3 milioni di dollari e ha fornito una guida per il 2026 di 875–925 milioni di dollari, con un incremento implicito del 17% al punto medio. Il trimestre è stato influenzato da oneri straordinari per 14,9 milioni di dollari legati a eccedenze di costo del lavoro, controversie contrattuali e costi di ristrutturazione. La società mantiene una solida liquidità di 284,5 milioni di dollari e non ha debiti in essere.
Matrix Service Company (Nasdaq: MTRX) informó sus resultados del cuarto trimestre y del año fiscal 2025: los ingresos del Q4 aumentaron un 14% hasta 216,4 millones de dólares. La compañía registró una pérdida neta por acción en el Q4 de $(0,40) y un EBITDA ajustado de $(4,8) millones. El backlog total asciende a 1.400 millones de dólares, con adjudicaciones de proyectos en el Q4 por 186,3 millones.
Para el año fiscal 2025, Matrix reportó ingresos de 769,3 millones de dólares y dio una guía para 2026 de 875–925 millones de dólares, lo que supone un crecimiento del 17% en el punto medio. El trimestre se vio afectado por cargos extraordinarios por 14,9 millones de dólares relacionados con sobrecostes laborales, disputas contractuales y costes de reestructuración. La compañía mantiene una sólida liquidez de 284,5 millones de dólares y no tiene deuda pendiente.
Matrix Service Company (Nasdaq: MTRX)는 2025 회계연도 4분기 및 연간 실적을 발표했습니다. 4분기 매출은 14% 증가한 2억1640만 달러를 기록했습니다. 회사는 4분기 주당순손실이 $(0.40)이며 조정 EBITDA는 $(4.8)백만을 보고했습니다. 총 수주잔고는 14억 달러이며 4분기 수주액은 1억8630만 달러였습니다.
2025 회계연도 매출은 7억6930만 달러였고, 2026 회계연도 매출 가이던스로는 8억7500만–9억2500만 달러를 제시해 중간값 기준 약 17% 성장을 예상했습니다. 해당 분기는 인건비 초과, 계약 분쟁 및 구조조정 비용과 관련된 1490만 달러의 일회성 비용의 영향을 받았습니다. 회사는 2억8450만 달러의 강한 유동성을 보유하고 있으며 미지급 부채는 없습니다.
Matrix Service Company (Nasdaq: MTRX) a publié ses résultats du quatrième trimestre et de l'exercice 2025 : le chiffre d'affaires du T4 a augmenté de 14 % pour atteindre 216,4 millions de dollars. La société a affiché une perte nette par action au T4 de $(0,40) et un EBITDA ajusté de $(4,8) millions. Le carnet de commandes total s'élève à 1,4 milliard de dollars avec des commandes de projets au T4 de 186,3 millions.
Pour l'exercice 2025, Matrix a déclaré un chiffre d'affaires de 769,3 millions de dollars et a fourni des prévisions pour 2026 de 875–925 millions de dollars, soit une hausse implicite de 17 % au point médian. Le trimestre a été affecté par des charges exceptionnelles de 14,9 millions de dollars liées à des dépassements de coûts salariaux, des litiges contractuels et des coûts de restructuration. La société conserve une bonne liquidité de 284,5 millions de dollars et n'a pas de dette en cours.
Matrix Service Company (Nasdaq: MTRX) meldete seine Ergebnisse für das vierte Quartal und das Geschäftsjahr 2025. Der Umsatz im Q4 stieg um 14% auf 216,4 Mio. USD. Das Unternehmen verzeichnete einen Nettoverlust je Aktie im Q4 von $(0,40) und ein bereinigtes EBITDA von $(4,8) Mio.. Der Gesamtauftragsbestand beträgt 1,4 Mrd. USD bei Projektzuschlägen im Q4 von 186,3 Mio. USD.
Für das Geschäftsjahr 2025 meldete Matrix einen Umsatz von 769,3 Mio. USD und gab eine Umsatzprognose für 2026 von 875–925 Mio. USD ab, was auf Basis des Mittelpunkts einem Wachstum von 17% entspricht. Das Quartal wurde durch einmalige Aufwendungen in Höhe von 14,9 Mio. USD beeinträchtigt, die auf Arbeitskostenüberschreitungen, Vertragsstreitigkeiten und Restrukturierungskosten zurückzuführen sind. Das Unternehmen verfügt über eine starke Liquidität von 284,5 Mio. USD und hat keine ausstehenden Schulden.
