MTRX · Matrix Service Company

Matrix Service Company reported a return to profitability in its fiscal 2026 third quarter, with net income of $0.8 million compared to a net loss of $3.4 million in the prior-year period. Revenue increased 3.3% to $206.7 million, driven by a 16% increase in the Storage and Terminal Solutions segment, which benefited from higher LNG project activity. Gross margin improved to 8.3% from 6.4%, reflecting better project execution and fixed cost absorption, particularly in Storage and Terminal Solutions and Utility and Power Infrastructure. SG&A expenses decreased to $15.2 million from $17.7 million due to cost reduction initiatives and lower stock compensation from executive separations. The company incurred $3.0 million in restructuring costs related to the CEO transition and a lease impairment. Adjusted EBITDA rose to $4.9 million from $0.01 million. Management noted that revenue was affected by client-related engineering and permitting delays and severe weather, but strong project execution and an improved cost structure enabled profitability. The company lowered its full-year fiscal 2026 revenue guidance to $870-$890 million from $875-$925 million, citing delays that will shift project activity into later periods. Backlog stood at $1.0 billion, with new awards of $108.3 million, resulting in a book-to-bill ratio of 0.5x. The company highlighted increasing awards in electrical infrastructure and grid-related investments driven by data center demand, and a limited notice to proceed for a major mining project. Liquidity remained strong at $297.2 million with no outstanding debt. The incoming CEO, Shawn Payne, is expected to continue streamlining operations to drive sustainable profitable growth.