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Jun 30, 2023
Matrix Service Q4 2023 Earnings Report
Matrix Service reported strong Q4 2023 results driven by significant project awards and backlog growth.
Key Takeaways
Matrix Service Company reported a strong fourth quarter in fiscal year 2023, marked by project awards of $463.6 million and a book-to-bill ratio of 2.3. The company's backlog increased by 31% to $1.1 billion compared to the third quarter of fiscal 2023. Revenue for the quarter was $205.9 million, a 10% increase compared to the third quarter of fiscal 2023.
Project awards reached $463.6 million with a book-to-bill ratio of 2.3 for the quarter.
Backlog increased by 31% to $1.1 billion compared to the third quarter of fiscal 2023.
Fourth quarter revenue increased to $205.9 million, a 10% increase compared to the third quarter of fiscal 2023.
Loss per fully diluted share was $0.01 in the fourth quarter; adjusted loss per fully diluted share was $0.11.
Matrix Service
Matrix Service
Forward Guidance
The company is positioned with high quality backlog which will generate significantly improved results in fiscal 2024 and the next several years.
Positive Outlook
- Strong visibility into revenue as work commences on recently awarded large capital projects.
- Focus on maximizing profitability after undergoing an internal transformation that has optimized the cost structure.
- Strategic approach to end markets supported by strong tailwinds will lead to continued backlog growth.
- Strong performance is expected for the foreseeable future.
- Bidding activity remains strong.
Challenges Ahead
- The effective tax rates for both periods were impacted by the valuation allowance placed on all our deferred tax assets due to the existence of a cumulative loss over a three-year period.
- Timing of project awards can fluctuate.
- Gross margin of 3.2% in the Storage and Terminals Solutions segment was negatively impacted by low revenue volume, which led to the under recovery of construction overhead costs
- Fourth quarter gross margin of 8.2% in the Process and Industrial Facilities segment was negatively impacted by continued work to close out a midstream gas processing project with a reduced margin profile.
- Future events involve risks and uncertainties that may cause actual results to differ materially from those we currently anticipate.