- Strong liquidity position of $284.5 million with zero debt
- Q4 revenue grew 14% year-over-year to $216.4 million
- Robust backlog of $1.4 billion, covering 85% of FY2026 revenue guidance
- Positive operating cash flow of $40.7 million in Q4
- FY2026 revenue guidance implies 17% growth at midpoint
- Q4 net loss widened to $(0.40) per share from $(0.16) year-over-year
- Discrete charges of $14.9 million impacted Q4 results negatively
- Gross margin declined to 3.8% in Q4 2025 from 6.6% in Q4 2024
- Book-to-bill ratio below 1.0x at 0.9x for both Q4 and trailing twelve months
- Labor cost overruns on crude oil terminal project affected performance
Insights
Matrix Service's FY2025 shows ongoing financial challenges despite revenue growth; FY2026 guidance offers positive trajectory.
Matrix Service Company's Q4 FY2025 results present a mixed financial picture with some encouraging trends amid persistent challenges. Revenue increased
The company's deteriorating bottom line stems from several discrete issues that collectively reduced revenue by
Despite these headwinds, there are positive indicators in Matrix's financial health. The company generated strong operating cash flow of
The
Looking ahead, management's FY2026 revenue guidance of
The ongoing organizational realignment, focusing on core strengths and high-growth markets, appears to be a necessary strategic pivot to address profitability challenges. The restructuring costs in Q4 reflect these efforts, but investors should watch for concrete evidence of margin improvement in coming quarters to validate this approach.
TULSA, Okla., Sept. 09, 2025 (GLOBE NEWSWIRE) -- Matrix Service Company (Nasdaq: MTRX), a leading provider of engineering and construction services to the energy and industrial markets, today announced results for the fourth quarter of fiscal 2025 ended June 30, 2025.
FOURTH QUARTER FISCAL 2025 RESULTS
(all comparisons versus the prior year quarter unless otherwise noted)
- Total backlog of
$1.4 billion - Total project awards of
$186.3 million , resulting in a book-to-bill ratio of 0.9x - Revenue of
$216.4 million , an increase of14% - Net loss per share of
$(0.40) versus$(0.16) ; adjusted net loss per share of$(0.28) versus$(0.14) - Adjusted EBITDA of
$(4.8) million versus$0.2 million - Discrete items negatively impacted revenue by
$6.4 million , net income by$14.9 million and Adjusted EBITDA by$11.5 million - Cash flow from operations of
$40.7 million - Liquidity at June 30, 2025 improved to
$284.5 million with no outstanding debt
FULL-YEAR FISCAL 2025 RESULTS
(all comparisons versus the prior year unless otherwise noted)
- Total project awards of
$726.0 million , resulting in a book-to-bill ratio of 0.9x - Revenue of
$769.3 million - Net loss per share of
$(1.06) versus$(0.91) ; adjusted net loss per share of$(0.93) versus$(1.06) - Adjusted EBITDA of
$(12.9) million versus$(10.5) million - Cash flow from operations of
$117.5 million
FULL-YEAR FISCAL 2026 REVENUE GUIDANCE
- Revenue between
$875 and$925 million , implied growth of17% year-over-year to the midpoint of the range
MANAGEMENT COMMENTARY
“During the fourth quarter, we had continued momentum across multiple large projects, driving
"Our fourth quarter net income reflects a
“Looking ahead, we see fiscal 2026 as a year of sustained growth and earnings improvement,” said Hewitt. “We expect revenue growth to be approximately
“Strategically, we are focused on building a strong foundation for sustained profitable growth in specialty E&C markets,” said Hewitt. “As announced last quarter, we have taken actions to flatten the organization and streamline the business. This quarter and into the first quarter of fiscal 2026, we are continuing our organizational alignment work to fulfill our overarching objective to win, execute and deliver better than anyone else. In addition, we are prioritizing market opportunities that align with our core strengths, present the highest growth rates, and allow us to deliver the highest standards of safety, quality and service to our customers. These initiatives, combined with disciplined capital allocation and supported by a flexible balance sheet, will enable us to create sustainable, long-term value for our shareholders.”
FINANCIAL SUMMARY
Fiscal 2025 fourth quarter revenue was
Gross margin was
SG&A expenses were
Restructuring expenses were
For the fourth quarter of fiscal 2025, the Company had a net loss of
SEGMENT RESULTS
Storage and Terminals Solutions segment revenue increased
Utility and Power Infrastructure segment revenue increased
Process and Industrial Facilities segment revenue decreased to
BACKLOG
The Company’s backlog was
| Three Months Ended | Fiscal Year Ended | ||||||||||||
| June 30, 2025 | June 30, 2025 | Backlog as of June 30, 2025 | |||||||||||
| Segment: | Awards | Book-to-Bill(1) | Awards | Book-to-Bill(1) | |||||||||
| Storage and Terminal Solutions | $ | 18,415 | 0.2x | $ | 337,731 | 0.9x | $ | 770,095 | |||||
| Utility and Power Infrastructure | 121,885 | 1.7x | 215,378 | 0.9x | 346,384 | ||||||||
| Process and Industrial Facilities | 46,020 | 1.0x | 172,918 | 1.1x | 265,629 | ||||||||
| Total | $ | 186,320 | 0.9x | $ | 726,027 | 0.9x | $ | 1,382,108 | |||||
________________
(1) Calculated by dividing project awards by revenue recognized during the period.
