Matrix Service Company Reports Fiscal Year 2026 Fourth Quarter and Full-Year Results
Matrix Service Company (MTRX) reported fiscal 2026 Q4 revenue of $244.5 million and net income of $1.1 million, marking its highest quarterly revenue in six years and a return to quarterly profitability.
Rhea-AI Summary
Matrix Service Company (MTRX) reported fiscal 2026 Q4 revenue of $244.5 million and net income of $1.1 million, marking its highest quarterly revenue in six years and a return to quarterly profitability.
Q4 revenue rose from $216.4 million, driven by a 43% increase in Storage and Terminal Solutions revenue to $137.4 million. Gross profit more than doubled to $19.5 million, with gross margin improving to 8.0%. Adjusted net income was $4.6 million, or $0.16 per share, and adjusted EBITDA was $6.3 million, versus a $4.8 million loss a year earlier. Total backlog reached $953.2 million, supported by $169.0 million of awards, including a major mining construction project that produced a 3.2x book-to-bill in Process and Industrial Facilities. Liquidity totaled $283.9 million, including $223.0 million of cash and $60.9 million of credit availability, with no outstanding debt at June 30, 2026. Full-year revenue increased to $873.6 million and adjusted EBITDA improved to $16.0 million, though the company still recorded a net loss of $2.6 million.
Positive
- Q4 revenue $244.5 million vs. $216.4 million; highest in six years
- Q4 net income $1.1 million vs. $(11.3) million loss in prior-year quarter
- Q4 adjusted EBITDA $6.3 million vs. $(4.8) million, second consecutive profitable quarter
- Full-year revenue $873.6 million vs. $769.3 million; adjusted EBITDA $16.0 million vs. $(12.9) million
- Liquidity $283.9 million, including $223.0 million cash and $60.9 million credit availability, with no outstanding debt
- Backlog $953.2 million, including large mining project; Process and Industrial Facilities awards $108.0 million with 3.2x book-to-bill
Negative
- Full-year net loss $(2.6) million, or $(0.09) per share, despite improvement from prior year
- Restructuring costs $3.4 million in Q4 and $10.0 million for fiscal 2026, pressuring operating results
- Process and Industrial Facilities Q4 revenue down to $33.6 million from $47.3 million, with gross margin declining to 2.9% from 5.9%
- Q4 total book-to-bill ratio 0.7x, as awards of $169.0 million trailed revenue
- Retained earnings decreased to $1.9 million from $4.5 million year over year
News Explained
Matrix reported fiscal 2026 results through
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 18 | Earnings date announcement | Neutral | -1.9% | Announced fiscal fourth-quarter results date and conference call timing. |
| May 21 | Conference participation | Neutral | -0.9% | Announced senior leadership participation in the Stifel Cross-Sector Insight Conference. |
| May 06 | Third-quarter earnings | Positive | -11.9% | Reported quarterly profitability but lowered full-year fiscal revenue guidance. |
| Apr 30 | CFO transition | Neutral | +0.0% | Announced the CFO's planned departure and commencement of an executive search. |
| Apr 21 | Earnings date announcement | Neutral | +0.1% | Set the fiscal third-quarter results release and conference call dates. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The May 6 earnings release was followed by a -11.88% reaction despite reported profitability, while the other listed events were neutral announcements with smaller reactions.
Key Terms
adjusted ebitda financial
non-gaap financial measures financial
book-to-bill ratio financial
abl facility financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
HOUSTON, Sept. 02, 2026 (GLOBE NEWSWIRE) -- Matrix Service Company (Nasdaq: MTRX, "Matrix" or "the Company"), a leading heavy industrial contractor that engineers, constructs, and maintains critical energy, power, and industrial infrastructure, today announced financial results for the fourth quarter of fiscal 2026 ended June 30, 2026.
