Mistras Group (MG) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue grew 5.1% year-over-year to $181.5 million, with double-digit growth in aerospace and defense, power generation, and infrastructure, and gross profit margin expanding by 190 basis points.

• Full year 2025 consolidated revenue was $724.0 million, with gross profit up 6.4% and record Adjusted EBITDA of $91.1 million, despite a 0.8% revenue decline year-over-year.

• Diversification efforts led to growth in all industries except oil and gas, which declined due to project timing and lab closures.

• Major contract wins in LNG, data centers, and infrastructure supported long-term growth and industry diversification.

• Strategic restructuring in 2025 incurred $12.6–$12.7 million in costs, focused on headcount reduction, lab closures, and efficiency, with no negative revenue impact.

Financial highlights

• Q4 2025 gross profit margin improved by 190 basis points to 28.4%, with gross profit of $51.5 million.

• Q4 Adjusted EBITDA was $24.8 million, up 18.2% year-over-year, with a 13.7% margin; full year Adjusted EBITDA reached $91.1 million (12.6% margin).

• Q4 GAAP net income was $3.9 million (EPS $0.12); full year GAAP net income was $16.8 million (EPS $0.53); non-GAAP net income for the year was $28.1 million (EPS $0.88).

• Q4 free cash flow was $24.6 million, driven by working capital reduction; full year free cash flow was $3.8 million, down due to elevated DSO, restructuring, and CapEx.

• Gross debt at year-end 2025 was $178 million; net debt was $150 million.

Outlook and guidance

• 2026 revenue guidance: $730–$750 million; Adjusted EBITDA: $91–$93 million.

• CapEx to remain elevated at ~4.5% of revenue in 2026 and 2027, focused on lab capacity and AI/data solutions.

• Management expects 2026 net income and EPS to exceed 2025 levels, with margin resilience despite investments.

• No macro acceleration in oil and gas or acquisitions assumed in outlook.

• Long-term organic revenue CAGR target of 5% through 2030, with EBITDA margin aspiration of 15%.