MISTRAS Group, Inc. reported a record Adjusted EBITDA of $24.1 million for the second quarter of 2025, an increase of 8.9% year-over-year. This performance reflects significant improvement in operating leverage due to strategic initiatives and disciplined cost management.
Despite the strong Adjusted EBITDA, the company reported net income of $3.0 million, or $0.10 per diluted share, a decrease from $6.4 million, or $0.20 per diluted share, in the prior year comparable period. Net cash used in operating activities for the first half of 2025 was $3.5 million, a decline from $5.1 million provided in the prior year.
The negative cash flow was largely attributed to an increase in days sales outstanding and working capital timing, specifically a buildup in unbilled accounts receivable and invoicing delays related to the conversion to a new enterprise resource planning (ERP) system effective April 1, 2025. The company expects a reduction in these balances and normalization of free cash flow over the remainder of the year, and anticipates 2025 Adjusted EBITDA to exceed the 2024 level of $82.5 million.
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