FOURTH QUARTER FISCAL 2026 HIGHLIGHTS
(all comparisons versus the prior year period unless otherwise noted)
- Revenue of
$244.5 million versus$216.4 million ; highest quarterly revenue in six years - Net income of
$1.1 million , or$0.04 per share versus net loss of$(11.3) million or$(0.40) per share - Adjusted net income(1) of
$4.6 million , or$0.16 per share versus adjusted net loss of$(7.8) million , or$(0.28) loss per share; second consecutive quarter of profitability - Adjusted EBITDA(1) of
$6.3 million versus$(4.8) million - Liquidity(2) at June 30, 2026 of
$283.9 million with no outstanding debt - Total backlog of
$953.2 million , with awards of$169.0 million
FULL-YEAR FISCAL 2026 RESULTS
(all comparisons versus the prior year period unless otherwise noted)
- Revenue of
$873.6 million versus$769.3 million - Net loss per share of
$(0.09) versus$(1.06) ; adjusted net income (loss) per share of$0.26 versus$(0.93) - Adjusted EBITDA of
$16.0 million versus$(12.9) million
(1) Adjusted net income and adjusted net income per diluted share are non-GAAP financial measures which exclude restructuring expense, Adjusted EBITDA is a non-GAAP financial measure which excludes interest expense, interest income, income taxes, depreciation and amortization expense, restructuring expense, and stock-based compensation. See the Non-GAAP Financial Measures section included at the end of this release for a reconciliation to net income and net income per share.
(2) Liquidity includes unrestricted cash, cash equivalents and borrowing availability under a
MANAGEMENT COMMENTARY
“Our fourth quarter results reflect the continued execution of our WIN, EXECUTE, DELIVER strategy. The combination of strong project execution, a more efficient cost structure, and a disciplined focus on the initiatives that matter most resulted in our second consecutive quarter of profitable growth," stated Shawn P. Payne, President and Chief Executive Officer. "Revenue grew
“Matrix is focused on high-value opportunities, prioritizing backlog growth across our targeted end-markets,” continued Payne. “We secured nearly
"Fiscal 2026 was a pivotal year for Matrix," concluded Payne. "Our opportunity pipeline has grown to over
FISCAL 2026 FOURTH QUARTER CONSOLIDATED RESULTS
Fiscal 2026 fourth quarter revenue was
Gross profit was
SG&A expenses were
During the quarter, the Company incurred
For the fourth quarter of fiscal 2026, the Company had net income of
FISCAL 2026 FOURTH QUARTER SEGMENT RESULTS
Storage and Terminal Solutions segment revenue increased
Utility and Power Infrastructure segment revenue was
Process and Industrial Facilities segment revenue decreased to
BACKLOG
Total backlog was
The table below summarizes awards, book-to-bill ratios and backlog by segment for the fourth quarter ended June 30, 2026 (amounts are in thousands, except for book-to-bill ratios):
| Three Months Ended | ||||||||
| June 30, 2026 | Backlog as of | |||||||
| Segment: | Awards | Book-to-Bill(1) | June 30, 2026 | |||||
| Storage and Terminal Solutions | $ | 31,201 | 0.2x | $ | 641,159 | |||
| Utility and Power Infrastructure | 29,805 | 0.4x | 145,732 | |||||
| Process and Industrial Facilities | 108,036 | 3.2x | 166,287 | |||||
| Total | $ | 169,042 | 0.7x | $ | 953,178 | |||
_______________
(1) Calculated by dividing project awards by revenue recognized during the period.
BALANCE SHEET & LIQUIDITY
As of June 30, 2026, Matrix had total liquidity of
CONFERENCE CALL DETAILS
In conjunction with the earnings release, Matrix Service Company will host a conference call with Shawn P. Payne, President and CEO, Kevin S. Cavanah, Vice President and CFO, and Patrick Roberts, Director, Corporate Development and Investor Relations. The call will take place at 10:30 a.m. (Eastern) / 9:30 a.m. (Central) on Thursday, September 3, 2026.
Investors and other interested parties can access a live audio-visual webcast using this webcast link: https://edge.media-server.com/mmc/p/iaonjazk, 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 at https://register-conf.media-server.com/register/BIa70ac1007e5d4738bedd41c695baab7f at 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 heavy industrial contractor that engineers, constructs, and maintains critical energy, power, and industrial infrastructure. Our 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, power, 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 maintains its principle executive offices in Houston, Texas 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: Storage and Terminal Solutions, Utility and Power Infrastructure, and Process and Industrial Facilities.
