Revenue and Profitability - Revenue for fiscal 2025 increased by $41.1 million, or 6%, to $769.3 million, driven primarily by higher volumes in the Storage and Terminal Solutions and Utility and Power Infrastructure segments [167]. - Total revenue for fiscal 2025 was $769.3 million, an increase of $41.1 million or 6% compared to fiscal 2024 [173]. - Gross profit for fiscal 2025 decreased by $0.8 million, or 2%, with a gross margin of 5.2%, down from 5.6% in fiscal 2024 [168]. - Total gross profit for fiscal 2025 was $39.7 million, a decrease of $796,000 or 2% compared to fiscal 2024 [173]. - Utility and Power Infrastructure gross profit increased by $7.7 million, or 83%, with a gross margin of 6.8% compared to 5.0% in fiscal 2024 [177]. Project Awards and Backlog - Project awards during fiscal 2025 totaled $726.0 million, resulting in a book-to-bill ratio of 0.9x and maintaining a backlog of $1.4 billion [156]. - The backlog as of June 30, 2025, was $1.38 billion, down from $1.43 billion a year earlier, with significant contributions from the Storage and Terminal Solutions segment [160]. - Approximately 55% of the total backlog reported as of June 30, 2025, is expected to be recognized as revenue within fiscal 2026 [165]. - The Utility and Power Infrastructure segment booked $215.4 million in project awards during fiscal 2025, with strong long-term prospects driven by increasing electrical demand [163]. - The Process and Industrial Facilities segment secured $172.9 million in project awards, including a five-year renewal of a refinery maintenance contract [164]. Cash Flow and Liquidity - Cash flows provided by operating activities were $117.5 million for fiscal 2025, up from $72.6 million in fiscal 2024 [189]. - Unrestricted cash and cash equivalents at June 30, 2025, totaled $224.6 million, with total liquidity of $284.5 million, an increase of $114.9 million during fiscal 2025 [182]. - Cash flows used by investing activities amounted to $7.4 million in fiscal 2025, primarily due to capital expenditures for improvements at a fabrication facility in Bakersfield, California [193]. - Financing activities used $10.4 million of cash in fiscal 2024, mainly due to $10.0 million in advances and $20.0 million in net repayments under the ABL facility [195]. Restructuring and Costs - Restructuring costs for fiscal 2025 amounted to $3.6 million, reflecting organizational restructuring efforts [169]. - Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) decreased by $4.1 million, while billings on uncompleted contracts in excess of costs and estimated earnings (BIE) increased by $152.3 million, contributing positively to cash flows from operating activities [192]. Net Loss and Financial Position - The company reported a net loss of $29.5 million for fiscal 2025, compared to a net loss of $25.0 million in fiscal 2024 [190]. - The borrowing base under the ABL Facility was $64.6 million as of June 30, 2025, with no borrowings outstanding [188]. Stock and Dividends - The company has never paid cash dividends on its common stock, and future dividend payments will depend on the terms of the ABL Facility and other financial conditions [196]. - The stock repurchase program allows for the repurchase of up to 2,707,175 shares, with 1,349,037 shares available for repurchase as of June 30, 2025 [197]. - The company had 277,731 treasury shares as of June 30, 2025, intended for use in equity awards and the Employee Stock Purchase Plan [198]. Goodwill and Impairment - The company performed its annual goodwill impairment test as of May 31, 2025, resulting in no impairment [211]. Future Commitments and Risks - Future payments for operating leases were $25.9 million as of June 30, 2025, with $5.8 million payable within the next 12 months [199]. - A 100-basis point (or 1%) increase or decrease in the interest rate would increase or decrease interest income by approximately $2.5 million per year [215]. - The applicable margin for Base Rate and Canadian Prime Rate borrowings is between 1.00% to 1.50%, and for Term SOFR borrowings, it is between 2.00% and 2.50% [215]. - The company has not entered into derivative instruments to hedge foreign currency risk, but evaluates the materiality of foreign currency exposure periodically [218]. - A 10% unfavorable change in the Canadian Dollar against the U.S. Dollar would not have had a material impact on the financial results for the fiscal year ended June 30, 2025 [218]. - The company has exposure to materials derived from commodities such as steel plate, steel pipe, and copper, which are key materials used [219]. - The company mitigates risks associated with commodity price exposure by procuring materials upon contract execution and negotiating contract provisions [219]. - Movements in the Canadian Dollar to U.S. Dollar exchange rate have not significantly impacted the company's results historically [217]. - The company has subsidiaries in Canada and South Korea, using Canadian Dollar and South Korean Won as functional currencies, respectively [216]. - Further growth in Canadian, South Korean, and/or Australian operations could impact financial results due to exchange rate fluctuations [217].

