Mistras Group reported third‑quarter 2025 results on November 4, 2025, with revenue of $195.5 million—up 7 % year‑over‑year—and net income of $13.1 million, translating to earnings per diluted share of $0.41. Adjusted EBITDA rose 30 % to $30.2 million, driven by a 300‑basis‑point expansion of gross profit margin to 29.8 % and disciplined cost management that kept operating expenses in line with revenue growth.
The revenue increase was largely fueled by robust demand in Power Generation (+24.3 %), Industrials (+15.8 %), and Infrastructure (+21.1 %), while Oil & Gas grew modestly (+6.2 %). These high‑margin segments offset the slower growth in legacy services, allowing the company to lift its adjusted EBITDA margin to 15.4 %, a 270‑basis‑point gain over the same period last year. Digital upgrades and a shift toward higher‑margin service contracts contributed to the margin expansion, while the company maintained tight control over discretionary spend.
Working‑capital dynamics remain a concern. Accounts receivable rose sharply, pushing free cash flow into a negative $20.9 million for the first nine months. The increase reflects longer collection cycles and a higher proportion of customers in the industrial and infrastructure sectors, which traditionally have extended payment terms. Management acknowledges the headwind and is focusing on improving collections and cash conversion to mitigate the impact on future free cash flow.
Guidance for the full year has been raised: revenue is now projected at $716‑$720 million—essentially flat versus the prior year—and adjusted EBITDA guidance has increased to $86‑$88 million from the previous $82.5 million range. The upward revision signals management’s confidence in sustaining demand across diversified sectors and in continuing to execute cost‑control initiatives. The company also reiterated its focus on working‑capital improvement and debt reduction as part of its long‑term financial strategy.
CEO Natalia Shuman highlighted the company’s “material improvement in operating leverage” and praised the “resilience of our model” amid a challenging macro environment. She noted that each industry segment saw growth, underscoring the firm’s ability to capture demand across multiple markets. Analysts have responded positively, upgrading the stock to “strong buy” and raising the forward price‑to‑earnings ratio from 10 to 12, reflecting the market’s recognition of the company’s margin expansion and guidance lift.
Market reaction has been upbeat, driven by the strong revenue and earnings beats, the 300‑basis‑point gross‑margin expansion, and the raised full‑year guidance. Investors view the diversification into high‑growth sectors and the disciplined cost management as key strengths, while remaining cautious about the negative free cash flow and the need for continued working‑capital improvement. Overall, the results reinforce confidence in Mistras’s ability to generate sustainable profitability in a cyclical industry.
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