MTRX

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. Implemented a 'Win, Execute, Deliver' framework to address historical performance gaps and unlock the company's full potential through consistent accountability. Streamlined and flattened the organizational structure to reduce overhead that was previously built for a larger anticipated revenue base, improving speed to market. Transformed the commercial organization by strengthening strategic account management and focusing on opportunities with the best risk-reward profiles. Centralized project controls and proposal delivery as the final phase of an enterprise services transformation to drive resource efficiency and standardization. Leveraged technical expertise in LNG and NGL infrastructure, which currently comprises over 40% of the company's $7 billion opportunity pipeline. Strategic reentry into the mining and mineral sector driven by increased demand for critical minerals essential to AI, defense, and energy infrastructure. Expanded geographic reach and construction-only service offerings to diversify revenue streams beyond traditional legacy markets. Management expects to work off approximately 70% to 80% of the current $953 million backlog during fiscal 2027. Anticipates utilizing cash in the first half of fiscal 2027 to support field activities for projects where advanced payments were previously received. Targeting a conversion of the America First Refining FEED study into a full lump-sum construction award in late fiscal Q3 or early Q4 2027. Focusing on securing new awards in the first half of fiscal 2027 to maintain revenue momentum into the back half of the year and fiscal 2028. Withholding formal financial guidance until a permanent Chief Financial Officer is onboarded and has completed a full business assessment. Incurred $3.4 million in restructuring costs during Q4 2026 related to executive transitions and corporate realignment. Achieved an 11% year-over-year reduction in SG&A expenses, totaling a $7.6 million decrease for the full fiscal year. Resolved a legacy project arbitration matter from fiscal 2021, which had previously impacted recovery expectations in the Storage and Thermal segment. Actively evaluating a stock buyback program supported by a debt-free balance sheet and a return to profitability. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expressed satisfaction with the current organizational size and efficiency, stating the 'heavy lifting' of restructuring is complete. Future restructuring charges are expected to be insignificant or 'minor tweaks' rather than the large-scale items seen in fiscal 2026. Current backlog margins are aligned with double-digit performance targets, with management aiming to push margins above 10% as market conditions improve. The diminishing order book over recent quarters was described as expected due to the timing of large-scale project permitting and FEED processes. The project represents the first new major US refinery in over 50 years; Matrix is currently performing the FEED study due in fiscal Q2. Management may begin early purchasing or site work prior to the final investment decision (FID) to meet the client's aggressive schedule.

This article first appeared on GuruFocus. Release Date: September 03, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Matrix Service Co (NASDAQ:MTRX) returned to profitability in Q4 fiscal 2026, with adjusted EPS of $0.16 versus a loss of $0.28 in the prior year quarter. Revenue grew 13% year-over-year to $244.5 million in Q4, driven by a 43% increase in the Storage and Terminal Solutions segment. Gross margin improved significantly to 8% in Q4, up from 3.8% in the prior year, reflecting better project execution and resolution of legacy issues. SG&A expenses decreased 11% year-over-year, and as a percentage of revenue improved to 6.9% from 8.1%, demonstrating cost discipline. The company has a strong balance sheet with $223 million in cash, no debt, and $283.9 million in total liquidity, supporting future growth and a potential stock buyback. Backlog of $953 million and a $7 billion opportunity pipeline, including a significant FEED contract for the America First refinery, position the company for future growth. Total project awards in Q4 were only $169 million, resulting in a book-to-bill ratio of 0.7, indicating weaker order intake. The Process and Industrial Facilities segment saw revenue decline to $33.6 million from $47.3 million, with gross margin dropping to 2.9% from 5.9%. The company incurred $3.4 million in restructuring costs in Q4, and while future charges are expected to be minimal, they still impact profitability. Backlog is expected to be worked down significantly in fiscal 2027, with 70-80% to be completed, requiring strong new awards to sustain revenue in the latter half of the year. The company is not providing financial guidance due to the CFO transition, creating uncertainty for investors. The Storage and Terminal Solutions segment's gross margin of 6.4% remains below the company's target of double-digit margins, indicating ongoing execution challenges. Warning! GuruFocus has detected 3 Warning Signs with MTRX. Is MTRX fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more color on the America First Refinery (AFR) project, including the size of the initial FEED work, its timeline, and how it fits into the project pipeline?A: CEO Sean Payne stated that the FEED contract for the tank farm at the America First Refining facility in Brownsville, Texas, is due at the end of fiscal Q2 2027. Following delivery, the client will finalize its Final Investment Decision (FID). Matrix anticipates converting the FEED estimate to a lump-sum price via an open book process, with a potential award in late fiscal Q3 or early Q4 2027. Early purchasing or site work could begin before the calendar year-end to support the client's schedule. The project is in the opportunity pipeline but not yet in backlog. Q: Are you satisfied with the current cost structure, or do you envision additional restructuring charges in the year ahead?A: CEO Sean Payne confirmed that over the last 18 months, the company has made measurable progress in optimizing the organization's size and efficiency. He stated that the current structure is where it needs to be for both existing work and growth plans, though minor tweaks are possible. CFO Kevin Kavanaugh added that restructuring charges in fiscal 2027 will be "relatively insignificant" compared to the nearly $10 million incurred