Financial Data and Key Metrics Changes - The company reported revenue of $216.4 million for the fourth quarter of fiscal 2025, with an EPS loss of $0.40 and adjusted EBITDA loss of $4.8 million [18] - Revenue was impacted by a $6.4 million reduction due to lowered recovery expectations on a legacy project, resulting in a total revenue decrease of $6.4 million [22] - The revenue run rate increased by 31% over the fiscal year, supporting positive earnings potential [23] Business Line Data and Key Metrics Changes - Storage and Terminal Solutions segment revenue increased by 37% to $96.1 million, driven by higher volumes in specialty vessel and LNG storage projects [24] - Utility and Power Infrastructure segment revenue rose by 12% to $73 million, with gross margin improving to 9.1% due to strong project execution [25] - Process and Industrial Facility segment revenue decreased to $47.3 million, primarily due to the completion of a large renewable diesel project last year, with gross margin dropping to 5.9% [26] Market Data and Key Metrics Changes - The company entered fiscal 2026 with a backlog of approximately $1.4 billion, supported by project awards totaling $186.3 million in the fourth quarter [26] - The utility and power infrastructure segment had a strong quarter with $121.9 million in awards and a book-to-bill ratio of 1.7 [26] Company Strategy and Development Direction - The company is focused on a strategy of winning, executing, and delivering, with an emphasis on safety, quality, and operational efficiency [11][12] - The opportunity pipeline stands at $5.9 billion, with a focus on both current business and new high-growth markets [14] - The company aims to achieve durable, return-focused growth through organic means supplemented by targeted M&A activities [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to profitability, supported by a quality backlog and strong revenue projections for fiscal 2026 [36] - The company anticipates fiscal year 2026 revenue to be between $875 million and $925 million, representing a year-over-year growth of 17% at the midpoint [16] - Management highlighted the importance of maintaining a strong financial position and leveraging ongoing infrastructure investments for growth [17] Other Important Information - The company incurred $3.4 million in restructuring costs aimed at improving operational efficiencies, which is expected to reduce annual overhead costs by approximately $12 million [21] - Cash balance increased by $109 million to $249.6 million as of June 30, 2025, with available liquidity rising to $284.5 million [27] Q&A Session Summary Question: Are there still delays in project timelines due to economic uncertainty? - Management acknowledged an overhang in the industry but noted that only a few projects were directly impacted, with ongoing smaller projects continuing to come through the pipeline [32] Question: What is the outlook for the book-to-bill ratio exiting fiscal 2026? - Management indicated that there is potential for a near 1.0 book-to-bill ratio, with opportunities for both large and smaller projects available [34][35] Question: What is the confidence level for returning to profitability? - Management expressed high confidence in returning to profitability, citing the quality of the backlog and projected revenue levels [36] Question: How much of the cash position is from customer advances? - Management clarified that the cash position has built considerably, with a portion from upfront payments on long-term projects, and emphasized a strong balance sheet [37] Question: Are there any remaining COVID-era legacy jobs in dispute? - Management confirmed that the legacy pandemic issues are largely resolved, with only one significant project still in dispute [44] Question: What are the expected cost savings from restructuring actions? - Management indicated that restructuring actions are expected to yield approximately $12 million in cost savings, with SG&A costs projected to decrease in fiscal 2026 [48]

Financial Data and Key Metrics Changes - Revenue for the fourth quarter of fiscal 2025 was $216.4 million, with an EPS loss of $0.40 and adjusted EBITDA loss of $4.8 million [18] - The revenue growth for the year was 31% compared to the start of fiscal 2025, but the overall revenue was below expectations due to delays and issues in certain service lines [23][9] - The company expects fiscal year 2026 revenue to be between $875 million to $925 million, representing a year-over-year growth of 17% at the midpoint of the range [16] Business Line Data and Key Metrics Changes - Storage and Terminal Solutions segment revenue increased 37% to $96.1 million, driven by higher volumes in specialty vessel and LNG storage projects [24] - Utility and Power Infrastructure segment revenue rose 12% to $73 million, benefiting from natural gas heat shaving projects, with gross margin improving to 9.1% [25] - Process and Industrial Facility segment revenue decreased to $47.3 million, primarily due to the completion of a large renewable diesel project last year, with gross margin dropping to 5.9% [26] Market Data and Key Metrics Changes - The company maintained a near-record backlog of approximately $1.4 billion, with project awards totaling $186.3 million in the fourth quarter, resulting in a book-to-bill ratio of 0.9 [26] - The utility and power infrastructure segment had a strong quarter with $121.9 million in awards and a book-to-bill of 1.7, indicating robust demand in that market [26] Company Strategy and Development Direction - The company is focused on a strategy built around three pillars: win, execute, and deliver, emphasizing safety, quality, and operational efficiency [11][12] - The strategic focus includes pursuing awards with the right risk profile, maintaining strong client relationships, and capitalizing on growth opportunities in LNG storage, electrical infrastructure, and advanced manufacturing [13][14] - The company aims to achieve durable, return-focused growth through organic means supplemented by targeted M&A activities [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while fiscal 2025 results did not meet initial expectations, the underlying performance of the business remains strong, with a focus on improving operational efficiencies [8][29] - The company is optimistic about entering fiscal 2026 with a strong backlog and a healthy bidding environment, expecting continued revenue growth [16][29] - Management highlighted the importance of adapting to economic