Matrix Service pany(MTRX)

Search documents
Strength Seen in Matrix Service (MTRX): Can Its 6.8% Jump Turn into More Strength?
ZACKS· 2025-01-17 15:06
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 ...
Recent Price Trend in Matrix Service (MTRX) is Your Friend, Here's Why
ZACKS· 2025-01-07 14:52
Core Insights - The article emphasizes the importance of timing and sustainability in short-term investing, highlighting that while trends can be beneficial, ensuring their longevity is crucial for success [1][2]. Group 1: Stock Performance - Matrix Service (MTRX) has shown a solid price increase of 14% over the past 12 weeks, indicating strong investor interest and potential upside [4]. - The stock has also increased by 2.9% in the last four weeks, suggesting that the upward trend is still intact [5]. - MTRX is currently trading at 82.8% of its 52-week high-low range, indicating it may be on the verge of a breakout [5]. Group 2: Fundamental Strength - MTRX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like MTRX that are on an uptrend supported by strong fundamentals [3]. - The article suggests that there are multiple stocks passing through this screen, providing additional investment opportunities for trend-focused investors [8].
Matrix Service pany(MTRX) - 2025 Q1 - Earnings Call Transcript
2024-11-09 14:52
Financial Data and Key Metrics Changes - The company reported revenue of $165.6 million for Q1 2025, a decrease from $197.7 million in Q1 2024, primarily due to the completion of a large renewable diesel project [19] - The net loss for Q1 2025 was $9.2 million or $0.33 per share, compared to an adjusted net loss of $5.7 million or $0.21 per share in Q1 2024 [26] - Consolidated gross margin was $7.8 million or 4.7% in Q1 2025, down from $11.9 million or 6% in Q1 2024, impacted by under-recovery of construction overhead costs [23][24] Business Line Data and Key Metrics Changes - Storage and Terminal Solutions segment revenue was $78.2 million in Q1 2025, down from $90.1 million in Q1 2024, due to reduced volumes in flat bottom tank work [20] - Utility and Power Infrastructure segment revenue increased to $55.9 million in Q1 2025 from $32.4 million in Q1 2024, benefiting from higher volumes in LNG peak shaving projects [21] - Process and Industrial Facilities segment revenue decreased to $31.4 million in Q1 2025 from $75.1 million in Q1 2024, due to the completion of a large renewable diesel project [22] Market Data and Key Metrics Changes - The company maintains a backlog of $1.4 billion, with project awards totaling $148 million in Q1 2025, resulting in a book-to-bill ratio of 0.9 for the quarter [27] - The opportunity pipeline remains strong at approximately $6 billion, with expectations to maintain a book-to-bill ratio of 1.0 or greater on an annual basis [15] Company Strategy and Development Direction - The strategic focus is on higher-margin specialty engineering and construction opportunities, with an emphasis on lean operating models and returns-driven capital allocation [10] - The company anticipates a revenue guidance for fiscal 2025 between $900 million and $950 million, representing a year-over-year increase of 24% to 30% [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for LNG, NGL, and ammonia storage and terminal infrastructure, which supports the overall growth strategy [12] - The company expects to return to profitability in fiscal 2025, driven by improved project execution and backlog conversion [9][34] Other Important Information - The company generated $12 million in cash from operations, increasing the quarter-end cash balance to $150 million, with zero debt [30] - Management highlighted the importance of safety and maintaining a strong safety culture within the organization [6][7] Q&A Session Summary Question: Why was revenue lower in the utility business? - Management indicated that the decline was due to timing on new projects starting, with expectations for increasing revenues moving forward [36] Question: What caused the increase in SG&A expenses? - The increase was primarily due to long-term incentive compensation tied to stock price increases, with expectations for SG&A to remain around $18 million for the rest of the year [37][38] Question: What is the outlook for small project demand? - Management noted stable demand levels for maintenance work, with improved visibility for future opportunities in refinery maintenance [39][40] Question: How does the change in administration affect the business? - Management believes the change will be net positive, with a reduced regulatory environment likely benefiting infrastructure investment [41][42] Question: Why was the book-to-burn ratio not stronger this quarter? - Management attributed this to timing, with larger projects expected to contribute more significantly in the upcoming quarters [45][46] Question: What is the near-term opportunity tied to LNG projects? - Management indicated a couple of hundred million dollars worth of near-term work tied to LNG projects, with potential for more long-term opportunities [50] Question: What is the company's exposure to renewable markets? - The company has limited direct exposure to wind and solar but is involved in renewable fuels through refinery clients [51][52]
