Sep 30, 2023

Mistras Q3 2023 Earnings Report

Reported revenue increase and adjusted EBITDA growth, driven by commercial aerospace and data analytical solutions markets, with ongoing Project Phoenix initiatives leading to further SG&A reductions.

Key Takeaways

MISTRAS Group reported a slight increase in revenue for Q3 2023, alongside a significant rise in Adjusted EBITDA. The company's gross profit margin also saw improvement. Net loss was impacted by a non-cash goodwill impairment charge and reorganization costs. Project Phoenix is expected to yield substantial cost savings in 2024.

Revenue increased by 0.5% to $179.4 million.

Gross profit margin improved by 20 basis points to 30.3%.

Adjusted EBITDA increased by 12.5% to $20.9 million.

The company anticipates a modest single digit revenue growth in 2024, yet a significant expansion in Adjusted EBITDA.

Total Revenue
$179M
Previous year: $178M
+0.5%
EPS
$0.18
Previous year: $0.16
+12.5%
Gross Profit
$54.4M
Previous year: $53.8M
+1.1%
Cash and Equivalents
$12.8M
Previous year: $18.1M
-29.5%
Free Cash Flow
-$12.2M
Previous year: $200K
-6219.5%
Total Assets
$537M
Previous year: $540M
-0.7%

Mistras

Mistras

Mistras Revenue by Segment

Forward Guidance

The Company anticipates a modest single digit revenue growth in 2024, yet a significant expansion in Adjusted EBITDA, attributable to operating leverage and the ongoing benefits of Project Phoenix. We believe this will result in an all-time high in Adjusted EBITDA in fiscal 2024 of greater than $88 million. This outlook includes approximately $20 million in incremental benefit from Project Phoenix in 2024.

Positive Outlook

  • Modest single digit revenue growth in 2024
  • Significant expansion in Adjusted EBITDA
  • Operating leverage
  • Ongoing benefits of Project Phoenix
  • All-time high in Adjusted EBITDA in fiscal 2024 of greater than $88 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income