Matrix Service Company reported a significant increase in financial performance for the second quarter and first half of fiscal 2026, ending December 31, 2025. The company generated revenues of $210.5 million for the three months ended December 31, 2025, a 12% increase from $187.2 million in the same period the previous year. For the six months, revenue rose to $422.4 million, up 20% from $352.7 million year-over-year. Despite the revenue growth, Matrix reported a net loss of $0.9 million for the quarter, an improvement from a loss of $5.5 million in the prior year, and a net loss of $4.6 million for the six months, compared to a loss of $14.8 million in the same period last year.
The company's gross profit for the second quarter increased by 21% to $13.1 million, with a gross margin of 6.2%, up from 5.8% in the prior year. This improvement was attributed to higher revenue volumes across all segments, although warranty-related costs and third-party commercial matters negatively impacted gross profit by $3.6 million. Selling, general, and administrative expenses decreased by 13% to $15.1 million, reflecting cost reductions from an organizational restructuring initiated in the previous fiscal year.
Matrix's operational developments included a strategic focus on its three reportable segments: Storage and Terminal Solutions, Utility and Power Infrastructure, and Process and Industrial Facilities. The Storage and Terminal Solutions segment saw a revenue increase of 5% to $99.9 million, while the Utility and Power Infrastructure segment experienced a 23% rise to $75.4 million, driven by higher volumes of work for power delivery and natural gas peak shaving projects. The Process and Industrial Facilities segment also reported a 15% increase in revenue to $35.3 million, primarily due to higher volumes for refinery maintenance work.
The company’s backlog as of December 31, 2025, was $1.1 billion, reflecting a strong pipeline of future work. Matrix expects to recognize approximately $686.4 million of its remaining performance obligations as revenue within the next twelve months. The company continues to navigate market conditions and anticipates that ongoing trends such as the clean energy transition and increased demand for power infrastructure will support long-term growth. Matrix's liquidity position remains strong, with unrestricted cash and cash equivalents totaling $199 million and availability under its asset-based credit facility at $58.6 million, providing a solid foundation for future operations and investments.
About MATRIX SERVICE CO
Matrix Service Company provides engineering, fabrication, construction, and maintenance services for energy infrastructure and industrial markets. Its segments include storage and terminal solutions, utility and power infrastructure, and process and industrial facilities. Serving clients across the U.S., Canada, and internationally, it focuses on safety, operational excellence, and long-term customer relationships to deliver critical energy and industrial infrastructure projects.
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