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Mar 31, 2023
Matrix Service Q3 2023 Earnings Report
Reported third quarter fiscal 2023 results, showing increased backlog and project awards.
Key Takeaways
Matrix Service Company reported a net loss of $12.7 million, or $0.47 per share, for the third quarter of fiscal 2023. However, the company saw strong award momentum with a book-to-bill of 1.7 and a 12% increase in backlog compared to the previous quarter.
Project awards of $308.7 million resulted in a book-to-bill ratio of 1.7 for the quarter.
Backlog increased by 12% to $832.4 million compared to the second quarter of fiscal 2023.
Third quarter revenue was $186.9 million, a 6% increase compared to the third quarter of fiscal 2022.
Loss per share was $0.47, with an adjusted loss per share of $0.33.
Matrix Service
Matrix Service
Forward Guidance
Matrix Service Company expects financial performance to significantly improve in the fourth fiscal quarter as work begins on several recently awarded large projects, especially in the Storage and Terminal Solutions segment.
Positive Outlook
- Strong award momentum continued in the third fiscal quarter.
- Bidding activity continues to be strong.
- Trend in backlog growth is expected to continue in the coming quarters.
- Financial performance is expected to significantly improve in the fourth fiscal quarter.
- Strong project awards received in the first nine months of fiscal 2023 are expected to positively impact revenue in the fourth quarter.
Challenges Ahead
- Revenue during the third quarter of fiscal 2023 was lower than the previous quarter.
- Results of operations were primarily impacted by revenue levels, which led to under-recovery of construction overhead costs in some operating units.
- Results were impacted by increased forecasted costs to complete and close out certain midstream gas processing work.
- Negative gross margin in the Storage and Terminals Solutions segment was primarily caused by low revenue volume.
- Segment gross margin was negatively impacted by the under-recovery of construction overhead costs.