Matrix Service Company (MTRX) Q2 2026 earnings summary

Executive summary

• Revenue rose 12% year-over-year to $210.5 million in Q2 FY2026, with all segments contributing to growth.

• Net loss narrowed to $0.9 million ($0.03/share), improved from $5.5 million loss ($0.20/share) last year.

• Adjusted EBITDA turned positive at $2.4 million, a $4.6 million improvement year-over-year.

• Backlog stands at $1.1–$1.13 billion, with a $7.3 billion opportunity pipeline.

• Leadership transition announced: Shawn Payne to become CEO July 1, 2026, ensuring continuity.

Financial highlights

• Quarterly revenue: $210.5 million (up 12% year-over-year); gross profit: $13.1 million (up 21%); gross margin: 6.2% (up from 5.8%).

• Net loss narrowed to $0.9 million; adjusted net loss was $0.7 million ($0.02/share).

• SG&A expenses decreased 13% to $15.1 million, reflecting cost reductions and lower stock-based compensation.

• Liquidity at $257.6 million, including $199.0 million in cash; no outstanding debt.

• Cash flow from operations was $7.5 million for the quarter.

Outlook and guidance

• Full-year FY2026 revenue guidance reaffirmed at $875–$925 million, representing 14–20% growth.

• Profitability expected in the second half of FY2026, driven by large LNG and NGL projects.

• Margin improvement anticipated as high-quality backlog converts to revenue.

• Long-term demand supported by multi-year investment cycles in energy, power, and industrial infrastructure.

• Book-to-bill expected below 1.0 for the remainder of the year, with larger project awards likely in fiscal 2027.