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Dec 31, 2024
Matrix Service Q2 2025 Earnings Report
Reported a net loss for the second quarter of fiscal year 2025, but revenue increased due to growth in Storage and Terminal Solutions and Utility and Power Infrastructure segments.
Key Takeaways
Matrix Service Company reported a net loss of $(0.20) per share for Q2 2025, with revenue increasing by 7% to $187.2 million. The company faced challenges including project delays and pre-election policy uncertainty, leading to a revised full-year revenue forecast. However, they anticipate a return to profitability in the second half of the fiscal year.
Revenue increased by 7% to $187.2 million.
Net loss per share was $(0.20), same as adjusted net loss per share.
Total project awards in the quarter were $90.5 million, resulting in a book-to-bill ratio of 0.5x.
Company maintains strong balance sheet discipline, with more than $211 million in available liquidity and no debt outstanding.
Matrix Service
Matrix Service
Forward Guidance
Matrix Service Company updated its fiscal year 2025 revenue guidance to $850 - $900 million, reflecting project delays and market uncertainties.
Positive Outlook
- Anticipate more than 40% year-over-year revenue growth in the second half of fiscal 2025, when compared to the second half of fiscal 2024.
- Expect to deliver a book-to-bill ratio of at least 1.0x for the full year fiscal 2025.
- Strategic focus on large, complex projects across the energy and industrial landscape position Matrix to capitalize on what we expect will be an historic period for domestic infrastructure investment over the next decade.
- Proven ability to service the full project lifecycle, from engineering and fabrication to construction and maintenance, provide customers with a turnkey solution that continues to drive high customer retention.
- Continue to maintain strong balance sheet discipline, with more than $211 million in available liquidity and no debt outstanding.
Challenges Ahead
- Pace of recent project awards and starts on booked work converting to revenue slowed during the first half of fiscal 2025.
- Lowered full-year revenue forecast by approximately 5% at the midpoint of our guided range, as approximately $50 million in projected revenue was pushed from fiscal 2025 to fiscal 2026.
- Temporary permitting and project start delays caused by third parties.
- Pre-election policy uncertainty within our core energy markets.
- Gross margins were negatively impacted by the under-recovery of construction overhead costs.