Group 1 - The article does not provide any specific content related to a company or industry [1]

Revenue and Profitability - Revenue for the first quarter of fiscal 2026 increased by $46.3 million, or 28%, compared to the first quarter of fiscal 2025, driven by higher volumes in the Storage and Terminal Solutions and Utility and Power Infrastructure segments [62][77]. - Gross profit rose by $6.4 million, or 82%, in the first quarter of fiscal 2026, with a gross margin of 6.7%, up from 4.7% in the same period last year [78]. - Total revenue for the three months ended September 30, 2025, was $211.9 million, an increase of $46.3 million, or 28%, compared to $165.6 million in the same period last year [82]. - Total gross profit increased by $6.4 million, or 82%, reaching $14.2 million for the three months ended September 30, 2025 [82]. - The company reported a net loss of $3.7 million for the first quarter of fiscal 2026, a 60% improvement compared to a net loss of $9.2 million in the same quarter of the previous year [77]. Project Awards and Backlog - Project awards during the quarter totaled $187.8 million, resulting in a book-to-bill ratio of 0.9x, with significant contributions from the Storage and Terminal Solutions segment [63][67]. - Backlog as of September 30, 2025, was $1,161 million, down from $1,382 million as of June 30, 2025, primarily due to revenue recognized and adjustments in project awards [67]. - The Storage and Terminal Solutions segment booked $136.1 million in project awards, indicating strong demand for storage infrastructure projects related to LNG and NGLs [69]. - The Utility and Power Infrastructure segment secured $34.7 million in project awards, although backlog was impacted by the removal of a previously awarded project due to increased risk [70]. - The Process and Industrial Facilities segment recorded $16.9 million in project awards, with ongoing opportunities in mining, chemicals, and renewable fuels [73]. Expenses and Cost Management - Selling, general and administrative expenses decreased by $2.2 million, or 12%, due to cost reductions from organizational realignment [79]. - The company incurred $3.3 million in restructuring costs during the first quarter of fiscal 2026 related to organizational restructuring [79]. - The company initiated a restructuring effort in the fourth quarter of fiscal 2025 to improve efficiency and align with market conditions, aiming to reduce overall cost structure [64]. Cash Flow and Liquidity - Unrestricted cash and cash equivalents totaled $192.3 million as of September 30, 2025, with total liquidity of $248.9 million [90]. - Cash used by operating activities was $25.9 million for the three months ended September 30, 2025, compared to cash provided of $11.9 million in the same period last year [96]. - Accounts payable increased by $17.7 million, contributing positively to cash flows from operating activities [99]. - Inventories and other current assets increased by $9.1 million, negatively impacting cash flows from operating activities [99]. - Cash flows used by investing activities were $1.8 million and $1.9 million for the three months ended September 30, 2025, and 2024, respectively, primarily due to capital expenditures [100]. - Financing activities used $4.3 million and $1.2 million of cash in the three months ended September 30, 2025, and 2024, respectively, mainly for tax withholding obligations related to stock-based compensation [101]. Financial Instruments and Risk Management - The ABL Facility has a maximum loan amount of $90.0 million, with availability under the facility totaling $56.6 million as of September 30, 2025 [95]. - As of September 30, 2025, there were $186.2 million of surety bonds in force, with $126.9 million expected to expire within the next 12 months [104]. - The company has never paid cash dividends on common stock, and future dividend payments will depend on financial condition and other relevant factors [102]. - The Stock Buyback Program allows for the repurchase of up to 2,707,175 shares, with 1,349,037 shares available for repurchase as of September 30, 2025 [103]. - There have been no material changes in critical accounting policies and estimates from those reported in the fiscal 2025 Annual Report [105]. - No material changes in market risk have been reported since the fiscal year ended June 30, 2025 [106].

