MG

This article first appeared on GuruFocus. Revenue: $193 million, up 4.2% year-over-year, marking the fourth consecutive quarter of growth. Adjusted EBITDA: Record second quarter at $25.8 million, up 7% year-over-year, with margin expanding 30 basis points to 13.3%. Gross Margin: Expanded by 10 basis points year-over-year. Operating Income: $12.9 million, up 53.6% from $8.4 million in the prior year period. GAAP Net Income: $7.6 million, with GAAP earnings per diluted share of $0.23. Non-GAAP Net Income: $9.1 million, with non-GAAP earnings per diluted share of $0.28. Free Cash Flow: Improved by $23.9 million quarter-over-quarter. SG&A Expenses: Decreased by $1.1 million or 2.7% year-over-year; excluding foreign currency translation impact, increased $1.7 million or 4.6%. Interest Expense: $4.1 million, down 2.4% from $4.2 million in the prior year quarter. Effective Tax Rate: 23.1% for the second quarter; anticipated approximately 25% for full year 2026. Leverage Ratio: Approximately 2.2 times as of June 30, 2026, down from 2.4 times at March 31, 2026. Oil and Gas Revenue: Declined by $8.5 million or 8.2% year-over-year; adjusted for turnarounds and exited work, up 1%. Aerospace and Defense Revenue: Increased by $3.2 million or 13.2% year-over-year. Infrastructure Revenue: Increased by $6.2 million or 76.5% year-over-year. Power Generation Revenue: Increased by $3.1 million or 26.4% year-over-year. Full Year 2026 Guidance: Revenue raised to $740 million to $755 million; adjusted EBITDA raised to $92 million to $95 million. Warning! GuruFocus has detected 5 Warning Sign with MG. Is MG fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue increased 4.2% to $193 million, marking the fourth consecutive quarter of year-over-year growth. Record second quarter adjusted EBITDA of $25.8 million, with adjusted EBITDA margin expanding 30 basis points to 13.3%. Strategic end markets (aerospace and defense, infrastructure, power) grew 28% in aggregate, with infrastructure up 76.5% and power up 26.4%. Free cash flow improved by $23.9 million quarter-over-quarter, driven by better working capital management and higher net income. Leverage ratio decreased to 2.2 times, the lowest since 2018, and the company raised full-year guidance for revenue and adjusted EBITDA. Oil and gas revenue declined 8.2% year-over-year due to customer program exits and deferred maintenance activity. Deferrals in oil and gas maintenance and turnarounds are expected to continue pushing out through the second half of 2026. In-lab testing demand is temporarily outpacing capacity, limiting near-term revenue growth despite strong demand. Labor market for qualified technicians remains tight, requiring enhanced recruiting and benefit plans to fill gaps. SG&A expenses increased 4.6% year-over-year (excluding FX impact), reflecting ongoing investment costs. Q: Can you confirm that the raised revenue guidance is driven by better demand in Aerospace & Defense and Infrastructure, while Oil & Gas is expected to remain flat to down in the second half? A: Natalia Shuman (President and CEO) confirmed this assessment. The company sees strength in strategic growth markets like aerospace & defense, infrastructure, and power. In Oil & Gas, they anticipate stabilization, with flat to moderate growth expected in Q3 and Q4 after adjusting for turnarounds and exited programs. Q: Is the planned tripling of capacity specific to Aerospace & Defense projects, or does it apply to all in-lab work? A: Natalia Shuman (President and CEO) clarified that the expansion is primarily for in-lab work, which serves both the aerospace & defense and industrial markets. The company projects to triple this capacity by the end of 2027, supported by visible customer demand. Q: Is the ~60% conversion rate of incremental revenue into operating income sustainable? A: Edward Prajzner (CFO) stated that the 60% drop-down was for the second quarter, and the full-year rate is actually slightly higher. He explained that the in-lab and data businesses have a significant fixed-cost element, so when volume rises, the contribution margin drop-down is very attractive and sustainable in future periods. Q: Can you provide color on the "other revenue" line, which was the highest it's been in years? A: Edward Prajzner (CFO) explained that "other revenue" consists of smaller call-out work that doesn't fit into predetermined end markets, highlighting the company's diversification. Natalia Shuman (CEO) added that this includes services for clients like cruise operators, which don't fall neatly into infrastructure or power categories. Q: Can you discuss backlog trends by segment? A: Natalia Shuman (President and CEO) explained that the company's visibility isn't defined by a single backlog metric. On the field side, visibility comes from recurring activity and long-standing contracts. In-lab, they have strategic agreements with minimum volume commitments, providing visibility for foreseeable quarters. Confirmed backlog exists for turnarounds and projects in infrastructure and power. Q: How has the M&A pipeline progressed since last quarter? A: Natalia Shuman (President and CEO) stated that the strategic plan (Vision 2030) does not depend on transformative M&A. The company is focused on execution and reducing leverage, but continues to look at opportunistic opportunities to enhance capabilities. No concrete updates were provided. Q: In-lab revenue was slightly down sequentially. Are the milestones for adding shifts at the third hub still on schedule, and when will they impact revenue? A: Natalia Shuman (President and CEO) noted that in-lab revenue depends on unlocking capacity, with a lead time of about 9-12 months for investments to generate revenue. While growth may vary quarter-to-quarter due to capacity constraints, the company is optimistic due to visible supply chain constraints and customers proactively reserving capacity. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 9:00 a.m. ET Senior Vice President of Finance and Treasurer - Thomas Tobolski President and Chief Executive Officer - Natalia Shuman Senior Executive Vice President and Chief Financial Officer - Edward Prajzner Operator: Good day, everyone. My name is Lenis, and I will be your conference operator today. At this time, I would like to welcome you to the Mistras Group, Inc. Q2 2026 Earning's Call. [Operator Instructions] At this time, I would like to turn the call over to Thomas Tobolski, Senior Vice President of Finance and Treasurer. Thomas Tobolski: Good morning, everyone, and welcome to Mistras Group's Second Quarter 2026 Earnings Conference Call. I'm joined today by Natalia Shuman, President and Chief Executive Officer; and Ed Prajzner, Senior Executive Vice President and Chief Financial Officer. Before we start, I want to remind everyone that remarks made during this conference call as well as supplemental information provided on our website contain certain forward-looking statements and involve risks and uncertainties as described in Mistras' SEC filings. The company's factors that can cause actual results to differ are discussed in the company's most recent annual report on Form 10-K and other reports filed with the SEC. The discussion in this conference call will also include certain non-GAAP financial measures that we believe are useful to investors evaluating the company's performance, but that were not prepared in accordance with U.S. GAAP. Reconciliation of these non-U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measures can be found in the tables contained in yesterday's press release and the company's related current report on Form 8-K. These reports are available at the company's website in the Investors section and on the SEC's website. I will now turn the conference call over to Natalia Shuman. Natalia Shuman: Good morning, everyone, and thank you for joining us today. Our second quarter results demonstrate continued progress towards the transformation outlined on the Vision 2030 as Mistras becomes a more diversified technology-enabled and less cyclical company. This transformation is increasingly evident in our financial performance and business mix. Growth in aerospace and defense, infrastructure and power more than offset headwinds in oil and gas as our mix continued to shift towards high-margin end markets with deeper customer relationships and greater long-term visibility. For the quarter, revenue increased 4.2% to $193 million, marking our fourth consecutive quarter of year-over-year growth. We also delivered record second quarter adjusted EBITDA of $25.8 million, demonstrating the operating leverage in our model, while significantly improving free cash flow by $23.9 million quarter-over-quarter and continuing to position the business around higher growth, higher value end markets. Let me start with our performance by end markets, which clearly demonstrates the benefits of a more diversified platform. Starting with oil and gas, which remains an important end market for Mistras, revenue declined by $8.5 million or 8.2% compared with the prior year period. This was primarily due to the impact of customer programs exited in 2025, of which the majority impact has already been realized. As we discussed last quarter, certain oil and gas customers have deferred some maintenance and project activity amid elevated commodity prices. This has affected inspection cadence, turnarounds and other work. We anticipate that the majority of the deferrals from the