Return to profit as Matrix Service (NASDAQ: MTRX) narrows 2026 revenue guidance
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Matrix Service Company reported fiscal 2026 third quarter revenue of $206.7 million and returned to profitability with net income of $0.8 million, or $0.03 per diluted share, compared with a loss a year ago.
Adjusted net income was $3.8 million and Adjusted EBITDA reached $4.9 million, reflecting stronger gross margins and lower SG&A. Liquidity was $297.2 million at March 31, 2026, including $233.0 million of cash and no outstanding debt. Backlog was $1.0 billion, supported by a project pipeline of more than $6.9 billion, though the quarterly book-to-bill ratio was 0.5x. The company updated fiscal 2026 revenue guidance to a range of $870 million to $890 million, still implying double‑digit growth over fiscal 2025.
Positive
- Return to profitability and stronger margins: Q3 2026 net income was $0.8 million versus a $3.4 million loss a year ago, with gross margin improving to 8.3% from 6.4% and Adjusted EBITDA increasing to $4.9 million from approximately break-even.
- Robust balance sheet and liquidity: Liquidity reached $297.2 million at March 31, 2026, including $233.0 million of cash and cash equivalents and $64.2 million of borrowing availability, with no outstanding debt, supporting ongoing operations and restructuring efforts.
- Guided double-digit full-year growth: Despite a modest guidance reduction, fiscal 2026 revenue is now expected at $870–$890 million, representing 13%–16% growth over fiscal 2025 revenue of $769.3 million.
Negative
- Lowered revenue outlook and soft awards: Fiscal 2026 revenue guidance was reduced from $875–$925 million to $870–$890 million, and Q3 book-to-bill was 0.5x with total project awards of $108.3 million versus $206.7 million of revenue.
- Segment pressure in Process and Industrial Facilities: This segment’s Q3 2026 revenue declined to $35.1 million from $45.4 million, and gross margin fell to 2.5% from 8.3%, impacted by work mix and settlement of a legacy legal matter.
- Ongoing restructuring costs: The company incurred $3.0 million of restructuring and related expenses in Q3 2026, and $6.5 million over the first nine months, tied to leadership transition and lease impairment, weighing on reported earnings.
Insights
Matrix returns to profit, strengthens margins, but trims 2026 revenue outlook.
Matrix Service Company delivered fiscal Q3 2026 revenue of $206.7 million, modestly above last year, but the key shift was profitability. Net income improved to $0.8 million from a loss, while gross margin expanded to 8.3% from 6.4%, driven mainly by the Storage and Terminal Solutions and Utility and Power Infrastructure segments.
Segment results show Storage and Terminal Solutions revenue up 16% to $111.6 million on higher LNG activity, and Utility and Power Infrastructure margins rising to 13.6%. Process and Industrial Facilities weakened, with revenue down and gross margin falling to 2.5%, partly due to a legacy legal settlement, highlighting mix and execution risk in that segment.
Backlog stood at $1.0 billion with a Q3 book‑to‑bill of 0.5x, reflecting slower awards in the period despite a more than $6.9 billion opportunity pipeline. Management lowered fiscal 2026 revenue guidance to $870‑$890 million, a small reduction from prior guidance but still 13‑16% above fiscal 2025. Strong liquidity of $297.2 million and no debt provide financial flexibility as leadership transitions to the incoming CEO and restructuring costs run through earnings.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q3 2026 revenue: $206.7 million
Q3 2026 net income: $0.8 million
Q3 2026 Adjusted EBITDA: $4.9 million
+5 more
8 metrics
Q3 2026 revenue
$206.7 million
Third quarter fiscal 2026 consolidated revenue
Q3 2026 net income
$0.8 million
Third quarter fiscal 2026 net income, $0.03 per diluted share
Q3 2026 Adjusted EBITDA
$4.9 million
Third quarter fiscal 2026 Adjusted EBITDA
Liquidity
$297.2 million
Total liquidity at March 31, 2026 including cash and credit availability
Backlog
$1.0 billion
Total backlog as of March 31, 2026
Fiscal 2026 revenue guidance
$870–$890 million
Updated full-year fiscal 2026 revenue outlook
Q3 2026 book-to-bill ratio
0.5x
Project awards of $108.3 million versus revenue recognized
Unrestricted cash
$233.0 million
Cash and cash equivalents at March 31, 2026
Key Terms
Adjusted EBITDA, backlog, book-to-bill ratio, non-GAAP financial measures, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA(1) of $4.9 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
backlog financial
"The Company’s backlog was $1.0 billion as of March 31, 2026."
