Mistras (US:MG)2025-08-06 20:51Revenue Performance - Revenue for the second quarter of 2025 was $185.4 million, a decrease of 2.3%, but flat when excluding voluntary laboratory consolidations[4] - Total revenue for Q2 2025 was $185.4 million, a decrease of 2.4% from $189.8 million in Q2 2024[22] - The total revenue for the six months ended June 30, 2025, was $347,020 thousand, compared to $374,215 thousand in 2024, reflecting a decline of 7%[29] - North America revenue for Q2 2025 was $148.0 million, down 5.3% from $156.4 million in Q2 2024[24] - International revenue for Q2 2025 increased to $39.1 million, up 14.5% from $34.3 million in Q2 2024[24] Profitability Metrics - Gross profit increased by 5.1% to $53.9 million, with a gross profit margin of 29.1%, an expansion of 200 basis points compared to the prior year[4] - Gross profit for Q2 2025 increased to $53.9 million, up 4.9% from $51.3 million in Q2 2024[22] - Net income for the second quarter was $3.0 million, or $0.10 per diluted share, down from $6.4 million, or $0.20 per diluted share in the prior year[7] - Net income attributable to Mistras Group, Inc. for Q2 2025 was $3.0 million, compared to $6.4 million in Q2 2024, reflecting a decline of 52.7%[22] - For the three months ended June 30, 2025, net income attributable to Mistras Group, Inc. (GAAP) was $3.017 million, compared to $6.369 million in the same period of 2024, representing a decrease of 52.7%[41] Cash Flow and Debt - Free cash flow (non-GAAP) was negative $16.2 million in the first half of 2025, compared to negative $6.9 million in the prior year[9] - Net cash used in operating activities was $3.5 million in the first half of 2025, a decrease from $5.1 million provided in the prior year, largely due to an increase in days sales outstanding[8] - The company’s gross debt increased to $189.4 million as of June 30, 2025, from $169.6 million at the end of 2024[10] - The trailing 12-month total consolidated debt leverage ratio was just under 2.75 to 1.0, slightly up from December 31, 2024, but still within the required limit[11] - Total liabilities increased to $354.9 million as of June 30, 2025, compared to $324.1 million at the end of 2024[20] Adjusted Metrics - Adjusted EBITDA reached an all-time high of $24.1 million, an increase of 8.9% year-over-year, with an adjusted EBITDA margin of 13.0%, up 130 basis points[4] - Adjusted EBITDA (non-GAAP) for the three months ended June 30, 2025, was $24,106 thousand, up from $22,130 thousand in 2024, representing an increase of 9%[39] - The company expects its 2025 Adjusted EBITDA to exceed the level achieved in 2024, which was the second highest annual level in its history[13] Special Items and Tax Impact - The company recorded $3.0 million in reorganization and other costs in the second quarter of 2025 as part of its initiative to reduce overhead costs[6] - Special items for the three months ended June 30, 2025, amounted to $3.469 million, significantly higher than $578,000 in 2024[41] - The tax impact on special items for the three months ended June 30, 2025, was $(720,000), compared to $(140,000) in 2024[41] - Special items, net of tax, for the three months ended June 30, 2025, were $2.749 million, compared to $438,000 in 2024[41] - The total special items, net of tax, for the six months ended June 30, 2025, were $5.595 million, compared to $1.615 million in 2024, indicating a significant increase[41] Shareholder Metrics - Basic net income per share for Q2 2025 was $0.10, down from $0.21 in Q2 2024[22] - Diluted EPS (GAAP) for the three months ended June 30, 2025, was $0.10, compared to $0.20 in 2024, a decrease of 50%[41] - Diluted EPS excluding special items (non-GAAP) was $0.19 for the three months ended June 30, 2025, compared to $0.21 in 2024, a decline of 9.5%[41] - The total number of anti-dilutive shares excluded from the calculation of diluted earnings per share for the three months ended June 30, 2025, was 1,252,000 shares[41]