first half of 2026 will continue to be pushed further out. After adjusting for the level of turnarounds in 2026 and work that we exited in 2025, our oil and gas revenue was up 1% in the second quarter, and we anticipate this outlook to continue over the second half within our resilient oil and gas business. We remain selective in the opportunities we pursue with a clear focus on higher-margin, high-return engagements rather than volume. At the same time, the second quarter decline in oil and gas was more than offset by strong growth in our strategic end markets, which were up 28% in the aggregate. Starting with aerospace and defense. This market remains one of our primary growth engines with second quarter revenue increasing by $3.2 million or 13.2% year-over-year. Our in-lab testing business continues to be particularly strong. Demand is temporarily outpacing capacity due to a healthy backlog, strong customer relationships and the mission-critical nature of the work we perform for some of the sector's most demanding customers. In response, we are investing meaningfully to expand capacity in our in-lab testing operations with a particular focus on automation and throughput. Along that line, we announced that we have expanded our in-lab capabilities in both Houston and Los Angeles. In these locations, we added equipment and services that allow customers to manage more complex aerospace manufacturing workflows in a single facility from manufacturing support and defect characterization to weld repair, nondestructive testing and final certification. Over time, we believe these investments in facility expansion, automation and process improvements could nearly triple our in-lab testing capacity. Importantly, these investments are supported by visible customer demand and will expand our service capabilities while strengthening our role as trusted supply chain partner. Turning to infrastructure. Revenue increased by $6.2 million or 76.5% year-over-year, marking another strong quarter for this key growth market. Continued investments in U.S. LNG infrastructure and data center construction is creating meaningful opportunities for us, particularly as customers require quality assurance, inspection, commissioning support and asset integrity expertise across increasingly complex projects. We are shifting more of our focus and resources towards these larger, more complex engagements because they better align with our technical capabilities, deepen customer relationships and support higher value, longer duration work. A good example is our Woodside Louisiana LNG mega project, where the scope continues to expand across multiple offerings. The growth we are seeing in infrastructure is another clear example of our Vision 2030 diversification strategy translating into profitable growth opportunities. Our power generation business also delivered strong growth with revenue increasing by $3.1 million or 26.4% year-over-year. This performance was driven primarily by continued maintenance demand from wind energy customers in addition to onshore wind development, repowering activity and ongoing investment in renewable energy infrastructure. Power generation is also benefiting from broader investment in power infrastructure, including demand associated with the rapid expansion of data centers. As customers invest across both traditional and renewable generation assets, we are continuing to diversify our customer base and position the business to capture opportunities across multiple technologies and end markets. Together, our improved sales mix and operational efficiencies contributed to a 10 basis point expansion in gross margin in the second quarter. Combined with disciplined expense management, this helped drive a record second quarter adjusted EBITDA, demonstrating the operating leverage in our model. Let me now take a few minutes to provide an update on the continued execution of the key -- 3 key strategic priorities within our strategic plan, Vision 2030. As a reminder, these priorities are: First, expanding wallet share by delivering more comprehensive, integrated and innovative solutions for our customers; second, diversifying into attractive growth markets; and third, building greater operational leverage through continued efficiency and productivity improvements. With respect to our first strategic priority, expanding wallet share, our proprietary technology solutions, including the ARC crawler monitoring technologies and PCMS data offerings continue to play an increasingly important role in our customer inspection programs. This solution improve inspection quality, support better decision-making and provide actionable insights into customers managing complex asset integrity needs. As customers continue to invest in asset integrity and digital transformation, particularly in power and energy, these capabilities are becoming more deeply embedded in customer workflows and helping strengthen long-term partnerships. To further accelerate our progress, I'm pleased to report that we have hired an Executive Director of AI, leading our AI adoption and forming an AI center of excellence for Mistras Group's data solutions organization, focused on applying AI to asset protection, mechanical integrity, inspection intelligence, engineering productivity, automation and customer-facing data solutions. On our second strategic priority, diversifying into attractive gross margin markets, we continue to make meaningful progress during the quarter. We secured notable contract wins across wind energy, commercial diving and marine infrastructure service lines, underscoring the breadth of our capabilities and the value we can deliver beyond traditional NDT offerings. We also hosted a Technology Day in Houston during the second quarter, giving customers a firsthand look at our capabilities and service offerings. The event was well attended, and the feedback was positive across a range of industries. These events helped deepen engagement with existing customers and introduce prospective customers to the broader Mistras platform. During the second quarter, we also expanded our relationship with the U.S. Department of Defense, securing additional project awards that reflect the strength of our technical expertise and our ability to support mission-critical infrastructure and asset integrity requirements. Together, these wins reinforce our strategic focus on broadening our end market exposure, while driving sustainable growth across our platform. For our third strategic priority, building greater operational leverage, we continue to advance automation, digital initiatives across the organization. These efforts are focused on improving workflow efficiency, working capital management, collections activity, information processing and productivity and support functions. While these AI and automation initiatives are still in the very early phases, they are helping us create a more scalable operating platform by reducing administrative burden and allowing teams to focus on high-value work. As we continue to build innovative solutions and drive operating leverage, labor availability remain an important consideration. The market for qualified technicians remains tight, and we continue to compete for specialized talent. We have responded by sharpening our recruiting approach and enhancing technicians benefit plans in targeted areas, where demand is the strongest with the goal of filling labor gaps while maintaining the quality of -- and technical expertise our customers expect. Overall, our strategic plans continues to gain traction and is increasingly evident in our results. We are strengthening technology and service integration, expanding into higher-growth markets and improving operational efficiency, all of which are positioning Mistras for more sustainable long-term value creation. Before Ed walks us through the financials, I want to briefly highlight a few additional achievements from the quarter that reinforce the progress. First, Mistras was recently recognized by MarketsandMarkets as a star in both NDT inspection services and NDT inspection equipment, reflecting the strength of our asset protection platform and technical capabilities. Second, Mistras was added to several Russell growth and defensive benchmarks as a part of the latest reconstitution of the Russell family of indices, which we believe can broaden visibility and support trading liquidity over time. And finally, we recently launched AEScout, a rapid deployment acoustic emission monitoring solution that complements conventional NDT inspections and strengthened risk-based inspection and integrity management programs. AEScout gives operators a practical way to collect evidence quickly between traditional inspection intervals, helping them prioritize inspection resources, reduce unnecessary disruption and make more confident decisions. It also supports our emerging integrity management as a service model as we aim to deliver more comprehensive innovative solutions for our customers. In summary, we continue to execute against our long-term transformation on the Vision 2030. We are expanding in aerospace and defense, infrastructure and power, managing oil and gas with discipline and investing in the highest return areas of the business to support profitable growth. Now I would like to turn the call over to Ed to walk through a more comprehensive overview of our second quarter results. Edward Prajzner: Thank you, Natalia, and good