Mistras Group (MG) Q1 2026 earnings summary

Executive summary

• Revenue grew 4.6% year-over-year to $169.0 million, driven by strong performance in Aerospace & Defense, Infrastructure, and Power Generation, offsetting declines in Oil & Gas.

• Gross profit margin expanded by 120 basis points to 26.5%, with gross profit up $3.8 million year-over-year, reflecting favorable business mix and operational efficiencies.

• Net income reached $2.4 million, reversing a prior-year net loss of $3.2 million, and adjusted EBITDA increased 18.7% to $14.3 million with margin up to 8.5%.

• Recognized for operational excellence, innovation, and safety, including Frost & Sullivan's 2026 Global NDT Field Inspection Services Company of the Year award.

• Continued execution of Vision 2030, focusing on integrated solutions, operational efficiency, and diversification into high-growth verticals.

Financial highlights

• Q1 2026 revenue was $169.0 million, up from $161.6 million in Q1 2025, with gross profit at $44.7 million and gross margin at 26.5%.

• Adjusted EBITDA rose 18.7% to $14.3 million, with margin up 110 basis points to 8.5%.

• Net income was $2.4 million ($0.07 per diluted share), reversing a prior-year loss; adjusted net income was $2.6 million ($0.08 per diluted share).

• Free cash flow was -$4.5 million, impacted by higher capital expenditures and working capital movements.

• Interest expense decreased 13.4% year-over-year to $2.9 million.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: revenue of $730–$750 million and adjusted EBITDA of $91–$93 million, with margin guidance of 12.4%–12.5%.

• Outlook driven by timing and spending in Oil & Gas, with continued solid demand in strategic growth markets.

• Anticipates effective tax rate of ~25% for full year 2026.

• 2026 net income and EPS expected to exceed 2025 levels, supported by increased long-term growth investment.

• Company believes it has sufficient liquidity and credit to fund operations for the foreseeable future.