in fiscal 2026, as the major changes have already been implemented. Q: Why has the backlog been diminishing over the past four quarters, and how much of the current $953 million backlog is deliverable in the coming 12 months?A: CEO Sean Payne explained that the lower booking activity was expected due to project timelines involving FEED and permitting processes, and it does not overshadow the $7 billion opportunity pipeline. CFO Kevin Kavanaugh noted that approximately 70-80% of the current backlog will be worked off during fiscal 2027, with a significant portion expected to be completed in the first three quarters. Q: Is the margin profile of the current backlog heading north from the 4th quarter level, or is it stable?A: CFO Kevin Kavanaugh stated that while the Storage & Terminal Solutions segment still has a little more work to do on margins, projects are currently delivering close to double-digit levels. He believes the quality of the backlog and the opportunity funnel will support growing margins above 10% moving forward, given the strength of the markets. Q: Should we expect the backlog to be worked down in the first half of fiscal 2027 and then rebuilt with new bookings in the second half, as previously indicated?A: CEO Sean Payne confirmed this scenario is accurate. The company expects to work through the larger projects in the first half of the year and replace them with new awards, such as the AFR project, which is expected to convert to backlog in late fiscal Q3 or early Q4 2027. Q: Will the cash utilization expected in the first half of fiscal 2027 be driven by early purchasing and site work on the AFR project?A: CFO Kevin Kavanaugh clarified that the primary use of cash in the first half will be to support current project activities in the field that have advanced payments. While the specifics of the AFR project's cash flow haven't been worked out yet, the company always looks to maintain a net positive cash position on any work it is performing. Q: Can you confirm that there will be no large-scale restructuring line items in the fiscal 2027 financials?A: CFO Kevin Kavanaugh confirmed that there will be no significant restructuring charges in fiscal 2027. While there might be a quarter with a couple hundred thousand dollars in costs, the major organizational changes and realignment were completed in fiscal 2025 and 2026. Q: What drove the return to profitability in the third and fourth quarters of fiscal 2026, and what were the key financial highlights?A: CFO Kevin Kavanaugh highlighted that successful backlog execution led to 14% revenue growth and a 210 basis point improvement in gross margin for fiscal 2026. SG&A expenses fell by $7.6 million due to organizational flattening. For Q4, revenue increased 13% to $244.5 million, gross profit rose 140% to $19.5 million, and adjusted EPS was positive at $0.16, compared to a $0.28 loss in the prior year quarter. Q: What is the company's current financial position, and are there any plans for capital deployment?A: CFO Kevin Kavanaugh reported ending fiscal 2026 with total liquidity of $283.9 million, comprising $223 million in unrestricted cash and $60.9 million in borrowing availability, with no outstanding debt. Based on the strength of the balance sheet and return to profitability, the company is actively evaluating a stock buyback program. Q: Can you provide details on the performance of the Storage & Terminal Solutions segment in Q4?A: CFO Kevin Kavanaugh noted that the segment's revenue increased 43% to $137.4 million, driven by increased volume of work on specialty vessel and LNG storage projects. Gross margin improved to 6.4% from a negative 1.1% in the prior year quarter, which had been impacted by lowered recovery expectations on a legacy project that was fully resolved in fiscal 2026. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Matrix Service Company? Here are five stocks we like better. Matrix Service returned to profitability in fiscal Q4 2026: Revenue rose 13% to $244.5 million, gross margin expanded to 8.0% from 3.8%, and adjusted EPS improved to $0.16 from a $0.28 loss a year earlier. Full-year revenue increased 14%, while SG&A fell $7.6 million. Storage and terminal operations drove segment improvement, with revenue up 43% and gross margin turning positive, while Utility and Power Infrastructure also expanded margins. Process and Industrial Facilities revenue declined and margins weakened due to lower refinery work and an unfavorable mix. The company ended the year with $953 million in backlog and $283.9 million in liquidity, supported by a pipeline exceeding $7 billion focused on LNG, mining and data-center power infrastructure. Matrix expects to use cash for project execution and growth, but will not provide fiscal 2027 guidance while it searches for a permanent CFO. Matrix Service (NASDAQ:MTRX) reported improved fourth-quarter fiscal 2026 results, including higher revenue, stronger gross margins and a return to adjusted profitability, as the engineering and construction contractor advances a strategic plan aimed at improving project selection, execution and cost discipline. Fourth-quarter revenue increased 13% to $244.5 million from $216.4 million in the prior-year period. Gross profit rose to $19.5 million from $8.1 million, while gross margin expanded to 8.0% from 3.8% a year earlier. → Boarding Call: EHang Secures First-Mover Altitude The company reported earnings per share of $0.04 for the quarter, compared with a loss of $0.40 per share in the prior-year fourth quarter. Adjusted EPS, excluding restructuring costs, was $0.16, compared with an adjusted loss of $0.28 per share a year earlier. Adjusted EBITDA improved to $6.3 million from a $4.8 million loss. Chief Executive Officer Shawn Payne, who recently took on the role of president and CEO, said the company has been implementing an enterprise strategy called “Win, Execute, Deliver.” The framework is intended to support profitable growth, revenue diversification, operational performance, accountability and organizational effectiveness. → Medtronic’s Stars Are Aligning for a Price Recovery Payne said Matrix has streamlined and flattened its organization after determining its overhead structure had been built for a larger anticipated revenue base. The company also adjusted its commercial organization through strengthened strategic account management, more rigorous opportunity qualification and a focus on projects with favorable risk-and-reward characteristics. “Our