FINANCIAL POSITION
Net cash provided by operating activities during the three months ended June 30, 2025 was
As of June 30, 2025, Matrix had total liquidity of
FISCAL YEAR 2026 FINANCIAL GUIDANCE
The following forward-looking guidance reflects the Company’s current expectations and beliefs as of September 9, 2025. Various factors outside of the Company's control may impact the Company's revenue and business. These include the timing of project awards and starts which may be impacted by market fundamentals, client decision-making, and federal trade and environmental policy uncertainty. The following statements apply only as of the date of this disclosure and are expressly qualified in their entirety by the cautionary statements included elsewhere in this document.
| Fiscal Year 2025 | Fiscal Year 2026 | |||||
| Actual | Guidance | % Increase | ||||
| Revenue |
CONFERENCE CALL DETAILS
In conjunction with the earnings release, Matrix Service Company will host a conference call with John R. Hewitt, President and CEO, and Kevin S. Cavanah, Vice President and CFO. The call will take place at 10:30 a.m. (Eastern) / 9:30 a.m. (Central) on Wednesday, September 10, 2025.
Investors and other interested parties can access a live audio-visual webcast using this webcast link, or through the Company’s website at www.matrixservicecompany.com on the Investors Relations page under Events & Presentations.
If you would like to dial in to the conference call, please register least 10 minutes prior to the start time. Upon registration, participants will receive a dial-in number and unique PIN to join the call as well as an e-mail confirmation with the details.
For those unable to participate in the conference call, a replay of the webcast will be available on the Investor Relations page of the Company's website.
The conference call will be recorded and will be available for replay within one hour of completion of the live call and can be accessed following the same link as the live call.
ABOUT MATRIX SERVICE COMPANY
Matrix Service Company (Nasdaq: MTRX) is a leading specialty engineering and construction company whose commitment to safety, quality, and integrity has earned the Company a leadership position in providing infrastructure solutions across multiple end markets. Our work is foundational to helping our energy and industrial clients achieve their objectives, positively impact quality of life through the products they provide and improve the efficiency and resilience of their critical infrastructure. We pride ourselves on our commitment to our culture and core values, offering an inclusive and respectful work environment, and being certified as a Great Place To Work®.
The Company is headquartered in Tulsa, Oklahoma with offices located throughout the United States and Canada, as well as Sydney, Australia, and Seoul, South Korea. The Company reports its financial results in three key operating segments: Utility and Power Infrastructure, Process and Industrial Facilities, and Storage and Terminal Solutions.
To learn more about Matrix Service Company, visit matrixservicecompany.com
This release contains forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are generally accompanied by words such as “anticipate,” “continues,” “expect,” “forecast,” “outlook,” “believe,” “estimate,” “should” and “will” and words of similar effect that convey future meaning, concerning the Company’s operations, economic performance and management’s best judgment as to what may occur in the future. Future events involve risks and uncertainties that may cause actual results to differ materially from those we currently anticipate. The actual results for the current and future periods and other corporate developments will depend upon a number of economic, competitive and other influences, including the successful implementation of the Company's business improvement plan and the factors discussed in the “Risk Factors” and “Forward Looking Statements” sections and elsewhere in the Company’s reports and filings made from time to time with the Securities and Exchange Commission. Many of these risks and uncertainties are beyond the control of the Company, and any one of which, or a combination of which, could materially and adversely affect the results of the Company's operations and its financial condition. We undertake no obligation to update information contained in this release, except as required by law.
