Matrix Service Company (MTRX) AI Stock Analysis

• Market Cap: $310.82M
• Dividend Yield: N/A
• Average Volume (3M): 319.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: 17.16%
• EPS Growth: 24.10%
• Country: US
• Employees: 2,064
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.03
• Shares Outstanding: 28,128,405
• 10 Day Avg. Volume: 186,717
• 30 Day Avg. Volume: 319,556
• PEG Ratio: -0.77
• Price to Book (P/B): 2.63
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 3.42
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 3.03
• Enterprise Value/Ebitda: -17.45
• 1Y Price Target: $24.00
• Price Target Upside: 117.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $11.50 ▲(4.07% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score reflects improving business momentum and solid cash generation with a conservative balance sheet, reinforced by constructive guidance and expectations for H2 FY2026 profitability. These positives are tempered by ongoing losses/low margins, weakening free-cash-flow trends versus the prior period, and bearish price trends with the stock trading below key moving averages.

Positive Factors

Strong cash generation & liquidity

A large cash balance, ample liquidity and positive trailing operating/free cash flow provide durable financial flexibility. This allows the company to fund working capital, absorb project overruns, invest in backlog conversion and pursue growth without near‑term external financing, supporting H2 profitability targets.

Meaningful backlog and opportunity pipeline

A $1.1B backlog plus a $7.3B pipeline gives multi‑quarter revenue visibility and options to prioritize higher‑margin awards. The sizable pipeline, including LNG/NGL opportunities, supports sustainable award conversion and underpins management's guidance and the expected H2 revenue weighting.

Improving profitability metrics & cost cuts

Turnaround in adjusted EBITDA, rising gross profit and disciplined SG&A reductions indicate improving execution and overhead control. These operational improvements create scalable leverage: as higher‑margin projects convert, reduced fixed costs and better overhead recovery can sustainably lift consolidated margins.

Negative Factors

Low margins and TTM net loss

Persistently low gross margins and negative operating results mean the company must achieve consistent project‑level profitability to convert cash strength into durable returns. Ongoing losses have reduced equity and ROE (~-16%), so sustained margin improvement is required to rebuild equity and deliver consistent shareholder value.

Book‑to‑bill below 1 and award timing risk

A sub‑1 book‑to‑bill and management's note that larger awards could push into FY2027 reduce near‑term revenue visibility. This uneven award cadence can delay the conversion of backlog into profitable revenue, creating risk that expected margin and profitability improvements arrive later than planned.

Low‑margin segment exposure & project charge sensitivity

Concentration in low‑margin Storage and Process work, plus sensitivity to discrete project charges, constrains consolidated margin expansion. Under‑recovery of construction overhead at current volumes makes earnings vulnerable to warranty or subcontractor issues and limits the durability of profitability gains.

Matrix Service Company Business Overview & Revenue Model

Company Description

Matrix Service Company provides engineering, fabrication, infrastructure, construction, and maintenance services primarily to the oil, gas, power, petrochemical, industrial, agricultural, mining, and minerals markets in the United States, Canada, South Korea, Australia, and internationally. It operates through three segments: Utility and Power Infrastructure, Process and Industrial Facilities, and Storage and Terminal Solutions. The Utility and Power Infrastructure segment offers power delivery services, including construction of new substations, upgrades of existing substations, transmission and distribution line installations, distribution upgrades, and maintenance; and emergency and storm restoration services. This segment also provides construction and maintenance services to combined cycle plants and other natural gas fired power stations. The Process and Industrial Facilities segment engages in the crude oil refining; processing, fractionating, and marketing of natural gas and natural gas liquids; and offers plant maintenance, turnarounds, engineering, industrial cleaning services, and capital construction service. The Storage and Terminal Solutions segment undertakes work related to aboveground storage tanks and terminals; engineering, fabrication and construction, and maintenance and repair, which include planned and emergency services; and liquefied natural gas, liquid nitrogen/liquid oxygen, liquid petroleum, hydrogen, and other specialty vessels, which comprise spheres, as well as marine structures, and truck and rail loading/offloading facilities. Its services include engineering, fabrication and construction, and maintenance and repair, including planned and emergency services, as well as geodesic domes, aluminum internal floating roofs, floating suction and skimmer systems, roof drain systems, and floating roof seals. Matrix Service Company was founded in 1984 and is headquartered in Tulsa, Oklahoma.

How the Company Makes Money

Matrix Service Company generates revenue through multiple streams within its core segments. The primary revenue model is project-based, where the company undertakes large-scale projects for clients in the energy and industrial sectors, billing for labor, materials, and overhead costs. Key revenue streams include engineering and construction services, maintenance contracts, and specialized services such as pipeline construction and facility upgrades. Additionally, the company often engages in long-term maintenance agreements, providing a steady income flow. Significant partnerships with major energy companies and government agencies further contribute to its earnings, allowing MTRX to secure large contracts and projects that enhance its financial performance.

