Core Insights - Matrix Service Company will present at the Sidoti March Virtual Investor Conference on March 20, 2025, at 10:45 a.m. ET [1][2] - The company is a leading North American industrial engineering, construction, and maintenance contractor headquartered in Tulsa, Oklahoma, with a global presence [3] - Matrix Service Company operates in three key segments: Utility and Power Infrastructure, Process and Industrial Facilities, and Storage and Terminal Solutions [4] Company Overview - Matrix Service Company is recognized for its strong Environment, Social and Governance (ESG) practices and has been listed among the Top Contractors by Engineering-News Record [5] - The company emphasizes diversity and inclusion, being an active signatory to CEO Action for Diversity and Inclusion, and is recognized as a Great Place to Work® [5]

Revenue Performance - Revenue for the second quarter of fiscal 2025 increased by $12.1 million, or 7%, compared to the same period in fiscal 2024, driven by growth in the Storage and Terminal Solutions and Utility and Power Infrastructure segments[87]. - Total revenue for the three months ended December 31, 2024, was $187.2 million, a 7% increase from $175.0 million in the same period last year[93]. - For the six months ended December 31, 2024, total revenue was $352.7 million, a decrease of 5% from $372.7 million in the same period last year[104]. Project Awards and Backlog - Project awards during the second quarter totaled $90.5 million, marking the lowest quarterly awards in over three years due to customer spending delays related to the 2024 presidential election[73]. - Backlog as of December 31, 2024, decreased to $1.31 billion from $1.41 billion as of September 30, 2024, primarily due to revenue recognized exceeding project awards[76]. - The book-to-bill ratio for the total backlog was 0.5x for the quarter, indicating that project awards were less than revenue recognized[76]. - The company anticipates strong award activity in the coming quarters due to robust market drivers such as increased oil and gas demand and the clean energy transition[73]. Segment Performance - The Storage and Terminal Solutions segment booked $32.8 million in project awards during the second quarter, with significant opportunities in LNG and ammonia projects expected to drive growth[81]. - The Utility and Power Infrastructure segment secured $21.4 million in project awards during the second quarter, with a promising pipeline for LNG peak shaving projects[82]. - The Process and Industrial Facilities segment recorded $36.3 million in project awards during the second quarter, including a five-year renewal of a refinery maintenance contract[83]. - Storage and Terminal Solutions revenue rose by $33.1 million, or 53%, driven by increased work volume for specialty vessel and LNG storage[95]. - Utility and Power Infrastructure revenue increased by $20.9 million, or 52%, primarily due to higher volumes for LNG peak shaving projects[97]. - Process and Industrial Facilities revenue decreased by $40.7 million, or 57%, attributed to lower revenue volumes from completed projects[100]. - Utility and Power Infrastructure revenue for the six months increased by $44.4 million, or 61%, compared to the same period last year[113]. - Gross margin for Storage and Terminal Solutions improved to 6.9% for the six months ended December 31, 2024, compared to 4.5% in the same period last year[112]. - Process and Industrial revenues decreased by $84.4 million, or 58%, in the six months ended December 31, 2024 compared to the same period last year[115]. - Process and Industrial gross profit decreased by $9.4 million, or 80%, with a segment gross margin of 3.8% for the six months ended December 31, 2024, down from 8.0% in the same period last year[116]. Financial Metrics - The gross profit for the second quarter of fiscal 2025 was $10.9 million, with a gross margin of 5.8%, slightly down from 6.0% in the prior year due to under-recovery of construction overhead costs[88]. - Gross profit for the three months ended December 31, 2024, was $10.9 million, a slight increase of 3% from $10.6 million in the same period last year[94]. - The effective tax rate for the three months ended December 31, 2024, was (0.3%), impacted by valuation allowances on deferred tax assets[92]. Cash Flow and Liquidity - Unrestricted cash and cash equivalents totaled $156.8 million, with total liquidity of $211.7 million as of December 31, 2024, reflecting an increase of $30.4 million during the second quarter of fiscal 2025[119]. - Cash provided by operating activities for the six months ended December 31, 2024 totaled $45.5 million, despite a net loss of $14.8 million[126]. - Cash flows used by investing activities amounted to $2.7 million due to capital expenditures for facility improvements and construction equipment purchases[129]. - The company has an asset-based credit agreement with a maximum loan amount of $90.0 million, maturing on September 9, 2026, with a borrowing base of $59.7 million as of December 31, 2024[124][125]. - Factors impacting liquidity include changes in costs and estimated earnings on uncompleted contracts, contract disputes, and collection issues[122][124]. Corporate Actions - Selling, general and administrative expenses increased by $1.6 million, or 10%, attributed to higher salaries and project pursuit costs necessary for converting backlog to revenue[89]. - Legal expenses decreased by $2.2 million year over year, contributing to a net corporate revenue and expenses of $14.1 million during the six months ended December 31, 2024[117]. - 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 December 31, 2024[132]. - The company believes the reduction in revenue is temporary due to a strong backlog, including a significant gas processing construction project expected to commence in late fiscal 2025[115]. - Interest income increased by $1.4 million due to higher cash balances invested in interest-bearing accounts[90].