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
book-to-bill ratio financial
"project awards totaled $108.3 million... resulting in a book-to-bill ratio of 0.5x"
The book-to-bill ratio compares the value of new orders a company receives to the value of products it ships out or bills for over a certain period. If the ratio is above 1, it means the company is getting more orders than it is completing, which can indicate growth. If it's below 1, it suggests demand is slowing down.
non-GAAP financial measures financial
"Adjusted net income and Adjusted EBITDA are non-GAAP financial measures"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
limited notice to proceed financial
"we also received a limited notice to proceed for a major mining project"
A limited notice to proceed is a short, partial green light from a client that lets a contractor begin specific early work—such as site preparation, ordering long‑lead materials, or hiring crews—before the full contract is signed. For investors it signals that a project is moving from planning toward execution, which can accelerate revenue timing but also exposes the company to early costs and schedule risk if the full contract terms change; think of it as starting the foundation before the final building permit paperwork is complete.
restructuring costs financial
"the Company incurred $3.0 million of restructuring costs and other expenses"
Restructuring costs are the immediate expenses a company incurs when reorganizing operations, such as closing facilities, laying off staff, breaking leases, or consolidating divisions. Investors care because these upfront outlays can lower short-term profits but may reduce future running costs or improve efficiency—like paying to renovate a house to make it cheaper to maintain—so they signal whether near-term earnings are being affected and what benefits might follow.
Earnings Snapshot
Revenue: $206.7 million · Guidance included
Q3 2026
Revenue
$206.7 million
Net income
$0.8 million
Adjusted net income
$3.8 million
Adjusted EBITDA
$4.9 million
Guidance
Fiscal 2026 revenue expected between $870 million and $890 million, implying 13%–16% growth over fiscal 2025.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
_________________
FORM 8-K
__________________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) May 6, 2026
___________________
(Exact Name of Registrant as Specified in Its Charter)
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NOT APPLICABLE
(Former Name or Former Address, if Changed Since Last Report)
__________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected to not use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 6, 2026 the Company issued a press release announcing financial results for the fiscal 2026 third quarter. The full text of the press release is attached as Exhibit 99 to this Current Report on Form 8-K. The information in this Item 2.02 and Exhibit 99 attached hereto is being furnished pursuant to Item 2.02 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99 | Press release dated May 6, 2026, announcing financial results for the fiscal 2026 third quarter. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Matrix Service Company | ||||||||||||||
| Dated: May 6, 2026 | By: | /s/ Kevin S. Cavanah | ||||||||||||
| Kevin S. Cavanah | ||||||||||||||
| Vice President and Chief Financial Officer | ||||||||||||||
Exhibit 99
MATRIX SERVICE COMPANY REPORTS FISCAL YEAR 2026 THIRD QUARTER RESULTS
TULSA, OK – May 6, 2026 – Matrix Service Company (Nasdaq: MTRX), a leading provider of engineering and construction services to the energy and industrial markets, today announced financial results for the third quarter of fiscal 2026 ended March 31, 2026.
THIRD QUARTER FISCAL 2026 HIGHLIGHTS
•Revenue of $206.7 million
•Net income of $0.8 million, or $0.03 per diluted share
•Adjusted net income(1) of $3.8 million, or $0.13 per diluted share
•Adjusted EBITDA(1) of $4.9 million
•Liquidity at March 31, 2026 of $297.2 million with no outstanding debt
•Total backlog of $1.0 billion, with awards of $108.3 million
•Updates fiscal 2026 revenue guidance in a range of between $870 million and $890 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.
MANAGEMENT COMMENTARY
"During the fiscal third quarter, our team demonstrated strong project execution and operational focus, culminating in a return to profitability," said John Hewitt, President and Chief Executive Officer.
“Although our third quarter revenue was affected by client-related engineering and permitting delays, as well as severe weather, our strong project execution and improved cost structure enabled us to achieve adjusted diluted earnings per share of $0.13.
“While the pace of new awards was subdued during the third quarter, among the awards are an increasing number that are related to high-demand verticals including more than $30 million in increased electrical infrastructure and grid-related investments being driven in part by data center demand. Subsequent to the close of the quarter, we also received a limited notice to proceed for a major mining project on the west coast, which will begin in Q4 of this fiscal year and support revenue throughout fiscal 2027.
