Matrix Service Q4 FY25 slides: $1.38B backlog signals growth despite quarterly loss

Introduction & Market Context

Matrix Service Company (NASDAQ:MTRX) released its fourth quarter fiscal year 2025 results presentation, showing continued revenue growth despite reporting a quarterly loss impacted by several one-time charges. The specialty engineering and construction company, which focuses on energy and infrastructure markets, maintained a strong backlog of $1.38 billion, positioning it for projected growth of 14-20% in fiscal year 2026.

The company’s stock closed at $14.71 on September 9, 2025, down 3.13% for the day, with a slight additional decline of 0.41% in after-hours trading. Despite the quarterly loss, Matrix Service’s presentation emphasized its strong market position and growth opportunities in both traditional energy infrastructure and emerging high-growth markets.

Quarterly Performance Highlights

Matrix Service reported Q4 FY25 revenue of $216.4 million, representing growth compared to the $200.2 million reported in Q3 FY25 and the $189.5 million in Q4 FY24. However, the quarter’s financial results were negatively impacted by several one-time charges totaling $11.5 million.

As shown in the following financial performance summary, the company reported a loss per share of $(0.40) and adjusted EBITDA of $(4.8) million for the quarter:

The company detailed several issues that impacted Q4 FY25 performance, including:

• A $6.4 million reduction in revenue and operating income due to lowered recovery expectations on a legacy project in dispute resolution
• A $3.8 million charge on a crude project affected by lower than anticipated labor productivity
• A $1.3 million charge related to an unexpected court ruling on a project completed in 2021
• $3.4 million in restructuring costs related to organizational improvement actions

Despite these challenges, Matrix Service’s full-year FY25 revenue reached $769 million, slightly below the previously revised guidance of $770-800 million mentioned in their Q3 earnings report.

Backlog and Revenue Visibility

A key highlight of the presentation was Matrix Service’s robust backlog, which stood at approximately $1.4 billion as of June 30, 2025. The company secured $186.3 million in new project awards during Q4 FY25, maintaining a book-to-bill ratio of 0.9x for the quarter.

The following chart illustrates the company’s backlog growth and revenue visibility over recent years:

Matrix Service’s backlog has shown consistent growth, with a compound annual growth rate (CAGR) of 33%. The company noted that approximately 85% of its projected FY2026 revenue is already booked, providing strong visibility for the coming fiscal year.

The backlog is diversified across the company’s three main operating segments, with Storage & Terminal Solutions representing the largest portion at $770 million (56%), followed by Utility & Power Infrastructure at $346.4 million (25%) and Process & Industrial Infrastructure at $265.6 million (19%):

Beyond the current backlog, Matrix Service reported a robust opportunity pipeline of approximately $5.9 billion as of June 30, 2025. This pipeline is similarly weighted toward the Storage & Terminal Solutions segment, which represents 64% of potential opportunities:

Strategic Initiatives and Growth Markets

Matrix Service’s presentation outlined its strategic framework focused on three key pillars: WIN (building backlog and market share), EXECUTE (safe, reliable project execution), and DELIVER (sustainable and consistent performance).

The company’s strategic roadmap is illustrated in the following slide:

A significant aspect of Matrix Service’s strategy involves expanding into high-growth markets while maintaining its strong position in traditional energy and industrial infrastructure. The company identified AI/Data Centers, Power Generation, Semiconductors, and Advanced Manufacturing as key growth areas that complement its existing expertise:

Matrix Service positioned itself as uniquely qualified to capitalize on multi-year spending cycles within LNG and NGL infrastructure, data centers, advanced manufacturing, and utility infrastructure investment. The company highlighted its 40+ year track record and end-to-end services across the entire asset life-cycle, particularly in cryogenic storage for LNG, NGLs, and chemical applications.

Balance Sheet and Liquidity

Matrix Service emphasized its strong financial position, with no debt as of June 30, 2025, and liquidity of $284.5 million. The company’s liquidity has shown consistent improvement over the past two years, as illustrated in the following chart:

The company’s capital allocation priorities focus on:

• Maximizing balance sheet flexibility to support project working capital needs
• Strategic capital expenditures to support operations and organic growth
• Return-focused M&A strategy
• Long-term consideration for return of capital to shareholders as strategic objectives are met

This disciplined approach to balance sheet management has allowed Matrix Service to maintain financial flexibility while positioning for growth in its target markets.

Forward-Looking Statements

Looking ahead, Matrix Service provided guidance for FY2026 revenue in the range of $875-925 million, representing growth of 14-20% compared to FY2025. The company also outlined its long-term financial targets, including:

These targets reflect Matrix Service’s focus on improving profitability and returns as it executes its strategic roadmap. The company expects to benefit from operating leverage as revenue ramps up, supported by its strong backlog and opportunity pipeline.

Matrix Service’s management expressed confidence in the company’s ability to capitalize on infrastructure investment trends across its target markets. With approximately 90% of revenue coming from recurring customers and a diversified customer base, the company believes it is well-positioned for sustainable growth despite the challenges faced in Q4 FY25.

While the quarterly results showed continued net losses, the presentation emphasized that project teams are executing well, with Direct Gross Profit results above plan. The company has also streamlined its organizational structure to ensure consistent project execution and position itself for future growth opportunities as it enters what it describes as "a transformational multi-year backlog to revenue conversion cycle."

Full presentation:

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