Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $211.9 million, a 28% increase from $165.6 million in Q1 2025, driven by larger new construction projects [14] - Consolidated gross profit increased 82% to $14.2 million compared to $7.8 million in the prior year, with gross margin improving to 6.7% from 4.7% [14] - Net loss for Q1 2026 was $3.7 million, an improvement from a $9.2 million net loss in Q1 2025, with GAAP EPS loss narrowing to $0.13 from $0.33 [16] - Adjusted EBITDA was positive at $2.5 million compared to a loss of $5.9 million in the same quarter last year [16] Business Line Data and Key Metrics Changes - Storage and terminal solutions segment revenue was $109.5 million, a 40% increase from $78.2 million last year, representing 52% of consolidated revenue [17] - Utility and power infrastructure segment revenue increased 33% to $74.5 million, accounting for 35% of consolidated revenue, with gross profit rising 419% to $5.5 million [18] - Process industrial facility segment revenue decreased to $27.9 million from $31.4 million, representing 13% of consolidated revenue, with gross profit declining to $0.6 million [19] Market Data and Key Metrics Changes - Total opportunity pipeline is currently at $6.7 billion, primarily in storage and related facilities for LNG, NGLs, and ammonia [8] - Bidding activity remains healthy across segments, with a book-to-bill ratio of 0.9 and a total backlog of $1.2 billion [7][20] - The company anticipates a re-acceleration in award activity for larger multi-year projects starting in late fiscal 2026 [10] Company Strategy and Development Direction - The company emphasizes safety as a core value, which strengthens competitive edge and client relationships [4][5] - Focus areas include expanding markets, client base, and backlog in process and industrial facilities, with a disciplined approach to bidding and contracting [10][11] - The company is committed to disciplined capital allocation and aims to return to sustained profitability while targeting growth opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year revenue guidance of $875-$925 million based on strong backlog and first-quarter performance [6][23] - The company expects continued margin improvement as backlog converts to revenue, with a focus on execution excellence [12][23] - Management noted that the competitive landscape is not becoming tougher, as the removal of projects was due to client strategy changes rather than market conditions [26][28] Other Important Information - The company incurred $3.3 million in restructuring costs in Q1, with minimal costs expected for the remainder of fiscal 2026 [15][32] - Cash decreased to $217 million, with liquidity remaining strong at $249 million and no outstanding debt [20] Q&A Session Summary Question: Regarding the two projects removed from backlog - Management clarified that the removals were not indicative of a tougher competitive landscape but rather client strategy changes [26][28] Question: Timing for large project awards - Management indicated that larger projects take longer to develop, but they are tracking several opportunities and expect a re-acceleration in awards [29][30] Question: Impact of restructuring on break-even dynamics - Restructuring has lowered the break-even revenue point to $210-$215 million, improving earnings power [32] Question: Target projects within the gas power project space - The company has capabilities in gas power plant construction and anticipates increased project opportunities in this area [35][37] Question: Future backlog expectations - Management expects backlog to remain strong, with the recent removals viewed as one-off situations rather than a trend [39][40]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 increased by 21% to $200.2 million compared to $166 million in Q3 2024, driven by growth in storage and utility segments [21][31] - Gross margin improved to $12.9 million or 6.4% in Q3 2025 from $5.6 million or 3.4% in Q3 2024 [21][22] - The company reported a net loss of $3.4 million or $0.12 per share, an improvement from a net loss of $14.6 million or $0.53 per share in the same quarter last year [23] Business Line Data and Key Metrics Changes - Storage and Thermal Solutions segment revenue surged by 77% to $96.1 million in Q3 2025 from $54.3 million in Q3 2024, driven by specialty vessel projects [23][24] - Utility and Power Infrastructure segment revenue rose by 27% to $58.7 million compared to $46.1 million in the prior year, benefiting from natural gas peak shaving projects [25] - Process and Industrial Facilities segment revenue decreased to $45.4 million from $65.6 million, primarily due to the completion of a large renewable diesel project [26] Market Data and Key Metrics Changes - The company anticipates a 45% increase in U.S. LNG export demand, supporting elevated energy infrastructure spending [16] - The EIA projects an 8% increase in natural gas demand over the next six years, indicating strong growth potential in the electrical infrastructure market [17] Company Strategy and Development Direction - The company is restructuring to create a more efficient organization, including eliminating senior positions and decentralizing business development [8][11] - Matrix is winding down its Northeast transmission and distribution service line due to competitive disadvantages, while continuing to focus on electrical infrastructure services [12][13] - The strategic focus remains on delivering sustainable long-term shareholder value through a resilient growth-oriented platform [13] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic uncertainties due to U.S. trade and environmental policies, but believes the underlying demand environment remains strong [14] - The company revised its fiscal 2025 revenue guidance down by 10% to $770 million to $800 million, while still expecting strong year-over-year growth [15][31] - Management expressed confidence in achieving a sustainable and profitable growth trajectory, supported by a $7 billion pipeline of project opportunities [17] Other Important Information - The company reported a backlog increase of nearly 8% sequentially to over $1.4 billion, with a book-to-bill ratio of 1.5 [18] - Cash flow from operating activities was $31.2 million for Q3 and $76.8 million year-to-date, with available liquidity increasing to $247.1 million [30] Q&A Session Summary Question: Can you walk us through the decision-making process to exit the transmission and distribution business? - Management indicated that competitive dynamics made it difficult to win work at acceptable margins, leading to the decision to wind down the business without a positive backlog [35][36] Question: What are the potential cost savings from exiting the business? - The exit will result in cost savings and reallocation of resources to the electrical instrumentation business, with the business operating at a loss previously [38] Question: Are the revenue guidance adjustments due to deferrals or cancellations? - Management clarified that some revenue was deferred due to delays in contract negotiations and project awards, but they expect strong spending on energy infrastructure in the coming years [39][42] Question: What is the opportunity profile for smaller projects as the company reengages in them? - Management emphasized the importance of smaller projects for building client relationships and strengthening execution teams, indicating a need to pursue these opportunities more effectively [43][44] Question: How might the geopolitical macroeconomic environment influence customer spending? - Management expressed confidence that despite uncertainties, the global demand for energy will continue to rise, supporting infrastructure investments [51][53]