Matrix Service Company (MTRX) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 revenue grew 7% year-over-year to $187.2 million, led by Storage and Terminal Solutions and Utility and Power Infrastructure, while Process and Industrial Facilities declined.

• Net loss widened to $5.5 million ($0.20/share), compared to $2.9 million ($0.10/share) last year.

• Backlog stood at $1.3 billion as of December 31, 2024, with a strong recurring customer base and robust market drivers.

• Liquidity reached $211.7 million, including $156.8 million in cash and no debt.

• Management expects over 40% organic revenue growth and a return to profitability in the second half of FY2025.

Financial highlights

• Q2 revenue was $187.2 million, up 7% year-over-year; gross margin was $10.9 million (5.8%).

• Adjusted EBITDA was $(2.2) million versus $0.1 million last year; adjusted net loss per share was $(0.20) versus $(0.18).

• SG&A expenses were $17.3 million, consistent with the normal run rate.

• Cash flow from operations was $33.6 million in Q2; $45.5 million for the first half.

• Book-to-bill ratio for Q2 was 0.5x; backlog at quarter-end was $1.3 billion.

Outlook and guidance

• FY2025 revenue guidance revised to $850–$900 million, down from $900–$950 million, due to project delays and $50 million in revenue shifted to FY2026.

• Management expects a return to profitability and over 40% year-over-year revenue growth in H2 FY2025.

• Full-year book-to-bill ratio expected at or above 1.0x.

• Long-term gross margin target remains 10–12%.

• Long-term financial targets: >4.5% operating margin, >6.5% EBITDA margin, >12% ROIC, <1.5% capex as % of revenue.