progress is tangible, evidenced by our return to profitability in the third and fourth quarters of fiscal 2026,” Payne said. → Dutch Bros Sell-Off Creates a Growth Opportunity For the full fiscal year, Chief Financial Officer Kevin Cavanah said revenue rose 14% and gross margin improved by 210 basis points. Selling, general and administrative expenses declined by $7.6 million from fiscal 2025, while the company reported full-year adjusted EPS of $0.26, an improvement of $1.19 from the prior year. Fourth-quarter SG&A expense decreased to $16.9 million from $17.6 million, despite higher variable compensation costs tied to the return to profitability. SG&A represented 6.9% of revenue, down from 8.1% in the prior-year quarter. The company recorded $3.4 million in fourth-quarter restructuring costs related to executive transitions and a previously announced corporate realignment. Including those costs, Matrix posted an operating loss of $0.9 million, compared with an operating loss of $12.9 million a year earlier. During the question-and-answer session, Payne said he believes the organization is now appropriately sized for current work and anticipated growth plans. Cavanah said the company does not expect restructuring costs in fiscal 2027 to approach fiscal 2026 levels, though limited costs related to further adjustments could occur. Storage & Terminal Solutions: Revenue increased 43% to $137.4 million, driven by increased specialty-vessel and LNG-storage project activity. Gross margin improved to 6.4% from negative 1.1% in the prior-year period. Cavanah said the prior-year result was affected by lower recovery expectations associated with a legacy project completed in fiscal 2021 that had been in arbitration; the matter was fully resolved in fiscal 2026. Utility and Power Infrastructure: Revenue was $73.5 million, compared with $73 million a year earlier. Gross margin improved to 12.8% from 9.1%, which Cavanah attributed to strong project execution. Process and Industrial Facilities: Revenue declined to $33.6 million from $47.3 million, primarily reflecting lower refinery-related work. Gross margin declined to 2.9% from 5.9% due to a change in work mix. Matrix received $169 million in fourth-quarter awards, producing a 0.7 book-to-bill ratio, and ended the year with $953 million in backlog. The Process and Industrial Facilities segment accounted for $108 million of awards, including a significant mining-related project, and recorded a 3.2 book-to-bill ratio. Management said 70% to 80% of year-end backlog is expected to be worked off during fiscal 2027. Payne said the company expects to replace backlog with new awards as projects in its opportunity funnel advance. The opportunity funnel exceeded $7 billion at year-end. Payne said more than 40% of the company’s pipeline consists of LNG and NGL infrastructure opportunities, including peak-shaving facilities, backup-fuel terminals and related projects. The company is also pursuing power-generation and power-infrastructure opportunities tied to data-center growth, aging power assets and rising electricity demand. Matrix recently completed two substation projects serving Northern Virginia’s data-center market and is currently constructing additional substations in Northern Virginia and eastern Pennsylvania, Payne said. The company has also committed additional capital and resources to its Southwest operation to support mining and minerals activity. Subsequent to the quarter, Matrix announced it had been selected for front-end engineering and design work on the storage-tank farm for the America First Refining facility in Brownsville, Texas. Payne said the FEED work is scheduled for completion by the end of the company’s fiscal second quarter. A potential larger award, subject to the client’s final investment decision, could be converted to backlog in late fiscal 2027’s third quarter or early in the fourth quarter. Payne said the margin profile of the backlog supports double-digit performance, adding that projects are currently delivering near that level and the company seeks to expand margins above 10% over time. Matrix ended fiscal 2026 with total liquidity of $283.9 million, including $223 million in unrestricted cash and cash equivalents and $60.9 million of borrowing availability under its credit facility. The company had $25 million of restricted cash supporting the facility and no outstanding debt. Cavanah said Matrix expects to use cash during the first half of fiscal 2027 to support ongoing project activity, but management described the balance sheet as sufficient to execute backlog and deploy capital for growth. The company is also actively evaluating a stock repurchase program following its return to profitability. The company will not provide guidance while it completes its search for a permanent CFO. Cavanah will transition from the CFO role at the end of the week, and AJ Smith, senior director of accounting and treasury, will become interim CFO effective Sept. 10, 2026. Matrix Service Company (NASDAQ: MTRX) is a provider of engineered construction, fabrication and maintenance services to the energy, industrial and power markets. The firm offers a full suite of engineering, procurement and construction (EPC) solutions for clients in the oil and gas, petrochemical, refining, mining, fertilizer and power generation industries. Its capabilities span from front-end engineering design through plant commissioning, with specializations in modular process skid fabrication, structural steel erection and complex piping systems. The company's service portfolio includes onshore and offshore pipe fabrication, equipment setting, industrial maintenance and shutdown services, electrical and instrumentation installation, and skid-mount and modular construction. 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 "Matrix Service Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

