Matrix Service Company (MTRX) Q1 2025 earnings summary

Executive summary

• Fiscal Q1 2025 revenue was $165.6 million, down from $197.7 million year-over-year, mainly due to the completion of a large renewable diesel project.

• Net loss widened to $9.2 million ($0.33/share) from $3.2 million ($0.12/share) year-over-year; adjusted net loss was $9.2 million ($0.33/share) vs. $5.7 million ($0.21/share).

• Backlog remains near record at $1.4 billion, with a trailing twelve-month book-to-bill ratio of 1.1x, supporting strong project pipeline and future revenue growth.

• Liquidity increased to $181.2 million, with no outstanding debt and $124.6 million in unrestricted cash as of September 30, 2024.

• Company reaffirms FY2025 revenue guidance of $900–$950 million, representing a 24–30% year-over-year increase and expects a return to profitability.

Financial highlights

• Q1 FY25 revenue was $165.6 million, down from $197.7 million in Q1 FY24, mainly due to project completions.

• Gross margin was $7.8 million (4.7%) in Q1 FY25, compared to $11.9 million (6%) in Q1 FY24.

• Operating loss increased to $10.8 million from $5.3 million; adjusted EBITDA was $(5.9) million versus $(0.9) million prior year.

• Cash provided by operating activities was $11.9 million, ending the quarter with $150 million in cash and $181.2 million in liquidity.

• SG&A expenses increased to $18.6 million from $17.1 million, primarily due to higher stock-based compensation and headcount.

Outlook and guidance

• FY25 revenue guidance reaffirmed at $900–$950 million, with revenue expected to increase each quarter, driven by backlog conversion and strong project pipeline.

• Management anticipates a return to profitability in FY25 as revenue ramps and cost absorption improves.

• Long-term targets include >4.5% operating margin, >6.5% EBITDA margin, >12% ROIC, and <1.5% capex as a percentage of revenue.

• Expects significant growth in Storage and Terminal Solutions, especially for LNG and NGL storage projects.

• Bidding activity remains strong, particularly for LNG and ammonia projects.