For more information, please contact:
Kellie Smythe
Senior Director, Investor Relations, Marketing, Communications & Sustainability
T: 918-359-8267
Email: ksmythe@matrixservicecompany.com
| Matrix Service Company Consolidated Statements of Income (In thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Fiscal Years Ended | |||||||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||||||
| Revenue | $ | 216,377 | $ | 189,499 | $ | 769,286 | $ | 728,213 | ||||||||
| Cost of revenue | 208,255 | 177,052 | 729,609 | 687,740 | ||||||||||||
| Gross profit | 8,122 | 12,447 | 39,677 | 40,473 | ||||||||||||
| Selling, general and administrative expenses | 17,581 | 17,293 | 71,173 | 70,085 | ||||||||||||
| Restructuring costs | 3,448 | 501 | 3,572 | 501 | ||||||||||||
| Operating loss | (12,907 | ) | (5,347 | ) | (35,068 | ) | (30,113 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (150 | ) | (343 | ) | (518 | ) | (1,130 | ) | ||||||||
| Interest income | 1,984 | 862 | 6,652 | 1,339 | ||||||||||||
| Other | 249 | 411 | (64 | ) | 4,892 | |||||||||||
| Loss before income tax expense | (10,824 | ) | (4,417 | ) | (28,998 | ) | (25,012 | ) | ||||||||
| Provision (benefit) for federal, state and foreign income taxes | 448 | (40 | ) | 464 | (36 | ) | ||||||||||
| Net loss | $ | (11,272 | ) | $ | (4,377 | ) | $ | (29,462 | ) | $ | (24,976 | ) | ||||
| Basic loss per common share | $ | (0.40 | ) | $ | (0.16 | ) | $ | (1.06 | ) | $ | (0.91 | ) | ||||
| Diluted loss per common share | $ | (0.40 | ) | $ | (0.16 | ) | $ | (1.06 | ) | $ | (0.91 | ) | ||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 27,884 | 27,447 | 27,769 | 27,379 | ||||||||||||
| Diluted | 27,884 | 27,447 | 27,769 | 27,379 | ||||||||||||
| Matrix Service Company Consolidated Balance Sheets (In thousands) | ||||||
| June 30, 2025 | June 30, 2024 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 224,641 | $ | 115,615 | ||
| Accounts receivable, net of allowance for credit losses | 154,994 | 138,987 | ||||
| Costs and estimated earnings in excess of billings on uncompleted contracts | 29,764 | 33,893 | ||||
| Inventories | 5,917 | 8,839 | ||||
| Income taxes receivable | 110 | 180 | ||||
| Prepaid expenses and other current assets | 4,347 | 4,077 | ||||
| Total current assets | 419,773 | 301,591 | ||||
| Restricted cash | 25,000 | 25,000 | ||||
| Property, plant and equipment, net | 42,097 | 43,498 | ||||
| Operating lease right-of-use assets | 17,827 | 19,150 | ||||
| Goodwill | 29,047 | 29,023 | ||||
| Other intangible assets, net of accumulated amortization | 555 | 1,651 | ||||
| Other assets, non-current | 65,957 | 31,438 | ||||
| Total assets | $ | 600,256 | $ | 451,351 | ||
| Matrix Service Company Consolidated Balance Sheets (continued) (In thousands, except share data) | ||||||||
| June 30, 2025 | June 30, 2024 | |||||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 80,453 | $ | 65,629 | ||||
| Billings on uncompleted contracts in excess of costs and estimated earnings | 323,593 | 171,308 | ||||||
| Accrued wages and benefits | 18,961 | 15,878 | ||||||
| Accrued insurance | 5,310 | 4,605 | ||||||
| Operating lease liabilities | 4,441 | 3,739 | ||||||
| Other accrued expenses | 3,617 | 3,956 | ||||||
| Total current liabilities | 436,375 | 265,115 | ||||||
| Deferred income taxes | 25 | 25 | ||||||
| Operating lease liabilities | 16,986 | 19,156 | ||||||
| Other liabilities, non-current | 4,154 | 2,873 | ||||||
| Total liabilities | 457,540 | 287,169 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Common stock—0.01 par value; 60,000,000 shares authorized; 27,888,217 shares issued as of June 30, 2025 and June 30, 2024; 27,610,486 and 27,308,795 shares outstanding as of June 30, 2025 and June 30, 2024, respectively | 279 | 279 | ||||||
| Additional paid-in capital | 149,969 | 145,580 | ||||||
| Retained earnings | 4,479 | 33,941 | ||||||
| Accumulated other comprehensive loss | (9,403 | ) | (9,535 | ) | ||||
| Treasury stock, at cost — 277,731 and 579,422 shares as of June 30, 2025 and June 30, 2024, respectively | (2,608 | ) | (6,083 | ) | ||||