uncertainties and maintaining strong relationships with clients to navigate challenges [32][33] Other Important Information - The company reported significant improvements in safety metrics, with TRIR improving from 0.91 to 0.51 and DART rate from 0.28 to 0.21 in fiscal 2025 [5][6] - Cash balance increased by $109 million to $249.6 million as of June 30, 2025, with available liquidity rising to $284.5 million [27][28] Q&A Session Summary Question: Are there still delays in project timelines due to economic uncertainty? - Management noted an overhang in the industry but indicated that only a few projects were directly impacted, with ongoing energy-related projects remaining strong [32] Question: What is the outlook for the book-to-bill ratio by the end of fiscal 2026? - Management expressed confidence in achieving a near 1.0 book-to-bill ratio, with opportunities for smaller projects in the pipeline [34][35] Question: What is the timeline for returning to profitability? - Management is confident in returning to profitability, supported by a quality backlog and projected revenue levels [36] Question: How much of the cash position is from customer advances? - The cash position has built considerably, with a portion from upfront payments on long-term projects, and the balance sheet is strong [37] Question: Are there any remaining legacy COVID-era projects in dispute? - Management indicated that the current dispute is the final material legacy issue from the pandemic [44] Question: What are the expected cost savings from restructuring actions? - The restructuring is expected to yield about $12 million in annual savings, with SG&A costs projected to decrease in fiscal 2026 [48]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $216.4 million, with an EPS loss of $0.40 and an adjusted EBITDA loss of $4.8 million, impacted by several one-time charges [17][21][22] - The revenue run rate increased by 31% over the fiscal year, supporting positive earnings potential moving forward [22] - Cash balance increased by $109 million to $249.6 million as of June 30, 2025, with available liquidity rising to $284.5 million [26] Business Line Data and Key Metrics Changes - Storage and Terminal Solutions segment revenue increased by 37% to $96.1 million, driven by higher volumes in specialty vessel and LNG storage projects [23] - Utility and Power Infrastructure segment revenue rose by 12% to $73 million, benefiting from natural gas heat shaving projects, with gross margin improving to 9.1% [24] - Process and Industrial Facility segment revenue decreased to $47.3 million, primarily due to the completion of a large renewable diesel project last year, with gross margin dropping to 5.9% [25] Market Data and Key Metrics Changes - The company entered fiscal 2026 with a backlog of approximately $1.4 billion, supported by project awards totaling $726 million for the year [8][9][25] - The utility and power infrastructure segment had a strong quarter with $121.9 million in awards, resulting in a book-to-bill ratio of 1.7 [25] Company Strategy and Development Direction - The company is focused on a strategy of winning, executing, and delivering, with an emphasis on safety, quality, and operational efficiency [10][11][14] - Plans to pursue organic growth supplemented by targeted M&A opportunities, aiming for durable, return-focused growth [14] - The opportunity pipeline stands at $5.9 billion, primarily in current business market focus areas, with expectations for organic and inorganic growth [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that fiscal 2025 results did not meet initial expectations but highlighted strong underlying business performance [6][7] - The outlook for fiscal 2026 anticipates revenue growth between $875 million to $925 million, representing a year-over-year increase of 17% at the midpoint [15] - Confidence in returning to profitability is high, supported by a quality backlog and effective project execution [37] Other Important Information - Significant improvements in safety metrics were reported, with TRIR improving from 0.91 to 0.51 and DART rate from 0.28 to 0.21 [5] - Restructuring actions are expected to reduce annual overhead costs by approximately $12 million, enhancing operational efficiency [20][49] Q&A Session Summary Question: Are there still delays in project timelines due to economic uncertainty? - Management noted an overhang in the industry but indicated that only a few projects were directly impacted, with ongoing energy-related projects remaining strong [32][33] Question: What is the expectation for book-to-bill ratio by the end of fiscal 2026? - Management expressed optimism about achieving a near 1.0 book-to-bill ratio, with opportunities for both large and smaller projects available [34][36] Question: What is the confidence level for returning to profitability? - High confidence was expressed regarding the quality of the backlog and the ability to return to profitability based on projected revenue levels [37] Question: How much of the cash position is from customer advances? - The cash position has built significantly, with a portion from upfront payments on long-term projects, supporting operational and growth activities [38] Question: Are there any remaining COVID-era legacy jobs in dispute? - Management indicated that the current dispute is the final material legacy issue from the pandemic, with efforts ongoing to resolve it [44][45] Question: What are the expected cost savings from restructuring actions? - Expected cost savings from restructuring are around $12 million, with SG&A costs projected to decrease in fiscal 2026 [49]

INVESTOR PRESENTATION Q4 FY25 Results | September 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 ...

