Group 1 - The article questions whether Mistras Group is as financially troubled as it appears, suggesting that there may be underlying strengths not immediately visible [1] - The market's perception of Mistras Group has been influenced by recent performance, indicating a potential mispricing of the company's stock [1] Group 2 - The analysis implies that there could be investment opportunities in Mistras Group if the company's fundamentals are stronger than current market sentiment suggests [1]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __ to __ Commission file number 001-34481 Mistras Group, Inc. (Exact name of registrant as specified in its charter) Delaware 22-3341267 (Sta ...

Financial Data and Key Metrics Changes - The company reported a record adjusted EBITDA of $24.1 million, up nearly 9% year over year, reflecting improved operating leverage and strategic execution [5][19][23] - Revenue for the second quarter was $185.4 million, consistent with the prior year after adjusting for exited operations, indicating a modest decline not related to market share loss [22][28] - Gross profit increased by $2.6 million, representing a 200 basis point expansion year over year to 29.1% [22][23] Business Line Data and Key Metrics Changes - The International segment demonstrated organic growth of over 14%, primarily driven by European operations [6] - The PCMS service offering within the Data Solutions business grew over 30% [6][19] - Aerospace and defense revenue grew by 7.4%, while industrials saw a 7.2% increase [6] Market Data and Key Metrics Changes - The oil and gas market experienced softness due to macroeconomic volatility, but a stronger second half is anticipated due to a robust backlog of turnaround work [6][19] - The power generation and transmission end market showed quarterly revenue growth of over 30% [14] Company Strategy and Development Direction - The company is focused on diversifying its business and enhancing profitability through strategic initiatives and customer engagement [10][20] - A five-year strategic roadmap, Vision 2030, is being developed to capitalize on growth opportunities across the organization [30] - The company aims to become a market leader in asset integrity and testing by leveraging integrated offerings and advanced technologies [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the energy market and the company's role in supporting energy transitions and infrastructure demands [7][20] - The company is committed to profitability and improving return on invested capital as a key measure of success [32] - Management acknowledged challenges in the midstream oil and gas sector but sees potential for recovery and growth [45][46] Other Important Information - The company has made structural improvements, including closing underperforming offices, which resulted in a revenue loss of approximately $3 million in Q2 [17] - The effective income tax rate for 2025 is anticipated to be around 25% [25] Q&A Session Summary Question: Guidance on revenue expectations - Management indicated that while EBITDA is expected to exceed last year's results, revenue guidance remains uncertain due to market volatility and exited operations [37][39] Question: Challenges in the midstream market - Management acknowledged increased competition and pricing pressures in the midstream sector but expressed confidence in future opportunities [45][46] Question: Customer engagement and relationship changes - The company is shifting from transactional relationships to strategic partnerships, focusing on aligning with customer needs and enhancing service offerings [48][51] Question: Gross profit margin sustainability - Management expects gross profit margins to sustain at current levels due to diversification and operational efficiencies [89][92] Question: New ERP system impact - The new ERP system is expected to improve efficiency and cash flow generation in the second half of the year as the company overcomes initial implementation challenges [93][96] Question: Future reorganization costs - Management anticipates moderate reorganization costs moving forward, with a focus on maintaining an agile and efficient organizational structure [102][104]

Financial Performance - Revenue decreased by 2.3% from $189.8 million in Q2 2024 to $185.4 million in Q2 2025[29, 31] - Gross profit increased from $51.3 million in Q2 2024 to $53.9 million in Q2 2025, resulting in a gross margin increase of 200 bps[31, 33] - Adjusted EBITDA increased by 9.0% from $22.1 million in Q2 2024 to $24.1 million in Q2 2025[29, 31] - Adjusted EBITDA margin increased by 130 bps from 11.7% in Q2 2024 to 13.0% in Q2 2025[29, 31, 33] - Net income decreased from $6.4 million in Q2 2024 to $3.0 million in Q2 2025[31] Revenue by Industry - Oil & Gas revenue decreased by 5.9% from $109.3 million in Q2 2024 to $102.8 million in Q2 2025[29] - Aerospace & Defense revenue increased by 7.4% from $22.3 million in Q2 2024 to $24.0 million in Q2 2025[29] - Power Generation & Transmission revenue increased significantly by 30.6% from $9.0 million in Q2 2024 to $11.8 million in Q2 2025[29] Cash Flow and Debt - Net cash provided by operating activities decreased from $5.1 million in 2024 to -$3.5 million in 2025 for the six months ended June 30[34] - Free cash flow decreased from -$6.9 million in 2024 to -$16.2 million in 2025 for the six months ended June 30[35] - Total gross debt increased from $169.6 million in 2024 to $189.4 million in 2025[36] - Total net debt increased from $151.3 million in 2024 to $168.8 million in 2025[36]

