Matrix Service stock surges 7% on strong guidance, earnings beat

TULSA, Okla. - Matrix Service Company (NASDAQ:MTRX ) reported better-than-expected fourth quarter earnings and provided upbeat revenue guidance for fiscal 2025, sending its shares soaring 7.77% in after-hours trading.



The industrial engineering and construction firm posted an adjusted loss of $0.14 per share for the quarter ended June 30, beating analyst estimates for a loss of $0.21 per share. Revenue came in at $189.5 million, below the consensus forecast of $202.81 million but up from $185.9 million in the same quarter last year.



For fiscal 2025, Matrix Service expects revenue between $900 million and $950 million, ahead of Wall Street's projection of $889.9 million. The strong guidance suggests growing momentum in the company's project pipeline.



"As we enter fiscal 2025, Matrix is well-positioned to achieve significant improvement in revenue, a return to historical margins, and improved earnings," said CEO John Hewitt. "We have reached an inflection point and, as we move through the year, we believe revenues from strong project execution and conversion of backlog put the company on a trajectory of upward growth and profitability."



The company ended the quarter with a backlog of $1.4 billion, up 31% YoY. Total project awards in Q4 were $175.9 million, resulting in a book-to-bill ratio of 0.9x.



Matrix Service's gross margin improved to 6.6% in Q4 from 6.1% a year ago, reflecting stronger project execution. The company generated $47 million in operating cash flow during the quarter.



"We advanced work on multiple large projects during the quarter, which contributed to meaningful cash generation to close-out the fiscal year," Hewitt noted.

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Source: Investing.com