| Total stockholders' equity | 142,716 | 164,182 | ||||||
| Total liabilities and stockholders’ equity | $ | 600,256 | $ | 451,351 | ||||
| Matrix Service Company Condensed Consolidated Statements of Cash Flows (In thousands) | |||||||||||||||
| Three Months Ended | Fiscal Years Ended | ||||||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | ||||||||||||
| Operating activities: | |||||||||||||||
| Net loss | $ | (11,272 | ) | $ | (4,377 | ) | $ | (29,462 | ) | $ | (24,976 | ) | |||
| Adjustments to reconcile net loss to net cash provided (used) by operating activities: | |||||||||||||||
| Depreciation and amortization | 2,474 | 2,686 | 10,012 | 11,023 | |||||||||||
| Stock-based compensation expense | 2,150 | 1,980 | 8,904 | 7,745 | |||||||||||
| Loss (gain) on disposal of property, plant and equipment | 130 | (393 | ) | 8 | (4,923 | ) | |||||||||
| Other | 126 | 1,160 | 234 | 1,362 | |||||||||||
| Changes in operating assets and liabilities increasing (decreasing) cash: | |||||||||||||||
| Accounts receivable, net of allowance for credit losses | 40,006 | 31,036 | (48,796 | ) | (12,077 | ) | |||||||||
| Costs and estimated earnings in excess of billings on uncompleted contracts | 8,803 | 707 | 4,129 | 10,995 | |||||||||||
| Inventories | 472 | 218 | 2,922 | (1,402 | ) | ||||||||||
| Other assets and liabilities | 2,811 | 2,244 | (2,309 | ) | 3,897 | ||||||||||
| Accounts payable | 1,859 | 10,538 | 14,814 | (10,385 | ) | ||||||||||
| Billings on uncompleted contracts in excess of costs and estimated earnings | (9,064 | ) | 3,651 | 152,285 | 85,872 | ||||||||||
| Accrued expenses | 2,213 | (2,446 | ) | 4,730 | 5,440 | ||||||||||
| Net cash provided by operating activities | 40,708 | 47,004 | 117,471 | 72,571 | |||||||||||
| Investing activities: | |||||||||||||||
| Capital expenditures | (2,260 | ) | (1,305 | ) | (7,685 | ) | (6,994 | ) | |||||||
| Proceeds from sale of property, plant and equipment | 3 | 514 | 240 | 6,049 | |||||||||||
| Net cash used by investing activities | (2,257 | ) | (791 | ) | (7,445 | ) | (945 | ) | |||||||
| Financing activities: | |||||||||||||||
| Advances under asset-backed credit facility | — | — | — | 10,000 | |||||||||||
| Repayments of advances under asset-backed credit facility | — | — | — | (20,000 | ) | ||||||||||
| Payment of debt amendment fees | — | (100 | ) | — | (100 | ) | |||||||||
| Proceeds from issuance of common stock under employee stock purchase plan | 46 | 52 | 195 | 184 | |||||||||||
| Repurchase of common stock for payment of statutory taxes due on equity-based compensation | — | — | (1,235 | ) | (456 | ) | |||||||||
| Net cash provided (used) by financing activities | 46 | (48 | ) | (1,040 | ) | (10,372 | ) | ||||||||
| Effect of exchange rate changes on cash | 603 | (208 | ) | 40 | (451 | ) | |||||||||
| Net increase in cash and cash equivalents | 39,100 | 45,957 | 109,026 | 60,803 | |||||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 210,541 | 94,658 | 140,615 | 79,812 | |||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 249,641 | $ | 140,615 | $ | 249,641 | $ | 140,615 | |||||||
| Supplemental disclosure of cash flow information: | |||||||||||||||
| Cash paid (received) during the period for: | |||||||||||||||
| Income taxes | $ | 289 | $ | (17 | ) | $ | 328 | $ | (165 | ) | |||||
| Interest | $ | 79 | $ | 104 | $ | 395 | $ | 880 | |||||||
| Matrix Service Company Results of Operations (In thousands) | |||||||||||||||||||
| Storage and Terminal Solutions | Utility and Power Infrastructure | Process and Industrial Facilities | Corporate | Total | |||||||||||||||
| Three Months Ended June 30, 2025 | |||||||||||||||||||
| Total revenue (1) | $ | 96,091 | $ | 73,027 | $ | 47,259 | $ | — | $ | 216,377 | |||||||||
| Cost of revenue | (97,136 | ) | (66,365 | ) | (44,475 | ) | (279 | ) | (208,255 | ) | |||||||||
| Gross profit (loss) | (1,045 | ) | 6,662 | 2,784 | (279 | ) | 8,122 | ||||||||||||
| Selling, general and administrative expenses | 6,058 | 2,290 | 2,708 | 6,525 | 17,581 | ||||||||||||||