Matrix Service Company Financial Statement Overview

Summary

Mixed but improving fundamentals: revenue growth is very strong, cash generation is solid (TTM operating cash flow ~$53.5M; free cash flow ~$45.5M), and leverage is conservative. Offsetting this, profitability remains weak with negative EBIT and a TTM net loss, and free cash flow declined materially versus the prior period with historical volatility.

Income Statement

TTM (Trailing-Twelve-Months) revenue is $838.9M and shows very strong growth versus the prior period (revenue growth rate: 2.862), but profitability remains weak. Gross margin is still low at ~5.6% and operating results are negative (EBIT margin ~-2.8%), with a TTM net loss of ~$19.3M (net margin ~-2.9%). The positive is that losses have narrowed materially versus FY2022–FY2023 (when margins and net losses were substantially worse), indicating an improving earnings trajectory, but the company has not yet demonstrated consistent profitability.

Balance Sheet

Leverage looks conservative for the sector, with low debt relative to equity (TTM debt-to-equity ~0.15; total debt ~$19.4M vs. equity ~$137.6M). That said, returns remain negative due to ongoing losses (TTM return on equity ~-16%), and equity has trended down versus prior years, reflecting accumulated losses. Overall, the balance sheet provides flexibility, but sustained profitability is needed to rebuild returns and strengthen equity over time.

Cash Flow

Cash generation is a clear strength: TTM operating cash flow is ~$53.5M and free cash flow is ~$45.5M, despite a net loss—suggesting good working-capital discipline and cash conversion. However, free cash flow is down sharply versus the prior period (TTM free cash flow growth: -36.7%), and cash flows have been volatile historically (notably negative in FY2021–FY2022). Net-net, current cash flow is supportive, but durability through cycles remains a key watch item.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Sep 2022	Jun 2021
Income Statement
Total Revenue	838.93M	769.29M	728.21M	795.02M	707.78M	673.40M
Gross Profit	48.29M	39.68M	40.47M	30.82M	-1.21M	32.77M
EBITDA	-8.37M	-18.47M	-12.86M	-37.04M	-40.08M	-23.85M
Net Income	-19.26M	-29.46M	-24.98M	-52.36M	-63.90M	-31.22M
Balance Sheet
Total Assets	650.20M	600.26M	451.35M	400.50M	440.79M	467.56M
Cash, Cash Equivalents and Short-Term Investments	198.96M	224.64M	115.61M	54.81M	52.37M	83.88M
Total Debt	34.29M	21.43M	22.89M	35.32M	40.62M	26.52M
Total Liabilities	512.64M	457.54M	287.17M	219.02M	213.09M	182.02M
Stockholders Equity	137.56M	142.72M	164.18M	181.48M	227.71M	285.54M
Cash Flow
Free Cash Flow	45.50M	109.79M	65.58M	1.24M	-57.54M	-7.33M
Operating Cash Flow	53.51M	117.47M	72.57M	10.25M	-54.20M	-2.97M
Investing Cash Flow	-7.45M	-7.45M	-945.00K	-2.54M	35.67M	-2.26M
Financing Cash Flow	-4.18M	-1.04M	-10.37M	-5.06M	12.70M	-12.32M

Matrix Service Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTRX, the sentiment is Negative. The current price of 11.05 is below the 20-day moving average (MA) of 12.21, below the 50-day MA of 12.42, and below the 200-day MA of 13.12, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 36.33 is Neutral, neither overbought nor oversold. The STOCH value of 18.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MTRX.

Matrix Service Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORN	65 Neutral	$550.63M	57.19	6.31%	―	7.02%	―
BBCP	64 Neutral	$339.71M	73.33	3.32%	―	-8.98%	-38.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MTRX	58 Neutral	$310.82M	-16.02	-16.33%	―	17.16%	24.10%
ESOA	58 Neutral	$262.00M	100.74	3.67%	1.11%	16.80%	-98.32%
MSW	45 Neutral	$14.40M	-19.58	-578.91%	―	23.25%	-343.35%
SLND	42 Neutral	$68.72M	-0.72	-84.16%	―	-9.10%	21.10%

Matrix Service Company Corporate Events

Matrix Service announces leadership transition at union subsidiary

On December 30, 2025, Matrix Service Company announced that Douglas J. Montalbano will resign as president of its union operating subsidiary, Matrix North American Construction, effective January 16, 2026, with the company emphasizing that his departure is not due to any dispute or disagreement over operations, policies or practices. The presidency of Matrix NAC will be filled on an interim basis by an existing employee and officer of the subsidiary, who will report to Shawn Payne, the company’s president of Engineering & Construction, suggesting a continuity-focused transition designed to minimize disruption to ongoing construction operations and client relationships.

The most recent analyst rating on (MTRX) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Matrix Service Company stock, see the MTRX Stock Forecast page.