HOUSTON, Sept. 02, 2026 (GLOBE NEWSWIRE) -- Matrix Service Company (Nasdaq: MTRX, "Matrix" or "the Company"), a leading heavy industrial contractor that engineers, constructs, and maintains critical energy, power, and industrial infrastructure, today announced financial results for the fourth quarter of fiscal 2026 ended June 30, 2026. FOURTH QUARTER FISCAL 2026 HIGHLIGHTS(all comparisons versus the prior year period unless otherwise noted) Revenue of $244.5 million versus $216.4 million; highest quarterly revenue in six years Net income of $1.1 million, or $0.04 per share versus net loss of $(11.3) million or $(0.40) per share Adjusted net income(1) of $4.6 million, or $0.16 per share versus adjusted net loss of $(7.8) million, or $(0.28) loss per share; second consecutive quarter of profitability Adjusted EBITDA(1) of $6.3 million versus $(4.8) million Liquidity(2) at June 30, 2026 of $283.9 million with no outstanding debt Total backlog of $953.2 million, with awards of $169.0 million FULL-YEAR FISCAL 2026 RESULTS(all comparisons versus the prior year period unless otherwise noted) Revenue of $873.6 million versus $769.3 million Net loss per share of $(0.09) versus $(1.06); adjusted net income (loss) per share of $0.26 versus $(0.93) Adjusted EBITDA of $16.0 million versus $(12.9) million (1) Adjusted net income and adjusted net income per diluted share are non-GAAP financial measures which exclude restructuring expense, Adjusted EBITDA is a non-GAAP financial measure which excludes interest expense, interest income, income taxes, depreciation and amortization expense, restructuring expense, and stock-based compensation. See the Non-GAAP Financial Measures section included at the end of this release for a reconciliation to net income and net income per share.(2) Liquidity includes unrestricted cash, cash equivalents and borrowing availability under a $90 million ABL facility maturing in September 2029 MANAGEMENT COMMENTARY “Our fourth quarter results reflect the continued execution of our WIN, EXECUTE, DELIVER strategy. The combination of strong project execution, a more efficient cost structure, and a disciplined focus on the initiatives that matter most resulted in our second consecutive quarter of profitable growth," stated Shawn P. Payne, President and Chief Executive Officer. "Revenue grew 13% year over year as our teams converted backlog into higher volumes, led by specialty storage activity in our Storage and Terminal Solutions segment and continued strong execution in Utility and Power Infrastructure. At the same time, the leaner organizational structure we have built over the past 18 months has meaningfully reduced our fixed overhead costs, while enabling us to support a higher base of revenue with improved efficiency. We enter fiscal 2027 with a debt-free balance sheet and substantial liquidity to support our growth objectives in this next chapter. “Matrix is focused on high-value opportunities, prioritizing backlog growth across our targeted end-markets,” continued Payne. “We secured nearly $170 million of project awards in the fourth quarter, including a major mining construction project in the western United States. This project, which supported a book-to-bill ratio of 3.2x in our Process and Industrial Facilities during the fourth quarter, expands our position in the non-ferrous mining and critical minerals market, broadens the range of end markets served by our engineering and construction capabilities, and represents an important new client relationship that we expect to expand over time. "Fiscal 2026 was a pivotal year for Matrix," concluded Payne. "Our opportunity pipeline has grown to over $7 billion, reflecting generational levels of investment underway across the markets we serve, including LNG and NGL infrastructure, power generation, electric grid modernization, data centers, and mining and minerals production. A number of larger, multi-year opportunities within that pipeline have advanced meaningfully, and we anticipate a higher level of award activity as those targets reach final investment decision. Looking ahead, we are focused on driving profitable growth, executing projects safely, on time and on budget, and deploying capital with discipline as we seek to drive long-term value creation for our clients and shareholders.” FISCAL 2026 FOURTH QUARTER CONSOLIDATED RESULTS Fiscal 2026 fourth quarter revenue was $244.5 million, compared to $216.4 million in the fourth quarter of fiscal 2025. The increase in revenue for the quarter was attributable to higher revenue in the Storage and Terminal Solutions segment, partially offset by lower revenue in the Process and Industrial Facilities segment. Gross profit was $19.5 million, or 8.0% of revenue, in the fourth quarter of fiscal 2026 compared to $8.1 million, or 3.8% of revenue, for the fourth quarter of fiscal 2025. The increase in gross margin was due to higher gross margins in the Storage and Terminal Solutions and Utility and Power Infrastructure segments, partially offset by lower gross margins in the Process and Industrial Facility segment. SG&A expenses were $16.9 million in the fourth quarter of fiscal 2026, compared to $17.6 million for the fourth quarter of fiscal 2025. The decrease in SG&A expenses primarily reflects the reduction of costs associated with the Company's organizational realignment initiatives over the last 12 months partially offset by variable compensation tied to a return to profitable performance. During the quarter, the Company incurred $3.4 million of restructuring costs and other expenses, which included costs associated with the previously announced leadership transitions, as well as costs associated with actions taken in the fourth quarter to reduce our cost structure by reducing our workforce. For the fourth quarter of fiscal 2026, the Company had net income of $1.1 million, or $0.04 per share, compared to a net loss of $11.3 million, or $(0.40) per share, in the fourth quarter of fiscal 2025. Adjusted net income for the fourth quarter of fiscal 2026 was $4.6 million, or $0.16 per share, compared to adjusted net loss of $7.8 million, or $(0.28) per share in the fourth quarter of fiscal 2025. Adjusted EBITDA for the fourth quarter of fiscal 2026 was $6.3 million compared to a loss of $4.8 million for the fourth quarter of fiscal 2025. FISCAL 2026 FOURTH QUARTER SEGMENT RESULTS Storage and Terminal Solutions segment revenue increased 43% to $137.4 million in the fourth quarter of fiscal 2026 compared to $96.1 million in the fourth quarter of fiscal 2025, due to higher specialty storage activity. Gross margin was 6.4% in the fourth quarter of fiscal 2026, compared to (1.1)% in the fourth quarter of fiscal 2025. In the fourth quarter of fiscal 2025, the Company lowered its recovery expectations on a legacy project completed in fiscal 2021 that was in arbitration which resulted in a $6.4 million decrease to both revenue and gross margin. The matter was fully resolved in fiscal 2026. Utility and Power Infrastructure segment revenue was $73.5 million in the fourth quarter of fiscal 2026, which was