“Overall bidding activity remained steady, and our project opportunity pipeline remains healthy at more than $6.9 billion, reflecting multi-year opportunities across our core LNG markets, mining and minerals, power generation, and data center–related infrastructure.
“Due to the combined impact of client and weather-related delays on booked work in the third quarter, we have elected to lower our full-year fiscal 2026 revenue guidance. These project activities will move into later periods. Our return to profitability marks an important inflection point as we remain focused on continuous improvement.
"Under the leadership and organizational vision of incoming President and CEO Shawn Payne, the business is undertaking further streamlining to assure it is well positioned to build on its strong legacy and deliver sustainable profitable growth and long-term value creation.”
1
FISCAL 2026 THIRD QUARTER CONSOLIDATED RESULTS
Fiscal 2026 third quarter revenue was $206.7 million, compared to $200.2 million in the third quarter of fiscal 2025. The increase in revenue for the quarter was attributable to higher revenue in the Storage and Terminal Solutions segment, partially offset by lower revenue in the Processing and Industrial Facilities segment and the impact of client-related delays and severe weather events in the quarter.
Gross profit was $17.2 million, or 8.3% of revenue, in the third quarter of fiscal 2026 compared to $12.9 million, or 6.4% of revenue, for the third quarter of fiscal 2025. The increase in gross margin was due to higher gross margins in the Storage and Terminal Solutions and Utility and Power Infrastructure segments, partially offset by lower gross margins in the Process and Industrial Facility segment.
SG&A expenses were $15.2 million in the third quarter of fiscal 2026, compared to $17.7 million for the third quarter of fiscal 2025. The decrease in SG&A expenses primarily reflects the reduction of costs associated with the Company's organizational realignment initiatives over the last 12 months. Additionally, stock compensation expense decreased by $1.0 million primarily as a result of executive separations during the period.
During the quarter, the Company incurred $3.0 million of restructuring costs and other expenses associated with the previously announced CEO leadership transition and a lease impairment.
For the third quarter of fiscal 2026, the Company had net income of $0.8 million, or $0.03 per share, compared to a net loss of $3.4 million, or $(0.12) per share, in the third quarter of fiscal 2025. Adjusted net income for the third quarter of fiscal 2026 was $3.8 million, or $0.13 per share, compared to adjusted net loss of $3.3 million, or $(0.12) per share in the third quarter of fiscal 2025. Adjusted EBITDA for the third quarter of fiscal 2026 was $4.9 million compared to $0.01 million for the third quarter of fiscal 2025.
FISCAL 2026 THIRD QUARTER SEGMENT RESULTS
Storage and Terminal Solutions segment revenue increased 16% to $111.6 million in the third quarter of fiscal 2026 compared to $96.1 million in the third quarter of fiscal 2025, due to higher LNG project activity. Gross margin was 7.0% in the third quarter of fiscal 2026, compared to 3.9% in the third quarter of fiscal 2025. Segment gross margin was driven by increased project activity, as well as improved project execution and fixed cost absorption.
Utility and Power Infrastructure segment revenue increased 2% to $60.0 million in the third quarter of fiscal 2026 compared to $58.7 million in the third quarter of fiscal 2025. Gross margin was 13.6% in the third quarter of fiscal 2026, compared to 9.4% for the third quarter of fiscal 2025, an increase of 4.2% due to improved project execution throughout the segment.
Process and Industrial Facilities segment revenue decreased to $35.1 million in the third quarter of fiscal 2026 compared to $45.4 million in the third quarter of fiscal 2025, primarily due to lower revenue volumes for thermal vacuum chambers, refinery work, and industrial facilities. Gross margin was 2.5% in the third quarter of fiscal 2026, compared to 8.3% for the third quarter of fiscal 2025, a decrease of 5.8%, primarily due to a mix of work and the settlement of a legacy legal matter.
BACKLOG
The Company’s backlog was $1.0 billion as of March 31, 2026. Project awards totaled $108.3 million in the third quarter of fiscal 2026, resulting in a book-to-bill ratio of 0.5x for the quarter. Project awards during the third quarter for fiscal 2026 were driven primarily by activity in the Utility and Power Infrastructure segment, which produced a book-to-bill ratio of 0.8x.