[Executive Summary & Key Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Highlights) [Fiscal Year 2025 Performance Overview](index=1&type=section&id=Fiscal%20Year%202025%20Performance%20Overview) Matrix Service Company reported its Q4 and full-year fiscal 2025 results, highlighting a 14% year-over-year revenue growth in Q4 and improved fixed cost absorption, alongside a total backlog of $1.4 billion Q4 and Full-Year Fiscal 2025 Key Financials | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :-------------------------- | :-------- | :-------- | :------- | :------- | | Revenue | $216.4M | $189.5M | $769.3M | $728.2M | | Net loss per share | $(0.40) | $(0.16) | $(1.06) | $(0.91) | | Adjusted net loss per share | $(0.28) | $(0.14) | $(0.93) | $(1.06) | | Adjusted EBITDA | $(4.8)M | $0.2M | $(12.9)M | $(10.5)M | | Cash flow from operations | $40.7M | N/A | $117.5M | N/A | | Project awards | $186.3M | N/A | $726.0M | N/A | | Book-to-bill ratio | 0.9x | N/A | 0.9x | N/A | | Total backlog (as of June 30, 2025) | N/A | N/A | N/A | $1.4B | | Liquidity (as of June 30, 2025) | N/A | N/A | N/A | $284.5M | | Outstanding debt | N/A | N/A | N/A | $0 | [Fiscal Year 2026 Revenue Guidance](index=1&type=section&id=Fiscal%20Year%202026%20Revenue%20Guidance) Matrix Service Company issued revenue guidance for fiscal year 2026, projecting significant year-over-year growth Fiscal Year 2026 Revenue Guidance | Metric | Guidance Range | | :----- | :------------- | | Revenue | $875 - $925 million | | Implied Growth (midpoint) | 17% YoY | [Management Commentary & Strategic Outlook](index=1&type=section&id=Management%20Commentary%20%26%20Strategic%20Outlook) Management highlighted continued momentum in Q4 FY2025, driven by large projects and strong demand in Utility and Power Infrastructure. Despite macroeconomic uncertainties, the company secured multiple project awards and is focused on sustained profitable growth through organizational realignment, streamlined business, and disciplined capital allocation - Q4 momentum from large projects drove **14% YoY revenue growth** and improved fixed cost absorption[3](index=3&type=chunk) - Project awards grew **6% YoY**, primarily from the Utility and Power Infrastructure segment[3](index=3&type=chunk) - Net income in Q4 was negatively impacted by **$14.9 million** due to labor cost overruns, a contract dispute reserve, an unfavorable court decision, and restructuring costs[5](index=5&type=chunk) - FY2026 is expected to be a year of sustained growth and earnings improvement, with revenue growth of approximately **17%** at the midpoint of guidance, supported by robust backlog (85% of midpoint)[6](index=6&type=chunk) - Strategic focus on building a strong foundation for sustained profitable growth in specialty E&C markets, including organizational flattening, streamlining, and prioritizing high-growth market opportunities[7](index=7&type=chunk) [Fourth Quarter Fiscal 2025 Financial Review](index=3&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Financial%20Review) [Consolidated Financial Summary](index=3&type=section&id=Consolidated%20Financial%20Summary) The company's Q4 FY2025 saw revenue growth driven by Storage and Terminal Solutions and Utility and Power Infrastructure, but gross margin declined due to project-specific issues and a legacy project adjustment. Net loss widened, and Adjusted EBITDA turned negative, significantly impacted by discrete items [Revenue and Gross Margin](index=3&type=section&id=Revenue%20and%20Gross%20Margin) Q4 FY2025 revenue increased by 14% YoY to $216.4 million, primarily from Storage and Terminal Solutions and Utility and Power Infrastructure. However, gross margin decreased to 3.8% from 6.6% YoY, impacted by lower labor productivity on a crude terminal project and a $6.4 million adjustment for a legacy project in arbitration Q4 FY2025 Revenue and Gross Margin | Metric | Q4 FY2025 | Q4 FY2024 | Change (YoY) | | :---------------- | :-------- | :-------- | :----------- | | Revenue | $216.4M | $189.5M | +14% | | Gross Margin | $8.1M (3.8%) | $12.4M (6.6%) | -2.8 percentage points | - Revenue increase attributed to higher volumes in Storage and Terminal Solutions and Utility and Power Infrastructure, partially offset by Process and Industrial Facilities[8](index=8&type=chunk) - Revenue negatively impacted by **$6.4 million (3.0%)** due to lowered recovery expectations on a legacy project[8](index=8&type=chunk) - Gross margin negatively impacted by a **$6.4 million** adjustment for a legacy project and lower labor productivity on a crude terminal project[9](index=9&type=chunk) [Operating Expenses](index=3&type=section&id=Operating%20Expenses) SG&A expenses remained relatively stable in Q4 FY2025, with an increase in cash-settled stock compensation offset by lower overhead. Restructuring costs of $3.4 million were incurred as part of ongoing business streamlining efforts Q4 FY2025 Operating Expenses | Metric | Q4 FY2025 | Q4 FY2024 | | :-------------------- | :-------- | :-------- | | SG&A expenses | $17.6M | $17.3M | | Restructuring expenses | $3.4M | N/A | - Cash-settled stock compensation increased by **$1.7 million** due to stock price increase[10](index=10&type=chunk) [Net Loss and Adjusted EBITDA](index=3&type=section&id=Net%20Loss%20and%20Adjusted%20EBITDA) The company reported a wider net loss and negative Adjusted EBITDA in Q4 FY2025 compared to the prior year, with discrete items significantly impacting both metrics Q4 FY2025 Net Loss and Adjusted EBITDA | Metric | Q4 FY2025 | Q4 FY2024 | | :-------------------------- | :-------- | :-------- | | Net Loss | $(11.3)M | $(4.4)M | | Net Loss per share | $(0.40) | $(0.16) | | Adjusted Net Loss | $(7.8)M | $(3.9)M | | Adjusted Net Loss per share | $(0.28) | $(0.14) | | Adjusted EBITDA | $(4.8)M | $0.2M | - Discrete items negatively impacted net income by **$14.9 million** and Adjusted EBITDA by **$11.5 million**[11](index=11&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) Segment performance in Q4 FY2025 showed mixed results: Storage and Terminal Solutions saw strong revenue growth but negative gross margin due to project issues; Utility and Power Infrastructure achieved revenue growth and improved gross margin; Process and Industrial Facilities experienced revenue and gross margin declines due to project completions and mix of work [Storage and Terminal Solutions](index=3&type=section&id=Storage%20and%20Terminal%20Solutions) This segment's revenue increased significantly by 37% in Q4 FY2025, driven by specialty vessel and LNG storage projects. However, gross margin turned negative due to lower labor productivity on a crude terminal project and a $6.4 million reduction from a legacy project in arbitration Q4 FY2025 Storage and Terminal Solutions Performance | Metric | Q4 FY2025 | Q4 FY2024 | Change (YoY) | | :---------------- | :-------- | :-------- | :----------- | | Revenue | $96.1M | $70.0M | +37% | | Gross Margin | (1.1)% | 3.1% | -4.2 percentage points | - Revenue increase due to increased volume of work for specialty vessel and LNG storage projects[12](index=12&type=chunk) - Gross margin impacted by **$3.8 million** reduction from lower labor productivity on a crude terminal project and **$6.4 million** decrease from a legacy project[13](index=13&type=chunk) [Utility and Power