Core Viewpoint - The comparison between Matrix Service (MTRX) and Aecom Technology (ACM) indicates that MTRX presents a better value opportunity for investors at this time [1]. Valuation Metrics - MTRX has a forward P/E ratio of 23.11, while ACM has a forward P/E of 23.30 [5]. - MTRX's PEG ratio is 1.28, compared to ACM's PEG ratio of 1.94, suggesting MTRX has a more favorable expected EPS growth rate [5]. - MTRX's P/B ratio is 3.02, significantly lower than ACM's P/B ratio of 6.48, indicating MTRX is more aligned with its book value [6]. Earnings Outlook - MTRX has a Zacks Rank of 2 (Buy), indicating a stronger improvement in its earnings outlook compared to ACM, which has a Zacks Rank of 4 (Sell) [3]. - MTRX holds a Value grade of A, while ACM has a Value grade of D, further supporting MTRX as the superior value option [6].

Core Insights - Matrix Service reported mixed results for Q3 2025, with revenue increasing by 28% year-over-year to $211.9 million, surpassing analyst expectations, but posted an adjusted loss of $0.01 per share, missing the consensus forecast of a profit of $0.02 [1] - Adjusted EBITDA fell 45.3% short of estimates, and free cash flow turned significantly negative at -$27.91 million compared to a positive $9.97 million in the same quarter last year [1] - Despite reaffirming full-year revenue guidance, the earnings miss and disappointing profitability metrics overshadowed the strong sales growth, leading to an 8.5% decline in stock price [1] Financial Performance - Q3 2025 revenue was $211.9 million, a 28% increase year-over-year [1] - Adjusted loss per share was $0.01, missing the expected profit of $0.02 [1] - Adjusted EBITDA fell significantly short of estimates, and free cash flow was -$27.91 million compared to $9.97 million in Q3 2024 [1] Market Reaction - The stock experienced an 8.5% drop following the earnings report, indicating that the market views this news as significant but not fundamentally altering its perception of the business [3] - Over the past year, Matrix Service's shares have shown volatility with 17 moves greater than 5% [3] Historical Context - In Q2 2025, the company reported revenue of $216.4 million, missing analyst estimates of $232.2 million, and posted an adjusted loss of $0.28 per share, which was a significant miss compared to expectations of a $0.02 profit [4] - The company guided for full-year revenue between $875 million and $925 million, with the midpoint falling below analysts' forecasts [4] Stock Performance - Year-to-date, Matrix Service shares are up 10%, but currently trading at $13.24 per share, which is 16.3% below its 52-week high of $15.82 [5] - An investment of $1,000 in Matrix Service shares five years ago would now be worth $1,613 [5]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $211.9 million, a 28% increase from $165.6 million in Q1 2025, driven by larger new construction projects [14] - Consolidated gross profit increased 82% to $14.2 million compared to $7.8 million in the prior year, with gross margin improving to 6.7% from 4.7% [14] - Net loss for Q1 2026 was $3.7 million, an improvement from a $9.2 million net loss in Q1 2025, with GAAP EPS loss narrowing to $0.13 from $0.33 [16] - Adjusted EBITDA was positive at $2.5 million compared to a loss of $5.9 million in the same quarter last year [16] Business Line Data and Key Metrics Changes - Storage and terminal solutions segment revenue was $109.5 million, a 40% increase from $78.2 million last year, representing 52% of consolidated revenue [17] - Utility and power infrastructure segment revenue increased 33% to $74.5 million, accounting for 35% of consolidated revenue, with gross profit rising 419% to $5.5 million [18] - Process industrial facility segment revenue decreased to $27.9 million from $31.4 million, representing 13% of consolidated revenue, with gross profit declining to $0.6 million [19] Market Data and Key Metrics Changes - Total opportunity pipeline is currently at $6.7 billion, primarily in storage and related facilities for LNG, NGLs, and ammonia [8] - Bidding activity remains healthy across segments, with a book-to-bill ratio of 0.9 and a total backlog of $1.2 billion [7][20] - The company anticipates a re-acceleration in award activity for larger multi-year projects starting in late fiscal 2026 [10] Company Strategy and Development Direction - The company emphasizes safety as a core value, which strengthens competitive edge and client relationships [4][5] - Focus areas include expanding markets, client base, and backlog in process and industrial facilities, with a disciplined approach to bidding and contracting [10][11] - The company is committed to disciplined capital allocation and aims to return to sustained profitability while targeting growth opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year revenue guidance of $875-$925 million based on strong backlog and first-quarter performance [6][23] - The company expects continued margin improvement as backlog converts to revenue, with a focus on execution excellence [12][23] - Management noted that the competitive landscape is not becoming tougher, as the removal of projects was due to client strategy changes rather than market conditions [26][28] Other Important Information - The company incurred $3.3 million in restructuring costs in Q1, with minimal costs expected for the remainder of fiscal 2026 [15][32] - Cash decreased to $217 million, with liquidity remaining strong at $249 million and no outstanding debt [20] Q&A Session Summary Question: Regarding the two projects removed from backlog - Management clarified that the removals were not indicative of a tougher competitive landscape but rather client strategy changes [26][28] Question: Timing for large project awards - Management indicated that larger projects take longer to develop, but they are tracking several opportunities and expect a re-acceleration in awards [29][30] Question: Impact of restructuring on break-even dynamics - Restructuring has lowered the break-even revenue point to $210-$215 million, improving earnings power [32] Question: Target projects within the gas power project space - The company has capabilities in gas power plant construction and anticipates increased project opportunities in this area [35][37] Question: Future backlog expectations - Management expects backlog to remain strong, with the recent removals viewed as one-off situations rather than a trend [39][40]

