Matrix Service Company

Revenue increased to $206.7 million from $200.2 million a year ago. Gross margin was $17.2 million, or 8.3%, versus $12.9 million, or 6.4%, last year. Net income was $0.8 million, or $0.03 per diluted share, versus a net loss of $3.4 million, or $0.12 per diluted share, in 2025; excluding $3 million of restructuring charges, adjusted earnings were $0.13 per diluted share. Adjusted EBITDA improved to $4.9 million from breakeven. By segment, Storage and Terminal Solutions revenue rose 16% to $111.6 million and gross margin improved to 7% from 3.9%; Utility and Power Infrastructure revenue was $60 million with 13.6% gross margin versus 9.4%; Process and Industrial Facilities revenue fell to $35.1 million with 2.5% gross margin versus 8.3%. Cash ended at $258 million and liquidity at $297 million. Management said revenue deferred from Q3 was probably $20 million to $25 million, mainly weather-related, and expects Q4 revenue to increase. Full-year revenue guidance midpoint moved down 2.2% to $880 million from $900 million, but the company still expects profitable performance in Q4 and believes Storage and Terminal Solutions will drive growth there.

John Hewitt framed the quarter as evidence that Matrix’s “win, execute, and deliver” strategy is working, pointing to profitability even with lower revenue and to organizational streamlining over the past year. He emphasized that the backlog quality remains strong, the pipeline is $6.9 billion, and new opportunities in mining, minerals, power generation, data centers, LNG, and NGLs should support growth into fiscal 2027. His tone was confident and transitional, highlighting the CEO handoff to Shawn Payne, the CFO search, and a flatter, more efficient organization centered on execution and customer responsiveness.

Kevin Cavanah said revenue rose to $206.7 million, gross margin improved to 8.3%, SG&A fell to $15.2 million from $17.7 million, and adjusted EBITDA improved to $4.9 million. He attributed the margin improvement to higher direct project margins and lower under-recovered overhead, while noting $3 million of restructuring charges tied to the CEO transition and a lease impairment. He also highlighted a stronger balance sheet, with cash up $34 million to $258 million and liquidity at $297 million, and said project cash timing may consume some cash as fiscal 2026 ends and fiscal 2027 begins.

Analysts focused on the utility segment’s lower revenue but stronger margin, and management explained that the segment benefited from strong execution in power delivery and peak shaving while revenue declined because a long-running peak shaver project is moving into a lower manpower phase. They also pressed on backlog trends and the timing of a rebound; management said backlog remains at $1 billion, that near-term awards will be smaller and midsize, and that larger project awards are likely to enter the pipeline in mid-fiscal 2027 and be awarded later in 2027. On deferred jobs, John Hewitt said the delayed Q3 revenue was about $20 million to $25 million and will flow into Q4 and fiscal 2027 rather than being fully recovered in one quarter.