To learn more about Matrix Service Company, visit matrixservicecompany.com
FORWARD-LOOKING STATEMENTS
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, financial guidance, sustained profitable growth 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.
Investors should note that the Company announces material financial information in SEC filings, press releases, presentations and public conference calls. Based on guidance from the SEC, the Company may use the Investors section of its website (www.matrixservicecompany.com) to communicate with investors, and the Company intends to post presentations there, among other things. It is possible that the financial and other information posted there could be deemed to be material information. The information on the Company’s website is not part of, and is not incorporated into, this release.
INVESTOR RELATIONS CONTACT
Patrick Roberts
Matrix Service Company
Director, Corporate Development and Investor Relations
T: 918-359-8249
Email: ir@matrixservicecompany.com
| Matrix Service Company | |||||||||||||||
| Consolidated Statements of Income | |||||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| Three Months Ended | Fiscal Years Ended | ||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||
| Revenue | $ | 244,531 | $ | 216,377 | $ | 873,632 | $ | 769,286 | |||||||
| Cost of revenue | 225,049 | 208,255 | 809,680 | 729,609 | |||||||||||
| Gross profit | 19,482 | 8,122 | 63,952 | 39,677 | |||||||||||
| Selling, general and administrative expenses | 16,946 | 17,581 | 63,607 | 71,173 | |||||||||||
| Restructuring costs and other | 3,427 | 3,448 | 9,963 | 3,572 | |||||||||||
| Operating loss | (891 | ) | (12,907 | ) | (9,618 | ) | (35,068 | ) | |||||||
| Other income (expense): | |||||||||||||||
| Interest expense | (107 | ) | (150 | ) | (437 | ) | (518 | ) | |||||||
| Interest income | 2,182 | 1,984 | 7,717 | 6,652 | |||||||||||
| Other | 47 | 249 | 114 | (64 | ) | ||||||||||
| Income (loss) before income tax expense | 1,231 | (10,824 | ) | (2,224 | ) | (28,998 | ) | ||||||||
| Provision for federal, state and foreign income taxes | 89 | 448 | 356 | 464 | |||||||||||
| Net income (loss) | $ | 1,142 | $ | (11,272 | ) | $ | (2,580 | ) | $ | (29,462 | ) | ||||
| Basic income (loss) per common share | $ | 0.04 | $ | (0.40 | ) | $ | (0.09 | ) | $ | (1.06 | ) | ||||
| Diluted income (loss) per common share | $ | 0.04 | $ | (0.40 | ) | $ | (0.09 | ) | $ | (1.06 | ) | ||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 28,392 | 27,884 | 28,295 | 27,769 | |||||||||||
| Diluted | 28,524 | 27,884 | 28,295 | 27,769 | |||||||||||
| Matrix Service Company | |||||
| Consolidated Balance Sheets | |||||
| (In thousands) | |||||
| June 30, 2026 | June 30, 2025 | ||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 222,966 | $ | 224,641 | |
| Accounts receivable, net of allowance for credit losses | 171,955 | 154,994 | |||
| Costs and estimated earnings in excess of billings on uncompleted contracts | 29,231 | 29,764 | |||
| Inventories | 6,190 | 5,917 | |||
| Income taxes receivable | 82 | 110 | |||
| Prepaid expenses and other current assets | 4,278 | 4,347 | |||
| Assets held for sale | 948 | — | |||
| Total current assets | 435,650 | 419,773 | |||
| Restricted cash | 25,000 | 25,000 | |||
| Property, plant and equipment, net | 36,261 | 42,097 | |||
| Operating lease right-of-use assets | 14,849 | 17,827 | |||
| Goodwill | 28,878 | 29,047 | |||
| Other intangible assets, net of accumulated amortization | — | 555 | |||
| Other assets, non-current | 61,967 | 65,957 | |||
| Total assets | $ | 602,605 | $ | 600,256 | |
