MG · Mistras Group, Inc.

Mistras Group delivered Q1 2026 results with revenue of $169.0 million, up 4.6% from the prior year, primarily fueled by robust 35.5% growth in Aerospace & Defense and 30.1% aggregate expansion in strategic markets including Infrastructure (+$6.1M), Power Generation (+$1.9M), and Industrials (+$0.1M). This offset a $11.1 million decline in Oil & Gas due to inspection deferrals from high crude oil prices and a strategic exit from lower-margin accounts. Gross profit rose to $44.7 million with margin expansion to 26.5% (120 bps improvement), driven by a shift to higher-value work, pricing discipline, and operational efficiencies. SG&A increased 3.7% to $37.0 million from growth investments, yet income from operations surged 562.6% to $4.7 million, aided by lower reorganization costs. GAAP net income flipped to $2.4 million ($0.07/share) from a $3.2 million loss, while Adjusted EBITDA grew 18.7% to $14.3 million (8.5% margin). CEO Natalia Shuman highlighted three quarters of mid-single-digit revenue growth, execution of Vision2030, and positioning for profitable growth amid Oil & Gas headwinds. Cash flow softened with operating cash at $2.8 million and negative free cash flow of $4.5 million from working capital changes and higher capex; gross debt rose slightly to $181.4 million. The company reaffirmed full-year guidance of $730-750 million revenue and $91-93 million Adjusted EBITDA, citing Oil & Gas timing risks but strength in growth markets. Investors should note non-GAAP reconciliations in Exhibit 99.1 and forward-looking risks including energy volatility and geopolitics.