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Jun 30
Mistras Q2 2025 Earnings Report
Mistras Group, Inc. reported its financial results for the second quarter and six months ended June 30, 2025, highlighting robust quarterly organic revenue growth in Aerospace & Defense and Industrial Markets, a significant expansion in gross profit margin, and achieving a record Adjusted EBITDA.
Key Takeaways
Mistras Group, Inc. delivered a strong second quarter in 2025, achieving a record Adjusted EBITDA of $24.1 million, an 8.9% increase year-over-year. Despite a slight revenue decrease of 2.3% (flat excluding voluntary Laboratory consolidations), the company significantly expanded its gross profit margin by 200 basis points to 29.1% due to an improved business mix and operating efficiencies. Net income for the quarter was $3.0 million, with non-GAAP diluted EPS of $0.19.
Revenue for Q2 2025 was $185.4 million, a 2.3% decrease year-over-year, but flat when excluding voluntary Laboratory consolidations.
Gross profit increased by 5.1% to $53.9 million, with the gross profit margin expanding by 200 basis points to 29.1%.
Adjusted EBITDA reached an all-time high for a second quarter at $24.1 million, an 8.9% increase from the prior year, with an Adjusted EBITDA margin of 13.0%.
Net income was $3.0 million ($0.10 EPS), while non-GAAP net income excluding special items was $5.8 million ($0.19 non-GAAP diluted EPS).
Mistras
Mistras
Mistras Revenue by Segment
Mistras Revenue by Geographic Location
Revenue by Segment
North America Revenue
CapyFin.comInternational Revenue
CapyFin.comProducts and Systems Revenue
CapyFin.comCorporate and Eliminations Revenue
CapyFin.comRevenue by Geographic Location
Oil & Gas Revenue
CapyFin.comAerospace & Defense Revenue
CapyFin.comIndustrials Revenue
CapyFin.comPower Generation & Transmission Revenue
CapyFin.comOther Process Industries Revenue
CapyFin.comInfrastructure, Research & Engineering Revenue
CapyFin.comPetrochemical Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Mistras Group is not providing full-year guidance for fiscal 2025 as the CEO and renewed senior management team are still reviewing the company’s entire portfolio of businesses and continuously assessing market volatility. However, the company expects its 2025 Adjusted EBITDA to exceed the 2024 level, which was the second highest annual level achieved all-time.
Positive Outlook
- Expects 2025 Adjusted EBITDA to exceed 2024 levels, which was the second highest annual level achieved all-time.
- Committed to strong free cash flow generation over the second half of 2025, expecting normalization in coming quarters.
- Anticipates a reduction in unbilled and billed accounts receivable balances over the remainder of the year.
- Expects to end fiscal 2025 with a total consolidated debt leverage ratio below 2.50 to 1.0.
- Strategic initiatives are expected to continue enhancing profitability and operating leverage.
Challenges Ahead
- No full-year guidance provided for fiscal 2025 due to ongoing portfolio review by new management.
- Continuous assessment of market volatility, including impacts of changes in U.S. trade policies, tariffs, and retaliatory tariffs.
- First half 2025 free cash flow was negative, attributable to factors impacting operating cash flow.
- Increase in gross debt during the period due to impacts on cash flow.
- Buildup in unbilled accounts receivable and delay in invoicing related to new ERP system conversion in Q2 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income