| Matrix Service Company | |||||||
| Consolidated Balance Sheets (continued) | |||||||
| (In thousands, except share data) | |||||||
| June 30, 2026 | June 30, 2025 | ||||||
| Liabilities and stockholders’ equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 108,722 | $ | 80,453 | |||
| Billings on uncompleted contracts in excess of costs and estimated earnings | 299,947 | 323,593 | |||||
| Accrued wages and benefits | 19,158 | 18,961 | |||||
| Accrued insurance | 4,447 | 5,310 | |||||
| Operating lease liabilities | 4,363 | 4,441 | |||||
| Other accrued expenses | 5,779 | 3,617 | |||||
| Total current liabilities | 442,416 | 436,375 | |||||
| Deferred income taxes | 22 | 25 | |||||
| Operating lease liabilities | 15,094 | 16,986 | |||||
| Other liabilities, non-current | 3,218 | 4,154 | |||||
| Total liabilities | 460,750 | 457,540 | |||||
| Stockholders’ equity: | |||||||
| Common stock—0.01 par value; 60,000,000 shares authorized; 28,133,850 shares issued and outstanding as of June 30, 2026; 27,888,217 shares issued and 27,610,486 shares outstanding as of June 30, 2025, respectively | 281 | 279 | |||||
| Additional paid-in capital | 150,483 | 149,969 | |||||
| Retained earnings | 1,899 | 4,479 | |||||
| Accumulated other comprehensive loss | (10,808 | ) | (9,403 | ) | |||
| Treasury stock, at cost; 0 and 277,731 shares as of June 30, 2026 and June 30, 2025; | — | (2,608 | ) | ||||
| Total stockholders' equity | 141,855 | 142,716 | |||||
| Total liabilities and stockholders’ equity | $ | 602,605 | $ | 600,256 | |||
| Matrix Service Company | |||||||||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||||||||
| (In thousands) | |||||||||||||||
| Three Months Ended | Fiscal Years Ended | ||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||
| Operating activities: | |||||||||||||||
| Net income (loss) | $ | 1,142 | $ | (11,272 | ) | $ | (2,580 | ) | $ | (29,462 | ) | ||||
| Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | |||||||||||||||
| Depreciation and amortization | 1,936 | 2,474 | 8,640 | 10,012 | |||||||||||
| Stock-based compensation expense | 1,669 | 2,150 | 7,145 | 8,904 | |||||||||||
| Operating lease impairment due to restructuring | 520 | — | 2,935 | — | |||||||||||
| Loss (gain) on disposal of property, plant and equipment | (149 | ) | 130 | (606 | ) | 8 | |||||||||
| Other | (90 | ) | 126 | 146 | 234 | ||||||||||
| Changes in operating assets and liabilities increasing (decreasing) cash: | |||||||||||||||
| Accounts receivable, net of allowance for credit losses | 4,746 | 40,006 | (11,296 | ) | (48,796 | ) | |||||||||
| Costs and estimated earnings in excess of billings on uncompleted contracts | (4,314 | ) | 8,803 | 533 | 4,129 | ||||||||||
| Inventories | (181 | ) | 472 | (273 | ) | 2,922 | |||||||||
| Other assets and liabilities | 2,913 | 2,811 | (2,398 | ) | (2,309 | ) | |||||||||
| Accounts payable | 18,595 | 1,859 | 27,747 | 14,814 | |||||||||||
| Billings on uncompleted contracts in excess of costs and estimated earnings | (40,757 | ) | (9,064 | ) | (23,646 | ) | 152,285 | ||||||||
| Accrued expenses | 5,160 | 2,213 | 560 | 4,730 | |||||||||||
| Net cash provided (used) by operating activities | (8,810 | ) | 40,708 | 6,907 | 117,471 | ||||||||||
| Investing activities: | |||||||||||||||
| Capital expenditures | (1,379 | ) | (2,260 | ) | (5,483 | ) | (7,685 | ) | |||||||
| Proceeds from sale of property, plant and equipment | 459 | 3 | 1,942 | 240 | |||||||||||
| Net cash used by investing activities | (920 | ) | (2,257 | ) | (3,541 | ) | (7,445 | ) | |||||||
| Financing activities: | |||||||||||||||