Matrix Service (MTRX) Reports Q1 Loss, Misses Revenue Estimates
ZACKS· 2024-11-07 00:36
Company Performance - Matrix Service reported a quarterly loss of $0.33 per share, slightly worse than the Zacks Consensus Estimate of a loss of $0.32, and compared to a loss of $0.21 per share a year ago, indicating a negative earnings surprise of -3.13% [1] - The company posted revenues of $165.58 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 9.96%, and down from $197.66 million in the same quarter last year [2] - Over the last four quarters, Matrix Service has only surpassed consensus EPS estimates once [2] Stock Outlook - The stock has gained approximately 15.2% since the beginning of the year, while the S&P 500 has increased by 21.2% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $201.45 million, and for the current fiscal year, it is -$0.05 on revenues of $900.9 million [7] Industry Context - The Oil and Gas - Mechanical and Equipment industry, to which Matrix Service belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential underperformance compared to higher-ranked industries [8] - The performance of Matrix Service's stock may be influenced by the overall outlook for the industry [8]
Matrix Service Company Reports Fiscal Year 2025 First Quarter Results, Reaffirms Full Year Revenue Guidance
GlobeNewswire News Room· 2024-11-06 21:05
TULSA, Okla., Nov. 06, 2024 (GLOBE NEWSWIRE) -- Matrix Service Company (Nasdaq: MTRX), a leading North American industrial engineering, construction, and maintenance contractor, today announced results for the first quarter of fiscal 2025 ended September 30, 2024. FIRST QUARTER FISCAL 2025 RESULTS(all comparisons versus the prior year quarter unless otherwise noted) Maintaining full year Fiscal 2025 Revenue Guidance of $900 to $950 millionTotal backlog of $1.4 billionTotal project awards in the quarter of $ ...
Matrix Service Company Sets Dates for Release of First Quarter Fiscal 2025 Financial Results and Conference Call
GlobeNewswire News Room· 2024-10-22 09:05
TULSA, Okla., Oct. 22, 2024 (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 first quarter Fiscal 2025 results after market on Wednesday, November 6, 2024. On Thursday, November 7, 2024, 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. Ea ...
Matrix Service Company Publishes Fiscal 2024 Sustainability Report
GlobeNewswire News Room· 2024-09-24 20:09
Core Insights - Matrix Service Company released its Fiscal 2024 Sustainability Report, emphasizing its commitment to sustainability as part of its core values [1][2] - The company completed its first Materiality Assessment to prioritize sustainability efforts and meet stakeholder expectations [2] Sustainability Initiatives - The report highlights investments in systems and processes aimed at achieving maximum quality and efficiency in project management and execution [2] - Matrix is focused on ensuring compliance with future federal and state ESG reporting requirements and enhancing global supply chain performance [2] - The company aims to accurately capture and report Scope 1 and 2 GHG emissions, ensuring audit readiness [2] Reporting Standards - Matrix has adopted the Sustainability Accounting Standards Board (SASB) reporting standards and began reporting under the Financial Stability Board's Task Force on Climate-related Financial Disclosure (TCFD) recommendations [3][4] - The adoption of these frameworks is intended to provide consistent, comparable, and meaningful sustainability reporting [4] Company Overview - Matrix Service Company operates in three key segments: Utility and Power Infrastructure, Process and Industrial Facilities, and Storage and Terminal Solutions [5] - The company is recognized for its strong ESG practices, board diversification, and workplace culture [6]
Why Matrix Service Stock Rocketed 15% Higher on Tuesday
The Motley Fool· 2024-09-10 22:24
Core Viewpoint - Matrix Service is experiencing positive momentum due to its strategic positioning in the energy and mining sectors, leading to significant stock price appreciation following its quarterly earnings report [2]. Financial Performance - In the fiscal 2024 fourth quarter, Matrix Service reported revenue of just under $190 million, a decrease from nearly $206 million in the same quarter of fiscal 2023 [3]. - The company's adjusted net loss was $3.9 million ($0.14 per share), slightly worse than the previous year's loss of $3 million [3]. - Analysts had anticipated higher revenue of just under $203 million and a deeper adjusted net loss of $0.21 per share [4]. Future Outlook - Matrix Service forecasts revenue for fiscal 2025 to be between $900 million and $950 million, significantly higher than the fiscal 2024 total of $728 million and above analysts' consensus estimate of slightly under $890 million [5]. - The company indicates strong demand in its core markets and expects double-digit percentage revenue growth [5].