consistent with the prior year period. Gross margin was 12.8% in the fourth quarter of fiscal 2026, compared to 9.1% for the fourth quarter of fiscal 2025, an increase of 3.7% due to strong project execution. Process and Industrial Facilities segment revenue decreased to $33.6 million in the fourth quarter of fiscal 2026 compared to $47.3 million in the fourth quarter of fiscal 2025, primarily due to lower revenue volumes for refinery work, partially offset by an increase in revenue for a mining project. Gross margin was 2.9% in the fourth quarter of fiscal 2026, compared to 5.9% for the fourth quarter of fiscal 2025, a decrease of 3.0%, primarily due to a mix of work, as well as an increase in under-recovery of overhead costs as a result of lower revenue. BACKLOG Total backlog was $953.2 million as of June 30, 2026. Project awards totaled $169.0 million in the fourth quarter of fiscal 2026, resulting in a book-to-bill ratio of 0.7x for the quarter. Project awards during the fourth quarter for fiscal 2026 were driven primarily by activity in the Process and Industrial Facilities segment, including a major mining construction project in the western United States. The table below summarizes awards, book-to-bill ratios and backlog by segment for the fourth quarter ended June 30, 2026 (amounts are in thousands, except for book-to-bill ratios): _______________ (1)      Calculated by dividing project awards by revenue recognized during the period. BALANCE SHEET & LIQUIDITY As of June 30, 2026, Matrix had total liquidity of $283.9 million. Liquidity is comprised of $223.0 million of unrestricted cash and cash equivalents and $60.9 million of borrowing availability under the credit facility. The Company also has $25.0 million of restricted cash to support the credit facility. As of June 30, 2026, the Company had no outstanding debt. CONFERENCE CALL DETAILS In conjunction with the earnings release, Matrix Service Company will host a conference call with Shawn P. Payne, President and CEO, Kevin S. Cavanah, Vice President and CFO, and Patrick Roberts, Director, Corporate Development and Investor Relations. The call will take place at 10:30 a.m. (Eastern) / 9:30 a.m.  (Central) on Thursday, September 3, 2026. Investors and other interested parties can access a live audio-visual webcast using this webcast link: https://edge.media-server.com/mmc/p/iaonjazk, or through the Company’s website at www.matrixservicecompany.com on the Investors Relations page under Events & Presentations. If you would like to dial in to the conference call, please register at https://register-conf.media-server.com/register/BIa70ac1007e5d4738bedd41c695baab7f at least 10 minutes prior to the start time. Upon registration, participants will receive a dial-in number and unique PIN to join the call as well as an e-mail confirmation with the details. For those unable to participate in the conference call, a replay of the webcast will be available on the Investor Relations page of the Company's website. The conference call will be recorded and will be available for replay within one hour of completion of the live call and can be accessed following the same link as the live call. ABOUT MATRIX SERVICE COMPANY Matrix Service Company (Nasdaq: MTRX) is a leading heavy industrial contractor that engineers, constructs, and maintains critical energy, power, and industrial infrastructure. Our commitment to safety, quality, and integrity has earned the Company a leadership position in providing infrastructure solutions across multiple end markets. Our work is foundational to helping our energy, power, and industrial clients achieve their objectives, positively impact quality of life through the products they provide and improve the efficiency and resilience of their critical infrastructure. We pride ourselves on our commitment to our culture and core values, offering an inclusive and respectful work environment, and being certified as a Great Place To Work®. The Company maintains its principle executive offices in Houston, Texas with offices located throughout the United States and Canada, as well as Sydney, Australia, and Seoul, South Korea. The Company reports its financial results in three key operating segments: Storage and Terminal Solutions, Utility and Power Infrastructure, and Process and Industrial Facilities. To learn more about Matrix Service Company, visit matrixservicecompany.com FORWARD-LOOKING STATEMENTS This release contains forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are generally accompanied by words such as “anticipate,” “continues,” “expect,” “forecast,” “outlook,” “believe,” “estimate,” “should” and “will” and words of similar effect that convey future meaning, concerning the Company’s operations, economic performance, financial guidance, sustained profitable growth and management’s best judgment as to what may occur in the future.  Future events involve risks and uncertainties that may cause actual results to differ materially from those we currently anticipate. The actual results for the current and future periods and other corporate developments will depend upon a number of economic, competitive and other influences, including the successful implementation of the Company's business improvement plan and the factors discussed in the “Risk Factors” and “Forward Looking Statements” sections and elsewhere in the Company’s reports and filings made from time to time with the Securities and Exchange Commission. Many of these risks and uncertainties are beyond the control of the Company, and any one of which, or a combination of which, could materially and adversely affect the results of the Company's operations and its financial condition.  We undertake no obligation to update information contained in this release, except as required by law. Investors should note that the Company announces material financial information in SEC filings, press releases, presentations and public conference calls. Based on guidance from the SEC, the Company may use the Investors section of its website (www.matrixservicecompany.com) to communicate with investors, and the Company intends to post presentations there, among other things. It is possible that the financial and other information posted there could be deemed to be material information. The information on the Company’s website is not part of, and is not incorporated into, this release. INVESTOR RELATIONS CONTACT Patrick RobertsMatrix Service CompanyDirector, Corporate Development and Investor RelationsT: 918-359-8249Email: [email protected] Backlog Matrix defines backlog as the total dollar amount of revenue that the Company expects to recognize as a result of performing work that has been awarded to the Company through a signed contract, limited notice to proceed or other type of assurance that the Company considers firm.  