The table below summarizes our awards, book-to-bill ratios and backlog by segment for our third quarter ended March 31, 2026 (amounts are in thousands, except for book-to-bill ratios):
2
| Three Months Ended | Backlog as of | ||||||||||||||||||||||
| March 31, 2026 | |||||||||||||||||||||||
| Segment: | Awards | Book-to-Bill(1) | March 31, 2026 | ||||||||||||||||||||
Storage and Terminal Solutions | $ | 37,535 | 0.3x | $ | 747,322 | ||||||||||||||||||
Utility and Power Infrastructure | 46,633 | 0.8x | 189,447 | ||||||||||||||||||||
Process and Industrial Facilities | 24,135 | 0.7x | 91,898 | ||||||||||||||||||||
| Total | $ | 108,303 | 0.5x | $ | 1,028,667 | ||||||||||||||||||
(1)Calculated by dividing project awards by revenue recognized during the period.
BALANCE SHEET & LIQUIDITY
As of March 31, 2026, Matrix had total liquidity of $297.2 million. Liquidity is comprised of $233.0 million of unrestricted cash and cash equivalents and $64.2 million of borrowing availability under the credit facility. The Company also has $25.0 million of restricted cash to support the credit facility. As of March 31, 2026, the Company had no outstanding debt.
FISCAL YEAR 2026 FINANCIAL GUIDANCE
The following forward-looking guidance reflects the Company’s current expectations and beliefs as of May 6, 2026. 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, permitting, 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.
Today, Matrix provided an update to its fiscal year 2026 revenue guidance, representing a 2% decrease at the mid-point:
| Fiscal Year 2025 | Fiscal Year 2026 | Fiscal Year 2026 | ||||||||||||||||||||||||
| Actual | Previous Guidance | Current Guidance | % Increase | |||||||||||||||||||||||
| Revenue | $769.3 million | $875 - $925 million | $870 - $890 million | 13% - 16% | ||||||||||||||||||||||
CONFERENCE CALL DETAILS
In conjunction with the earnings release, Matrix Service Company will host a conference call with John R. Hewitt, President and CEO, Shawn P. Payne, COO and incoming 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 Thursday, May 7, 2026.
Investors and other interested parties can access a live audio-visual webcast using this webcast link: https://edge.media-server.com/mmc/p/ik8noh3t, 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/BIeb6cbc1edb2f434bb9be4da0d1fb5935 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.
3
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: 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
Director, Corporate Development and Investor Relations
T: 918-359-8249
Email: ir@matrixservicecompany.com
4
Matrix Service Company
Consolidated Statements of Income
(In thousands, except per share data)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | |||||||||||||||||||||||
| Revenue | $ | 206,709 | $ | 200,161 | $ | 629,101 | $ | 552,909 | ||||||||||||||||||
| Cost of revenue | 189,556 | 187,311 | 584,631 | 521,354 | ||||||||||||||||||||||
| Gross profit | 17,153 | 12,850 | 44,470 | 31,555 | ||||||||||||||||||||||
| Selling, general and administrative expenses | 15,215 | 17,726 | 46,661 | 53,592 | ||||||||||||||||||||||
| Restructuring costs and other | 2,986 | 124 | 6,536 | 124 | ||||||||||||||||||||||
| Operating loss | (1,048) | (5,000) | (8,727) | (22,161) | ||||||||||||||||||||||
| Other income (expense): | ||||||||||||||||||||||||||
| Interest expense | (85) | (134) | (330) | (368) | ||||||||||||||||||||||
| Interest income | 2,190 | 1,518 | 5,535 | 4,668 | ||||||||||||||||||||||
| Other | (187) | 182 | 67 | (313) | ||||||||||||||||||||||
| Income (loss) before income tax expense | 870 | (3,434) | (3,455) | (18,174) | ||||||||||||||||||||||
| Provision for federal, state and foreign income taxes | 35 | — | 267 | 16 | ||||||||||||||||||||||
| Net income (loss) | $ | 835 | $ | (3,434) | $ | (3,722) | $ | (18,190) | ||||||||||||||||||
