Matrix Service Company Reports Fiscal Year 2025 Fourth Quarter and Full-Year Results; Issues Fiscal 2026 Revenue Guidance

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]