Latest news with #MatrixService
Yahoo
4 hours ago
- Business
- Yahoo
MTRX Q1 Earnings Call: Revenue Growth Amid Guidance Cut and Strategic Refocus
Industrial construction and maintenance company Matrix Service (NASDAQ:MTRX) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 20.6% year on year to $200.2 million. The company's full-year revenue guidance of $785 million at the midpoint came in 8.1% below analysts' estimates. Its non-GAAP loss of $0.12 per share was significantly below analysts' consensus estimates. Is now the time to buy MTRX? Find out in our full research report (it's free). Revenue: $200.2 million vs analyst estimates of $215.1 million (20.6% year-on-year growth, 6.9% miss) Adjusted EPS: -$0.12 vs analyst estimates of -$0.05 (significant miss) Adjusted EBITDA: $5,000 vs analyst estimates of $334,500 (0% margin, relatively in line) The company dropped its revenue guidance for the full year to $785 million at the midpoint from $875 million, a 10.3% decrease Operating Margin: -2.4%, up from -8.7% in the same quarter last year Backlog: $1.41 billion at quarter end Market Capitalization: $338.8 million Matrix Service's first quarter results reflected accelerated activity in core segments like Storage and Terminal Solutions, with CEO John Hewitt attributing the revenue increase to 'ramped up project activity' and a historically high backlog of storage-related awards. Management discussed the impact of organizational changes, including a streamlined operational structure and the elimination of senior roles, designed to enhance competitiveness and improve project execution. The quarter also saw continued progress in recovering overhead costs, which had weighed on margins in previous periods. CFO Kevin Cavanah emphasized that improved direct project margins and cost discipline helped narrow operating losses, though some segments faced project-specific execution challenges. Looking ahead, Matrix Service's reduced full-year outlook reflects both the planned exit from its Northeast transmission and distribution business and project deferrals linked to customer caution amid macroeconomic uncertainty. Management cited delays in client final investment decisions due to evolving U.S. trade and environmental policies as a contributing factor. CEO John Hewitt commented, 'It would be unreasonable for us to assume that these uncertainties around tariff issues and the regulatory environment aren't keeping clients a little bit hesitant.' Still, the company's leadership believes demand for energy and industrial infrastructure will remain strong, supported by a $7 billion pipeline of project opportunities and a shift in focus toward foundational services and smaller projects to balance large, multi-year awards. Management linked the quarter's results to ongoing operational restructuring, a sharpened focus on core businesses, and client-driven project timing shifts. Operational restructuring: Matrix Service eliminated senior roles and promoted Shawn Payne to President of Engineering & Construction, aiming to create a leaner, more agile organization that can quickly respond to project opportunities and improve execution efficiency. Business line exit: The company announced its wind-down of the Northeast transmission and distribution service line, citing a lack of scale, limited project wins, and higher capital requirements as reasons for the exit. Management plans to reallocate resources to more profitable segments and expects this move to contribute to improved margins over time. Backlog and awards momentum: Backlog reached $1.41 billion, supported by robust project awards in Storage and Terminal Solutions and Process and Industrial Facilities. CEO John Hewitt highlighted new awards for storage vessel engineering and construction as key contributors to backlog growth. Segment performance drivers: Strong revenue growth in Storage and Terminal Solutions was attributed to higher specialty vessel project volumes, while Utility and Power Infrastructure benefited from increased activity in natural gas peak shaving. Process and Industrial Facilities saw lower volumes following completion of a large renewable diesel project, but management views this decline as temporary given the current opportunity funnel. Macroeconomic and policy uncertainty: Management noted that delays in client project approvals and contract signings were influenced by ongoing U.S. trade and environmental policy developments, which have increased client caution regarding capital spending. However, leadership expects these headwinds to be temporary and is working closely with customers to optimize costs and mitigate supply chain risks. Matrix Service expects macroeconomic policy uncertainty, portfolio realignment, and segment-specific execution to shape results in the coming quarters. Macroeconomic policy headwinds: Management expects ongoing uncertainty around U.S. tariffs and environmental regulations to cause some clients to delay project awards, potentially affecting near-term revenue visibility. However, they believe this uncertainty is temporary and that underlying demand for energy infrastructure remains robust. Focus on foundational services: The company is re-emphasizing smaller projects—such as maintenance, turnarounds, and construction-only work—to supplement large EPC (Engineering, Procurement, and Construction) contracts. Management views this approach as a way to strengthen customer relationships, absorb overhead, and provide more stable, recurring revenue. Cost structure and margin improvement: Leadership highlighted organizational flattening and continued cost discipline as key to improving profitability. Recovering construction overhead and leveraging SG&A expenses are expected to support the company's target for a consolidated gross margin of 10% to 12% over the long term. For the remainder of the year, our analysts will focus on (1) how effectively Matrix Service executes its organizational changes and exits lower-margin businesses, (2) whether timing of project awards and contract signings improves as policy uncertainty stabilizes, and (3) progress in recovering overhead costs and achieving targeted gross margins. Developments in the company's foundational services and new project awards will also be key indicators of execution. Matrix Service currently trades at a forward P/E ratio of 16.2×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