| Basic income (loss) per common share | $ | 0.03 | $ | (0.12) | $ | (0.13) | $ | (0.66) | ||||||||||||||||||
| Diluted income (loss) per common share | $ | 0.03 | $ | (0.12) | $ | (0.13) | $ | (0.66) | ||||||||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||||||||
| Basic | 28,380 | 27,836 | 28,262 | 27,731 | ||||||||||||||||||||||
| Diluted | 28,533 | 27,836 | 28,262 | 27,731 | ||||||||||||||||||||||
5
Matrix Service Company
Consolidated Balance Sheets
(In thousands)
| March 31, 2026 | June 30, 2025 | |||||||||||||
| Assets | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 233,021 | $ | 224,641 | ||||||||||
| Accounts receivable, net of allowance for credit losses | 139,042 | 154,994 | ||||||||||||
| Costs and estimated earnings in excess of billings on uncompleted contracts | 24,917 | 29,764 | ||||||||||||
| Inventories | 6,009 | 5,917 | ||||||||||||
| Income taxes receivable | — | 110 | ||||||||||||
| Prepaid expenses and other current assets | 7,917 | 4,347 | ||||||||||||
| Assets held for sale | 1,128 | — | ||||||||||||
| Total current assets | 412,034 | 419,773 | ||||||||||||
| Restricted cash | 25,000 | 25,000 | ||||||||||||
| Property, plant and equipment, net | 37,255 | 42,097 | ||||||||||||
| Operating lease right-of-use assets | 14,030 | 17,827 | ||||||||||||
| Goodwill | 28,932 | 29,047 | ||||||||||||
| Other intangible assets, net of accumulated amortization | 12 | 555 | ||||||||||||
| Other assets, non-current | 99,287 | 65,957 | ||||||||||||
| Total assets | $ | 616,550 | $ | 600,256 | ||||||||||
6
Matrix Service Company
Consolidated Balance Sheets (continued)
(In thousands, except share data)
| March 31, 2026 | June 30, 2025 | |||||||||||||
| Liabilities and stockholders’ equity | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable | $ | 90,140 | $ | 80,453 | ||||||||||
| Billings on uncompleted contracts in excess of costs and estimated earnings | 340,704 | 323,593 | ||||||||||||
| Accrued wages and benefits | 16,266 | 18,961 | ||||||||||||
| Accrued insurance | 4,378 | 5,310 | ||||||||||||
| Operating lease liabilities | 4,584 | 4,441 | ||||||||||||
| Other accrued expenses | 4,125 | 3,617 | ||||||||||||
| Total current liabilities | 460,197 | 436,375 | ||||||||||||
| Deferred income taxes | 150 | 25 | ||||||||||||
| Operating lease liabilities | 14,110 | 16,986 | ||||||||||||
| Other liabilities, non-current | 2,673 | 4,154 | ||||||||||||
| Total liabilities | 477,130 | 457,540 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| Stockholders’ equity: | ||||||||||||||
Common stock — $0.01 par value; 60,000,000 shares authorized; 28,128,405 shares issued and outstanding at March 31, 2026; 27,888,217 shares issued and 27,610,486 shares outstanding as of June 30, 2025, respectively; | 281 | 279 | ||||||||||||
| Additional paid-in capital | 148,756 | 149,969 | ||||||||||||
| Retained earnings | 757 | 4,479 | ||||||||||||
| Accumulated other comprehensive loss | (10,374) | (9,403) | ||||||||||||
Treasury stock, at cost — 0 shares as of March 31, 2026 and 277,731 shares as of June 30, 2025; | — | (2,608) | ||||||||||||
| Total stockholders' equity | 139,420 | 142,716 | ||||||||||||
| Total liabilities and stockholders’ equity | $ | 616,550 | $ | 600,256 | ||||||||||
7
Matrix Service Company
Condensed Consolidated Statements of Cash Flows
(In thousands)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | ||||||||||||||||||||
| Operating activities: | |||||||||||||||||||||||
| Net income (loss) | $ | 835 | $ | (3,434) | $ | (3,722) | $ | (18,190) | |||||||||||||||
| Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | |||||||||||||||||||||||
| Depreciation and amortization | 2,011 | 2,513 | 6,704 | 7,538 | |||||||||||||||||||
| Stock-based compensation expense | 1,413 | 2,186 | 5,476 | 6,754 | |||||||||||||||||||
| Operating lease impairment due to restructuring | 886 | — | 2,415 | — | |||||||||||||||||||
| Gain on disposal of property, plant and equipment | (130) | (58) | (457) | (122) | |||||||||||||||||||