Matrix Service pany(MTRX) - 2024 Q4 - Annual Report
2024-09-10 20:11
Financial Performance - Total revenue for fiscal 2024 was $795.0 million, a decrease of $66.8 million or 8% compared to fiscal 2023[140]. - Total revenue for fiscal 2024 was $728.2 million, a decrease of $66.8 million or 8% compared to $795.0 million in fiscal 2023[147]. - Revenue for the fiscal year ended June 30, 2024, was $728,213,000, a decrease of 8.4% from $795,020,000 in the previous year[223]. - Gross profit increased to $40,473,000 for the fiscal year ended June 30, 2024, compared to $30,820,000 in the prior year, reflecting a significant improvement[223]. - Net loss for the fiscal year ended June 30, 2024, was $24,976,000, an improvement from a net loss of $52,361,000 in the previous year, indicating a reduction of 52.3%[225]. - The company reported a comprehensive loss of $25,742,000 for the fiscal year ended June 30, 2024, down from $52,955,000 in the previous year, indicating a 51.4% improvement[225]. Backlog and Awards - The company achieved $1.1 billion in new awards added to backlog during fiscal 2024, resulting in a total backlog of $1.4 billion and a book-to-bill ratio of 1.5[134]. - Backlog in the Storage and Terminal Solutions segment increased by 194.9%, with project awards totaling $804.4 million during fiscal 2024[137]. - The Utility and Power Infrastructure segment booked $104.1 million in project awards during fiscal 2024, with strong long-term opportunities expected[138]. - The Process and Industrial Facilities segment saw project awards of $182.4 million, driven by client spending on refinery maintenance and turnaround operations[138]. - Approximately 47% of the total backlog reported as of June 30, 2024, is expected to be recognized as revenue within fiscal 2025[139]. Cash Flow and Liquidity - The company generated positive cash flows from operations, improving its overall cash balance by $60.8 million during fiscal 2024[134]. - Cash flows provided by operating activities totaled $72.6 million for the fiscal year ended June 30, 2024[165]. - Unrestricted cash and cash equivalents at June 30, 2024, were $115.6 million, contributing to total liquidity of $169.6 million[156]. - The company repaid all outstanding borrowings under the ABL Facility during fiscal 2024, with a borrowing base of $60.9 million[162]. - The company experienced a net increase in cash and cash equivalents of $60,803 thousand, a significant improvement from an increase of $2,441 thousand in the prior year[229]. Segment Performance - Storage and Terminal Solutions revenue increased by $21.1 million, or 8%, to $276.8 million in fiscal 2024, driven by specialty vessel projects[149]. - Utility and Power Infrastructure revenue rose by $14.4 million, or 9%, to $183.9 million, primarily due to higher volumes from peak shaving projects[151]. - Process and Industrial Facilities revenue decreased by $103.6 million, or 28%, to $266.3 million, mainly due to lower volumes in midstream gas processing and refinery maintenance[153]. - The segment gross margin for Process and Industrial Facilities improved to 8.2% in fiscal 2024 from 2.9% in fiscal 2023, reflecting strong project execution[154]. Goodwill and Impairment - The company performed its annual goodwill impairment test as of May 31, 2024, resulting in no impairment, but indicated that two reporting units with a combined total of $16.6 million of goodwill were at higher risk of future impairment[184]. - The company recognized a goodwill impairment of $12,316 thousand in the previous fiscal year, which was not present in the current fiscal year, indicating improved asset performance[229]. - The estimated fair values of the two reporting units with a combined total of $16.6 million of goodwill exceed their carrying values by 13% to 70%[217]. Stock and Compensation - As of June 30, 2024, there were 1,349,037 shares available for repurchase under the Stock Buyback Program, with no repurchases made during fiscal 2024[172]. - Total stock-based compensation expense for fiscal year ended June 30, 2024, was $7.7 million, compared to $6.8 million in fiscal 2023[318]. - The company has a total of 2,472,567 shares available for grant under the amended 2020 Stock and Incentive Compensation Plan as of June 30, 2024[320]. Tax and Valuation - The total income tax provision for fiscal 2024 was $(36,000), compared to $(400,000) in fiscal 2023 and $5.6 million in fiscal 2022[295]. - Deferred tax assets totaled $5.5 million as of June 30, 2024, with a valuation allowance of $(49.4 million)[297]. - The company has net operating loss carryforwards and tax credit carryforwards, with a valuation allowance reducing the recognized tax benefit[300]. Operational Risks - The company has no direct commodity exposure but faces risks from rising prices of key materials like steel and copper due to global supply chain disruptions[193]. - A 10% unfavorable change in the Canadian Dollar against the U.S. Dollar would not have materially impacted financial results for the fiscal year ended June 30, 2024[192].
