Matrix Banks on Second-Half Surge After Subsea Project Delays Hit First-Half Results

Matrix Composites & Engineering Ltd ( (AU:MCE) ) has shared an announcement.

Matrix Composites & Engineering reported a sharp fall in first-half FY26 revenue to $26.9 million and an underlying EBITDA loss of $4.1 million, driven mainly by the timing of subsea buoyancy and SURF contracts. Subsea work accounted for more than 90% of revenue, and the company posted a statutory net loss after tax of $9.4 million, though operating cash flow turned positive and cash on hand remained stable at $18.0 million.

Management emphasised that production on major projects only ramped up from November, leaving more than $50 million of secured work in the second half and $80 million of revenue already locked in for FY26. The company expects a significantly stronger second half with revenue exceeding FY25 and a return to positive EBITDA, while it deepens its SURF market presence, targets new drilling work, and pursues growth opportunities in advanced materials across energy, mining and defence, supported by new bank facilities that replace its redeemed convertible note.

The most recent analyst rating on (AU:MCE) stock is a Hold with a A$0.25 price target. To see the full list of analyst forecasts on Matrix Composites & Engineering Ltd stock, see the AU:MCE Stock Forecast page.

More about Matrix Composites & Engineering Ltd

Matrix Composites & Engineering Ltd is an Australian engineering company specialising in subsea buoyancy, SURF (Subsea Umbilicals, Risers and Flowlines) products and advanced materials. Its primary markets are international offshore energy projects, with emerging diversification into energy, mining and defence, supported by its strategic location in the Henderson defence and engineering precinct in Western Australia.

Average Trading Volume: 138,842

Technical Sentiment Signal: Buy

Current Market Cap: A$56.17M

Learn more about MCE stock on TipRanks’ Stock Analysis page.