Company Performance - Mistras reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.17 per share, but down from $0.21 per share a year ago, representing an earnings surprise of +11.76% [1] - The company posted revenues of $185.41 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.19% and down from $189.77 million year-over-year [2] - Over the last four quarters, Mistras has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Mistras shares have declined approximately 12.7% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The current Zacks Rank for Mistras is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $185.69 million, and for the current fiscal year, it is $0.67 on revenues of $710.04 million [7] - The outlook for the Electronics - Miscellaneous Products industry, to which Mistras belongs, is currently in the bottom 38% of over 250 Zacks industries, which may impact stock performance [8]

Exhibit 99.1 • Revenue of $185.4 million, a decrease of 2.3%, yet flat giving effect to the exclusion of voluntary Laboratory consolidations • Gross profit of $53.9 million, up 5.1% or $2.6 million from $51.3 million, primarily due to an improved business mix and operating efficiencies; Gross profit margin of 29.1% as compared to 27.1%, an expansion of 200 basis points • Selling, general, and administrative ("SG&A") expenses of $39.8 million, up 10.0% or $3.6 million from $36.2 million, primarily due to for ...

Robust Quarterly Organic Revenue Growth in Aerospace & Defense and Industrial Markets, with a Significant Expansion in quarter-over-quarter Gross Profit Margin of 200 basis points, Generating Net Income of $3.0 million, and Achieving Adjusted EBITDA of $24.1 million for the Second Quarter of 2025 PRINCETON JUNCTION, N.J., Aug. 06, 2025 (GLOBE NEWSWIRE) -- MISTRAS Group, Inc. (NYSE: MG), a global leader in technology-enabled industrial asset integrity and testing solutions, reported financial results for its ...

PRINCETON JUNCTION, N.J., July 24, 2025 (GLOBE NEWSWIRE) -- MISTRAS Group, Inc. (MG: NYSE) has scheduled a conference call for Thursday, August 7, 2025, at 9:00 am Eastern Time to present its results for the second quarter of 2025. A press release with the second quarter results will be issued after the close of market on Wednesday, August 6, 2025. To listen to the live webcast of the conference call, visit the Investor Relations section of MISTRAS Group’s website at https://investors.mistrasgroup.com/. Ind ...

Core Insights - Mistras Group (NYSE: MG) shares have declined approximately 36% since its IPO nearly 16 years ago, contrasting with a significant gain from a simple investment in the S&P 500 index [1] Group 1 - Mistras Group's performance has underperformed the broader market, indicating potential challenges in its business model or market conditions [1]

Core Insights - MISTRAS Group, Inc. has appointed Cody Elliott as Vice President of Pipeline Data Solutions to enhance its inline inspection and integrity engineering services [1][2] - Cody Elliott brings 15 years of experience in the oil and gas industry, with a focus on asset integrity and a proven track record of driving double-digit growth [2][3] - The company aims to provide advanced inline inspection and integrity analytics across North America, helping operators manage risk and maintain regulatory compliance [3][4] Company Overview - MISTRAS Group, Inc. is a global leader in technology-enabled industrial asset integrity solutions, serving critical industries such as oil & gas, aerospace & defense, and civil infrastructure [6] - The company offers a diversified portfolio that includes non-destructive testing, pipeline inspections, and real-time condition monitoring, supported by proprietary management software for predictive analytics [6] - MISTRAS' integrated approach to pipeline integrity management allows clients to reduce risk, extend asset life, and make data-driven decisions [4][6]