Matrix Service Company Reports 7% Revenue Increase but Wider Net Loss in Q2 Fiscal 2025

Matrix Service Company reported its financial results for the second quarter of fiscal 2025, revealing a revenue increase of 7% to $187.2 million compared to $175.0 million in the same period last year. However, the company experienced a net loss of $5.5 million, or $0.20 per share, which is a significant increase from the net loss of $2.9 million, or $0.10 per share, reported in the prior year. For the first half of the fiscal year, total revenue decreased by 5% to $352.7 million, down from $372.7 million, with a net loss of $14.8 million compared to a loss of $6.0 million in the same period last year.

The company's financial performance was impacted by varying results across its business segments. The Storage and Terminal Solutions segment saw a substantial revenue increase of 53% year-over-year, driven by higher volumes of work related to specialty vessels and LNG storage. Conversely, the Process and Industrial Facilities segment experienced a 57% decline in revenue, primarily due to the completion of a large renewable diesel project. The Utility and Power Infrastructure segment also reported a 52% increase in revenue, attributed to a higher volume of LNG peak shaving projects.

In terms of operational developments, Matrix Service Company reported project awards totaling $90.5 million during the quarter, although this figure represents the lowest quarterly awards in over three years. The company noted that many customers delayed spending decisions due to the upcoming presidential election. Despite this, the company maintains a strong backlog of $1.3 billion, with $558.9 million expected to be recognized as revenue within the next twelve months. The company’s total assets increased to $513.8 million as of December 31, 2024, up from $451.4 million at the end of the previous fiscal year.

Matrix Service Company also highlighted strategic developments, including the recent amendment of its asset-based credit agreement, which provides a borrowing capacity of $90 million. The company reported unrestricted cash and cash equivalents of $156.8 million, contributing to total liquidity of $211.7 million. Looking ahead, the company anticipates continued growth in its Storage and Terminal Solutions and Utility and Power Infrastructure segments, driven by strong market demand and project execution. However, it remains cautious about potential fluctuations in project awards and market conditions that could impact future performance.