Matrix Service Company reported first‑quarter fiscal 2026 revenue of $211.9 million, a 28% year‑over‑year increase that exceeded analysts’ consensus estimate of $206.66 million by $5.24 million. The company’s net loss narrowed to $3.7 million from $9.2 million a year earlier, while the adjusted net loss was only $0.3 million. Adjusted EBITDA turned positive at $2.5 million, though it fell short of the $4.5 million consensus estimate, reflecting higher-than‑expected cost pressures and a mix of lower‑margin projects.
The three operating segments delivered divergent results. Storage & Terminal Solutions revenue grew 40% to $109.5 million, but its gross margin slipped slightly to 5.9% from 6.0% a year ago, largely due to under‑recovery of overhead costs. Utility & Power Infrastructure revenue rose 33% to $74.5 million and its margin expanded dramatically to 9.1% from 2.3%, driven by strong demand for power‑grid and renewable‑energy projects. Process & Industrial Facilities revenue fell to $27.9 million, with margin slipping to 5.1% from 6.4%, reflecting a shift toward lower‑margin work in that segment.
Backlog stood at $1.2 billion as of September 30, 2025, and the company awarded $187.8 million in new work during the quarter, resulting in a book‑to‑bill ratio of 0.9×. Liquidity remained robust at $248.9 million, and the company had no outstanding debt. The company incurred restructuring expenses of $3.3 million in the quarter, part of an ongoing organizational realignment that management expects to deliver $12 million in annual overhead savings over the long term.
Management reiterated its full‑year revenue guidance of $875 million to $925 million and emphasized disciplined execution. CEO John Hewitt said, “We delivered improved first‑quarter results, reflecting disciplined execution across an expanding base of projects in our Storage & Terminal Solutions and Utility & Power Infrastructure segments.” He added that the company’s robust $6.7 billion opportunity pipeline and new awards of $187 million underscore continued demand and that the realignment will strengthen the firm’s competitive positioning.
The results signal a clear trajectory toward profitability. The 28% revenue growth, the narrowing net loss, and the positive adjusted EBITDA demonstrate that cost‑control and execution initiatives are paying off. The widening gross margin to 6.7% from 4.7% a year ago reflects improved pricing power and better project mix. While the adjusted EBITDA miss highlights ongoing cost pressures, the company’s strong backlog and reaffirmed guidance suggest confidence in sustained demand. The company’s focus on high‑margin Utility & Power Infrastructure projects and its disciplined cost management position it well for continued growth in the coming fiscal year.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.