| Payment of debt amendment fees | — | — | (149 | ) | — | ||||||||||
| Proceeds from issuance of common stock under employee stock purchase plan | 58 | 46 | 202 | 195 | |||||||||||
| Payments related to tax withholding for stock-based compensation | — | — | (4,223 | ) | (1,235 | ) | |||||||||
| Net cash provided (used) by financing activities | 58 | 46 | (4,170 | ) | (1,040 | ) | |||||||||
| Effect of exchange rate changes on cash | (383 | ) | 603 | (871 | ) | 40 | |||||||||
| Net increase (decrease) in cash and cash equivalents | (10,055 | ) | 39,100 | (1,675 | ) | 109,026 | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 258,021 | 210,541 | 249,641 | 140,615 | |||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 247,966 | $ | 249,641 | $ | 247,966 | $ | 249,641 | |||||||
| Supplemental disclosure of cash flow information: | |||||||||||||||
| Cash paid during the period for: | |||||||||||||||
| Income taxes | $ | 218 | $ | 289 | $ | 312 | $ | 328 | |||||||
| Interest | $ | 78 | $ | 79 | $ | 378 | $ | 395 | |||||||
| 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, 2026 | |||||||||||||||||||
| Total revenues (1) | $ | 137,364 | $ | 73,520 | $ | 33,647 | $ | — | $ | 244,531 | |||||||||
| Cost of revenue | (128,516 | ) | (64,102 | ) | (32,667 | ) | 236 | (225,049 | ) | ||||||||||
| Gross profit | 8,848 | 9,418 | 980 | 236 | 19,482 | ||||||||||||||
| Selling, general and administrative expenses | 5,808 | 2,096 | 1,683 | 7,359 | 16,946 | ||||||||||||||
| Restructuring costs and other | 767 | 279 | 149 | 2,232 | 3,427 | ||||||||||||||
| Operating income (loss) | $ | 2,273 | $ | 7,043 | $ | (852 | ) | $ | (9,355 | ) | $ | (891 | ) | ||||||
| (1) Total revenues are net of inter-segment revenues which are primarily Storage and Terminal Solutions and were | |||||||||||||||||||
| 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 and other | 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 | |||||||||||||||
| Fiscal Year Ended June 30, 2026 | |||||||||||||||||||
| Total revenue (1) | $ | 458,296 | $ | 283,390 | $ | 131,946 | $ | — | $ | 873,632 | |||||||||
| Cost of revenue | (430,425 | ) | (251,798 | ) | (127,431 | ) | (26 | ) | (809,680 | ) | |||||||||
| Gross profit | 27,871 | 31,592 | 4,515 | (26 | ) | 63,952 | |||||||||||||
| Selling, general and administrative expenses | 22,091 | 9,389 | 6,066 | 26,061 | 63,607 | ||||||||||||||
| Restructuring costs and other | 2,649 | 1,855 | 1,019 | 4,440 | 9,963 | ||||||||||||||
| Operating income (loss) | $ | 3,131 | $ | 20,348 | $ | (2,570 | ) | $ | (30,527 | ) | $ | (9,618 | ) | ||||||
| (1) Total revenues are net of inter-segment revenues which are primarily Storage and Terminal Solutions 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 and other | 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 | |||||||||||||||||||
Backlog
Matrix defines backlog as the total dollar amount of revenue that the Company expects to recognize as a result of performing work that has been awarded to the Company through a signed contract, limited notice to proceed or other type of assurance that the Company considers 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, the Company includes only the amounts that it expects to recognize as revenue over the next 12 months. For arrangements in which it has received a limited notice to proceed, the Company includes the entire scope of work in its backlog if it concludes that the likelihood of the full project proceeding has a high probability. For all other arrangements, Matrix calculates backlog as the estimated contract amount less revenue recognized as of the reporting date.