morning, everyone. Let me walk you through our financial performance for the second quarter. As Natalia mentioned, we delivered revenue growth of 4.2%, supported by strong execution across strategic end markets. Importantly, that growth translated into improved profitability with gross profit margin expanding by 10 basis points year-over-year and income from operations expanding by 53.6%. These improvements were driven mainly by our continued focus on a favorable mix shift towards higher-value business and continued operational and overhead cost efficiencies achieved across the business. SG&A decreased year-over-year by $1.1 million or 2.7% compared to the prior year period. Excluding the impact of foreign currency translation in 2025, SG&A expenses increased $1.7 million or 4.6%. The year-over-year comparison was affected by a change in presentation adopted in 2026 under which foreign currency gains and losses are reported within other income and expense net. Previously, these amounts were included within SG&A. The prior year amounts were not reclassified as the impact was not material. Operating income was $12.9 million for the second quarter compared to $8.4 million in the prior year period, an increase of 53.6%. This represented a nearly 60% conversion of incremental revenue year-over-year into operating income in the second quarter. On the bottom line, we generated GAAP net income of $7.6 million, resulting in GAAP earnings per diluted share of $0.23. On a non-GAAP basis, net income and earnings per diluted share were $9.1 million and $0.28 per share, respectively. These significantly improved results, GAAP and non-GAAP net income and EPS, all more than doubling, reflect our strong performance, particularly given the investments we are continuing to make to support future growth. Adjusted EBITDA was $25.8 million, an increase of 7% over the prior year quarter and represents our highest ever second quarter adjusted EBITDA to date. Adjusted EBITDA margin was 13.3%, up 30 basis points year-over-year, reflecting stable operating performance, continued cost discipline and the benefits of our ongoing mix shift. Turning to cash flow. Both cash flow from operations and free cash flow significantly improved during the second quarter. This progress reflects focused management attention on upfront billing cycle time, customer escalations and proactive collection efforts. We generated a free cash flow increase of $23.9 million compared to the prior year quarter as a result of higher net income generated and significantly improved working capital dynamics. This progress achieved during the second quarter aligns with our previously mentioned focus on driving sustainable cash generation, and we remain intently focused on further improving conversion as we continue to view cash generation as a critical area of focus for the business. We will continue to dedicate significant time and execution attention to strengthening cash flow performance. That includes accelerating the use of automation, including AI, improving internal processes and working closely with customers to ensure cash collections better reflect the value and benefits that we deliver. These efforts have shown progress over the past few quarters, and we expect to return to historically favorable cash flow levels in the second half of the year. Our capital allocation priorities remain unchanged: invest in high-growth opportunities, strengthen the balance sheet through disciplined debt reduction and maintain flexibility to pursue attractive strategic opportunities. We also recently extended our credit facility by 1 additional year to allow us more optionality as we incorporate Vision 2030. Our interest expense in the quarter was $4.1 million, which was down $0.1 million or 2.4% compared to $4.2 million in the prior year quarter, reflecting decreases in our borrowing cost. Our effective income tax rate for the second quarter was 23.1%, and we anticipate an effective tax rate of approximately 25% for the full year 2026. Our bank-defined leverage ratio was approximately 2.2x as of June 30, 2026, which is down versus 2.4x at March 31, 2026, and is well within the maximum allowable leverage of 3.75x, and this is the lowest level it has been since 2018. Our capital allocation strategy remains focused on the use of residual free cash flow to pay down debt to our targeted 2x leverage ratio by the end of 2026 as Swell Lab continue to make capital investments into higher growth, higher-value areas as governed by our strategic plan. We appreciate your continued support. And at this time, I will turn the call back over to Natalia for her closing remarks. Natalia Shuman: Thank you, Ed. Before we move to Q&A, let me close with a few final thoughts and provide our outlook for the remainder of the year. We delivered another strong quarter, highlighted by our fourth consecutive quarter of year-over-year revenue growth. We also delivered record second quarter adjusted EBITDA, demonstrating the operating leverage in our model. The steps we have taken to sharpen our go-to-market approach, streamline operations and broaden our integrated solutions are producing tangible results. Therefore, we're increasing our full year guidance ranges up to $740 million to $755 million in revenue and up to $92 million to $95 million in adjusted EBITDA. This range reflects continued strength in our strategic growth markets, particularly offset by a low level of activity in our oil and gas end market attributable to ongoing macro environment factors, including higher crude oil prices. We continue to see favorable demand trends, particularly in our aerospace and defense and infrastructure end markets, which we expect to support growth throughout the remainder of the year. We remain focused on strengthening operational execution, driving greater efficiency and further improving cash flow and working capital performance. Our strategic plan continues to gain momentum. We are expanding wallet share, deepening customer relationships and advancing technology and data-enabled solutions that make Mistras more differentiated and better positioned for sustainable, profitable growth. We also expect to generate meaningful free cash flow, while continuing to invest in the capacity, people and capabilities needed to support long-term growth. This will allow us to reduce debt, strengthen the balance sheet and maintain strategic flexibility. I'll close by thanking all of our Mistras employees from the front lines to the back office for their tireless efforts in executing on their day-to-day tasks, while embracing transformative change and the evolving strategy of our company. These efforts are creating value for our customers and in turn, our shareholders. I look forward to updating you on our performance as we progress toward our strategic goals. And with that, let me turn the call back to Lenis for questions. Operator: [Operator Instructions] Your first question comes from the line of John Franzreb with Sidoti & Co. John Franzreb: Natalia, I'd like to begin where you just left off. It sounds to me that in raising your revenue guidance for the year, it's more a function of better demand in A&D and infrastructure and that you anticipate oil and gas to remain, I don't know, a little bit of a flat to down profile in the second half. Is that a right assessment? Natalia Shuman: That's right, John. Yes, thanks for the question. It's indeed correct. We see strength in our strategic growth markets that we outlined there, aerospace and defense, infrastructure, power and oil and gas is our core market. But there, what we see is more of a stabilization. Currently, we saw -- if we take out the turnaround and the exited programs, so we saw about 1% growth in Q2. So we anticipate sort of flat to moderate growth in Q2 and in Q3 and Q4. So that's how we look at it. John Franzreb: Got it. Got it. And I guess this is another thing that you said in your prepared remarks, and I don't know if I interpreted it correctly, but you talked about the increasing capacity during your breakdown of A&D being up threefold. Is that threefold just for A&D-related projects? Or is that threefold for OLED-related work? Natalia Shuman: Most is for in-lab work. So what we're doing is we're expanding our capacity in-lab and the markets that we serve in our laboratory operations is aerospace and defense and industrials. So both markets will benefit from that expanded capacity. And we project, again, according to our strategic plan, Vision 2030, we project to triple our capacity by the end of '27. John Franzreb: Got it. That's significant. And I guess one last question. Can you give me your thoughts about the 60% drop down, I think, is what you mentioned, Ed, the conversion. Is that a sustainable kind of number in this kind of environment? It seems relatively impressive. Edward Prajzner: Thanks, John. Good question. Yes, that was for the second quarter. For the full year, it's actually slightly higher than that. And yes, there is -- in the in-lab business and the data business, there is a fixed cost element. So when volume rises, yes, there is a very attractive contribution margin drop down there. And you'll see that in many past quarters when volume spikes up, you get a significant drop down there. So that's a good percentage to use in future periods. That's sustainable, absolutely. John Franzreb: That's great. And I'm going to throw in one oddity question. The other income number or revenue number