Matrix Service pany(US:MTRX)2025-11-05 21:53Financial Performance - Fiscal 2026 first quarter revenue was $211.9 million, an increase of 28% compared to $165.6 million in the same period last year[5]. - Adjusted EBITDA for the first quarter of fiscal 2026 was $2.5 million, compared to a loss of $(5.9) million in the first quarter of fiscal 2025[9]. - The company reported a net loss of $3.7 million, or $(0.13) per share, an improvement from a net loss of $9.2 million, or $(0.33) per share, in the prior year[9]. - Gross margin improved to 6.7% in the first quarter of fiscal 2026, up from 4.7% in the same period last year[7]. - Operating income for the three months ended September 30, 2025, was a loss of $5,500,000, compared to a loss of $10,767,000 in the same period of 2024, showing an improvement in operational performance[39]. - Adjusted EBITDA for the three months ended September 30, 2025, was $2,461,000, compared to a loss of $5,880,000 for the same period in 2024[51]. - Net loss for the three months ended September 30, 2025, was $3,663,000, an improvement from a net loss of $9,223,000 in the prior year[51]. Revenue Breakdown - The Storage and Terminal Solutions segment revenue increased 40% to $109.5 million, driven by higher volumes for LNG storage and specialty vessel projects[10]. - The Utility and Power Infrastructure segment revenue increased 33% to $74.5 million, benefiting from increased work in power delivery and natural gas projects[11]. - The company recognized revenue of $211,884,000 during the three months ended September 30, 2025, which included $109,459,000 from Storage and Terminal Solutions, $74,501,000 from Utility and Power Infrastructure, and $27,924,000 from Industrial Facilities[39]. Backlog and Book-to-Bill Ratio - Total backlog as of September 30, 2025, was $1.2 billion, with project awards totaling $187.8 million, resulting in a book-to-bill ratio of 0.9x[13]. - The backlog as of September 30, 2025, was $1,161,020,000, down from $1,382,108,000 as of June 30, 2025, reflecting a decrease of approximately 16%[43]. - The book-to-bill ratio for the total projects was 0.9x for the three months ended September 30, 2025, indicating that project awards were lower than revenue recognized[43]. Expenses and Costs - SG&A expenses decreased to $16.3 million from $18.6 million due to cost reductions from organizational realignment[8]. - The company incurred restructuring costs of $3,348,000 during the three months ended September 30, 2025[47]. - Stock-based compensation expense was $1,921,000 in Q3 2025, down from $2,311,000 in Q3 2024[51]. - Depreciation and amortization expenses were $2,461,000 in Q3 2025, slightly down from $2,515,000 in Q3 2024[51]. Guidance and Liquidity - The company reaffirmed its full-year revenue guidance of between $875 million and $925 million, representing a 14% to 20% increase from fiscal 2025[18]. - Liquidity as of September 30, 2025, was $248.9 million, with no outstanding debt[16]. - Cash and cash equivalents at the end of the period were $217,307,000, down from $249,641,000 at the beginning of the period, reflecting a decrease of approximately 13%[37]. - Total current liabilities increased to $443,455,000 as of September 30, 2025, compared to $436,375,000 as of June 30, 2025[34]. Interest and Tax Provisions - Interest expense increased to $127,000 in Q3 2025 from $89,000 in Q3 2024[51]. - Interest income for Q3 2025 was $(1,802,000), compared to $(1,572,000) in Q3 2024[51]. - The provision for federal, state, and foreign income taxes was $69,000 in Q3 2025, with no provision reported in Q3 2024[51].