On September 9, 2024, Matrix Service Co (MTRX, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full fiscal year ending June 30, 2024. Matrix Service Co is a leading North American industrial engineering, construction, and maintenance contractor, serving sectors such as oil and gas, power, petrochemical, industrial, mining, and minerals.
Performance Overview
Matrix Service Co reported a revenue of $189.5 million for the fourth quarter, falling short of the analyst estimate of $202.81 million. The company posted a net loss per share of $(0.16), which was better than the estimated $(0.21) but worse than the $(0.01) loss reported in the same quarter last year. For the full fiscal year, the company reported a revenue of $728.2 million, slightly below the annual estimate of $741.51 million, and a net loss per share of $(0.91), which was an improvement from $(1.94) in the previous year but still above the estimated $(0.97).
Key Financial Metrics
Matrix Service Co's total backlog increased by 31% year-over-year to $1.4 billion, indicating strong future demand. However, the company's gross margin for the fourth quarter decreased to 6.6% from 7.1% in the same period last year, primarily due to lower revenue volumes and slower project start-ups. The company reported an adjusted EBITDA of $0.2 million for the quarter, down from $2.2 million in the previous year.
| Metric | Q4 FY2024 | Q4 FY2023 |
|---|---|---|
| Revenue | $189.5 million | $205.9 million |
| Net Loss per Share | $(0.16) | $(0.01) |
| Adjusted EBITDA | $0.2 million | $2.2 million |
Segment Performance
The Storage and Terminal Solutions segment saw a revenue increase to $70.0 million, up from $64.1 million in the same quarter last year, driven by increased activity on NGL storage projects. The Utility and Power Infrastructure segment also experienced growth, with revenue rising to $65.3 million from $39.1 million, benefiting from higher volumes of LNG peak shaving projects. However, the Process and Industrial Facilities segment reported a significant decline in revenue to $54.2 million from $102.7 million, primarily due to lower revenue from midstream gas processing projects and refinery maintenance.
Financial Position
Matrix Service Co ended the fiscal year with a strong liquidity position of $169.6 million and no outstanding debt. The company generated $47.0 million in cash flow from operations during the fourth quarter and $72.6 million for the full fiscal year, reflecting scheduled payments from customers associated with project awards in backlog.
Outlook
Looking ahead, Matrix Service Co has provided revenue guidance for fiscal 2025 in the range of $900 to $950 million, reflecting a 24% to 30% increase from fiscal 2024. The company expects revenue growth in the Storage and Terminal Solutions and Utility and Power Infrastructure segments, while the Process and Industrial Facilities segment is anticipated to see a decline as existing projects near completion.
"We advanced work on multiple large projects during the quarter, which contributed to meaningful cash generation to close-out the fiscal year," said John Hewitt, President and Chief Executive Officer. "As we enter fiscal 2025, Matrix is well-positioned to achieve significant improvement in revenue, a return to historical margins, and improved earnings."
For more detailed insights and the full financial statements, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Matrix Service Co for further details.