was $8 million and change, and that's the highest number it's been in years. I'm just curious if there's any abnormal job or anything -- maybe you can just explain a little bit what's going on there? Edward Prajzner: Other income you're referring to, John, that's... John Franzreb: Other revenue. Edward Prajzner: Other revenue. Sorry, that's the otherwise not classified industries. It's a lot of smaller call-out work. It's not fitting in the other predetermined end markets, but it's another example of our good diversification where we're picking up lots of work in different places beyond our core markets. But that's what that is a mix of industries and a lot of that's project work and call-out work in lots of different diverse places. Natalia Shuman: One of the example, John, is like cruise operators, right? So that we would classify kind of in other revenue stream because it doesn't really falls into the infrastructure or power or -- but we still provide these type of services and our customers rely on us. John Franzreb: No, just because it was double the first quarter, and I look back a lot of years and still haven't found it as kind of a threshold. So it's just something I noticed. But thanks for taking the, oddball question if you will. Operator: Your next question comes from the line of Alex Riegel with Texas Capital Securities. Alex Riegel: Very nice quarter. Can you discuss some of the backlog trends by segment? Natalia Shuman: Sure. Alex. When we look at kind of backlog, we really not kind of define -- our visibility is not defined by like a single backlog metric. On the field side, our visibility is often better reflected by the recurring activity and long-standing kind of contracts and customer relationships and embedded integrated programs that we have. So in-lab, we have reserve capacity, where we have strategic agreements with our customers. And there, we see kind of minimum volume that we negotiate with our customers. So we do have the visibility into the volume for foreseeable quarters. And then we do see, obviously, confirmed backlog of the turnarounds, for example, or other projects in infrastructure and power. So -- but again, it's not a single metric of backlog that defines our visibility, if you like. Alex Riegel: That's helpful. And then last quarter, you mentioned that you were starting to build an M&A pipeline. How has that progressed? Natalia Shuman: Yes. So our strategic plan does not depend on any transformative M&A. So it really depends on executing on Vision 2030 and strengthening our cash flow, reducing the leverage. Having said that, we're obviously looking at opportunistic kind of opportunities, where we can enhance our capabilities. So we continue to look and build the pipeline, but I cannot give you anything concrete at this time. Operator: Your next question comes from the line of Gowshi Sri with Singular Research. Gowshihan Sriharan: Can you hear me? My first question is a little bit on color on that in-lab revenue. It was slightly sequentially down. I know last quarter, you said the third hub goes to 3 shifts around the summertime and possibly a fourth by the year-end. Are those still milestones still on schedule? And when does that actually start impacting kind of the revenue line? Natalia Shuman: Indeed. In-lab revenue is largely depends on the unlocking our capacity. So whenever we make an investment, there is a lead time until these investments will come online, so meaning that we can generate the revenue. Usually, the lead time is about 9 to 12 months. So as we continue to invest in the lab network, we would see that the growth could be slightly different quarter-on-quarter. So it can not be exactly the same due to those -- some capacity constraints. But overall, we're feeling really optimistic about this growth market because customers are reaching out to us. They are -- there is a supply chain constraints, very visible constraints. And customers are proactively reserving their capacity. So they're looking for improved turnaround times. They're looking at the flexibility. So -- and we see that this will, again, gives us enough visibility into the revenue growth in-lab specifically. But it depends on the investments that we're making and how soon and how fast they come online. Operator: At this time, I see no callers in the queue. So I will hand back for closing remarks. Natalia Shuman: All right. Thank you, Lenis and thank you, everyone, for joining our call today and for your continued interest in Mistras. Our story remains straightforward. We are diversifying into faster-growing end markets, improving our business mix, expanding margins, strengthening cash flow and investing in capabilities that support long-term earnings power. We remain confident in our ability to execute against our 2026 objectives and create sustainable value for our shareholders. That's pretty much it. Have a good day. Operator: Thank you. This ends today's conference call. You may disconnect at this time. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by a deliberate shift toward high-margin, less cyclical end markets like aerospace and defense (A&D), infrastructure, and power, which collectively grew 28%. Oil and gas revenue declined 8.2% primarily due to the strategic exit of lower-margin programs in 2025 and customer deferrals of maintenance activity amid high commodity prices. A&D growth of 13.2% was fueled by strong in-lab testing demand, where mission-critical backlogs are currently outpacing existing capacity. Infrastructure revenue surged 76.5% as the company pivoted toward complex, large-scale engagements in U.S. LNG infrastructure and data center construction. Operating leverage improved through disciplined expense management and a favorable mix shift, resulting in a 60% conversion of incremental revenue into operating income. Management is addressing labor tightness for specialized technicians by enhancing benefit plans and sharpening recruitment in high-demand service areas. Full-year 2026 guidance was raised to $740M-$755M in revenue, assuming continued strength in A&D and infrastructure will offset flat-to-moderate oil and gas activity. Management projects tripling in-lab testing capacity by the end of 2027 through investments in automation and facility expansions in Houston and Los Angeles. Free cash flow is expected to return to historically favorable levels in the second half of 2026, supported by improved billing cycles and AI-driven administrative efficiencies. Capital allocation remains focused on reaching a 2x leverage ratio by year-end 2026 while prioritizing high-growth internal investments over transformative M&A. The newly established AI Center of Excellence is expected to drive future productivity gains in engineering, inspection intelligence, and customer-facing data solutions. A change in financial presentation now reports foreign currency gains and losses within 'other income and expense' rather than SG&A, impacting year-over-year expense comparisons. The company extended its credit facility by one year to provide additional optionality during the execution of the Vision 2030 strategic plan. Leverage reached 2.2x, its lowest level since 2018, providing increased balance sheet flexibility. The launch of AEScout represents a shift toward an 'integrity management as a service' model, aiming to reduce customer disruption through acoustic emission monitoring. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed this conversion rate is sustainable due to the fixed-cost nature of the in-lab and data business segments. Higher volumes in these specific areas provide attractive contribution margins that drop directly to the bottom line. New investments in lab capacity typically have a 9 to 12-month lead time before they begin generating revenue. Growth may fluctuate quarter-to-quarter based on when specific capacity increments come online, but customer demand remains high with proactive capacity reservations. The Vision 2030 plan is not dependent on M&A, but the company is building a pipeline for opportunistic acquisitions to enhance technical capabilities. Management declined to provide concrete details on current targets, emphasizing a focus on debt reduction and organic execution first. The increase reflects successful diversification into niche markets like cruise ship operators and various small-scale project call-outs. This segment captures work that does not fit into the primary oil and gas, A&D, or infrastructure categories.