Three Months Ended June 30, 2026
| Storage and Terminal Solutions | Utility and Power Infrastructure | Process and Industrial Facilities | Total | ||||||||||||
| (In thousands) | |||||||||||||||
| Backlog as of March 31, 2026 | $ | 747,322 | $ | 189,447 | $ | 91,898 | $ | 1,028,667 | |||||||
| Project awards | 31,201 | 29,805 | 108,036 | 169,042 | |||||||||||
| Revenue recognized | (137,364 | ) | (73,520 | ) | (33,647 | ) | (244,531 | ) | |||||||
| Backlog as of June 30, 2026 | $ | 641,159 | $ | 145,732 | $ | 166,287 | $ | 953,178 | |||||||
| Book-to-Bill Ratio (1) | 0.2x | 0.4x | 3.2x | 0.7x | |||||||||||
(1) Calculated by dividing project awards by revenue recognized.
Fiscal Year Ended June 30, 2026
| Storage and Terminal Solutions | Utility and Power Infrastructure | Process and Industrial Facilities | Total | ||||||||||||
| (In thousands) | |||||||||||||||
| Backlog as of June 30, 2025 | $ | 770,095 | $ | 346,384 | $ | 265,629 | $ | 1,382,108 | |||||||
| Project awards | 329,360 | 126,977 | 185,324 | 641,661 | |||||||||||
| Other adjustment (2) | — | (44,239 | ) | (152,720 | ) | (196,959 | ) | ||||||||
| Revenue recognized | (458,296 | ) | (283,390 | ) | (131,946 | ) | (873,632 | ) | |||||||
| Backlog as of June 30, 2026 | $ | 641,159 | $ | 145,732 | $ | 166,287 | $ | 953,178 | |||||||
| Book-to-Bill Ratio (1) | 0.7x | 0.4x | 1.4x | 0.7x | |||||||||||
(1) Calculated by dividing project awards by revenue recognized.
(2) Previous project awards removed from backlog.
Non-GAAP Financial Measures
Adjusted Net Income (Loss)
Matrix has presented Adjusted net income (loss), which the Company defines as Net income (loss) before Restructuring costs and other expenses, and the tax impact of this adjustment, because the Company believes it better depicts its core operating results. The Company believes that the line item on our Consolidated Statements of Income entitled “Net income (loss)” is the most directly comparable GAAP measure to Adjusted net income (loss). Since Adjusted net income (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 income (loss) as an indicator of operating performance. Adjusted net income (loss), as Matrix calculates 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 the Company's cash needs. As Adjusted net income (loss) excludes certain financial information compared with Net income (loss), the most directly comparable GAAP financial measure, users of this financial information should consider the type of events and transactions that are excluded. The Company's non-GAAP performance measure, Adjusted net income (loss), has certain material limitations as follows:
- It does not include restructuring costs and other expenses. 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 income (loss) to Adjusted net income (loss) follows:
| Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) | ||||||||||||||
| (In thousands, except per share data) | ||||||||||||||
| Three Months Ended | Fiscal Years Ended | |||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||
| Net income (loss), as reported | $ | 1,142 | $ | (11,272 | ) | $ | (2,580 | ) | $ | (29,462 | ) | |||
| Restructuring costs and other | 3,427 | 3,448 | 9,963 | 3,572 | ||||||||||
| Tax impact of adjustments and other net tax items (1) | — | — | — | — | ||||||||||
| Adjusted net income (loss) | $ | 4,569 | $ | (7,824 | ) | $ | 7,383 | $ | (25,890 | ) | ||||
| Income (loss) per fully diluted share, as reported | $ | 0.04 | $ | (0.40 | ) | $ | (0.09 | ) | $ | (1.06 | ) | |||
| Adjusted income (loss) per fully diluted share | $ | 0.16 | $ | (0.28 | ) | $ | 0.26 | $ | (0.93 | ) | ||||
| (1) | 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
Matrix has presented Adjusted EBITDA, which the Company defines 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 the Company's performance and of evaluating the market value of companies considered to be in similar businesses. Matrix believes 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 the Company calculates 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 the Company's 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 the Company may borrow money to finance our operations and to acquire businesses, has paid commitment fees to maintain the Company's senior secured revolving credit facility, and has incurred fees to issue letters of credit under the senior secured revolving credit facility, interest expense is a necessary and ongoing part of the Company's costs and has assisted the Company in generating revenue. Therefore, any measure that excludes interest expense has material limitations.
