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TULSA - Matrix Service Company (NASDAQ:MTRX) shares plunged 13% after the engineering and construction services provider reported a significant fourth-quarter loss and issued revenue guidance below analyst expectations.
The company posted an adjusted net loss of $0.28 per share for its fiscal fourth quarter ended June 30, 2025, falling well short of analyst estimates of $0.33 earnings per share. Revenue came in at $216.4 million, up 14% YoY but substantially below the consensus estimate of $286.3 million. The quarter was negatively impacted by several discrete items that reduced revenue by $6.4 million and adjusted EBITDA by $11.5 million.
For fiscal 2026, Matrix Service projected revenue between $875 million and $925 million, representing approximately 17% growth at the midpoint but below analyst expectations of $945.5 million.
"During the fourth quarter, we had continued momentum across multiple large projects, driving 14% year-over-year revenue growth and improved fixed cost absorption," stated John Hewitt, President and CEO. "Our fourth quarter net income reflects a $14.9 million impact associated with four issues," including labor cost overruns on a crude oil terminal project and an updated reserve for a contract dispute dating back to the pandemic.
The company’s backlog stood at $1.4 billion as of June 30, with a book-to-bill ratio of 0.9x for the quarter. The Storage and Terminal Solutions segment saw revenue increase 37% YoY to $96.1 million, while the Utility and Power Infrastructure segment revenue rose 12% to $73 million.
Matrix Service ended the quarter with total liquidity of $284.5 million, including $224.6 million in unrestricted cash and cash equivalents, and no outstanding debt.
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