Group 1 - Matrix Service (MTRX) has shown a year-to-date return of 30.3%, significantly outperforming the average return of 4.2% for the Construction sector [4] - The Zacks Rank for Matrix Service is currently 2 (Buy), indicating a positive earnings outlook with a consensus estimate for full-year earnings increasing by 8% in the past quarter [3] - Matrix Service belongs to the Engineering - R and D Services industry, which has an average year-to-date return of 18.9%, further highlighting MTRX's strong performance [5] Group 2 - NWPX Infrastructure, another stock in the Construction sector, has a year-to-date return of 26.1% and also holds a Zacks Rank of 2 (Buy) [4][5] - The Building Products - Miscellaneous industry, which includes NWPX Infrastructure, has underperformed with a year-to-date return of -3% [6] - Investors should closely monitor both Matrix Service and NWPX Infrastructure for continued strong performance in the Construction sector [6]

INVESTOR PRESENTATION Q1 FY26 Results | November 2025 Safe Harbor Statement This presentation contains certain forward-looking statements concerning Matrix Service Company's operations, economic performance and management's best judgment as to what may occur in the future. The actual results for the current and future periods and other corporate developments will depend upon a number of economic, competitive and other influences, many of which are beyond the control of the Company, and any one of which, or ...

Core Points - Matrix Service Company has been awarded a contract by Delaware River Partners for the construction of a dual service full containment storage tank with a capacity of 100,000 m3 (630,000 barrels) for Liquid Ammonia or Liquid Propane Gas (LPG) [1] - The project is part of the Repauno Port and Rail Terminal development, aimed at enhancing storage capabilities to meet growing export demand for Natural Gas Liquids (NGLs) [2] - The construction is expected to create up to 300 local jobs and contribute to the transformation of the Delaware River industrial corridor into a logistics hub [2][3] Company Overview - Matrix Service Company is a leading specialty engineering and construction firm focused on providing infrastructure solutions across various end markets, emphasizing safety, quality, and integrity [3][4] - The company operates in three key segments: Storage and Terminal Solutions, Utility and Power Infrastructure, and Process and Industrial Facilities [4]