Infrastructure](index=4&type=section&id=Utility%20and%20Power%20Infrastructure) The Utility and Power Infrastructure segment reported a 12% revenue increase in Q4 FY2025, benefiting from natural gas peak shaving projects. Gross margin significantly improved to 9.1% due to strong project execution and better overhead absorption, despite a charge from an unfavorable court decision Q4 FY2025 Utility and Power Infrastructure Performance | Metric | Q4 FY2025 | Q4 FY2024 | Change (YoY) | | :---------------- | :-------- | :-------- | :----------- | | Revenue | $73.0M | $65.3M | +12% | | Gross Margin | 9.1% | 4.2% | +4.9 percentage points | - Revenue increase from higher volume of work associated with natural gas peak shaving projects[14](index=14&type=chunk) - Gross margin improvement due to strong project execution and improved construction overhead cost absorption[14](index=14&type=chunk) - Gross margin impacted by a **$1.3 million** charge related to an unfavorable court decision[14](index=14&type=chunk) [Process and Industrial Facilities](index=4&type=section&id=Process%20and%20Industrial%20Facilities) This segment experienced a revenue decrease in Q4 FY2025, primarily due to the completion of a large renewable diesel project and lower volumes for thermal vacuum chambers. Gross margin also declined significantly due to changes in work mix Q4 FY2025 Process and Industrial Facilities Performance | Metric | Q4 FY2025 | Q4 FY2024 | Change (YoY) | | :---------------- | :-------- | :-------- | :----------- | | Revenue | $47.3M | $54.2M | -12.7% | | Gross Margin | 5.9% | 15.4% | -9.5 percentage points | - Revenue decrease due to completion of a large renewable diesel project and lower thermal vacuum chamber volumes, partially offset by refinery work[15](index=15&type=chunk) - Gross margin decrease attributed to mix of work[15](index=15&type=chunk) [Backlog and Project Awards](index=4&type=section&id=Backlog%20and%20Project%20Awards) As of June 30, 2025, the company's total backlog stood at $1.4 billion. Q4 FY2025 project awards totaled $186.3 million, resulting in a book-to-bill ratio of 0.9x for both the quarter and the trailing twelve months, with the Utility and Power Infrastructure segment showing strong award activity Backlog and Project Awards (as of June 30, 2025) | Metric | Value | | :-------------------------- | :---------- | | Total backlog | $1.4 billion | | Q4 FY2025 Project awards | $186.3 million | | Q4 FY2025 Book-to-bill ratio | 0.9x | | Trailing twelve-month book-to-bill ratio | 0.9x | | Utility and Power Infrastructure Q4 book-to-bill ratio | 1.7x | Awards, Book-to-Bill, and Backlog by Segment (Q4 and FY2025) | Segment | Q4 FY2025 Awards | Q4 FY2025 Book-to-Bill | FY2025 Awards | FY2025 Book-to-Bill | Backlog as of June 30, 2025 | | :------------------------------ | :----------------- | :--------------------- | :---------------- | :-------------------- | :-------------------------- | | Storage and Terminal Solutions | $18,415 | 0.2x | $337,731 | 0.9x | $770,095 | | Utility and Power Infrastructure | $121,885 | 1.7x | $215,378 | 0.9x | $346,384 | | Process and Industrial Facilities | $46,020 | 1.0x | $172,918 | 1.1x | $265,629 | | **Total** | **$186,320** | **0.9x** | **$726,027** | **0.9x** | **$1,382,108** | [Financial Position and Liquidity](index=4&type=section&id=Financial%20Position%20and%20Liquidity) Matrix Service Company generated $40.7 million in net cash from operating activities in Q4 FY2025. The company's liquidity improved to $284.5 million as of June 30, 2025, comprising unrestricted cash and credit facility availability, with no outstanding debt Financial Position Highlights (as of June 30, 2025) | Metric | Value | | :------------------------------------ | :---------- | | Net cash provided by operating activities (Q4 FY2025) | $40.7 million | | Total liquidity | $284.5 million | | Unrestricted cash and cash equivalents | $224.6 million | | Borrowing availability under credit facility | $59.8 million | | Outstanding debt | $0 | [Fiscal Year 2026 Financial Outlook](index=4&type=section&id=Fiscal%20Year%202026%20Financial%20Outlook) [Revenue Guidance](index=4&type=section&id=Revenue%20Guidance) Matrix Service Company provided its revenue guidance for fiscal year 2026, projecting revenue between $875 million and $925 million, representing a 14% to 20% increase from fiscal year 2025. This guidance is subject to various market and policy factors Fiscal Year 2026 Revenue Guidance | Metric | FY2025 Actual | FY2026 Guidance | % Increase | | :----- | :------------ | :-------------- | :--------- | | Revenue | $769.3 million | $875 - $925 million | 14% - 20% | - Guidance reflects current expectations and beliefs, subject to factors like project award timing, market fundamentals, client decision-making, and federal trade/environmental policy uncertainty[19](index=19&type=chunk) [Corporate Information](index=6&type=section&id=Corporate%20Information) [Conference Call Details](index=6&type=section&id=Conference%20Call%20Details) Matrix Service Company will host a conference call on September 10, 2025, to discuss earnings, with live audio-visual webcast and dial-in options available for investors, and a replay accessible afterward - Conference call date: Wednesday, September 10, 2025, at **10:30 a.m. (Eastern) / 9:30 a.m. (Central)**[21](index=21&type=chunk) - Webcast link: https://edge.media-server.com/mmc/p/kpvqqb4d and Company's website[22](index=22&type=chunk) - Dial-in registration: https://register-conf.media-server.com/register/BI698998b7627243029abf6987cd1d9aa8. Replay available on Investor Relations page[23](index=23&type=chunk)[24](index=24&type=chunk) [About Matrix Service Company](index=6&type=section&id=About%20Matrix%20Service%20Company) Matrix Service Company is a leading specialty engineering and construction firm providing infrastructure solutions to energy and industrial markets, known for safety, quality, and integrity. Headquartered in Tulsa, Oklahoma, it operates globally and reports financial results across three key segments: Utility and Power Infrastructure, Process and Industrial Facilities, and Storage and Terminal Solutions - Leading specialty engineering and construction company providing infrastructure solutions to energy and industrial markets[25](index=25&type=chunk) - Headquartered in Tulsa, Oklahoma, with offices in the US, Canada, Australia, and South Korea[26](index=26&type=chunk) - Operates in three key segments: Utility and Power Infrastructure, Process and Industrial Facilities, and