2 days ago
- Business
- Yahoo
Winners And Losers Of Q1: Matrix Service (NASDAQ:MTRX) Vs The Rest Of The Construction and Maintenance Services Stocks
Quarterly earnings results are a good time to check in on a company's progress, especially compared to its peers in the same sector. Today we are looking at Matrix Service (NASDAQ:MTRX) and the best and worst performers in the construction and maintenance services industry. Construction and maintenance services companies not only boast technical know-how in specialized areas but also may hold special licenses and permits. Those who work in more regulated areas can enjoy more predictable revenue streams - for example, fire escapes need to be inspected every five years. More recently, services to address energy efficiency and labor availability are also creating incremental demand. But like the broader industrials sector, construction and maintenance services companies are at the whim of economic cycles as external factors like interest rates can greatly impact the new construction that drives incremental demand for these companies' offerings. The 13 construction and maintenance services stocks we track reported a very strong Q1. As a group, revenues beat analysts' consensus estimates by 5.2%. Luckily, construction and maintenance services stocks have performed well with share prices up 24.6% on average since the latest earnings results. Founded in Oklahoma, Matrix Service (NASDAQ:MTRX) provides engineering, fabrication, construction, and maintenance services primarily to the energy and industrial markets. Matrix Service reported revenues of $200.2 million, up 20.6% year on year. This print fell short of analysts' expectations by 6.9%. Overall, it was a disappointing quarter for the company with full-year revenue guidance missing analysts' expectations. 'Our third quarter results reflect accelerating revenue, supported by backlog growth which advances our return to profitability and enhances our visibility into future earnings,' said John Hewitt, President and Chief Executive Officer of Matrix Service Company. Matrix Service delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Interestingly, the stock is up 1.8% since reporting and currently trades at $12.46. Read our full report on Matrix Service here, it's free. Formed through the merger of 12 companies, Comfort Systems (NYSE:FIX) provides mechanical and electrical contracting services. Comfort Systems reported revenues of $1.83 billion, up 19.1% year on year, outperforming analysts' expectations by 4.2%. The business had an incredible quarter with an impressive beat of analysts' backlog estimates and a solid beat of analysts' EPS estimates. The market seems happy with the results as the stock is up 36% since reporting. It currently trades at $512.18. Is now the time to buy Comfort Systems? Access our full analysis of the earnings results here, it's free. Going public via SPAC in 2018, Concrete Pumping (NASDAQ:BBCP) is a provider of concrete pumping and waste management services in the United States and the United Kingdom. Concrete Pumping reported revenues of $93.96 million, down 12.2% year on year, falling short of analysts' expectations by 4%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts' expectations. Concrete Pumping delivered the slowest revenue growth in the group. As expected, the stock is down 12.3% since the results and currently trades at $6.20. Read our full analysis of Concrete Pumping's results here. Originally focusing on mobile offices for construction sites, WillScot (NASDAQ:WSC) provides ready-to-use temporary spaces, largely for longer-term lease. WillScot Mobile Mini reported revenues of $559.6 million, down 4.7% year on year. This result lagged analysts' expectations by 0.5%. It was a slower quarter as it also produced a significant miss of analysts' EPS estimates. The stock is up 10.3% since reporting and currently trades at $28.22. Read our full, actionable report on WillScot Mobile Mini here, it's free. Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ:MYRG) is a specialty contractor in the electrical construction industry. MYR Group reported revenues of $833.6 million, up 2.2% year on year. This print surpassed analysts' expectations by 5%. It was a very strong quarter as it also put up an impressive beat of analysts' adjusted operating income estimates. The stock is up 35.9% since reporting and currently trades at $165.57. Read our full, actionable report on MYR Group here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Sign in to access your portfolio
Yahoo
11-05-2025
- Business
- Yahoo
Matrix Service Company (NASDAQ:MTRX) Just Reported, And Analysts Assigned A US$17.00 Price Target
As you might know, Matrix Service Company (NASDAQ:MTRX) last week released its latest third-quarter, and things did not turn out so great for shareholders. It was a pretty negative result overall, with revenues of US$200m missing analyst predictions by 6.9%. Worse, the business reported a statutory loss of US$0.12 per share, much larger than the analysts had forecast prior to the result. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. We check all companies for important risks. See what we found for Matrix Service in our free report. Taking into account the latest results, the consensus forecast from Matrix Service's two analysts is for revenues of US$1.01b in 2026. This reflects a huge 36% improvement in revenue compared to the last 12 months. Matrix Service is also expected to turn profitable, with statutory earnings of US$1.08 per share. In the lead-up to this report, the analysts had been modelling revenues of US$1.05b and earnings per share (EPS) of US$1.04 in 2026. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power. Check out our latest analysis for Matrix Service The consensus price target fell 5.6% to US$17.00, with the analysts signalling that the weaker revenue outlook was a more powerful indicator than the upgraded EPS forecasts. These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Matrix Service's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Matrix Service is forecast to grow faster in the future than it has in the past, with revenues expected to display 28% annualised growth until the end of 2026. If achieved, this would be a much better result than the 6.4% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.7% annually. So it looks like Matrix Service is expected to grow faster than its competitors, at least for a while. The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Matrix Service's earnings potential next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Matrix Service's future valuation. With that in mind, we wouldn't be too quick to come to a conclusion on Matrix Service. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Matrix Service going out as far as 2027, and you can see them free on our platform here. You can also see our analysis of Matrix Service's Board and CEO remuneration and experience, and whether company insiders have been buying stock. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
11-05-2025
- Business
- Yahoo
Matrix Service Company (NASDAQ:MTRX) Just Reported, And Analysts Assigned A US$17.00 Price Target
As you might know, Matrix Service Company (NASDAQ:MTRX) last week released its latest third-quarter, and things did not turn out so great for shareholders. It was a pretty negative result overall, with revenues of US$200m missing analyst predictions by 6.9%. Worse, the business reported a statutory loss of US$0.12 per share, much larger than the analysts had forecast prior to the result. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. We check all companies for important risks. See what we found for Matrix Service in our free report. Taking into account the latest results, the consensus forecast from Matrix Service's two analysts is for revenues of US$1.01b in 2026. This reflects a huge 36% improvement in revenue compared to the last 12 months. Matrix Service is also expected to turn profitable, with statutory earnings of US$1.08 per share. In the lead-up to this report, the analysts had been modelling revenues of US$1.05b and earnings per share (EPS) of US$1.04 in 2026. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power. Check out our latest analysis for Matrix Service The consensus price target fell 5.6% to US$17.00, with the analysts signalling that the weaker revenue outlook was a more powerful indicator than the upgraded EPS forecasts. These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Matrix Service's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Matrix Service is forecast to grow faster in the future than it has in the past, with revenues expected to display 28% annualised growth until the end of 2026. If achieved, this would be a much better result than the 6.4% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.7% annually. So it looks like Matrix Service is expected to grow faster than its competitors, at least for a while. The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Matrix Service's earnings potential next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Matrix Service's future valuation. With that in mind, we wouldn't be too quick to come to a conclusion on Matrix Service. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Matrix Service going out as far as 2027, and you can see them free on our platform here. You can also see our analysis of Matrix Service's Board and CEO remuneration and experience, and whether company insiders have been buying stock. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
09-05-2025
- Business
- Yahoo
Why Matrix Service Stock Tumbled Today
The company posted a double-digit revenue gain in its fiscal third quarter. Still, it missed the consensus analyst estimate; ditto for the bottom line. 10 stocks we like better than Matrix Service › On a guardedly bullish Friday for the stock market, many titles closed the day in positive territory, but Matrix Service (NASDAQ: MTRX) wasn't one of them. On the back of a displeasing quarterly earnings release, investors sold out of the stock, and it ended the day down by almost 9%. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) closed relatively flat. For its fiscal third quarter of 2025, Matrix managed to grow its revenue by 21% on a year-over-year basis to slightly more than $200 million. While doing so, it narrowed its non-GAAP (generally accepted accounting principles) adjusted net loss substantially; this came in at $3.3 million, or $0.12 per share, versus a deficit of $14.6 million in last year's third quarter. Matrix chalked up the notable revenue gain to strength in its storage and terminal solutions, and utility and power infrastructure segments -- these benefited from execution on large-scale projects. Yet as a group, analysts tracking the stock were expecting a much higher level of improvement. Their consensus estimate for revenue was over $247 million, and that for net loss was $0.05. During the quarter, Matrix said its project backlog grew nearly 8% year over year to $1.4 billion. Another negative in Matrix's earnings report was its lowering of revenue guidance for the entirety of fiscal 2025. The company is now modeling $770 million to $800 million for the year, quite some distance down from its previous range of $850 million to $900 million. While the new range would top fiscal 2024's $728 million, it's below the average analyst estimate of $854 million. The company did not provide any forecasts for profitability. The disparity between the expectations of Matrix's performance and its actual results is troubling. I'd sit on the fence with this stock until the company shows signs of stronger improvement. Before you buy stock in Matrix Service, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Matrix Service wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $617,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $719,371!* Now, it's worth noting Stock Advisor's total average return is 909% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Matrix Service Stock Tumbled Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
