10-Q · May 7, 2026
Matrix Service Company reported Q3 2026 revenue of $206.7 million, missing analyst estimates of $231.5 million, alongside an EPS of $0.13, surpassing expectations of $0.06. The company recorded a gross margin increase…
Earnings analysis · 10-K
MTRX earnings analysis
Filed September 3, 2026 · Our reading of the company's report
The latest report
Matrix Service delivered a meaningful operational recovery in fiscal 2026: revenue rose 14% to $873.6 million, gross margin expanded to 7.3%, SG&A declined 11%, and the operating loss narrowed to $9.6 million from $35.1…
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Matrix Service delivered a meaningful operational recovery in fiscal 2026: revenue rose 14% to $873.6 million, gross margin expanded to 7.3%, SG&A declined 11%, and the operating loss narrowed to $9.6 million from $35.1 million. Growth was concentrated in Storage and Terminal Solutions and Utility and Power Infrastructure, while Process and Industrial Facilities deteriorated and consolidated backlog fell to $953.2 million with a 0.7x book-to-bill ratio. The strategy is increasingly focused on LNG, ammonia, power, data-center infrastructure, mining, and other energy-transition markets, but leadership turnover, restructuring costs, contract-estimate risk, and weak bookings leave the outlook balanced rather than clearly bullish.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.09
What stood out
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Revenue and margins materially improved
Fiscal 2026 revenue increased 14% to $873.6 million from $769.3 million in fiscal 2025 and $728.2 million in fiscal 2024. Gross margin improved to 7.3% from 5.2% and 5.6%, respectively, while operating margin improved to approximately negative 1.1% from negative 4.6% and negative 4.1%.
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Core infrastructure segments drove growth
Storage and Terminal Solutions revenue rose 25% to $458.3 million, driven by specialty storage projects, while Utility and Power Infrastructure revenue increased 14% to $283.4 million on LNG peak-shaving and power-delivery work. Their operating income increased to $3.1 million and $20.3 million, respectively, from losses or limited profit in fiscal 2025.
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Strategy targets energy-transition growth
Management's WIN, EXECUTE, DELIVER framework targets selective expansion into LNG, NGL, ammonia, power generation, utility infrastructure, data-center-related power infrastructure, and mining and minerals. The company cited fiscal 2026 revenue growth of 14% as evidence of progress.
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Cost structure and execution improved
SG&A declined 11% to $63.6 million from $71.2 million as restructuring reduced salaries, facilities costs, and other overhead. Gross profit increased 61% to $64.0 million from $39.7 million.
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Balance sheet provides financial flexibility
The company ended fiscal 2026 with $223.0 million of unrestricted cash and $60.9 million of ABL availability, or $283.9 million of total liquidity. It had no ABL borrowings outstanding and was in compliance with all covenants at June 30, 2026.
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Conservative capital allocation
Capital expenditures declined to $5.5 million from $7.7 million in fiscal 2025 and $7.0 million in fiscal 2024. The company made no stock repurchases in fiscal 2026, has never paid cash dividends, and the ABL Facility limits repurchases to $2.5 million per fiscal year subject to availability thresholds.
What to watch
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Weak bookings reduced backlog coverage
Backlog declined to $953.2 million from $1.382 billion at June 30, 2025, with a consolidated book-to-bill ratio of 0.7x. Utility and Power Infrastructure had a 0.4x ratio and backlog of $145.7 million, while Storage and Terminal Solutions was 0.7x; management also removed $197.0 million of previously recorded awards.
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Process and Industrial remains underperforming
Process and Industrial Facilities revenue fell 15% to $131.9 million and gross margin declined to 3.4% from 5.8%, producing a $2.6 million operating loss versus $0.5 million of operating income in fiscal 2025. The decline reflected lower refinery, thermal-vacuum-chamber, and industrial-facility volumes.
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Leadership turnover and restructuring execution
Fiscal 2026 included $10.0 million of restructuring and other costs, including $3.6 million related to CEO and CFO transitions. The CFO is separating from the company, and an interim CFO is scheduled to serve effective September 10, 2026 while a permanent replacement is sought.
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New litigation and technology exposure
A new Washington employment matter filed July 10, 2026 includes two complaints seeking class certification; damages have not been quantified and potential losses cannot currently be estimated. The company also identifies cybersecurity incidents and disruptions involving third-party software or AI tools as risks to operations and financial results.
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Fixed-price contract estimates remain critical
Fixed-price contracts represented $682.9 million of fiscal 2026 revenue, and revisions to total cost estimates reduced gross profit by $4.8 million during the year. Because revenue is recognized using percentage of completion, inaccurate cost-to-complete estimates could cause material future earnings adjustments.
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Goodwill remains sensitive to execution
One reporting unit with $11.2 million of goodwill was identified as at higher risk of future impairment, although the May 31, 2026 impairment test produced no charge. In the sensitivity analysis, a 100-basis-point decline in revenue growth reduced that unit's headroom from 43% to 33%, while a 100-basis-point gross-margin decline reduced it to 25%.
Management's outlook
The 10-K provides no annual revenue or EPS guidance. Management expects to recognize approximately $667.0 million of remaining performance obligations within the next 12 months, or approximately 79% of total backlog as of June 30, 2026.
Earlier filings 4
10-Q · February 5, 2026
Matrix Service reported quarterly revenue of $210,508,000 (up from $187,169,000 a year ago), improved gross profit to $13,135,000 and narrowed operating loss to $(2,179,000). GAAP diluted loss per share improved to…
10-K · September 10, 2025
Matrix Service's 10-K emphasizes a strategy to 'Win, Execute, Deliver' by capturing multi-year spending cycles in LNG/NGL, hydrogen and utility infrastructure while improving execution and capital discipline. The filing…
10-Q · November 7, 2024
Matrix Service reported revenue of $165,579,000 and a GAAP net loss of $9,223,000 (diluted loss per share $(0.33)) for the quarter ended September 30, 2024. Revenue and gross profit declined year-over-year while…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.