Mistras Group (MG) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue grew 5.1% year-over-year to $181.5M, with double-digit growth in aerospace & defense, power generation, and infrastructure, while Oil & Gas declined 5.4% due to project timing.

• Record gross profit margin of 28.4% in Q4, driven by favorable business mix and operational improvements, with full-year gross profit up 6.4%.

• Adjusted EBITDA for Q4 reached $24.8M (18.2% increase), with a margin of 13.7%, and full-year Adjusted EBITDA was $91.1M (12.6% margin), both all-time records.

• Net income for Q4 was $3.9M ($0.12 per share); full-year net income was $16.8M ($0.53 per share), with adjusted net income for the year at $28.1M ($0.88 per share).

• Strategic wins included major contracts in LNG, bridge monitoring, and data centers, supporting long-term growth and diversification.

Financial highlights

• Q4 2025 revenue: $181.5M; full-year 2025 revenue: $724.0M, slightly up year-over-year excluding lab closures.

• Q4 GAAP net income: $3.9M; EPS: $0.12. Non-GAAP net income: $7.9M; EPS: $0.20.

• Full-year GAAP net income: $16.8M; EPS: $0.53. Non-GAAP net income: $28.1M; EPS: $0.88.

• Q4 free cash flow: $24.6M, up from $20.8M prior year; full-year free cash flow: $3.8M, down from $27.1M due to higher DSO, restructuring, and CapEx.

• Gross profit for 2025: $205M (28.4% margin), up 6.4% year-over-year.

Outlook and guidance

• 2026 revenue expected between $730M–$750M; Adjusted EBITDA between $91M–$93M.

• CapEx to remain elevated at ~4.5% of revenue in 2026 and 2027, then return to ~3% after 2027.

• Net income and EPS expected to exceed 2025 levels; EBITDA margins to remain resilient.

• Management to focus on profitable growth, platform modernization, and technical differentiation.

• No macro acceleration in oil & gas or acquisitions assumed in outlook.