The following arrangements are considered firm: fixed-price awards; minimum customer commitments on cost plus arrangements; and certain time and material arrangements in which the estimated value is firm or can be estimated with a reasonable amount of certainty in both timing and amounts. For long-term maintenance contracts with no minimum commitments and other established customer agreements, the Company includes only the amounts that it expects to recognize as revenue over the next 12 months. For arrangements in which it has received a limited notice to proceed, the Company includes the entire scope of work in its backlog if it concludes that the likelihood of the full project proceeding has a high probability. For all other arrangements, Matrix calculates backlog as the estimated contract amount less revenue recognized as of the reporting date. Three Months Ended June 30, 2026 (1) Calculated by dividing project awards by revenue recognized. Fiscal Year Ended June 30, 2026 (1) Calculated by dividing project awards by revenue recognized. (2) Previous project awards removed from backlog. Non-GAAP Financial Measures Adjusted Net Income (Loss) Matrix has presented Adjusted net income (loss), which the Company defines as Net income (loss) before Restructuring costs and other expenses, and the tax impact of this adjustment, because the Company believes it better depicts its core operating results.  The Company believes that the line item on our Consolidated Statements of Income entitled “Net income (loss)” is the most directly comparable GAAP measure to Adjusted net income (loss). Since Adjusted net income (loss) is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, Net income (loss) as an indicator of operating performance. Adjusted net income (loss), as Matrix calculates it, may not be comparable to similarly titled measures employed by other companies. In addition, this measure is not a measure of our ability to fund the Company's cash needs. As Adjusted net income (loss) excludes certain financial information compared with Net income (loss), the most directly comparable GAAP financial measure, users of this financial information should consider the type of events and transactions that are excluded. The Company's non-GAAP performance measure, Adjusted net income (loss), has certain material limitations as follows: It does not include restructuring costs and other expenses. Restructuring costs represent material costs that were incurred and are oftentimes cash expenses.  Therefore, any measure that excludes restructuring costs has material limitations. A reconciliation of Net income (loss) to Adjusted net income (loss) follows: Adjusted EBITDA Matrix has presented Adjusted EBITDA, which the Company defines as net loss before gain on sale of assets, stock-based compensation, interest expense, interest income, income taxes, and depreciation and amortization, because it is used by the financial community as a method of measuring the Company's performance and of evaluating the market value of companies considered to be in similar businesses. Matrix believes that the line item on our Consolidated Statements of Income entitled “Net loss” is the most directly comparable GAAP measure to Adjusted EBITDA. Since Adjusted EBITDA is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, net earnings as an indicator of operating performance. Adjusted EBITDA, as the Company calculates it, may not be comparable to similarly titled measures employed by other companies. In addition, this measure is not a measure of our ability to fund the Company's cash needs. As Adjusted EBITDA excludes certain financial information compared with net loss, the most directly comparable GAAP financial measure, users of this financial information should consider the type of events and transactions that are excluded. Our non-GAAP performance measure, Adjusted EBITDA, has certain material limitations as follows: It does not include interest expense. Because the Company may borrow money to finance our operations and to acquire businesses, has paid commitment fees to maintain the Company's senior secured revolving credit facility, and has incurred fees to issue letters of credit under the senior secured revolving credit facility, interest expense is a necessary and ongoing part of the Company's costs and has assisted the Company in generating revenue. Therefore, any measure that excludes interest expense has material limitations. It does not include interest income. Because the Company has cash invested in certain investment accounts and has earned interest income on these investments, any measure that excludes interest income has material limitations. It does not include income taxes. Because the payment of income taxes is a necessary and ongoing part of the Company's operations, any measure that excludes income taxes has material limitations. It does not include depreciation or amortization expense. Because Matrix uses capital and intangible assets to generate revenue, depreciation and amortization expense is a necessary element of the Company's cost structure. Therefore, any measure that excludes depreciation or amortization expense has material limitations. It does not include restructuring costs. Restructuring costs represent material costs that were incurred and are oftentimes cash expenses.  Therefore, any measure that excludes restructuring costs has material limitations. It does not include equity-settled stock-based compensation expense. Stock-based compensation represents material amounts of equity that are awarded to the Company's employees and directors for services rendered. While the expense is non-cash, the Company has historically released vested shares out of treasury stock, which has been replenished by using cash to periodically repurchase our stock. Therefore, any measure that excludes stock-based compensation has material limitations. A reconciliation of Net loss to Adjusted EBITDA follows: (1) Represents only the equity-settled portion of our stock-based compensation expense. (2) Restructuring costs excludes equity-settled stock-based compensation expense incurred in conjunction with employee terminations.