| Other | (103) | 127 | 236 | 108 | |||||||||||||||||||
| Changes in operating assets and liabilities increasing (decreasing) cash: | |||||||||||||||||||||||
| Accounts receivable, net of allowance for credit losses | 60,918 | (69,872) | (16,042) | (88,802) | |||||||||||||||||||
| Costs and estimated earnings in excess of billings on uncompleted contracts | 366 | (3,856) | 4,847 | (4,674) | |||||||||||||||||||
| Inventories | 853 | 768 | (92) | 2,450 | |||||||||||||||||||
| Other assets and liabilities | 2,575 | 1,843 | (5,311) | (5,120) | |||||||||||||||||||
| Accounts payable | 1,510 | (1,519) | 9,152 | 12,955 | |||||||||||||||||||
| Billings on uncompleted contracts in excess of costs and estimated earnings | (42,193) | 95,120 | 17,111 | 161,349 | |||||||||||||||||||
| Accrued expenses | 5,221 | 7,429 | (4,600) | 2,517 | |||||||||||||||||||
| Net cash provided by operating activities | 34,162 | 31,247 | 15,717 | 76,763 | |||||||||||||||||||
| Investing activities: | |||||||||||||||||||||||
| Capital expenditures | (917) | (2,566) | (4,104) | (5,425) | |||||||||||||||||||
| Proceeds from sale of property, plant and equipment | 999 | 74 | 1,483 | 237 | |||||||||||||||||||
| Net cash provided (used) by investing activities | 82 | (2,492) | (2,621) | (5,188) | |||||||||||||||||||
| Financing activities: | |||||||||||||||||||||||
| Payment of debt amendment fees | — | — | (149) | — | |||||||||||||||||||
| Proceeds from issuance of common stock under employee stock purchase plan | 46 | 47 | 144 | 149 | |||||||||||||||||||
| Payments related to tax withholding for stock-based compensation | — | — | (4,223) | (1,235) | |||||||||||||||||||
| Net cash provided (used) by financing activities | 46 | 47 | (4,228) | (1,086) | |||||||||||||||||||
| Effect of exchange rate changes on cash | (233) | (38) | (488) | (563) | |||||||||||||||||||
| Net increase in cash and cash equivalents | 34,057 | 28,764 | 8,380 | 69,926 | |||||||||||||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 223,964 | 181,777 | 249,641 | 140,615 | |||||||||||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 258,021 | $ | 210,541 | $ | 258,021 | $ | 210,541 | |||||||||||||||
| Supplemental disclosure of cash flow information: | |||||||||||||||||||||||
| Cash paid during the period for: | |||||||||||||||||||||||
| Income taxes | $ | 60 | $ | 21 | $ | 94 | $ | 39 | |||||||||||||||
| Interest | $ | 80 | $ | 84 | $ | 300 | $ | 316 | |||||||||||||||
8
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 March 31, 2026 | |||||||||||||||||||||||||||||
Total revenues (1) | $ | 111,621 | $ | 59,963 | $ | 35,125 | $ | — | $ | 206,709 | |||||||||||||||||||
| Cost of revenue | (103,849) | (51,801) | (34,238) | 332 | (189,556) | ||||||||||||||||||||||||
| Gross profit (loss) | 7,772 | 8,162 | 887 | 332 | 17,153 | ||||||||||||||||||||||||
| Selling, general and administrative expenses | 5,312 | 2,074 | 1,503 | 6,326 | 15,215 | ||||||||||||||||||||||||
| Restructuring costs and other | 4 | 902 | 94 | 1,986 | 2,986 | ||||||||||||||||||||||||
| Operating income (loss) | $ | 2,456 | $ | 5,186 | $ | (710) | $ | (7,980) | $ | (1,048) | |||||||||||||||||||
(1) Total revenues are net of inter-segment revenues which are primarily Storage and Terminal Solutions and were $1.4 million for the three months ended March 31, 2026. | |||||||||||||||||||||||||||||
| Storage and Terminal Solutions | Utility and Power Infrastructure | Process and Industrial Facilities | Corporate | Total | |||||||||||||||||||||||||
| Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||||
Total revenue (1) | $ | 96,054 | $ | 58,676 | $ | 45,431 | $ | — | $ | 200,161 | |||||||||||||||||||
| Cost of revenue | (92,323) | (53,139) | (41,672) | (177) | (187,311) | ||||||||||||||||||||||||
| Gross profit (loss) | 3,731 | 5,537 | 3,759 | (177) | 12,850 | ||||||||||||||||||||||||
