MISTRAS Announces First Quarter 2025 Results

Core Insights - MISTRAS Group, Inc. reported a consolidated revenue of $161.6 million for Q1 2025, reflecting a 12.4% decrease compared to Q1 2024, primarily due to a $16.6 million decline in Oil & Gas market revenues and other key markets affected by macroeconomic factors [4][6][10] - The company experienced a net loss of $3.2 million in Q1 2025, compared to a net income of $1.0 million in the same period last year, with adjusted EBITDA declining by 25.4% to $12.0 million [9][10][39] - Despite the revenue decline, gross profit margin increased by 30 basis points to 25.3%, attributed to lower healthcare claims and a favorable sales mix [5][6] Financial Performance - Consolidated revenue for Q1 2025 was $161.6 million, down from $184.4 million in Q1 2024 [6][24] - Gross profit was $40.9 million, with a gross profit margin of 25.3% [6][24] - Selling, general, and administrative expenses decreased by 1.7% to $35.7 million [8][24] - The company recorded a net loss of $3.2 million, or ($0.10) per share, compared to a net income of $1.0 million, or $0.03 per share, in the prior year [9][24] Market Dynamics - The decline in revenue was primarily driven by a decrease in Oil & Gas revenues, which fell to $96.6 million from $113.2 million year-over-year, with upstream, midstream, and downstream sectors all experiencing declines [4][27] - The company is focusing on cost management and anticipates revenue growth across primary industries, including Industrials and Infrastructure, to improve profitability metrics [4][10] Cash Flow and Debt - Net cash provided by operating activities was $5.6 million, significantly up from $0.6 million in the prior year [11][32] - The company's gross debt increased to $171.9 million as of March 31, 2025, from $169.6 million at the end of 2024 [12][36] - Free cash flow was negative $0.2 million for Q1 2025, an improvement from negative $5.3 million in the prior year [11][35] Strategic Outlook - The company is not providing full-year guidance for 2025 due to market uncertainties related to tariffs and changes in U.S. trade policy [14] - MISTRAS is leveraging its technological advantages and focusing on existing end markets to drive future growth [4][10]