Interested in Mistras Group Inc? Here are five stocks we like better. Second-quarter results improved: Revenue rose 4.2% year over year to $193 million, while adjusted EBITDA increased 7% to a record $25.8 million and the margin expanded to 13.3%. Strategic markets offset oil and gas weakness: Revenue in aerospace and defense, infrastructure, and power grew 28% collectively, more than compensating for an 8.2% decline in oil and gas revenue. Full-year guidance was raised: Mistras now expects 2026 revenue of $740 million to $755 million and adjusted EBITDA of $92 million to $95 million, supported by favorable demand, improving cash flow, and plans to reduce leverage. MGM Buyout: The House Doesn't Always Win Mistras Group (NYSE:MG) reported second-quarter 2026 revenue growth and record second-quarter adjusted EBITDA, as expansion in aerospace and defense, infrastructure and power more than offset lower oil and gas activity. Revenue rose 4.2% year over year to $193 million, marking the company’s fourth consecutive quarter of year-over-year growth. Adjusted EBITDA increased 7% to a record $25.8 million for a second quarter, while adjusted EBITDA margin expanded 30 basis points to 13.3%. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Caesars Surges on Buyout Buzz. Should Investors Take the Bet? President and Chief Executive Officer Natalia Shuman said the results reflected progress under the company’s Vision 2030 plan to become a more diversified, technology-enabled and less cyclical business. “Growth in aerospace and defense, infrastructure, and power more than offset headwinds in oil and gas as our mix continued to shift towards high margins end market with deeper customer relationships and greater long-term visibility,” Shuman said. → 3 Dividend Champion Utilities for a Market That Can't Sit Still Physical AI: The Next Industrial Revolution Is Finally Here Oil and gas revenue declined $8.5 million, or 8.2%, from the prior-year period. Shuman attributed the decline primarily to customer programs exited in 2025 and deferred maintenance and project activity among certain customers. She said a majority of oil and gas deferrals seen during the first half of 2026 are expected to be pushed out further. After excluding the effects of 2026 turnaround activity and exited 2025 programs, oil and gas revenue increased 1% in the second quarter, according to Shuman. The company expects oil and gas activity to be flat to moderately higher in the third and fourth quarters on that adjusted basis. → Is Wingstop's Growth Story Losing Steam? Meanwhile, aggregate revenue in Mistras’ strategic end markets rose 28%. Aerospace and defense: Revenue increased $3.2 million, or 13.2%, year over year. The company said demand for in-lab testing is outpacing capacity, supported by backlog, customer relationships and the mission-critical nature of its work. Infrastructure: Revenue increased $6.2 million, or 76.5%. Mistras cited investment in U.S. LNG infrastructure and data-center construction, including expanding work on Woodside’s Louisiana LNG project. Power generation: Revenue rose $3.1 million, or 26.4%, driven primarily by maintenance demand from wind-energy customers, onshore wind development, repowering activity and renewable-energy infrastructure investment. Shuman said the company has expanded in-lab capabilities in Houston and Los Angeles, adding equipment and services intended to support more complex aerospace manufacturing workflows in single facilities. Mistras expects investments in facilities, automation and process improvement could nearly triple in-lab testing capacity over time. During the question-and-answer session, Shuman said the company projects tripling laboratory capacity by the end of 2027, benefiting both aerospace and defense and industrial customers. She also said investments in laboratory capacity generally carry a nine- to 12-month lead time before contributing to revenue. Chief Financial Officer Edward Prajzner said gross margin expanded 10 basis points year over year, while operating income climbed 53.6% to $12.9 million from $8.4 million a year earlier. He attributed the improvement to a shift toward higher-value work along with operational and overhead cost efficiencies. Selling, general and administrative expense decreased $1.1 million, or 2.7%, year over year. Prajzner noted that the comparison was affected by a 2026 presentation change under which foreign currency gains and losses are now recorded in other income and expense rather than SG&A. GAAP net income was $7.6 million, or $0.23 per diluted share. On a non-GAAP basis, net income was $9.1 million, or $0.28 per share. Prajzner said GAAP and non-GAAP net income and earnings per share more than doubled from the prior-year quarter. The company reported a $23.9 million year-over-year improvement in free cash flow, citing higher net income and improved working-capital dynamics. Management pointed to efforts around upfront billing, cycle time, customer escalations and collections, and said it expects to return to historically favorable cash-flow levels in the second half. Mistras’ bank-defined leverage ratio was approximately 2.2 times as of June 30, down from 2.4 times at March 31 and the lowest level since 2018, according to Prajzner. The company is targeting a 2 times leverage ratio by the end of 2026 and recently extended its credit facility by one year. Mistras raised its full-year outlook, projecting 2026 revenue of $740 million to $755 million and adjusted EBITDA of $92 million to $95 million. Shuman said the outlook reflects continued strength in aerospace and defense, infrastructure and power, partially offset by lower oil and gas activity tied to macroeconomic conditions and higher crude oil prices. Management also discussed efforts to expand technology-enabled services. The company hired an executive director of artificial intelligence to lead AI adoption and establish an AI center of excellence within its data solutions organization. Mistras also launched AEScout, an acoustic-emission monitoring solution designed to help operators gather evidence between conventional inspection intervals. During the call, Shuman said the company continues to evaluate opportunistic acquisitions that could enhance its capabilities, though Vision 2030 does not depend on a transformative transaction. She said Mistras’ priorities remain executing its strategic plan, improving cash flow and reducing leverage. Mistras Group, Inc is a global provider of technology-enabled asset protection solutions and services, with a primary focus on nondestructive testing (NDT), inspection, and monitoring of critical infrastructure and industrial assets. The company's offerings span a wide range of techniques—such as ultrasonic testing, eddy current detection, magnetic particle inspection, radiography and acoustic emission—to help clients in energy, petrochemical, aerospace, manufacturing and other sectors identify and address potential failures before they occur. In addition to traditional NDT services, Mistras delivers engineered materials solutions, including composite repairs and specialty coatings, along with predictive maintenance and condition monitoring programs. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Mistras Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Continued Revenue Growth of 4.2%,Expansion in Gross Profit Margin of 10 Basis Points to 29.2%, GAAP Net Income of $7.6 million and Earnings Per Diluted Share of $0.23, Adjusted EBITDA (non-GAAP) of $25.8 million, an Increase of 7.0%,Increases Fiscal Year 2026 Revenue and Adjusted EBITDA Guidance PRINCETON JUNCTION, N.J., Aug. 10, 2026 (GLOBE NEWSWIRE) -- MISTRAS Group, Inc. (NYSE: MG), a global leader in technology-enabled industrial asset integrity and testing solutions, today reported financial results for its second quarter and six months ended June 30, 2026. Second Quarter 2026 Highlights* Revenue of $193.1 million, an increase of 4.2%, driven by demand growth in Infrastructure, Power Generation, and Aerospace & Defense end markets Gross profit of $56.4 million, reflecting a gross profit margin of 29.2%, an increase of 10 basis points Income from operations of $12.9 million, an increase of $4.5 million, or 53.6% GAAP net income of $7.6 million, with earnings per diluted share of $0.23 Non-GAAP net income of $9.1 million, with non-GAAP earnings per diluted share of $0.28 Record second quarter adjusted EBITDA of $25.8 million, an increase of 7.0%, with an Adjusted EBITDA margin of 13.3%, up 30 basis points Year to Date 2026 Highlights* Revenue of $362.2 million, an increase of 4.4%, driven by demand growth in Infrastructure, Power Generation, and Aerospace & Defense end markets Gross profit of $101.2 million, reflecting a gross profit margin of 27.9%, an increase of 60 basis points Income from operations of $17.6 million, an increase of $10.2 million, or 137.7% GAAP net income of $10.0 million, with earnings per diluted share of $0.30 Non-GAAP net income of $11.7 million, with non-GAAP earnings per diluted share of $0.35 Adjusted EBITDA of $40.1 million, an increase of 10.9%, with an Adjusted EBITDA margin of 11.1%, up 70 basis points *All comparisons are consolidated and versus the equivalent prior year period, unless otherwise noted. Please see the reconciliations of non-GAAP financial measures used herein to the most directly comparable GAAP measures and additional information about the non-GAAP financial measures set forth in the tables attached to this press release. Management CommentaryNatalia Shuman, President and Chief Executive Officer, commented, “Our second quarter results show continued progress against the transformation we outlined under Vision2030. We generated $193.1 million in revenue, delivered $25.8 million of Adjusted EBITDA in the second quarter, achieved significantly improved free cash flow with an increase of $23.9 million quarter-over-quarter, and continued to position the business around higher-growth, higher-value end markets. Q2 also marked the fourth consecutive quarter of mid-single-digit revenue growth, a notable benchmark that underscores MISTRAS becoming a more diversified, more technology-enabled, and less cyclical company. “We are continuing to see favorable demand trends, particularly in the Aerospace & Defense (A&D), Infrastructure, and Power Generation end markets, which we expect to support growth through the remainder of the year as we continue to navigate a dynamic Oil & Gas