| Selling, general and administrative expenses | 6,344 | 2,536 | 2,142 | 6,704 | 17,726 | ||||||||||||||||||||||||
| Restructuring costs and other | — | 124 | — | — | 124 | ||||||||||||||||||||||||
| Operating income (loss) | $ | (2,613) | $ | 2,877 | $ | 1,617 | $ | (6,881) | $ | (5,000) | |||||||||||||||||||
(1) Total revenues are net of inter-segment revenues which are primarily Process and Industrial Facilities and were $1.1 million for the three months ended March 31, 2025. | |||||||||||||||||||||||||||||
| Storage and Terminal Solutions | Utility and Power Infrastructure | Process and Industrial Facilities | Corporate | Total | |||||||||||||||||||||||||
| Nine Months Ended March 31, 2026 | |||||||||||||||||||||||||||||
Total revenue (1) | $ | 320,932 | $ | 209,870 | $ | 98,299 | $ | — | $ | 629,101 | |||||||||||||||||||
| Cost of revenue | (301,909) | (187,696) | (94,764) | (262) | (584,631) | ||||||||||||||||||||||||
| Gross profit (loss) | 19,023 | 22,174 | 3,535 | (262) | 44,470 | ||||||||||||||||||||||||
| Selling, general and administrative expenses | 16,283 | 7,293 | 4,383 | 18,702 | 46,661 | ||||||||||||||||||||||||
| Restructuring costs and other | 1,882 | 1,576 | 870 | 2,208 | 6,536 | ||||||||||||||||||||||||
| Operating income (loss) | $ | 858 | $ | 13,305 | $ | (1,718) | $ | (21,172) | $ | (8,727) | |||||||||||||||||||
(1) Total revenues are net of inter-segment revenues which are primarily Storage and Terminal Solutions and were $3.0 million for the nine months ended March 31, 2026. | |||||||||||||||||||||||||||||
| Storage and Terminal Solutions | Utility and Power Infrastructure | Process and Industrial Facilities | Corporate | Total | |||||||||||||||||||||||||
| Nine Months Ended March 31, 2025 | |||||||||||||||||||||||||||||
Total revenue (1) | $ | 269,800 | $ | 175,664 | $ | 107,445 | $ | — | $ | 552,909 | |||||||||||||||||||
| Cost of revenue | (254,100) | (165,411) | (101,319) | (524) | (521,354) | ||||||||||||||||||||||||
| Gross profit (loss) | 15,700 | 10,253 | 6,126 | (524) | 31,555 | ||||||||||||||||||||||||
| Selling, general and administrative expenses | 17,480 | 10,073 | 5,585 | 20,454 | 53,592 | ||||||||||||||||||||||||
| Restructuring costs and other | — | 124 | — | — | 124 | ||||||||||||||||||||||||
| Operating income (loss) | $ | (1,780) | $ | 56 | $ | 541 | $ | (20,978) | $ | (22,161) | |||||||||||||||||||
(1) Total revenues are net of inter-segment revenues which are primarily Process and Industrial Facilities and were $2.8 million for the nine months ended March 31, 2025 | |||||||||||||||||||||||||||||
9
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 March 31, 2026
| Storage and Terminal Solutions | Utility and Power Infrastructure | Process and Industrial Facilities | Total | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Backlog as of December 31, 2025 | $ | 821,408 | $ | 202,777 | $ | 102,888 | $ | 1,127,073 | |||||||||||||||
| Project awards | 37,535 | 46,633 | 24,135 | 108,303 | |||||||||||||||||||
| Revenue recognized | (111,621) | (59,963) | (35,125) | (206,709) | |||||||||||||||||||
| Backlog as of March 31, 2026 | $ | 747,322 | $ | 189,447 | $ | 91,898 | $ | 1,028,667 | |||||||||||||||
Book-to-Bill Ratio(1) | 0.3x | 0.8x | 0.7x | 0.5x | |||||||||||||||||||
(1)Calculated by dividing project awards by revenue recognized.
Nine Months Ended March 31, 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 | 298,159 | 97,172 | 77,288 | 472,619 | |||||||||||||||||||
Other adjustment(2) | — | (44,239) | (152,720) | (196,959) | |||||||||||||||||||
| Revenue recognized | (320,932) | (209,870) | (98,299) | (629,101) | |||||||||||||||||||
| Backlog as of March 31, 2026 | $ | 747,322 | $ | 189,447 | $ | 91,898 | $ | 1,028,667 | |||||||||||||||
| Book-to-Bill Ratio | 0.9x | 0.5x | 0.8x | 0.8x | |||||||||||||||||||
(1)Calculated by dividing project awards by revenue recognized.
(2)Previous project awards removed from backlog.