Storage and Terminal Solutions[26](index=26&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) The release contains forward-looking statements subject to risks and uncertainties that may cause actual results to differ materially from current expectations. The company undertakes no obligation to update this information, except as required by law - Statements are made in reliance upon safe harbor provisions of the Private Securities Litigation Reform Act of 1995[27](index=27&type=chunk) - Future events involve risks and uncertainties that may cause actual results to differ materially[27](index=27&type=chunk) - Company undertakes no obligation to update information, except as required by law[27](index=27&type=chunk) [Investor Relations Contact](index=6&type=section&id=Investor%20Relations%20Contact) Contact information for investor relations is provided for inquiries - Contact: Kellie Smythe, Senior Director, Investor Relations, Marketing, Communications & Sustainability[28](index=28&type=chunk)[29](index=29&type=chunk) - Email: ksmythe@matrixservicecompany.com[29](index=29&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Income](index=8&type=section&id=Consolidated%20Statements%20of%20Income) This section presents the consolidated statements of income for the three months and fiscal years ended June 30, 2025, and 2024, detailing revenue, cost of revenue, gross profit, operating expenses, and net loss Consolidated Statements of Income (In thousands, except per share data) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :----------------------------------- | :-------- | :-------- | :------- | :------- | | Revenue | $216,377 | $189,499 | $769,286 | $728,213 | | Cost of revenue | $208,255 | $177,052 | $729,609 | $687,740 | | Gross profit | $8,122 | $12,447 | $39,677 | $40,473 | | Selling, general and administrative expenses | $17,581 | $17,293 | $71,173 | $70,085 | | Restructuring costs | $3,448 | $501 | $3,572 | $501 | | Operating loss | $(12,907) | $(5,347) | $(35,068) | $(30,113) | | Net loss | $(11,272) | $(4,377) | $(29,462) | $(24,976) | | Basic loss per common share | $(0.40) | $(0.16) | $(1.06) | $(0.91) | | Diluted loss per common share | $(0.40) | $(0.16) | $(1.06) | $(0.91) | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) This section provides the consolidated balance sheets as of June 30, 2025, and 2024, detailing assets, liabilities, and stockholders' equity Consolidated Balance Sheets (In thousands) | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------------------------- | :-------------- | :-------------- | | **Assets:** | | | | Cash and cash equivalents | $224,641 | $115,615 | | Accounts receivable, net of allowance for credit losses | $154,994 | $138,987 | | Costs and estimated earnings in excess of billings on uncompleted contracts | $29,764 | $33,893 | | Inventories | $5,917 | $8,839 | | Income taxes receivable | $110 | $180 | | Prepaid expenses and other current assets | $4,347 | $4,077 | | Total current assets | $419,773 | $301,591 | | Restricted cash | $25,000 | $25,000 | | Property, plant and equipment, net | $42,097 | $43,498 | | Operating lease right-of-use assets | $17,827 | $19,150 | | Goodwill | $29,047 | $29,023 | | Other intangible assets, net of accumulated amortization | $555 | $1,651 | | Other assets, non-current | $65,957 | $31,438 | | **Total assets** | **$600,256** | **$451,351** | | **Liabilities and stockholders' equity:** | | | | Accounts payable | $80,453 | $65,629 | | Billings on uncompleted contracts in excess of costs and estimated earnings | $323,593 | $171,308 | | Accrued wages and benefits | $18,961 | $15,878 | | Accrued insurance | $5,310 | $4,605 | | Operating lease liabilities (current) | $4,441 | $3,739 | | Other accrued expenses | $3,617 | $3,956 | | Total current liabilities | $436,375 | $265,115 | | Deferred income taxes | $25 | $25 | | Operating lease liabilities (non-current) | $16,986 | $19,156 | | Other liabilities, non-current | $4,154 | $2,873 | | **Total liabilities** | **$457,540** | **$287,169** | | Total stockholders' equity | $142,716 | $164,182 | | **Total liabilities and stockholders' equity** | **$600,256** | **$451,351** | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the condensed consolidated statements of cash flows for the three months and fiscal years ended June 30, 2025, and 2024, outlining cash flows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (In thousands) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :------------------------------------------ | :-------- | :-------- | :------- | :------- | | Net cash provided by operating activities | $40,708 | $47,004 | $117,471 | $72,571 | | Net cash used by investing activities | $(2,257) | $(791) | $(7,445) | $(945) | | Net cash provided (used) by financing activities | $46 | $(48) | $(1,040) | $(10,372) | | Net increase in cash and cash equivalents | $39,100 | $45,957 | $109,026 | $60,803 | | Cash, cash equivalents and restricted cash, end of period | $249,641 | $140,615 | $249,641 | $140,615 | [Supplemental Financial Data](index=12&type=section&id=Supplemental%20Financial%20Data) [Segment Results of Operations (Detailed)](index=12&type=section&id=Segment%20Results%20of%20Operations%20%28Detailed%29) This section provides a detailed breakdown of revenue, cost of revenue, gross profit/loss, SG&A, restructuring costs, and operating income/loss for each of the three operating segments (Storage and Terminal Solutions, Utility and Power Infrastructure, Process and Industrial Facilities) and Corporate for both the three months and fiscal years ended June 30, 2025, and 2024 Segment Results of Operations (Three Months Ended June 30, 2025, In thousands) | Segment | Total Revenue | Gross Profit (Loss) | Operating Income (Loss) | | :------------------------------ | :------------ | :------------------ | :---------------------- | | Storage and Terminal Solutions | $96,091 | $(1,045) | $(7,426) | | Utility and Power Infrastructure | $73,027 | $6,662 | $3,778 | | Process and Industrial Facilities | $47,259 | $2,784 | $(62) | | Corporate | $— | $(279) | $(9,197) | | **Total** | **$216,377** | **$8,122** | **$(12,907)** | Segment Results of Operations (Fiscal Year Ended June 30, 2025, In thousands) | Segment | Total Revenue | Gross Profit (Loss) | Operating Income (Loss) | | :------------------------------ | :------------ | :------------------ | :---------------------- | | Storage and Terminal Solutions | $365,891 | $14,655 | $(9,206) | | Utility and Power Infrastructure | $248,691 | $16,915 | $3,834 | | Process and Industrial Facilities | $154,704 | $8,910 | $479 | | Corporate | $— | $(803) | $(30,175) | | **Total** | **$769,286** | **$39,677** | **$(35,068)** | [Backlog Changes (Detailed)](index=13&type=section&id=Backlog%20Changes%20%28Detailed%29) This section defines backlog and provides detailed tables summarizing changes in backlog by segment for the three months and fiscal year ended June 30, 2025, including project awards and revenue recognized - Backlog is defined as the total dollar amount of revenue expected from awarded work (signed contract, limited notice to proceed, or other firm assurance)[41](index=41&type=chunk) Backlog Changes (Three Months Ended June 30, 2025, In thousands) | Segment | Backlog as of March 31, 2025 | Project Awards | Revenue Recognized | Backlog as of June 30, 2025 | Book-to-Bill Ratio | | :------------------------------ | :--------------------------- | :------------- | :----------------- | :-------------------------- | :----------------- | | Storage and Terminal Solutions | $847,771 | $18,415 | $(96,091) | $770,095 | 0.2x | | Utility and Power Infrastructure | $297,526 | $121,885 | $(73,027) | $346,384 | 1.7x | | Process and Industrial Facilities | $266,868 | $46,020 | $(47,259) | $265,629 | 1.0x | | **Total** | **$1,412,165** | **$186,320** | **$(216,377)** | **$1,382,108** | **0.9x** | Backlog Changes (Fiscal Year Ended June 30, 2025, In thousands) | Segment | Backlog as of June 30, 2024 | Project Awards | Other Adjustment | Revenue Recognized | Backlog as of June 30, 2025 | Book-to-Bill Ratio | | :------------------------------ | :-------------------------- | :------------- | :--------------- | :----------------- | :-------------------------- | :----------------- | | Storage and Terminal Solutions | $798,255 | $337,731 | $— | $(365,891) | $770,095 | 0.9x | | Utility and Power Infrastructure | $379,697 | $215,378 | $— | $(248,691) | $346,384 | 0.9x | | Process and Industrial Facilities | $251,521 | $172,918 | $(4,106) | $(154,704) | $265,629 | 1.1x | | **Total** | **$1,429,473** | **$726,027** | **$(4,106)** | **$(769,286)** | **$1,382,108** | **0.9x** | - Backlog was reduced by **$4.1 million** due to the closure of a customer's facility in the Process and Industrial Facilities segment[43](index=43&type=chunk)[44](index=44&type=chunk) [Non-GAAP Financial Measures](index=14&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP financial measures, Adjusted Net Loss and Adjusted EBITDA, to their most directly comparable GAAP measures. It also outlines the limitations of these non-GAAP metrics [Adjusted Net Loss Reconciliation](index=14&type=section&id=Adjusted%20Net%20Loss%20Reconciliation) Adjusted Net Loss is presented as Net loss before gain on sale of assets and the tax impact of these adjustments, aiming to better depict core operating results. The reconciliation shows the adjustments made for restructuring costs and gain on sale of assets - Adjusted Net Loss is defined as Net loss before gain on sale of assets and the tax impact of these adjustments, used to better depict core operating results[46](index=46&type=chunk) Reconciliation of Net Loss to Adjusted Net Loss (In thousands, except per share data) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :---------------------------------- | :-------- | :-------- | :------- | :------- | | Net loss, as reported | $(11,272) | $(4,377) | $(29,462) | $(24,976) | | Restructuring costs | $3,448 | $501 | $3,572 | $501 | | Gain on sale of assets | $— | $— | $— | $(4,542) | | Tax impact of adjustments and other net tax items | $— | $— | $— | $— | | **Adjusted net loss** | **$(7,824)** | **$(3,876)** | **$(25,890)** | **$(29,017)** | | Loss per fully diluted share, as reported | $(0.40) | $(0.16) | $(1.06) | $(0.91) | | **Adjusted loss per fully diluted share** | **$(0.28)** | **$(0.14)** | **$(0.93)** | **$(1.06)** | - Limitations include the exclusion of gain on sale of assets (material cash inflow) and restructuring costs (material, often cash expenses)[50](index=50&type=chunk) [Adjusted EBITDA Reconciliation](index=15&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA is defined as net loss before gain on sale of assets, stock-based compensation, interest expense, interest income, income taxes, and depreciation and amortization. It is used by the financial community to measure performance and evaluate market value, with a detailed reconciliation provided - Adjusted EBITDA is defined as net loss before gain on sale of assets, stock-based compensation, interest expense, interest income, income taxes, and depreciation and amortization[51](index=51&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (In thousands) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :-------------------------------------------------- | :-------- | :-------- | :------- | :------- | | Net loss | $(11,272) | $(4,377) | $(29,462) | $(24,976) | | Interest expense | $150 | $343 | $518 | $1,130 | | Interest income | $(1,984) | $(862) | $(6,652) | $(1,339) | | Provision (benefit) for federal, state and foreign income taxes | $448 | $(40) | $464 | $(36) | | Depreciation and amortization | $2,474 | $2,686 | $10,012 | $11,023 | | Gain on sale of assets | $— | $— | $— | $(4,542) | | Restructuring costs | $3,217 | $501 | $3,341 | $501 | | Stock-based compensation | $2,150 | $1,980 | $8,904 | $7,745 | | **Adjusted EBITDA** | **$(4,817)** | **$231** | **$(12,875)** | **$(10,494)** | - Limitations include the exclusion of interest expense, interest income, income taxes, depreciation/amortization, gain on asset sales, restructuring costs, and equity-settled stock-based compensation[52](index=52&type=chunk)

