Matrix IT (MTRX) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 results with growth in sales, gross profit, operating profit, EBITDA, and net income, despite ongoing war impacts.

• Growth driven by organic expansion and acquisitions in Israel, especially in IT Solutions and Cloud segments, while US operations stabilized and are expected to return to growth.

• First-time consolidation of Gav Systems and ongoing merger process with Magic Software to create one of the largest listed IT services firms.

Financial highlights

• Q1 2025 sales grew 6.4% year-over-year to NIS 1.55 billion; adjusted for net-basis sales, growth was 11.3%.

• Gross profit rose 9.6% to NIS 227 million (14.7% margin); operating profit up 13.8% to NIS 126 million (8.1% margin).

• Net income increased 12.8% to NIS 80.6 million (5.2% margin); EBITDA up 11.5% to NIS 175.6 million (11.4% margin).

• Net income attributable to shareholders grew 10.1% to NIS 75.6 million; diluted EPS: NIS 1.19.

• Dividend declared: NIS 56.6 million (89 ag. per share); NIS 52.2 million (NIS 0.82/share) distributed in April 2025.

Outlook and guidance

• Continued organic growth expected, with mega projects and technological leadership providing strong visibility.

• US operations anticipated to return to growth in sales and profit in coming quarters, driven by new projects.

• Ongoing evaluation of additional acquisitions to complement product and service portfolio.