Financial Data and Key Metrics Changes - The company revised its fiscal 2025 revenue guidance from a range of $900 to $950 million to a range of $850 to $900 million, reflecting a 5% reduction at the midpoint [14] - Revenue for the second quarter was $187.2 million, an increase of 7% year-over-year and a 13% increase from the first quarter of fiscal 2025 [28] - The company reported a net loss of $5.5 million or $0.20 per share compared to a net loss of $2.9 million or $0.10 per share in the prior year [33] Business Line Data and Key Metrics Changes - The storage and terminal solutions segment revenue increased 53% to $95.5 million in the second quarter compared to $62.4 million in the prior year, with gross margin improving to 7.6% from 2.9% [34] - The utility and power infrastructure segment revenue increased 52% to $61.1 million, benefiting from higher volumes of work associated with LNG peak shaving projects, with gross margin rising to 5.6% from 3.5% [36] - The process and industrial facilities segment revenue decreased to $30.6 million from $71.3 million in the prior year, with gross margin dropping to 1.2% from 9.4% [37] Market Data and Key Metrics Changes - The opportunity pipeline increased from $5.7 billion to over $7 billion, primarily driven by LNG peak shaving opportunities [15][23] - Domestic LNG export capacity is projected to grow by 85%, reaching more than 21 billion cubic feet per day by 2028 [18] - The company expects more than $2.3 trillion of domestic infrastructure investment between now and 2030, which could significantly boost demand for its services [22] Company Strategy and Development Direction - The company focuses on five strategic pillars: safety and performance excellence, evolving capabilities, bidding discipline, margin optimization, and returns-driven capital allocation [25] - The strategy is encapsulated in "win, execute, deliver," aiming to build a profitable growth platform within niche engineering and construction verticals [26] - The company plans to pursue both organic and complementary inorganic growth to enhance its position in high-value energy and industrial infrastructure markets [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving organic revenue growth in the second half of fiscal 2025, projecting growth greater than 40% compared to the same period in fiscal 2024 [16] - The current policy environment is seen as supportive for large energy and industrial infrastructure projects, with a favorable regulatory climate for LNG and ammonia storage [17] - Management believes the company is well-positioned to capitalize on the expected increase in power demand, projected to rise by more than 55% from 2020 to 2040 [19] Other Important Information - The company reported a strong balance sheet with total liquidity of $211.7 million and zero debt [43] - SG&A expenses were $17.3 million, in line with normal run rates, and the company plans to manage costs conservatively [33] Q&A Session Summary Question: Which business segments does the $50 million revenue adjustment reflect? - The adjustment primarily reflects the storage and terminal solutions segment [47] Question: How confident is the company in reaching profitability in the second half of 2025? - Management feels confident about revenue growth supporting overhead absorption and a return to profitability [51] Question: What is the expected backlog growth moving into fiscal 2026? - Management indicated that the backlog remains strong at $1.3 billion, with a normal booking cadence expected to maintain and build backlog [59] Question: Can you provide insights into client conversations regarding opportunities? - Clients feel positive about the energy environment and are planning to invest capital, despite some concerns during the first half of the year [62] Question: What is the timeline for inorganic growth opportunities? - While specifics are not provided, management emphasizes a focus on return to profitability and strengthening the business to take advantage of infrastructure spending [84]

Matrix Service (MTRX) came out with a quarterly loss of $0.20 per share versus the Zacks Consensus Estimate of a loss of $0.23. This compares to loss of $0.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.04%. A quarter ago, it was expected that this energy services company would post a loss of $0.32 per share when it actually produced a loss of $0.33, delivering a surprise of -3.13%.Over the last four quarters, the compa ...