- It does not include interest income. Because the Company has cash invested in certain investment accounts and has 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 the Company's operations, any measure that excludes income taxes has material limitations.
- It does not include depreciation or amortization expense. Because Matrix uses capital and intangible assets to generate revenue, depreciation and amortization expense is a necessary element of the Company's cost structure. Therefore, any measure that excludes depreciation or amortization expense has material limitations.
- 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 the Company's employees and directors for services rendered. While the expense is non-cash, the Company has historically released vested shares out of 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, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||
| Net income (loss) | $ | 1,142 | $ | (11,272 | ) | $ | (2,580 | ) | $ | (29,462 | ) | ||||
| Interest expense | 107 | 150 | 437 | 518 | |||||||||||
| Interest income | (2,182 | ) | (1,984 | ) | (7,717 | ) | (6,652 | ) | |||||||
| Provision for federal, state and foreign income taxes | 89 | 448 | 356 | 464 | |||||||||||
| Depreciation and amortization | 1,936 | 2,474 | 8,640 | 10,012 | |||||||||||
| Restructuring costs and other(2) | 3,512 | 3,217 | 9,748 | 3,341 | |||||||||||
| Stock-based compensation(1) | 1,669 | 2,150 | 7,145 | 8,904 | |||||||||||
| Adjusted EBITDA | $ | 6,273 | $ | (4,817 | ) | $ | 16,029 | $ | (12,875 | ) | |||||
(1) Represents only the equity-settled portion of our stock-based compensation expense.
(2) Restructuring costs excludes equity-settled stock-based compensation expense incurred in conjunction with employee terminations.
FAQ
How did Matrix Service Company (MTRX) perform in fiscal 2026 fourth quarter?
In Q4 fiscal 2026, Matrix reported revenue of $244.5 million and net income of $1.1 million, or $0.04 per share, compared to a $11.3 million net loss a year earlier. Adjusted net income was $4.6 million ($0.16 per share) and adjusted EBITDA was $6.3 million.
What were Matrix Service Company’s full-year fiscal 2026 results for MTRX?
For fiscal 2026, Matrix generated revenue of $873.6 million, up from $769.3 million in fiscal 2025. The company reported a net loss of $2.6 million, or $(0.09) per share, while adjusted net income per share was $0.26. Adjusted EBITDA improved to $16.0 million from a $(12.9) million loss.
What is Matrix Service Company’s liquidity and debt position as of June 30, 2026?
As of June 30, 2026, Matrix had total liquidity of $283.9 million, including $223.0 million of unrestricted cash and cash equivalents and $60.9 million of borrowing availability under its credit facility. The company reported no outstanding debt and held $25.0 million of restricted cash supporting the facility.
What is Matrix Service Company’s backlog and recent awards for MTRX?
Matrix reported total backlog of $953.2 million as of June 30, 2026. Q4 project awards totaled $169.0 million, yielding a total book-to-bill ratio of 0.7x. Awards were led by $108.0 million in Process and Industrial Facilities, including a major mining construction project in the western United States.
How did Matrix Service Company’s segments perform in Q4 fiscal 2026?
In Q4 2026, Storage and Terminal Solutions revenue rose 43% to $137.4 million with gross margin improving to 6.4%. Utility and Power Infrastructure revenue was $73.5 million with margin rising to 12.8%. Process and Industrial Facilities revenue fell to $33.6 million, with margin declining to 2.9%.
What was the book-to-bill ratio by segment for Matrix Service Company in Q4 2026?
For Q4 fiscal 2026, book-to-bill ratios were 0.2x for Storage and Terminal Solutions, 0.4x for Utility and Power Infrastructure, and 3.2x for Process and Industrial Facilities. The total company book-to-bill was 0.7x, based on $169.0 million of awards.
When is the Matrix Service Company Q4 2026 earnings conference call for MTRX and how can investors join?
The Q4 fiscal 2026 conference call is scheduled for Thursday, September 3, 2026, at 10:30 a.m. Eastern / 9:30 a.m. Central. Investors can join via a live webcast on the company’s Investor Relations Events & Presentations page or register online to receive dial-in details and a unique PIN.