Safe Harbor Statement and Other Matters Forward-Looking and Cautionary Statements Certain statements contained in this presentation are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, investments in our platforms and integrated solutions, demand growth in certain of our end markets, the Company's expectations regarding ...

Core Insights - MISTRAS Group, Inc. reported a solid quarterly revenue growth of 5.1%, with a gross profit margin expansion of 190 basis points, generating a net income of $3.9 million and earnings per diluted share of $0.12 for the fourth quarter of 2025 [1][6][8] - The company achieved a record fourth quarter adjusted EBITDA of $24.8 million, reflecting an 18.2% increase and an adjusted EBITDA margin of 13.7%, up 160 basis points [1][6][8] Financial Performance - Fourth Quarter 2025: - Revenue: $181.5 million, up 5.1% from $172.7 million in Q4 2024 [6][20] - Gross Profit: $51.5 million, with a gross margin of 28.4%, an increase of 190 basis points [6][20] - Net Income: $3.9 million, down from $5.3 million in Q4 2024; earnings per diluted share of $0.12 compared to $0.17 [8][20] - Adjusted EBITDA: $24.8 million, up 18.2% from $20.975 million in Q4 2024 [1][6][38] - Full Year 2025: - Revenue: $724.0 million, a slight decrease from $729.6 million in 2024 [6][20] - Gross Profit: $204.5 million, with a gross margin of 28.2%, an increase of 190 basis points [6][20] - Net Income: $16.8 million, down from $19.0 million in 2024; earnings per diluted share of $0.53 compared to $0.60 [8][20] - Adjusted EBITDA: $91.1 million, up 10.5% from $82.459 million in 2024 [1][6][38] Operational Highlights - The company emphasized disciplined execution and a focus on higher-return opportunities as key drivers of profitability improvement [4] - MISTRAS Group plans to continue investing in transforming and modernizing its platform to meet demand in targeted end markets, particularly in data integrity and digital inspection capabilities [4] Debt and Cash Flow - Gross debt as of December 31, 2025, was $178.0 million, compared to $169.6 million in 2024; net debt was $150.0 million, slightly down from $151.3 million [10] - Net cash provided by operating activities was $33.0 million for the year, a decrease from $50.1 million in the prior year [9]

Core Insights - MISTRAS Group, Inc. reported a robust quarterly organic revenue growth of 7.0%, with a significant expansion in gross profit margin of 300 basis points, resulting in a net income of $13.1 million and earnings per diluted share of $0.41, alongside a record adjusted EBITDA of $30.2 million for the third quarter of 2025 [1][4][8]. Financial Performance - The company achieved a revenue of $195.5 million for the third quarter of 2025, reflecting a 7.0% increase compared to the prior year [8]. - Gross profit for the third quarter was $58.2 million, up 19.0% from $48.9 million, with a gross profit margin of 29.8%, compared to 26.8% in the previous year [8]. - Adjusted EBITDA for the third quarter was $30.2 million, representing a 29.6% increase from $23.3 million year-over-year, with an adjusted EBITDA margin of 15.4% [8][13]. - Year-to-date revenue for the first nine months of 2025 was $542.6 million, a decrease of 2.6% compared to the same period in 2024 [8]. Operational Highlights - Income from operations for the third quarter was $20.4 million, a 71.9% increase from $11.9 million in the prior year [6]. - The company recorded $1.8 million in reorganization and other costs in the third quarter related to efforts to reduce overhead and support costs [7]. - The company’s gross debt increased to $202.3 million as of September 30, 2025, compared to $169.6 million at the end of 2024 [11]. Industry Growth - The revenue growth was driven by strong demand across the five largest industries served, including double-digit growth in Aerospace & Defense, Industrials, Infrastructure, and Power Generation [4]. - The company anticipates full-year 2025 revenue to be between $716.0 million to $720.0 million, indicating flat performance compared to the previous year, factoring in voluntary laboratory consolidations [12]. Future Outlook - MISTRAS Group expects continued improvement in adjusted EBITDA, raising its guidance for full-year 2025 adjusted EBITDA to between $86.0 million to $88.0 million, exceeding the 2024 level of $82.5 million [13].

Company Overview - MISTRAS Group, Inc. is a global leader in technology-enabled industrial asset integrity and testing solutions, serving critical industries such as oil & gas, aerospace & defense, power & utilities, manufacturing, and civil infrastructure [3] - The company offers a diversified portfolio of products and services, including advanced non-destructive testing, pipeline inspections, real-time condition monitoring, maintenance planning, and specialized engineering [3] - MISTRAS utilizes a proprietary management software suite that centralizes integrity data for predictive analytics and benchmark analysis, helping clients reduce risk, extend asset life, and optimize operational performance [3] Upcoming Events - MISTRAS Group has scheduled a conference call for November 5, 2025, at 9:00 am Eastern Time to present its third quarter results for 2025 [1] - A press release with the third quarter results will be issued after the market closes on November 4, 2025 [1] - Individuals can pre-register for the live question and answer session at a specified link [2]