Matrix Service (MTRX) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.17 per share. This compares to a loss of $0.28 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -5.88%. A quarter ago, it was expected that this energy services company would post earnings of $0.07 per share when it actually produced earnings of $0.13, delivering a surprise of +85.71%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Matrix Service, which belongs to the Zacks Engineering - R and D Services industry, posted revenues of $244.53 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.02%. This compares to year-ago revenues of $216.38 million. The company has topped consensus revenue estimates just once 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. Matrix Service shares have lost about 8.6% since the beginning of the year versus the S&P 500's gain of 11.5%. While Matrix Service has underperformed 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 Matrix Service 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 $0.18 on $233.91 million in revenues for the coming quarter and $0.70 on $948.11 million 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, Engineering - R and D Services is currently in the top 42% 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. Quanex Building Products (NX), another stock in the broader Zacks Construction sector, has yet to report results for the quarter ended July 2026. The results are expected to be released on September 3. This housing materials maker is expected to post quarterly earnings of $0.68 per share in its upcoming report, which represents a year-over-year change of -1.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Quanex Building Products' revenues are expected to be $498 million, up 0.6% 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 Matrix Service Company (MTRX) : Free Stock Analysis Report Quanex Building Products Corporation (NX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Industrial construction and maintenance company Matrix Service (NASDAQ:MTRX) missed Wall Street’s revenue expectations in Q2 CY2026, but sales rose 13% year on year to $244.5 million. Its non-GAAP profit of $0.16 per share was 20% below analysts’ consensus estimates. Is now the time to buy Matrix Service? Find out in our full research report. Revenue: $244.5 million vs analyst estimates of $247 million (13% year-on-year growth, 1% miss) Adjusted EPS: $0.16 vs analyst expectations of $0.20 (20% miss) Adjusted EBITDA: $6.27 million vs analyst estimates of $7.79 million (2.6% margin, 19.4% miss) Operating Margin: -0.4%, up from -4.4% in the same quarter last year Free Cash Flow was -$10.19 million, down from $38.45 million in the same quarter last year Backlog: $953.2 million at quarter end, down 31% year on year Market Capitalization: $301 million “Our fourth quarter results reflect the continued execution of our WIN, EXECUTE, DELIVER strategy. The combination of strong project execution, a more efficient cost structure, and a disciplined focus on the initiatives that matter most resulted in our second consecutive quarter of profitable growth," stated Shawn P. Payne, President and Chief Executive Officer. "Revenue grew 13% year over year as our teams converted backlog into higher volumes, led by specialty storage activity in our Storage and Terminal Solutions segment and continued strong execution in Utility and Power Infrastructure. At the same time, the leaner organizational structure we have built over the past 18 months has meaningfully reduced our fixed overhead costs, while enabling us to support a higher base of revenue with improved efficiency. We enter fiscal 2027 with a debt-free balance sheet and substantial liquidity to support our growth objectives in this next chapter. Founded in Oklahoma, Matrix Service (NASDAQ:MTRX) provides engineering, fabrication, construction, and maintenance services primarily to the energy and industrial markets. A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, Matrix Service’s 5.3% annualized revenue growth over the last five years was tepid. This wasn’t a great result compared to the rest of the industrials sector, but there are still things to like about Matrix Service. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Matrix Service’s annualized revenue growth of 9.5% over the last two years is above its five-year trend, suggesting its demand recently accelerated. This quarter, Matrix Service’s revenue grew by 13% year on year to $244.5 million but fell short of Wall Street’s estimates. Looking ahead, sell-side analysts expect revenue to grow 8.5% over the next 12 months, similar to its two-year rate. Despite the slowdown, this projection is above the sector average and indicates the market is baking in some success for its newer products and services. ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all. Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE. Although Matrix Service broke even this quarter from an operational perspective, it’s generally struggled over a longer time period. Its expensive cost structure has contributed to an average operating margin of negative 4.4% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. On the plus side, Matrix Service’s operating margin rose by 9.4 percentage points over the last five years, as its sales growth gave it operating leverage. Still, it will take much more for the company to reach long-term profitability. This quarter, Matrix Service generated a negative 0.4% operating margin. Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions. Matrix Service’s full-year EPS flipped from negative to positive over the last five years. This is a good sign and shows it’s at an inflection point. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Matrix Service, its two-year annual EPS growth of 49.8% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base. In Q2, Matrix Service reported adjusted EPS of $0.16, up from negative $0.28 in the same quarter last year. Despite growing year on year, this print missed analysts’ estimates, but we care more about long-term adjusted EPS growth than short-term movements. Over the next 12 months, Wall Street expects Matrix Service’s full-year EPS to grow 171% from $0.26 to $0.71. We struggled to find many positives in these results. Its EBITDA missed and its EPS fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 3.2% to $10.54 immediately following the results. Matrix Service may have had a tough quarter, but does that actually create an opportunity to invest right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.