Revenue Performance - Total revenue for Q2 fiscal 2025 was $187.2 million, representing a 7% increase compared to $175.0 million in Q2 fiscal 2024[6]. - Total revenue for the three months ended December 31, 2024, was $187,169,000, a 6.1% increase from $175,042,000 in the same period of 2023[38]. - Revenue recognized for the six months ended December 31, 2024, was $352,748, compared to $352,748 for the same period in 2023, showing no growth[46]. - The company anticipates more than 40% year-over-year revenue growth in the second half of fiscal 2025 compared to the second half of fiscal 2024[3]. Profitability and Loss - The company reported a net loss of $5.5 million, or $(0.20) per share, compared to a net loss of $2.9 million, or $(0.10) per share in the prior year[9]. - The company reported a net loss of $5,533,000 for the three months ended December 31, 2024, compared to a net loss of $2,851,000 for the same period in 2023[35]. - The company reported a net loss of $14,756 for the six months ended December 31, 2024, compared to a net loss of $6,018 for the same period in 2023, representing an increase of approximately 145.5%[51]. - Adjusted net loss for the three months ended December 31, 2024, was $5,533, compared to an adjusted net loss of $4,857 for the same period in 2023, indicating a year-over-year increase of approximately 13.9%[51]. - Adjusted EBITDA for Q2 fiscal 2025 was $(2.2) million, down from $0.1 million in Q2 fiscal 2024[4]. - Adjusted EBITDA for the three months ended December 31, 2024, was $(2,183), a decline from $117 in the same period of 2023[55]. Segment Performance - The Storage and Terminal Solutions segment revenue increased by 53% to $95.5 million, while the Utility and Power Infrastructure segment revenue increased by 52% to $61.1 million[10][11]. - The Process and Industrial Facilities segment revenue decreased to $30.6 million, down from $71.3 million in the prior year, primarily due to the completion of a large project[12]. Backlog and Project Awards - The total backlog as of December 31, 2024, was $1.3 billion, with project awards in the quarter totaling $90.5 million, resulting in a book-to-bill ratio of 0.5x[13]. - Backlog as of December 31, 2024, totaled $1,311,134, a decrease from $1,411,871 as of September 30, 2024, reflecting a reduction of approximately 7.1%[44]. - Project awards for the three months ended December 31, 2024, amounted to $90,538, while revenue recognized during the same period was $187,169, resulting in a book-to-bill ratio of 0.5x[44]. - The backlog as of June 30, 2024, was $1,429,473, indicating a decrease of approximately 8.2% by December 31, 2024[46]. - The company experienced a reduction in backlog due to the closure of a customer's facility, which historically represented less than 1% of consolidated revenues[45]. Financial Position - Cash flow from operations for the first half of fiscal 2025 was $45.5 million, reflecting scheduled payments from customers[15]. - As of December 31, 2024, the company had total liquidity of $211.7 million, with no outstanding debt[16]. - Total assets increased to $513,845,000 as of December 31, 2024, up from $451,351,000 on June 30, 2024, representing a growth of 13.8%[31]. - Current liabilities rose to $341,099,000, compared to $265,115,000 on June 30, 2024, indicating a 28.7% increase[33]. - Cash and cash equivalents at the end of the period were $181,777,000, up from $72,160,000 at the end of December 31, 2023, marking a significant increase of 152.5%[35]. - The company reported capital expenditures of $2,859,000 for the six months ended December 31, 2024, compared to $859,000 for the same period in 2023[35]. - Total stockholders' equity decreased to $151,934,000 as of December 31, 2024, down from $164,182,000 on June 30, 2024, a decline of 7.5%[33]. - The company experienced a significant increase in accounts payable, which rose to $79,976,000 from $65,629,000, reflecting a 21.7% increase[33]. Guidance and Methodology Changes - The company has lowered its full-year revenue guidance to a range of $850 million to $900 million, down from the previous guidance of $900 million to $950 million[18]. - The company updated its calculation methodology for adjusted EBITDA to include interest income, aligning with industry peers[55].

TULSA, Okla., Feb. 05, 2025 (GLOBE NEWSWIRE) -- Matrix Service Company (Nasdaq: MTRX), a leading North American industrial engineering, construction, and maintenance contractor, today announced results for the second quarter of fiscal 2025 ended December 31, 2024. SECOND QUARTER FISCAL 2025 RESULTS(all comparisons versus the prior year quarter unless otherwise noted) Total backlog of $1.3 billionTotal project awards in the quarter of $90.5 million, resulting in a book-to-bill ratio of 0.5xRevenue of $187.2 ...

TULSA, Okla., Jan. 21, 2025 (GLOBE NEWSWIRE) -- Matrix Service Company (Nasdaq: MTRX), a leading provider of engineering and construction services to the energy and industrial markets, announced today that it will release second quarter Fiscal 2025 results after market on Wednesday, February 5, 2025. On Thursday, February 6, 2025, at 10:30 a.m. Eastern time/9:30 a.m. Central time, Matrix Service Company will host a conference call to present and discuss the Company’s financial results and forward outlook. E ...

Matrix Service (MTRX) shares soared 6.8% in the last trading session to close at $14.34. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.2% gain over the past four weeks.The surge can be attributed to Matrix’s specialization in providing engineering, infrastructure, construction and maintenance services to the energy industry. Notably, the company’s Utility and Power Infrastructure services includes LNG Peak Shaving Facilities ...

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, ...

Matrix Service Company (NASDAQ:MTRX) Q1 2025 Results Conference Call November 7, 2024 10:30 AM ET Company Participants Kellie Smythe - Senior Director of IR John Hewitt - President and CEO Kevin Cavanah - VP, CFO Conference Call Participants John Franzreb - Sidoti Brent Thielman - D.A. Davidson Operator Good morning, and welcome to the Matrix Service Company Conference Call to Discuss Results for the First Quarter of Fiscal 2025. Currently all participants are in a listen only mode. Later we’ll conduct a qu ...