Core Insights - MISTRAS Group, Inc. has scheduled a conference call for November 5, 2025, to discuss its third quarter results for 2025 [1] - A press release with the financial results will be issued after market close on November 4, 2025 [1] Company Overview - MISTRAS Group, Inc. is a global leader in technology-enabled industrial asset integrity and testing solutions, serving critical industries such as oil & gas, aerospace & defense, power & utilities, manufacturing, and civil infrastructure [3] - The company offers a diversified portfolio of products and services, including advanced non-destructive testing, pipeline inspections, real-time condition monitoring, maintenance planning, and specialized engineering [3] - MISTRAS utilizes a proprietary management software suite that centralizes integrity data for predictive analytics and benchmark analysis, helping clients reduce risk, extend asset life, and optimize operational performance [3]

Core Insights - MISTRAS Group will present at Baird's 55th Annual Global Industrial Conference on November 12, 2025, at 4:40 PM CT [1][2] - The presentation will be led by Natalia Shuman, President and CEO, and Edward Prajzner, Senior Executive Vice President and CFO [1] - MISTRAS Group specializes in technology-enabled industrial asset integrity solutions across various critical industries [3] Company Overview - MISTRAS Group, Inc. is a leader in industrial asset integrity solutions, serving sectors such as oil & gas, aerospace & defense, power & utilities, manufacturing, and civil infrastructure [3] - The company offers a diverse range of services, including non-destructive testing, pipeline inspections, real-time condition monitoring, and maintenance planning [3] - MISTRAS utilizes a proprietary management software suite for predictive analytics and benchmark analysis, aimed at reducing risk and optimizing operational performance [3]

Company Overview - MISTRAS Group is a global leader in technology-enabled industrial asset integrity solutions, serving critical industries such as oil & gas, aerospace & defense, power & utilities, manufacturing, and civil infrastructure [5] - The company offers a diversified portfolio of products and services, including advanced non-destructive testing, pipeline inspections, real-time condition monitoring, and maintenance planning [5] Partnership Announcement - MISTRAS Group has partnered with Villari to integrate Villari's wireless crack-detection technology into its offerings, enhancing continuous, data-driven structural health monitoring for steel structures [1][3] - This collaboration aims to provide customers with real-time insights into asset health, reducing the need for manual inspections and improving safety and operational efficiency [2][3] Technology and Applications - Villari's system is the only known wireless monitoring technology that detects fatigue crack growth through passive magnetic flux leakage, allowing for earlier identification of cracks compared to traditional methods [2] - The integration of Villari's technology with MISTRAS' monitoring solutions enables predictive maintenance, helping customers minimize unplanned downtime and extend the life of critical infrastructure [4][6] Industry Impact - The partnership is expected to benefit various sectors, including wind turbines, oil & gas, bridges, ports, and steel manufacturing, by providing continuous monitoring and early detection of potential failures [6][7] - Villari's technology is trusted by leading operators across multiple industries, supporting critical assets in over a dozen countries worldwide [7]

Core Insights - MISTRAS Group, Inc. reported robust quarterly organic revenue growth in aerospace & defense and industrial markets, with a significant expansion in gross profit margin of 200 basis points, generating net income of $3.0 million and achieving adjusted EBITDA of $24.1 million for Q2 2025 [1][6][12]. Financial Performance - Revenue for Q2 2025 was $185.4 million, a decrease of 2.3% compared to the prior year, but flat when excluding voluntary laboratory consolidations [7]. - Gross profit increased by 5.1% to $53.9 million, primarily due to an improved business mix and operating efficiencies, resulting in a gross profit margin of 29.1% [7]. - Selling, general, and administrative (SG&A) expenses rose by 10.0% to $39.8 million, largely due to a foreign exchange loss of $2.8 million [7]. - Net income for Q2 2025 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 [6][7]. - 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% [7][12]. Operational Changes - The company reclassified certain overhead and personnel expenses from SG&A to cost of revenue, amounting to $4.8 million for Q2 2024, which provided greater transparency regarding the true cost of revenue [4]. - MISTRAS recorded $3.0 million in reorganization and other costs in Q2 2025 as part of its initiative to reduce overhead costs [5]. Cash Flow and Debt - Net cash used in operating activities was $3.5 million in the first half of 2025, a decrease from $5.1 million of net cash provided in the prior year, primarily due to an increase in days sales outstanding [7]. - Free cash flow was negative $16.2 million in the first half of 2025, compared to negative $6.9 million in the prior year [9]. - The company's gross debt increased to $189.4 million as of June 30, 2025, compared to $169.6 million at the end of 2024 [10]. Market Outlook - The company is not providing full-year guidance for fiscal 2025 as it reviews its entire portfolio of businesses, but it expects adjusted EBITDA to exceed the 2024 level [13].

Company Overview - MISTRAS Group, Inc. is a global leader in technology-enabled industrial asset integrity and testing solutions, serving critical industries such as oil & gas, aerospace & defense, power & utilities, manufacturing, and civil infrastructure [3] - The company offers a diversified portfolio of products and services, including advanced non-destructive testing, pipeline inspections, real-time condition monitoring, maintenance planning, and specialized engineering [3] - MISTRAS Group utilizes a proprietary management software suite that centralizes integrity data for predictive analytics and benchmark analysis, helping clients reduce risk, extend asset life, and optimize operational performance [3] Upcoming Events - MISTRAS Group has scheduled a conference call for August 7, 2025, at 9:00 am Eastern Time to present its second quarter results for 2025 [1] - A press release with the second quarter results will be issued after the market closes on August 6, 2025 [1] - Individuals can pre-register for the live question and answer session at a specified link [2]