| Restructuring costs | 323 | 594 | 138 | 2,393 | 3,448 | ||||||||||||||
| Operating income (loss) | $ | (7,426 | ) | $ | 3,778 | $ | (62 | ) | $ | (9,197 | ) | $ | (12,907 | ) | |||||
| (1) Total revenues are net of inter-segment revenues which are primarily Process and Industrial Facilities and were | |||||||||||||||||||
| Storage and Terminal Solutions | Utility and Power Infrastructure | Process and Industrial Facilities | Corporate | Total | |||||||||||||||
| Three Months Ended June 30, 2024 | |||||||||||||||||||
| Total revenue (1) | $ | 69,992 | $ | 65,261 | $ | 54,246 | $ | — | $ | 189,499 | |||||||||
| Cost of revenue | (67,799 | ) | (62,549 | ) | (45,910 | ) | (794 | ) | (177,052 | ) | |||||||||
| Gross profit (loss) | 2,193 | 2,712 | 8,336 | (794 | ) | 12,447 | |||||||||||||
| Selling, general and administrative expenses | 5,461 | 2,585 | 2,470 | 6,777 | 17,293 | ||||||||||||||
| Restructuring costs | — | 52 | 215 | 234 | 501 | ||||||||||||||
| Operating income (loss) | $ | (3,268 | ) | $ | 75 | $ | 5,651 | $ | (7,805 | ) | $ | (5,347 | ) | ||||||
| (1) Total revenues are net of inter-segment revenues which are primarily Process and Industrial Facilities and were | |||||||||||||||||||
| Storage and Terminal Solutions | Utility and Power Infrastructure | Process and Industrial Facilities | Corporate | Total | |||||||||||||||
| Fiscal Year Ended June 30, 2025 | |||||||||||||||||||
| Total revenue (1) | $ | 365,891 | $ | 248,691 | $ | 154,704 | $ | — | $ | 769,286 | |||||||||
| Cost of revenue | (351,236 | ) | (231,776 | ) | (145,794 | ) | (803 | ) | (729,609 | ) | |||||||||
| Gross profit (loss) | 14,655 | 16,915 | 8,910 | (803 | ) | 39,677 | |||||||||||||
| Selling, general and administrative expenses | 23,538 | 12,363 | 8,293 | 26,979 | 71,173 | ||||||||||||||
| Restructuring costs | 323 | 718 | 138 | 2,393 | 3,572 | ||||||||||||||
| Operating income (loss) | $ | (9,206 | ) | $ | 3,834 | $ | 479 | $ | (30,175 | ) | $ | (35,068 | ) | ||||||
| (1) Total revenues are net of inter-segment revenues which are primarily Process and Industrial Facilities and were | |||||||||||||||||||
| Storage and Terminal Solutions | Utility and Power Infrastructure | Process and Industrial Facilities | Corporate | Total | |||||||||||||||
| Fiscal Year Ended June 30, 2024 | |||||||||||||||||||
| Total revenue (1) | $ | 276,800 | $ | 183,920 | $ | 266,260 | $ | 1,233 | $ | 728,213 | |||||||||
| Cost of revenue | (265,503 | ) | (174,688 | ) | (244,408 | ) | (3,141 | ) | (687,740 | ) | |||||||||
| Gross profit (loss) | 11,297 | 9,232 | 21,852 | (1,908 | ) | 40,473 | |||||||||||||
| Selling, general and administrative expenses | 19,823 | 8,844 | 10,354 | 31,064 | 70,085 | ||||||||||||||
| Restructuring costs | — | 52 | 215 | 234 | 501 | ||||||||||||||
| Operating income (loss) | $ | (8,526 | ) | $ | 336 | $ | 11,283 | $ | (33,206 | ) | $ | (30,113 | ) | ||||||
| (1) Total revenues are net of inter-segment revenues which are primarily Storage and Terminal Solutions and were | |||||||||||||||||||
Backlog
We define backlog as the total dollar amount of revenue that we expect to recognize as a result of performing work that has been awarded to us through a signed contract, limited notice to proceed or other type of assurance that we consider firm. The following arrangements are considered firm:
- fixed-price awards;
- minimum customer commitments on cost plus arrangements; and
- certain time and material arrangements in which the estimated value is firm or can be estimated with a reasonable amount of certainty in both timing and amounts.
For long-term maintenance contracts with no minimum commitments and other established customer agreements, we include only the amounts that we expect to recognize as revenue over the next 12 months. For arrangements in which we have received a limited notice to proceed, we include the entire scope of work in our backlog if we conclude that the likelihood of the full project proceeding as high. For all other arrangements, we calculate backlog as the estimated contract amount less revenue recognized as of the reporting date.
