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 end markets.

• Aerospace and defense revenue grew 21.9% in Q4, power generation up 33.2%, and infrastructure up 26.8% year-over-year; laboratories business achieved record 61% growth.

• Full year 2025 consolidated revenue was $724.0 million, with gross profit up 6.4% and adjusted EBITDA reaching a record $91.1 million.

• Diversification efforts led to growth in all industries except oil & gas, which declined 5.4% due to project timing.

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

Financial highlights

• Q4 2025 adjusted EBITDA was $24.8 million, up 18.2% year-over-year, with a margin of 13.7%, the highest ever for Q4.

• Full year adjusted EBITDA margin expanded to 12.6%; gross margin for 2025 was 28.4%, up 190 basis points year-over-year.

• 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 FY 2025 was $28.1 million (EPS $0.88).

• Free cash flow for Q4 was $24.6 million, while full year free cash flow was $3.8 million, down due to elevated DSO, restructuring, and higher 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 expansion and AI/data solutions.

• Net income and EPS expected to exceed 2025 levels; EBITDA margins to remain resilient.

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

• Management to provide further 2026 guidance during the scheduled conference call.