分组1 - Matrix Service reported a quarterly loss of $0.01 per share, better than the Zacks Consensus Estimate of a loss of $0.03, and a significant improvement from a loss of $0.33 per share a year ago, resulting in an earnings surprise of +66.67% [1] - The company posted revenues of $211.88 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 6.85%, and showing an increase from year-ago revenues of $165.58 million [2] - Matrix Service shares have increased approximately 27.6% since the beginning of the year, outperforming the S&P 500's gain of 15.1% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $215.85 million, and for the current fiscal year, it is $0.68 on revenues of $885.45 million [7] - The Zacks Industry Rank indicates that the Engineering - R and D Services sector is currently in the bottom 33% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8] 分组3 - The estimate revisions trend for Matrix Service was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]

Financial Performance - Fiscal 2026 first quarter revenue was $211.9 million, an increase of 28% compared to $165.6 million in the same period last year[5]. - Adjusted EBITDA for the first quarter of fiscal 2026 was $2.5 million, compared to a loss of $(5.9) million in the first quarter of fiscal 2025[9]. - The company reported a net loss of $3.7 million, or $(0.13) per share, an improvement from a net loss of $9.2 million, or $(0.33) per share, in the prior year[9]. - Gross margin improved to 6.7% in the first quarter of fiscal 2026, up from 4.7% in the same period last year[7]. - Operating income for the three months ended September 30, 2025, was a loss of $5,500,000, compared to a loss of $10,767,000 in the same period of 2024, showing an improvement in operational performance[39]. - Adjusted EBITDA for the three months ended September 30, 2025, was $2,461,000, compared to a loss of $5,880,000 for the same period in 2024[51]. - Net loss for the three months ended September 30, 2025, was $3,663,000, an improvement from a net loss of $9,223,000 in the prior year[51]. Revenue Breakdown - The Storage and Terminal Solutions segment revenue increased 40% to $109.5 million, driven by higher volumes for LNG storage and specialty vessel projects[10]. - The Utility and Power Infrastructure segment revenue increased 33% to $74.5 million, benefiting from increased work in power delivery and natural gas projects[11]. - The company recognized revenue of $211,884,000 during the three months ended September 30, 2025, which included $109,459,000 from Storage and Terminal Solutions, $74,501,000 from Utility and Power Infrastructure, and $27,924,000 from Industrial Facilities[39]. Backlog and Book-to-Bill Ratio - Total backlog as of September 30, 2025, was $1.2 billion, with project awards totaling $187.8 million, resulting in a book-to-bill ratio of 0.9x[13]. - The backlog as of September 30, 2025, was $1,161,020,000, down from $1,382,108,000 as of June 30, 2025, reflecting a decrease of approximately 16%[43]. - The book-to-bill ratio for the total projects was 0.9x for the three months ended September 30, 2025, indicating that project awards were lower than revenue recognized[43]. Expenses and Costs - SG&A expenses decreased to $16.3 million from $18.6 million due to cost reductions from organizational realignment[8]. - The company incurred restructuring costs of $3,348,000 during the three months ended September 30, 2025[47]. - Stock-based compensation expense was $1,921,000 in Q3 2025, down from $2,311,000 in Q3 2024[51]. - Depreciation and amortization expenses were $2,461,000 in Q3 2025, slightly down from $2,515,000 in Q3 2024[51]. Guidance and Liquidity - The company reaffirmed its full-year revenue guidance of between $875 million and $925 million, representing a 14% to 20% increase from fiscal 2025[18]. - Liquidity as of September 30, 2025, was $248.9 million, with no outstanding debt[16]. - Cash and cash equivalents at the end of the period were $217,307,000, down from $249,641,000 at the beginning of the period, reflecting a decrease of approximately 13%[37]. - Total current liabilities increased to $443,455,000 as of September 30, 2025, compared to $436,375,000 as of June 30, 2025[34]. Interest and Tax Provisions - Interest expense increased to $127,000 in Q3 2025 from $89,000 in Q3 2024[51]. - Interest income for Q3 2025 was $(1,802,000), compared to $(1,572,000) in Q3 2024[51]. - The provision for federal, state, and foreign income taxes was $69,000 in Q3 2025, with no provision reported in Q3 2024[51].