market. Within A&D, demand is temporarily outpacing capacity, supported by a healthy backlog, strong customer relationships, and the mission-critical nature of the work, and we are investing meaningfully to expand capacity in our in-lab testing operations, with a particular focus on automation and throughput with a target to increase capacity. Both Infrastructure and Power Generation end markets are capitalizing on continued investment in data center construction and broader energy infrastructure, particularly as customers require quality assurance, inspection, commissioning support, and asset integrity expertise across increasingly complex projects.” “Entering the second half of 2026, we remain focused on improving operational execution, driving efficiency, and enhancing cash flow and working capital performance. We expect to generate meaningful free cash flow while continuing to invest in the capacity, people, and capabilities needed to support long-term growth." Second Quarter and First Half 2026 Financial Results Net income was $7.6 million in the second quarter, or $0.23 per diluted share, compared to net income of $3.0 million, or $0.10 per diluted share, in the prior year comparable period. Second quarter net income excluding special items (non-GAAP) was $9.1 million, or $0.28 per diluted share, compared to net income excluding special items (non-GAAP) of $5.8 million, or $0.19 per diluted share, in the prior year comparable period. In the first half of 2026, net cash provided by operating activities was $17.7 million, an increase from $3.6 million of net cash used by operating activities in the prior year period, largely due to significantly expanded net income and improved working capital timing. Free cash flow (non-GAAP) was $3.7 million in the first half of 2026, compared to negative $15.9 million in the prior year comparable period, attributable to the same favorable factors impacting the Company's operating cash flow. The Company expects free cash flow to continue to expand over the remainder of 2026. The Company’s gross debt was $172.1 million as of June 30, 2026, compared to $178.0 million as of December 31, 2025 and $181.4 million as of March 31, 2026. The decrease in gross debt during the period was attributable to the positive impacts to cash flow described above. The Company’s net debt, a non-GAAP financial measure, was $150.1 million as of June 30, 2026. The Company’s trailing 12-month total consolidated debt leverage ratio as defined in the Company's credit agreement was 2.2x as of June 30, 2026, which represents the Company’s lowest leverage ratio since 2018, which is well within the total consolidated debt leverage ratio of 3.75x required under its credit agreement. The Company’s capital allocation strategy remains focused on the use of residual free cash flow to pay down debt to a targeted 2x leverage ratio by the end of 2026, as well as continue to make capital investments into higher growth, higher value areas as governed by the strategic plan. 2026 Outlook Guidance RaisedThe Company is increasing its full-year guidance to $740.0 million to $755.0 million in revenue and $92.0 million to $95.0 million in Adjusted EBITDA. This reflects continued strength in its strategic growth markets, partially offset by a lower level of activity in its volatile Oil & Gas end market, attributable to ongoing macro environment factors including higher crude oil prices The Company continues to see favorable demand trends, particularly in its Aerospace & Defense and Infrastructure end markets, which it expects to support growth throughout the remainder of the year. Conference Call MISTRAS will hold a conference call on August 11, 2026, at 9:00 a.m. Eastern Time to discuss its financial results. To listen to the live webcast of the conference call, visit the Investor Relations section of MISTRAS Group’s website. Individuals wishing to participate in the live question and answer session may pre-register at the following link: https://investors.mistrasgroup.com/events/event-details/fiscal-2026-q2-earnings-call. About MISTRAS Group, Inc.MISTRAS Group, Inc. (NYSE: MG) is a global leader in technology-enabled industrial asset integrity and laboratory testing solutions, serving critical strategic markets including oil & gas, aerospace & defense, industrials, power generation & transmission, infrastructure, engineering, and research. MISTRAS provides a diversified portfolio of products and services, ranging from advanced non-destructive testing and pipeline inspections to real-time condition monitoring, maintenance planning, and specialized engineering, powered by a proprietary management software suite that centralizes integrity data for predictive analytics and benchmark analysis. With a long-standing track record of innovation and deep industry expertise, MISTRAS helps clients reduce risk, extend asset life, and optimize operational performance. Learn more at www.mistrasgroup.com. INVESTORS CONTACT:Edward J. PrajznerSenior Executive Vice President & Chief Financial Officer+1 (833) MISTRAS | [email protected] Forward-Looking and Cautionary StatementsCertain statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, statements under the heading “2026 Outlook,” investments in our platforms and integrated solutions, demand growth in certain of our end markets, the Company’s expectations regarding investments in higher growth end markets, the Company's expectations regarding continued growth, increased free cash flow and margin expansion, the impacts of the recent conflict in the Middle East, and additional operational and strategic actions that we expect or seek to take in furtherance of our strategies and activities to enhance our financial results and future growth. Such forward-looking statements relate to MISTRAS' financial results and estimates, products and services, business model, operational and strategic initiatives to improve operating leverage, strategy, growth opportunities, profitability and competitive position, and other matters. These forward-looking statements generally use words such as "future," "possible," "potential," "targeted," "anticipate," "believe," "estimate," "expect," "intend," "plan," "predict," "project," "will," "may," "should," "could," "would" and other similar words and phrases. Such statements are not guarantees of future performance or results and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved, if at all. These statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. Such risks, uncertainties and contingencies include, among others: risks related to our dependency on customers in the oil and gas industry and the impact of global energy market volatility; risks related to ongoing geopolitical conflicts, including the war between Russia and Ukraine and the unrest in the Middle East; risks related to climate change; risks related to a reduction in business with our significant customers; risks related to our international operations; any failure in our initiatives to improve our financial performance or a delay in achieving expected results within expected time frames; risks in the inability to attract and retain a sufficient number of certified technicians, engineers and scientists; our ability to develop new asset protection solutions, increase the functionality of our current offerings and meet the needs and demands of our customers; risks regarding our information technology and security; our use of ratification intelligence in our business; changes to U.S. tariffs and import/export regulations; risks related to the concentrated ownership of our common stock. A list, description and discussion of these and other risks and uncertainties can be found in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2025 filed with the U.S Securities and Exchange Commission filed on March 11, 2026, as updated by our reports on Form 10-Q and Form 8-K. The forward-looking statements are made as of the date hereof, and MISTRAS undertakes no obligation to update such statements as a result of new information, future events or otherwise. Use of Non-GAAP Financial MeasuresIn addition to financial information prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP"), this press release also contains adjusted financial measures that are not prepared in accordance with GAAP and that we believe provide investors and management with supplemental information relating to the Company’s operating performance and trends that facilitate comparisons between periods and with respect to trends and projected information. The term "Adjusted EBITDA" used in this release is a financial measure not calculated in accordance with GAAP and is defined by the Company as net income attributable to MISTRAS Group, Inc. plus: interest expense, provision for income taxes, depreciation and amortization, share-based compensation expense, certain acquisition related costs (including transaction due diligence costs and adjustments to the fair value of contingent consideration), foreign exchange (gain) loss, other income, non-cash impairment charges, reorganization and other costs and, if applicable, certain additional special items which are noted. A reconciliation of Adjusted EBITDA to Net Income (Loss) as computed under GAAP is set forth in a table attached to this press release. The Company also uses the term “free cash flow” a non-GAAP financial measure. The Company defines "free cash flow", as cash provided by operating activities less capital expenditures (which is classified as an investing activity). The Company additionally uses the terms: “Segment and Total Company Income (Loss) from Operations (GAAP) to Income (Loss) from Operations before Special Items (non-GAAP)”, “Net Income (Loss) (GAAP) and Diluted EPS (GAAP) to Net Income Excluding Special Items (non-GAAP) and Diluted EPS Excluding Special Items (non-GAAP)” which reconciles the non-GAAP amounts to the GAAP financial measure. The non-GAAP financial performance measure "Income (loss) from operations before special items” is used for each of our three operating segments, the Corporate segment and the "Total Company". Income (Loss) from operations before Special Items excludes: (a) transaction expenses related to acquisitions, such as professional fees and due diligence costs, (b) the net changes in the fair value of acquisition-related contingent consideration liabilities, (c) impairment charges, (d) reorganization and other costs, which includes items such as severance, labor relations matters and asset and lease termination costs and (e) other special items such as environmental expense and legal settlement and insurance recoveries. These adjustments have been excluded from the GAAP measure because these expenses and credits are not related to our or any individual segment's core business operations. The acquisition related costs and special items can be a net expense or credit in any given period. This press release also includes the term "net debt", a non-GAAP financial measure which the Company defines as the sum of the current and long-term portions of long-term debt, less cash and cash equivalents. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are also set forth in tables attached to this press release. Each of these non-GAAP financial measures has material limitations as a performance or liquidity measure and should not be considered alternatives to Net Income (Loss) or any other measures derived in accordance with GAAP. Because Income (loss) from operations before special items and other non-GAAP financial measures used in this press release may not be calculated in the same manner by all companies, these measures may not be comparable to other similarly titled measures used by other companies. Consolidated Revenue by type was as follows: (1) For the three months ended June 30, 2025, the Company recognized share-based compensation expense within Reorganization and other costs of $0.5 million. For the six months ended June 30, 2025, the Company recognized share-based compensation expense within Reorganization and other costs of $1.5 million. No share-based compensation expense was recognized within Reorganization and other costs related to RSU awards for the three or six months ended June 30, 2026. (1) For the three months ended June 30, 2025, 375,000 shares, related to stock options and 877,000 shares, related to restricted stock units were anti-dilutive and therefore were excluded from the calculation of diluted earnings per share. For the six months ended June 30, 2026, 6,000 shares related to RSUs were anti-dilutive and therefore were excluded from the calculation of diluted earnings per share. For the six months ended June 30, 2025, 106,000 shares, related to stock options and 867,000 shares, related to restricted stock units were excluded from the calculation of diluted earnings per share due to the net loss for the period.

Mettler-Toledo International Inc. recently reported second-quarter 2026 results showing higher sales of US$1,027.31 million and net income of US$232.90 million, while also appointing MISTRAS Group CEO Natalia Shuman to its Board of Directors effective 3 August 2026. Together with Baron Capital’s decision to increase its long-held position after a recent pullback, these developments point to growing institutional engagement and fresh governance expertise focused on technology-enabled services and asset integrity. Next, we will examine how Shuman’s board appointment could influence Mettler-Toledo’s investment narrative around automation, services, and long-term earnings quality. Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. To own Mettler-Toledo, you need to believe its precision instruments, software and services can keep deepening their role in regulated pharma and food workflows, even as tariffs, macro uncertainty and slower end markets weigh on visibility. The latest Q2 2026 results, with higher sales and earnings, suggest the near term catalyst remains execution on automation and services, while trade friction and delayed customer replacement cycles continue to look like the key risks. Shuman’s appointment does not materially change those near term drivers. The most relevant recent development is the appointment of MISTRAS Group CEO Natalia Shuman to the Board, which strengthens Mettler-Toledo’s governance bench in technology enabled services and industrial asset integrity. This aligns closely with the company’s push into higher value analytics, automation and recurring service offerings that underpin its main catalyst of increased demand from more regulated, data intensive pharma and food production, even as tariffs and regional demand softness remain in focus. Yet while automation and services are clear positives, investors should also be aware of how elevated and unpredictable global tariffs could... Read the full narrative on Mettler-Toledo International (it's free!) Mettler-Toledo International's narrative projects $4.8 billion revenue and $1.1 billion earnings by 2029. This requires 4.9% yearly revenue growth and roughly a $200 million earnings increase from $905.6 million today. Uncover how Mettler-Toledo International's forecasts yield a $1387 fair value, a 3% downside to its current price. Two fair value estimates from the Simply Wall St Community cluster between US$1,260.89 and US$1,387.09, underscoring how differently individual investors can view Mettler-Toledo’s worth. You can weigh these community views against the tariff and trade risks that could pressure margins and shape the company’s future earnings power. Explore 2 other fair value estimates on Mettler-Toledo International - why the stock might be worth 12% less than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Mettler-Toledo International research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free Mettler-Toledo International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Mettler-Toledo International's overall financial health at a glance. Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters: Find 52 companies with promising cash flow potential yet trading below their fair value. We've uncovered the 7 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This technology could replace computers: discover 26 stocks that are working to make quantum computing a reality. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MTD. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Timken (TKR) came out with quarterly earnings of $1.83 per share, beating the Zacks Consensus Estimate of $1.63 per share. This compares to earnings of $1.42 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +12.27%. A quarter ago, it was expected that this maker of bearings and power transmissions would post earnings of $1.5 per share when it actually produced earnings of $1.67, delivering a surprise of +11.33%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Timken, which belongs to the Zacks Electronics - Miscellaneous Products industry, posted revenues of $1.26 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.59%. This compares to year-ago revenues of $1.17 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Timken shares have added about 68.5% since the beginning of the year versus the S&P 500's gain of 11%. While Timken has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Timken was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.51 on $1.2 billion in revenues for the coming quarter and $6.16 on $4.8 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Miscellaneous Products is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Mistras (MG), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This engineering services company is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of +31.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Mistras' revenues are expected to be $190.55 million, up 2.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Timken Company (The) (TKR) : Free Stock Analysis Report Mistras Group Inc (MG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Even though Mistras Group, Inc. (NYSE:MG ) posted strong earnings, investors appeared to be underwhelmed. We have done some analysis and have found some comforting factors beneath the profit numbers. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. For anyone who wants to understand Mistras Group's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by US$9.4m due to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. If Mistras Group doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Unusual items (expenses) detracted from Mistras Group's earnings over the last year, but we might see an improvement next year. Based on this observation, we consider it likely that Mistras Group's statutory profit actually understates its earnings potential! And on top of that, its earnings per share increased by 49% in the last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For instance, we've identified 2 warning signs for Mistras Group (1 is significant) you should be familiar with. This note has only looked at a single factor that sheds light on the nature of Mistras Group's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Interested in Mistras Group Inc? Here are five stocks we like better. Mistras Group posted stronger Q1 results, with revenue up 4.6%-nearly 5%, gross margin improving 120 basis points, and adjusted EBITDA rising 18.7% to $14.3 million. The company also reported GAAP net income of $2.4 million, or $0.07 per share. Growth was led by aerospace and defense, infrastructure, and power generation, while oil and gas revenue fell 11.5% as Mistras intentionally exited lower-margin work and prioritized higher-return projects. Management said the decline was planned and aimed at improving long-term profitability. The company reaffirmed full-year 2026 guidance for revenue of $730 million to $750 million and adjusted EBITDA of $91 million to $93 million. Management is also focused on improving cash flow and reducing leverage toward a 2x target by the end of 2026. Caesars Surges on Buyout Buzz. Should Investors Take the Bet? Mistras Group (NYSE:MG) reported higher first-quarter revenue and improved profitability, with management pointing to growth in aerospace and defense, infrastructure and power generation as offsets to a planned decline in lower-margin oil and gas work. On the company’s Q1 2026 earnings call, President and Chief Executive Officer Natalia Shuman said Mistras delivered “top-line growth of nearly 5%,” reflecting a more diversified platform and execution under its Vision 2030 strategic plan. Chief Financial Officer Ed Prajzner said revenue increased 4.6% in the quarter, while gross profit margin expanded 120 basis points year over year. → Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum Physical AI: The Next Industrial Revolution Is Finally Here The company generated income from operations of $4.7 million and GAAP net income of $2.4 million, or $0.07 per diluted share. Adjusted EBITDA rose 18.7% to $14.3 million from $12 million a year earlier, and adjusted EBITDA margin increased to 8.5% from 7.4%. Shuman said aerospace and defense remained a major growth engine for Mistras, with revenue in the end market increasing $7.2 million, or 35.5%, from the prior year. She attributed the growth to higher volume, capacity added in the second half of 2025 and pricing initiatives begun last year. → 3 Ways to Target the Resources Powering AI and Data Centers Smart Money Is Buying Auto Suppliers, Not Car Brands In response to an analyst question from Alex Rygiel of Texas Capital Securities, Shuman said demand remains strong across commercial aerospace and defense, while supplier capacity, labor availability and materials remain constraints for the industry. She said customers value Mistras’ capacity, quality and speed, and that the company serves major operators through long-term relationships. Prajzner added that the capacity being built is tied to “new aircraft deliveries,” “rocket and satellite launches” and new naval hardware, describing it as long-cycle backlog. Shuman also said some customers are willing to co-invest with Mistras to expand capacity, particularly in ultrasonic testing. → Quantum Earnings Season Is Ramping Up—What to Watch From 2 Major Players Infrastructure revenue increased $6.1 million, or 84%, in the quarter. Shuman cited demand from data centers, new construction and infrastructure development, along with larger and more complex customer projects. She said the company is involved in projects such as bridges, amusement parks and public sector infrastructure, and that those projects typically carry margins at or above the company average. Power generation revenue grew $1.9 million, or 40%, helped by expansion in at-height offerings, particularly in wind, where Mistras is using expanded capabilities and technologies to access hard-to-reach areas on large structures while meeting safety standards. The company’s oil and gas revenue declined $11.1 million, or 11.5%, in the quarter. Shuman said the decrease was expected and was not the result of lost market share or competitiveness. She pointed to two factors: maintenance and inspection deferrals by clients during a busy period in upstream and downstream activity, and the company’s decision to avoid bids that did not meet margin and return thresholds. “We are intentionally prioritizing profitability and long-term value creation over the near-term low margin volume,” Shuman said. During the Q&A session, John Franzreb of Sidoti & Company asked whether the company had exited business it held in calendar 2025. Shuman confirmed that Mistras made a strategic decision in late 2025 and during the quarter to selectively exit low-margin run-and-maintain business so technician capacity could be used for higher-value work. In response to Gowshihan Sriharan of Singular Research, Shuman said about two-thirds of the $11 million oil and gas decline was attributable to those decisions. She said some impact may persist into the second and third quarters, but the company intends to offset it with higher-value work and expanded Integrated Field Solutions offerings, including welding, cleaning and light craft work. Shuman also said oil and gas demand remains present, though some operators and producers are delaying maintenance while prices and production activity remain high. She said the company could see some impact in the second quarter, but described the issue as a near-term development. Management said Mistras continues to execute on Vision 2030, which focuses on expanding share of wallet through integrated solutions, diversifying into growth markets and improving operating leverage. Shuman said customers in oil and gas and other energy markets are consolidating vendor spending and accelerating digital transformation. She said this trend supports Mistras’ efforts to combine services, technology, data and analytics into a unified offering. The company’s PCMS offering grew more than 10% in the first quarter compared with the prior year. In response to Sriharan, Shuman said PCMS added 11 new logos and 29 expansions during the quarter. She said Mistras expects double-digit growth in that area and is investing in AI capabilities to improve the insights provided to customers. Prajzner said the company has merged its Data Analytical Solutions revenue into Field Services revenue and renamed the grouping Integrated Field Solutions in its disaggregated revenue disclosure. He said the change does not affect total revenue but reflects how customers increasingly buy and value the company’s offerings. Free cash flow was negative $4.5 million in the quarter, down $4.3 million from the prior-year period. Prajzner attributed the decrease to unfavorable working capital dynamics, including lower accrued expenses, and a $1.4 million increase in capital expenditures. He said the capital spending was focused on expanding in-laboratory testing capabilities and strategic equipment to improve safety and field efficiency. Prajzner also noted that the first half of the year is typically working-capital intensive for Mistras, making the second half a better indicator of sustainable free cash flow. The company’s accounts receivable balance declined to $151.4 million as of March 31, 2026, from $154.7 million at Dec. 31, 2025, despite higher revenue activity. Prajzner said cash flow performance remains below management’s expectations and that the company is intensifying efforts to improve collections and sustainable cash generation. Interest expense was $2.9 million, down $0.4 million from the prior-year quarter. The company’s bank-defined leverage ratio was approximately 2.4x at March 31, down from 2.5x at year-end 2025. Prajzner said capital allocation remains focused on using residual free cash flow to pay down debt toward a targeted 2x leverage ratio by the end of 2026, while also investing in higher-growth areas. Mistras reaffirmed its full-year 2026 guidance for revenue of $730 million to $750 million and adjusted EBITDA of $91 million to $93 million. Shuman said the range continues to be driven primarily by the timing and spending levels in the oil and gas end market, while strategic growth markets remain solid. Management also highlighted several recognitions during the quarter, including Frost & Sullivan naming Mistras company of the year in global non-destructive testing field inspection services. Shuman said the company was also nominated for the Gulf Coast Safety Award at a long-term evergreen site and received the 2025 American Equity Underwriters Safety Award. Mistras Group, Inc is a global provider of technology-enabled asset protection solutions and services, with a primary focus on nondestructive testing (NDT), inspection, and monitoring of critical infrastructure and industrial assets. The company's offerings span a wide range of techniques—such as ultrasonic testing, eddy current detection, magnetic particle inspection, radiography and acoustic emission—to help clients in energy, petrochemical, aerospace, manufacturing and other sectors identify and address potential failures before they occur. In addition to traditional NDT services, Mistras delivers engineered materials solutions, including composite repairs and specialty coatings, along with predictive maintenance and condition monitoring programs. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Mistras Group Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.