Key Highlights

  • First quarter Revenue was USD 219.4 million against a USD 239.78 million estimate; EPS was USD 0.22 against USD 0.18.
  • Adjusted EBITDA was USD 7.7 million against USD 2.5 million a year earlier, and adjusted EPS was USD 0.23.
  • Backlog stood at USD 872.6 million after project awards of USD 138.8 million, with a book-to-bill ratio of 0.6x.
  • Liquidity was USD 221.8 million with no outstanding debt, and the board approved a USD 25 million buyback program.

Matrix Service Company (NASDAQ:MTRX) framed its fiscal 2027 first quarter around its WIN, EXECUTE, DELIVER strategy, which Chief Executive Shawn P. Payne tied to the third consecutive quarter of profitability. Revenue was USD 219.4 million against an estimate of USD 239.78 million, and EPS was USD 0.22 against an estimate of USD 0.18.

Strategy, Awards and Commercial Priorities

Management said double-digit organic revenue growth in Storage and Terminal Solutions and in Process and Industrial Facilities, led by specialty storage and Mining and minerals work, offset lower Natural Gas peak shaving volumes in Utility and Power Infrastructure. Book-to-bill was at or above 1.0x in Utility and Power Infrastructure and in Process and Industrial Facilities.

Awards included a limited notice to proceed for a power generation project supporting Data Center infrastructure and new mining and minerals work. The company also said it was selected to complete front-end engineering and design for the storage tank farm at the America First Refining Facility in Brownsville, Texas, described as the first major new refinery in the United States in more than 50 years.

The chief executive listed commercial priorities of deepening strategic customer relationships, expanding in growth markets, broadening service capabilities and converting the opportunity pipeline into backlog. Operational priorities include skilled labor, disciplined bidding and pricing, and project execution.

Financial Results for the Quarter

Revenue was USD 219.4 million against USD 211.9 million a year earlier. Gross Profit was USD 18.1 million, or 8.2% of revenue, against USD 14.2 million, or 6.7%. Selling, general and administrative expenses were USD 13.3 million against USD 16.3 million, which the company linked to lower salaries and Stock Compensation after its restructuring plan.

Net income was USD 6.2 million, or USD 0.22 per diluted share, against a net loss of USD 3.7 million, or USD 0.13 per share. Adjusted net income, a non-GAAP measure that excludes restructuring costs, was USD 6.4 million, or USD 0.23 per share, against an adjusted net loss of USD 0.3 million, or USD 0.01 per share.

By segment, Storage and Terminal Solutions revenue rose 12% to USD 122.9 million at a 9.0% gross margin, against 5.9%. Utility and Power Infrastructure revenue fell 21% to USD 59.1 million at an 8.6% margin, against 9.1%. Process and Industrial Facilities revenue was USD 37.4 million, against USD 27.9 million, at a 3.7% margin, against 5.1%, which the company tied to resolving a subcontractor dispute over a project completed in fiscal 2023.

Balance Sheet, Cash Flow and Buyback

Cash and cash equivalents were USD 182.4 million, with USD 39.4 million of borrowing availability under a USD 90 million ABL facility maturing in September 2029, for Liquidity of USD 221.8 million. Operating Activities used USD 37.0 million, against USD 25.9 million a year earlier, and the company spent USD 2.5 million on open market purchases of treasury shares.

The board approved a new USD 25 million buyback program, which the chief executive said the company intends to execute opportunistically, subject to market conditions.

Priorities Versus Reported Results

Revenue of USD 219.4 million sits alongside adjusted EBITDA of USD 7.7 million, Backlog of USD 872.6 million and liquidity of USD 221.8 million. Awards of USD 138.8 million correspond to a 0.6x book-to-bill ratio.

The company did not provide numeric guidance. Management pointed to converting larger pursuits into backlog as they reach final Investment decision, the Brownsville engineering work, the data center power generation project, and Buybacks under the new authorization. A conference call was scheduled for Thursday, November 5, 2026.