Matrix Service pany(US:MTRX)2024-09-10 17:13Financial Data and Key Metrics Changes - Revenue for Q4 2024 increased by 14% to $189 million compared to the previous quarter [10] - The company reported a net loss of $4.4 million or $0.16 per fully diluted share for Q4 2024 [10] - Backlog increased by more than 30% year-over-year, totaling $1.4 billion at the start of fiscal 2025 [4][14] - Revenue guidance for fiscal 2025 is projected between $900 million and $950 million, representing a year-over-year increase of 24% to 30% [9][15] Business Line Data and Key Metrics Changes - In the Storage and Terminal Solutions segment, revenue increased by 30% to $70 million in Q4 2024 [11] - The Utility and Power Infrastructure segment saw revenue growth of over 40% to $65 million in Q4 2024 [11] - The Process and Industrial Facilities segment experienced a revenue decrease of 17% to $54 million in Q4 2024 [12] Market Data and Key Metrics Changes - The company is pursuing approximately $3.2 billion in near-term projects in the Storage and Terminal Solutions segment [5] - In the Utility and Power Infrastructure segment, there are over $1.2 billion in near-term projects [5] - The Process and Industrial Facilities segment has a backlog of $252 million, with a focus on natural gas, chemicals, and petrochemicals [13] Company Strategy and Development Direction - The company is focused on infrastructure investment in LNG, NGLs, ammonia, hydrogen, and renewable fuels [4] - Strategic changes have been made to focus on end markets with the best opportunities and to streamline operations [7] - The company aims to maintain a lean balance sheet and strong liquidity to support growth [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue growth and improved profitability in 2025 and beyond [4][16] - The company anticipates a slow start to fiscal 2025 but expects revenue growth to accelerate through the year [9][10] - Management highlighted the importance of safety, quality, and service in achieving long-term growth objectives [9] Other Important Information - The company generated $47 million in cash from operations, increasing the year-end cash balance to $141 million [14] - The company has zero debt and a liquidity position of $170 million [14] - The opportunity pipeline remains strong at $6.1 billion, indicating robust future growth potential [6][14] Q&A Session Summary Question: Can you talk about the Process gross margin performance? - The Process Industrial Facilities segment achieved a gross margin of 15.4% due to strong execution across projects [17] Question: What is the expected gross margin profile going forward? - The expectation for long-term gross margins in the Process segment is 9% to 11%, with current projects supporting historical margin ranges [18] Question: What is the revenue recognition cadence for fiscal 2025? - Significant growth is expected in the Storage segment, while the Process segment may see lower revenue in the first half of 2025 [19] Question: What challenges are faced in the Electrical Infrastructure business? - The Electrical Infrastructure business is experiencing reduced spending patterns from long-term clients, but efforts are being made to expand into new geographies [22] Question: Are there projects in the pipeline related to data centers? - The company is identifying opportunities related to data centers, particularly in power generation and infrastructure [23] Question: What is the competitive landscape like? - The competitive landscape remains stable, with larger projects offering better margins and reduced competition [28] Question: What are the company's thoughts on the hydrogen market? - The company sees hydrogen as part of the future fuel mix and is cautiously engaging with developer-led projects [29]