Core Insights - Matrix Service Company reported a 14% year-over-year revenue growth in the fourth quarter of fiscal 2025, driven by strong performance in its Utility and Power Infrastructure segment [3][8] - The company anticipates fiscal 2026 revenue growth guidance between $875 million and $925 million, implying a 17% increase at the midpoint compared to fiscal 2025 [2][19] - The total backlog as of June 30, 2025, was $1.4 billion, with project awards totaling $186.3 million in the fourth quarter, resulting in a book-to-bill ratio of 0.9x [15][18] Financial Performance - Fourth quarter fiscal 2025 revenue was $216.4 million, up from $189.5 million in the same quarter of the previous year [8][11] - The company reported a net loss of $(11.3) million, or $(0.40) per share, compared to a net loss of $(4.4) million, or $(0.16) per share, in the fourth quarter of fiscal 2024 [11][26] - Adjusted EBITDA for the fourth quarter was $(4.8) million, down from $0.2 million in the prior year [11][26] Segment Performance - The Storage and Terminal Solutions segment saw a revenue increase of 37% to $96.1 million, while the Utility and Power Infrastructure segment revenue increased by 12% to $73.0 million [12][13] - The Process and Industrial Facilities segment revenue decreased to $47.3 million, primarily due to lower volumes from a completed renewable diesel project [14] Management Commentary - The CEO highlighted continued momentum across large projects and a strong demand in the Utility and Power Infrastructure segment, despite macroeconomic uncertainties affecting project decisions [3][5] - The company is focused on building a foundation for sustained profitable growth in specialty engineering and construction markets, with ongoing organizational alignment efforts [6][8] Cash Flow and Liquidity - Cash flow from operations for the fourth quarter was $40.7 million, with total liquidity improving to $284.5 million as of June 30, 2025, and no outstanding debt [16][17] - The company had $224.6 million in unrestricted cash and cash equivalents, along with $59.8 million available under its credit facility [17] Future Outlook - The company expects fiscal 2026 to be a year of sustained growth and earnings improvement, supported by a robust backlog of multi-year projects [5][18] - The bidding environment remains strong, with a focus on market opportunities that align with the company's core strengths [5][6]

Core Insights - Matrix Service Company will release its fourth quarter and full-year Fiscal 2025 results on September 9, 2025, after market close [1] - A conference call to discuss the financial results and forward outlook is scheduled for September 10, 2025, at 10:30 a.m. Eastern time [2] Company Overview - Matrix Service Company is a leading North American industrial engineering, construction, and maintenance contractor, headquartered in Tulsa, Oklahoma, with offices across the United States, Canada, Australia, and South Korea [4] - The company operates in three key segments: Utility and Power Infrastructure, Process and Industrial Facilities, and Storage and Terminal Solutions [5] Sustainability and Recognition - The company emphasizes sustainability and strong Environment, Social, and Governance (ESG) practices, ranking among the Top Contractors by Engineering-News Record and recognized for Board diversification [6]

Core Insights - The article highlights Matrix Service Company (NASDAQ: MTRX) as a small-cap construction and engineering firm that has seen its stock decline nearly 20% from its highs in mid-February [1]. Group 1: Company Overview - Matrix Service Company is being spotlighted for the first time, indicating a potential investment opportunity in the small-cap sector [1]. - The company is part of a portfolio managed by The Insiders Forum, which focuses on small and mid-cap stocks with significant insider purchases [1]. Group 2: Performance Metrics - The Insiders Forum portfolio has outperformed the Russell 2000 since its launch, suggesting a strong track record in selecting attractive stocks [1]. - The article mentions that the stock is currently off nearly 20% from its highs, which may indicate a buying opportunity for investors [1].

Matrix Service Company (MTRX) Conference Call Summary Company Overview - **Company Name**: Matrix Service Company (MTRX) - **Industry**: Engineering and construction services for the oil and gas, utility, and industrial markets - **Key Executives Present**: CEO John Hewitt, CFO Kevin Cavanaugh, Director of Investor Relations Kelly Smythe - **Core Values**: Emphasis on safety and operational excellence [1][4] Financial Highlights - **Recent Performance**: - Q3 fiscal 2025 revenue increased by 21% to $200 million compared to $166 million in Q3 fiscal 2024 [17] - Gross margin improved to 6.4% from 3.4% year-over-year [17] - Net loss reduced to $3.4 million ($0.12 per share) from $14.6 million ($0.53 per share) in the previous year [18] - Adjusted EBITDA reached breakeven compared to a loss of $10 million in the prior year [18] - **Revenue Guidance**: Projected revenue for fiscal 2025 is between $770 million and $800 million, up from $728 million in fiscal 2024 [8] Backlog and Growth Opportunities - **Backlog**: - Current backlog stands at $1.4 billion, with project awards of $301 million in Q3, resulting in a book-to-bill ratio of 1.5 [13] - Backlog has doubled since fiscal 2022, with a significant portion attributed to storage and terminal solutions [13][14] - **Opportunity Pipeline**: - A robust $7 billion pipeline of project opportunities, with many expected to be bid and awarded in the next 12 to 18 months [15] - Approximately 90% of revenue comes from recurring customers, providing long-term visibility for growth [15] Market Position and Strategy - **Market Focus**: - Specializes in complex infrastructure projects, particularly in LNG, ammonia, and renewable fuels [9][24] - Positioned to capitalize on multiyear spending cycles in energy and industrial markets [5][12] - **Competitive Environment**: - Favorable conditions for larger projects with fewer competitors capable of handling specialty vessel work [28] - Shift from crude-related storage to specialty vessel-related storage has been noted [24] Financial Management and Capital Allocation - **Balance Sheet Strength**: - Zero debt with available liquidity of $247 million [19] - Focus on managing working capital effectively, with net cash provided by operating activities of $31.2 million in Q3 [19] - **Capital Allocation Strategy**: - Emphasis on returning to profitability and considering strategic acquisitions or stock buybacks in the future [34] Long-term Goals and Margin Expectations - **Margin Targets**: - Long-term gross margin targets remain in the range of 10% to 12% [21] - Weighted average margin of current backlog is above 10%, supporting long-term margin expectations [26][27] - **Revenue Growth**: - Anticipated revenue growth to continue, with a target of reaching $250 million per quarter to leverage construction overhead effectively [29][30] Conclusion - **Outlook**: - Matrix Service Company is well-positioned for growth with a strong backlog, disciplined capital allocation, and a focus on high-margin projects [20][21] - **Market Confidence**: - Executives express confidence in the company's ability to achieve long-term targets and navigate the evolving market landscape [41]