Three Months Ended June 30, 2025
The following table provides a summary of changes in our backlog for the three months ended June 30, 2025:
| Storage and Terminal Solutions | Utility and Power Infrastructure | Process and Industrial Facilities | Total | ||||||||||||
| (In thousands) | |||||||||||||||
| Backlog as of March 31, 2025 | $ | 847,771 | $ | 297,526 | $ | 266,868 | $ | 1,412,165 | |||||||
| Project awards | 18,415 | 121,885 | 46,020 | 186,320 | |||||||||||
| Revenue recognized | (96,091 | ) | (73,027 | ) | (47,259 | ) | (216,377 | ) | |||||||
| Backlog as of June 30, 2025 | $ | 770,095 | $ | 346,384 | $ | 265,629 | $ | 1,382,108 | |||||||
| Book-to-bill ratio (1) | 0.2x | 1.7x | 1.0x | 0.9x | |||||||||||
(1) Calculated by dividing project awards by revenue recognized.
Fiscal Year Ended June 30, 2025
The following table provides a summary of changes in our backlog for the fiscal year ended June 30, 2025:
| Storage and Terminal Solutions | Utility and Power Infrastructure | Process and Industrial Facilities | Total | |||||||||||||
| (In thousands) | ||||||||||||||||
| Backlog as of June 30, 2024 | $ | 798,255 | $ | 379,697 | $ | 251,521 | $ | 1,429,473 | ||||||||
| Project awards | 337,731 | 215,378 | 172,918 | 726,027 | ||||||||||||
| Other adjustment(2) | — | — | (4,106 | ) | (4,106 | ) | ||||||||||
| Revenue recognized | (365,891 | ) | (248,691 | ) | (154,704 | ) | (769,286 | ) | ||||||||
| Backlog as of June 30, 2025 | $ | 770,095 | $ | 346,384 | $ | 265,629 | $ | 1,382,108 | ||||||||
| Book-to-bill ratio (1) | 0.9x | 0.9x | 1.1x | 0.9x | ||||||||||||
| (1) | Calculated by dividing project awards by revenue recognized. |
| (2) | Backlog was reduced as a result of the closure of a customer's facility. This customer has historically represented less than |
Non-GAAP Financial Measures
Adjusted Net Loss
We have presented Adjusted net loss, which we define as Net loss before gain on sale of assets, and the tax impact of these adjustments, because we believe it better depicts our core operating results. We believe that the line item on our Consolidated Statements of Income entitled “Net loss” is the most directly comparable GAAP measure to Adjusted net loss. Since Adjusted net loss is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, Net loss as an indicator of operating performance. Adjusted net loss, as we calculate it, may not be comparable to similarly titled measures employed by other companies. In addition, this measure is not a measure of our ability to fund our cash needs. As Adjusted net loss excludes certain financial information compared with Net loss, the most directly comparable GAAP financial measure, users of this financial information should consider the type of events and transactions that are excluded. Our non-GAAP performance measure, Adjusted net loss, has certain material limitations as follows:
- It does not include gain on the sale of assets. While these sales occurred outside the normal course of business, any measure that excludes this gain has inherent limitations since the sales resulted in material inflows of cash.
- It does not include restructuring costs. Restructuring costs represent material costs that were incurred and are oftentimes cash expenses. Therefore, any measure that excludes restructuring costs has material limitations.