10
Non-GAAP Financial Measures
Adjusted Net Income (Loss)
We have presented Adjusted net income (loss), which we define as Net income (loss) before Restructuring costs and other expenses, and the tax impact of this adjustment, because we believe it better depicts our core operating results. We believe 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 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 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. Our 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 | Nine Months Ended | |||||||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | |||||||||||||||||||||||
| Net income (loss), as reported | $ | 835 | $ | (3,434) | $ | (3,722) | $ | (18,190) | ||||||||||||||||||
| Restructuring costs and other | 2,986 | 124 | 6,536 | 124 | ||||||||||||||||||||||
Tax impact of adjustments and other net tax items(1) | — | — | — | — | ||||||||||||||||||||||
| Adjusted net income (loss) | $ | 3,821 | $ | (3,310) | $ | 2,814 | $ | (18,066) | ||||||||||||||||||
| Income (loss) per fully diluted share, as reported | $ | 0.03 | $ | (0.12) | $ | (0.13) | $ | (0.66) | ||||||||||||||||||
| Adjusted income (loss) per fully diluted share | $ | 0.13 | $ | (0.12) | $ | 0.10 | $ | (0.65) | ||||||||||||||||||
(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.
11
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 cash invested in certain investment 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 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.
12
A reconciliation of Net loss to Adjusted EBITDA follows:
Reconciliation of Net Loss to Adjusted EBITDA
(In thousands)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | ||||||||||||||||||||
| Net income (loss) | $ | 835 | $ | (3,434) | $ | (3,722) | $ | (18,190) | |||||||||||||||
| Interest expense | 85 | 134 | 330 | 368 | |||||||||||||||||||
| Interest income | (2,190) | (1,518) | (5,535) | (4,668) | |||||||||||||||||||
| Provision for federal, state and foreign income taxes | 35 | — | 267 | 16 | |||||||||||||||||||
| Depreciation and amortization | 2,011 | 2,513 | 6,704 | 7,538 | |||||||||||||||||||
Restructuring costs and other(2) | 2,686 | 124 | 6,236 | 124 | |||||||||||||||||||
Stock-based compensation(1) | 1,413 | 2,186 | 5,476 | 6,754 | |||||||||||||||||||
| Adjusted EBITDA | $ | 4,875 | $ | 5 | $ | 9,756 | $ | (8,058) | |||||||||||||||
(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.
13
FAQ
How did Matrix Service Company (MTRX) perform in fiscal Q3 2026?
Matrix Service Company returned to profitability in fiscal Q3 2026, reporting net income of $0.8 million, or $0.03 per diluted share. Revenue reached $206.7 million, up from $200.2 million a year earlier, supported by stronger margins in Storage and Terminal Solutions and Utility and Power Infrastructure.
What were Matrix Service Company (MTRX) revenue and profit metrics for Q3 2026?
For Q3 2026, Matrix Service Company generated revenue of $206.7 million and gross profit of $17.2 million, an 8.3% margin. Net income was $0.8 million, while adjusted net income was $3.8 million and Adjusted EBITDA totaled $4.9 million, indicating improved underlying performance.
What is Matrix Service Company (MTRX) fiscal 2026 revenue guidance?
Matrix Service Company now expects fiscal 2026 revenue between $870 million and $890 million. This updates prior guidance of $875 million to $925 million but still represents 13% to 16% growth over fiscal 2025 revenue of $769.3 million, based on current project visibility.
How strong is Matrix Service Company (MTRX) liquidity and debt position?
As of March 31, 2026, Matrix Service Company had total liquidity of $297.2 million, including $233.0 million of unrestricted cash and $64.2 million of borrowing availability. The company reported no outstanding debt and held $25.0 million of restricted cash supporting its credit facility.
What was Matrix Service Company (MTRX) backlog and book-to-bill ratio in Q3 2026?
Backlog totaled $1.0 billion at March 31, 2026, with segment balances led by Storage and Terminal Solutions at $747.3 million. Q3 2026 project awards were $108.3 million, producing a consolidated book-to-bill ratio of 0.5x, indicating awards below quarterly revenue levels.
Which Matrix Service Company (MTRX) segments drove Q3 2026 results?
The Storage and Terminal Solutions segment grew revenue 16% to $111.6 million with margin of 7.0%, supported by LNG projects. Utility and Power Infrastructure delivered $60.0 million of revenue with 13.6% margin, while Process and Industrial Facilities faced lower revenue and margin pressure.