Industrial construction and maintenance company Matrix Service (NASDAQ:MTRX) will be reporting earnings this Wednesday after market close. Here’s what investors should know. Matrix Service missed analysts’ revenue expectations last quarter, reporting revenues of $206.7 million, up 3.3% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations. Is Matrix Service a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Matrix Service’s revenue to grow 14.2% year on year, in line with the 14.2% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Matrix Service has missed Wall Street’s revenue estimates multiple times over the last two years. Looking at Matrix Service’s peers in the construction and maintenance services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Tutor Perini delivered year-on-year revenue growth of 19.2%, beating analysts’ expectations by 4.4%, and MYR Group reported revenues up 20.1%, topping estimates by 8.3%. Tutor Perini traded up 13.3% following the results while MYR Group was also up 2.7%. Read our full analysis of Tutor Perini’s results here and MYR Group’s results here. Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the construction and maintenance services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.8% on average over the last month. Matrix Service is down 9.6% during the same time and is heading into earnings with an average analyst price target of $20 (compared to the current share price of $10.81). ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all. Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.

HOUSTON, Aug. 18, 2026 (GLOBE NEWSWIRE) -- Matrix Service Company (Nasdaq: MTRX), a leading provider of engineering and construction services to the energy and industrial markets, announced today that it will release fourth quarter and full-year Fiscal 2026 results after market on Wednesday, September 2, 2026. On Thursday, September 3, 2026, at 10:30 a.m. Eastern time/9:30 a.m. Central time, Matrix Service Company will host a conference call to present and discuss the Company’s financial results and forward outlook. Earnings Conference Call instructions Investors and other interested parties can access a live audio-visual webcast using this webcast link, or through the Company’s website at www.matrixservicecompany.com on the Investors Relations page under Events & Presentations. Please allow extra time prior to the call to visit the site and download the streaming media software required to listen to the Internet broadcast. The conference call will be recorded and will be available for replay within one hour of completion of the live call and can be accessed following the same link as the live call. About Matrix Service Company Matrix Service Company (Nasdaq: MTRX) is a leading heavy industrial contractor that engineers, constructs, and maintains critical energy, power, and industrial infrastructure. Our commitment to safety, quality, and integrity has earned the Company a leadership position in providing infrastructure solutions across multiple end markets. Our work is foundational to helping our energy, power, and industrial clients achieve their objectives, positively impact quality of life through the products they provide and improve the efficiency and resilience of their critical infrastructure. We pride ourselves on our commitment to our culture and core values, offering an inclusive and respectful work environment, and being certified as a Great Place To Work®. The Company maintains its principle executive offices in Houston, Texas with offices located throughout the United States and Canada, as well as Sydney, Australia, and Seoul, South Korea. The Company reports its financial results in three key operating segments: Storage and Terminal Solutions, Utility and Power Infrastructure, and Process and Industrial Facilities. To learn more about Matrix Service Company, visit matrixservicecompany.com For more information about Matrix, please contact: Patrick RobertsMatrix Service Company Director, Corporate Development & Investor RelationsT: 918 359-8249  |  Email: [email protected] This release contains forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are generally accompanied by words such as “anticipate,” “continues,” “expect,” “forecast,” “outlook,” “believe,” “estimate,” “should” and “will” and words of similar effect that convey future meaning, concerning the Company’s operations, economic performance and management’s best judgment as to what may occur in the future. Future events involve risks and uncertainties that may cause actual results to differ materially from those we currently anticipate. The actual results for the current and future periods and other corporate developments will depend upon a number of economic, competitive and other influences, including those factors discussed in the “Risk Factors” and “Forward Looking Statements” sections and elsewhere in the Company’s reports and filings made from time to time with the Securities and Exchange Commission. Many of these risks and uncertainties are beyond the control of the Company, and any one of which, or a combination of which, could materially and adversely affect the results of the Company's operations and its financial condition. We undertake no obligation to update information contained in this release.

TSS Inc. (TSSI) came out with quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -37.50%. A quarter ago, it was expected that this company would post earnings of $0.04 per share when it actually produced earnings of $0.08, delivering a surprise of +100%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. TSS, which belongs to the Zacks Engineering - R and D Services industry, posted revenues of $35.14 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 32.29%. This compares to year-ago revenues of $43.97 million. The company has topped consensus revenue estimates two 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. TSS shares have added about 71.3% since the beginning of the year versus the S&P 500's gain of 13.2%. While TSS 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 TSS 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 $0.07 on $50.3 million in revenues for the coming quarter and $0.32 on $213.4 million 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, Engineering - R and D Services is currently in the bottom 37% 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. One other stock from the same industry, Matrix Service (MTRX), is yet to report results for the quarter ended June 2026. This energy services company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +160.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Matrix Service's revenues are expected to be $247.06 million, up 14.2% 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 TSS Inc. (TSSI) : Free Stock Analysis Report Matrix Service Company (MTRX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research