A reconciliation of Net loss to Adjusted net loss follows:
| Reconciliation of Net Loss to Adjusted Net Loss (In thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Fiscal Years Ended | |||||||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||||||
| Net loss, as reported | $ | (11,272 | ) | $ | (4,377 | ) | $ | (29,462 | ) | $ | (24,976 | ) | ||||
| Restructuring costs | 3,448 | 501 | 3,572 | 501 | ||||||||||||
| Gain on sale of assets(1) | — | — | — | (4,542 | ) | |||||||||||
| Tax impact of adjustments and other net tax items(2) | — | — | — | — | ||||||||||||
| Adjusted net loss | $ | (7,824 | ) | $ | (3,876 | ) | $ | (25,890 | ) | $ | (29,017 | ) | ||||
| Loss per fully diluted share, as reported | $ | (0.40 | ) | $ | (0.16 | ) | $ | (1.06 | ) | $ | (0.91 | ) | ||||
| Adjusted loss per fully diluted share | $ | (0.28 | ) | $ | (0.14 | ) | $ | (0.93 | ) | $ | (1.06 | ) | ||||
| ________________ | |
| (1) | In fiscal 2024, we sold our Burlington, ON office in the first quarter and recorded a gain of |
| (2) | Represents the tax impact of the adjustments to Net loss, calculated using the applicable effective tax rate of the adjustment. Due to the existence of valuation allowances on our deferred tax assets and net operating losses, there was no tax impact of any of the adjustments in any period presented. |
Adjusted EBITDA
We have presented Adjusted EBITDA, which we define as net loss before gain on sale of assets, stock-based compensation, interest expense, interest income, income taxes, and depreciation and amortization, because it is used by the financial community as a method of measuring our performance and of evaluating the market value of companies considered to be in similar businesses. We believe that the line item on our Consolidated Statements of Income entitled “Net loss” is the most directly comparable GAAP measure to Adjusted EBITDA. Since Adjusted EBITDA is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, net earnings as an indicator of operating performance. Adjusted EBITDA, as we calculate it, may not be comparable to similarly titled measures employed by other companies. In addition, this measure is not a measure of our ability to fund our cash needs. As Adjusted EBITDA excludes certain financial information compared with net loss, the most directly comparable GAAP financial measure, users of this financial information should consider the type of events and transactions that are excluded. Our non-GAAP performance measure, Adjusted EBITDA, has certain material limitations as follows:
- It does not include interest expense. Because we have borrowed money to finance our operations and to acquire businesses, pay commitment fees to maintain our senior secured revolving credit facility, and incur fees to issue letters of credit under the senior secured revolving credit facility, interest expense is a necessary and ongoing part of our costs and has assisted us in generating revenue. Therefore, any measure that excludes interest expense has material limitations.
- It does not include interest income. Because we have money invested in money market depository accounts and we will have earned interest income on these investments, any measure that excludes interest income has material limitations.
- It does not include income taxes. Because the payment of income taxes is a necessary and ongoing part of our operations, any measure that excludes income taxes has material limitations.
- It does not include depreciation or amortization expense. Because we use capital and intangible assets to generate revenue, depreciation and amortization expense is a necessary element of our cost structure. Therefore, any measure that excludes depreciation or amortization expense has material limitations.
- It does not include gain on asset sales. While these sales occurred outside the normal course of business and are not expected to be recurring, any measure that excludes this gain has inherent limitations since the sale resulted in a material inflow of cash.
- It does not include restructuring costs. Restructuring costs represent material costs that were incurred and are oftentimes cash expenses. Therefore, any measure that excludes restructuring costs has material limitations.
- It does not include equity-settled stock-based compensation expense. Stock-based compensation represents material amounts of equity that are awarded to our employees and directors for services rendered. While the expense is non-cash, we historically release vested shares out of our treasury stock, which has been replenished by using cash to periodically repurchase our stock. Therefore, any measure that excludes stock-based compensation has material limitations.
A reconciliation of Net loss to Adjusted EBITDA follows:
| Reconciliation of Net Loss to Adjusted EBITDA (In thousands) | |||||||||||||||
| Three Months Ended | Fiscal Years Ended | ||||||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | ||||||||||||
| Net loss | $ | (11,272 | ) | $ | (4,377 | ) | $ | (29,462 | ) | $ | (24,976 | ) | |||
| Interest expense | 150 | 343 | 518 | 1,130 | |||||||||||
| Interest income | (1,984 | ) | (862 | ) | (6,652 | ) | (1,339 | ) | |||||||
| Provision (benefit) for federal, state and foreign income taxes | 448 | (40 | ) | 464 | (36 | ) | |||||||||
| Depreciation and amortization | 2,474 | 2,686 | 10,012 | 11,023 | |||||||||||
| Gain on sale of assets(1) | — | — | — | (4,542 | ) | ||||||||||
| Restructuring costs(3) | 3,217 | 501 | 3,341 | 501 | |||||||||||
| Stock-based compensation(2) | 2,150 | 1,980 | 8,904 | 7,745 | |||||||||||
| Adjusted EBITDA | $ | (4,817 | ) | $ | 231 | $ | (12,875 | ) | $ | (10,494 | ) | ||||
| ________________ | |
| (1) | In fiscal 2024, we sold our Burlington, ON office in the first quarter and recorded a gain of |
| (2) | Represents only the equity-settled portion of our stock-based compensation expense. |
| (3) | Restructuring costs excludes equity-settled stock-based compensation expense incurred in conjunction with employee terminations. |
FAQ
What were Matrix Service Company's (MTRX) key financial results for Q4 2025?
What is Matrix Service Company's (MTRX) revenue guidance for fiscal 2026?
What is MTRX's current backlog and liquidity position as of June 2025?
What were the main challenges affecting MTRX's Q4 2025 performance?
How did MTRX's different segments perform in Q4 2025?