Matrix Service pany(MTRX) - 2024 Q4 - Earnings Call Transcript
2024-09-10 17:13
Financial Data and Key Metrics Changes - Revenue for Q4 2024 increased by 14% to $189 million compared to the previous quarter [10] - The company reported a net loss of $4.4 million or $0.16 per fully diluted share for Q4 2024 [10] - Backlog increased by more than 30% year-over-year, totaling $1.4 billion at the start of fiscal 2025 [4][14] - Revenue guidance for fiscal 2025 is projected between $900 million and $950 million, representing a year-over-year increase of 24% to 30% [9][15] Business Line Data and Key Metrics Changes - In the Storage and Terminal Solutions segment, revenue increased by 30% to $70 million in Q4 2024 [11] - The Utility and Power Infrastructure segment saw revenue growth of over 40% to $65 million in Q4 2024 [11] - The Process and Industrial Facilities segment experienced a revenue decrease of 17% to $54 million in Q4 2024 [12] Market Data and Key Metrics Changes - The company is pursuing approximately $3.2 billion in near-term projects in the Storage and Terminal Solutions segment [5] - In the Utility and Power Infrastructure segment, there are over $1.2 billion in near-term projects [5] - The Process and Industrial Facilities segment has a backlog of $252 million, with a focus on natural gas, chemicals, and petrochemicals [13] Company Strategy and Development Direction - The company is focused on infrastructure investment in LNG, NGLs, ammonia, hydrogen, and renewable fuels [4] - Strategic changes have been made to focus on end markets with the best opportunities and to streamline operations [7] - The company aims to maintain a lean balance sheet and strong liquidity to support growth [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue growth and improved profitability in 2025 and beyond [4][16] - The company anticipates a slow start to fiscal 2025 but expects revenue growth to accelerate through the year [9][10] - Management highlighted the importance of safety, quality, and service in achieving long-term growth objectives [9] Other Important Information - The company generated $47 million in cash from operations, increasing the year-end cash balance to $141 million [14] - The company has zero debt and a liquidity position of $170 million [14] - The opportunity pipeline remains strong at $6.1 billion, indicating robust future growth potential [6][14] Q&A Session Summary Question: Can you talk about the Process gross margin performance? - The Process Industrial Facilities segment achieved a gross margin of 15.4% due to strong execution across projects [17] Question: What is the expected gross margin profile going forward? - The expectation for long-term gross margins in the Process segment is 9% to 11%, with current projects supporting historical margin ranges [18] Question: What is the revenue recognition cadence for fiscal 2025? - Significant growth is expected in the Storage segment, while the Process segment may see lower revenue in the first half of 2025 [19] Question: What challenges are faced in the Electrical Infrastructure business? - The Electrical Infrastructure business is experiencing reduced spending patterns from long-term clients, but efforts are being made to expand into new geographies [22] Question: Are there projects in the pipeline related to data centers? - The company is identifying opportunities related to data centers, particularly in power generation and infrastructure [23] Question: What is the competitive landscape like? - The competitive landscape remains stable, with larger projects offering better margins and reduced competition [28] Question: What are the company's thoughts on the hydrogen market? - The company sees hydrogen as part of the future fuel mix and is cautiously engaging with developer-led projects [29]