A builder and maintainer of energy and industrial infrastructure, serving customers through three segments. Its Storage and Terminal Solutions group constructs cryogenic and specialty tanks plus LNG, NGL, and hydrogen terminals, its Utility and Power Infrastructure group supports LNG peak shaving facilities and utility power delivery, and its Process and Industrial Facilities group performs plant maintenance, turnarounds, and EPC work for refineries, renewable fuels, aerospace, chemicals, and mining.
Matrix Service returned to net income for the first time in over three years, but backlog fell to $1.03B after a 0.5x book-to-bill quarter.
Matrix Service Company posted its first quarterly in over three years. rose 3% to $206.7 million and widened 1.9 points to 8.3% on improved project execution, producing net income of $0.8 million. The return to profitability is a milestone, but a second consecutive quarter of low project awards pushed down to $1.03 billion.
Key takeaways
The company returned to of $0.8 million, or $0.03 per diluted share, compared with a net loss of $3.4 million a year ago, driven by improved project execution and a 14% decline in expenses.
widened 1.9 points to 8.3%, as stronger execution and overhead absorption in the Storage and Terminal Solutions and Utility and Power Infrastructure segments more than offset a $1.1 million legal settlement and weaker work mix in Process and Industrial Facilities.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 returned to net income of $0.8M driven by improved project execution and 14% lower SG&A.
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Consolidated rose 3% to $206.7M, led by 16% growth in Storage and Terminal Solutions from higher LNG project volumes.
rose 3% to $206.7 million, led by a 16% increase in Storage and Terminal Solutions from higher LNG project volumes, while Process and Industrial Facilities revenue fell 23%.
expenses fell 14% to $15.2 million, reflecting cost reductions from an organizational realignment and lower , though $3.0 million in restructuring costs were incurred for a CEO transition and a lease .
Total fell to $1.03 billion after a 0.5x book-to-bill quarter, as two prior awards were removed and new project awards remained low for a second consecutive quarter.
Total stood at $297.2 million with $233.0 million in unrestricted cash and no borrowings outstanding, while was an inflow of $34.2 million.
What changed
The return to resolves the watch item from Q2 FY2026, which flagged whether net losses would persist; the $0.8 million profit is the first since Q2 FY2022.
The $3.6 million warranty charge in Storage and Terminal Solutions flagged in Q2 FY2026 did not recur, and the 's improved, suggesting the charge was a one-time item.
Project awards remained below $200 million for a second consecutive quarter, failing to restore the above 1.0 as flagged in Q1 and Q2 FY2026; has now declined from $1.38 billion at fiscal year-end to $1.03 billion.
The significant gas processing project expected to start in early fiscal 2026, flagged in multiple prior quarters, was not mentioned as awarded, leaving the Process and Industrial Facilities without a replacement for the completed renewable diesel project.
What to watch
Whether project awards in Q4 FY2026 exceed $200 million to restore the above 1.0 and begin rebuilding the $1.03 billion , which has declined for three consecutive quarters.
Whether the Process and Industrial Facilities can replace the lost from the completed renewable diesel project and the removed project, given its revenue fell 23% and its dropped to 2.5%.
Whether the Storage and Terminal Solutions sustains its 16% growth rate as the large LNG award progresses, and whether consolidated can hold at or above the 8.3% reported this quarter.
Whether the $3.0 million in restructuring costs, including the CEO transition, produces the intended savings in subsequent quarters without disrupting the recent improvement in project execution.
expanded to 8.3% from 6.4% a year ago, reflecting stronger execution and overhead absorption in Storage and Utility segments.
Process and Industrial Facilities fell 23% and dropped to 2.5%, hurt by work mix and a $1.1M legal settlement.
SG&A declined 14% to $15.2M on restructuring benefits and lower stock compensation; $3.0M in included CEO transition and a lease .
Total stood at $297.2M with $233.0M in unrestricted cash and $64.2M available under the ; no borrowings were outstanding.
ended at $1.03B after a 0.5x book-to-bill, with two prior awards removed; bidding activity remains strong across LNG, peak shaving, and industrial markets.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in market risk faced by us from those reported in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025, filed with the Securities and Exchange Commission. For more information on market risk, see Part II, Item 7A in our fisca…
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There have been no material changes in market risk faced by us from those reported in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025, filed with the Securities and Exchange Commission. For more information on market risk, see Part II, Item 7A in our fiscal 2025 Annual Report on Form 10-K.
We are a party to a number of legal proceedings. See Part I., Item 1. Financial Statements, Note 6 - Commitments and Contingencies, Litigation, for a description of our material ongoing litigation.
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We are a party to a number of legal proceedings. See Part I., Item 1. Financial Statements, Note 6 - Commitments and Contingencies, Litigation, for a description of our material ongoing litigation.
There were no material changes in our Risk Factors from those reported in Item 1A of Part I of our Annual Report on Form 10-K for the fiscal year ended June 30, 2025.
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There were no material changes in our Risk Factors from those reported in Item 1A of Part I of our Annual Report on Form 10-K for the fiscal year ended June 30, 2025.