Matrix Service Company (MTRX)
NASDAQ:MTRX
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Matrix Service Company
(NASDAQ:MTRX)
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Rating:58Neutral
Price Target:
$11.50
▼(-0.35% Downside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Matrix Service Company (MTRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$307.16M
Dividend YieldN/A
Average Volume (3M)319.56K
Price to Earnings (P/E)―
Beta (1Y)1.65
Revenue Growth17.16%
EPS Growth24.10%
CountryUS
Employees2,064
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-0.03
Shares Outstanding28,128,405
10 Day Avg. Volume186,717
30 Day Avg. Volume319,556
Financial Highlights & Ratios
PEG Ratio-0.77
Price to Book (P/B)2.63
Price to Sales (P/S)0.49
P/FCF Ratio3.42
Enterprise Value/Market Cap0.47
Enterprise Value/Revenue0.17
Enterprise Value/Gross Profit3.00
Enterprise Value/Ebitda-17.32
Forecast
1Y Price Target
$24.00Price Target Upside107.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.1
Revenue Forecast (FY)$890.82M
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, ...
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...
Matrix Service Company Key Performance Indicators (KPIs)
Matrix Service Company Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call presents a mostly constructive operational and financial picture: revenue and gross profit grew, adjusted EBITDA turned positive, liquidity is strong and the firm reiterated FY revenue guidance and H2 profitability. These positives are tempered by a one-time $3.6M project charge that materially impacted Storage & Terminal Solutions margins and a Q2 book-to-bill below 1.0 amid macro and permitting-related award timing uncertainty. Management highlighted a sizable $7.3B pipeline and $1.1B backlog, positioning the company for continued award conversion, although some larger awards may slip into FY2027. Overall, the balance sheet strength, margin improvements in the utility segment, pipeline expansion and return to adjusted EBITDA positivity outweigh the near-term operational headwinds and one-time charge.Positive Updates
Revenue Growth
Consolidated revenue of $210.5M in Q2 FY2026, up $23.3M or 12% year-over-year, driven by growth across all three segments with utility and power infrastructure accounting for over 60% of the increase.
Negative Updates
One-Time $3.6M Charge on Specialty Tank Project
A $3.6M reduction in gross profit (≈$0.13 per share EPS impact) related to warranty responsibilities and miscellaneous subcontractor/vendor commercial issues on a substantially complete storage project, which reduced Storage & Terminal Solutions gross profit and margin in the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Consolidated revenue of $210.5M in Q2 FY2026, up $23.3M or 12% year-over-year, driven by growth across all three segments with utility and power infrastructure accounting for over 60% of the increase.
Read all positive updates
Company Guidance
Management reiterated full‑year revenue guidance of $875–$925 million and expects to return to profitability in the second half of FY2026 (growth weighted to H2, particularly Q4 on large LNG/NGL projects); Q2 results included revenue of $210.5 million (+12% YoY), consolidated gross profit $13.1 million (6.2% margin vs. 5.8% prior), a net loss of $0.9 million and EPS loss of $0.03 (which included a $3.6 million charge, roughly a $0.13 per‑share impact, tied to a specialty tank warranty/subcontractor issue), adjusted EBITDA of $2.4 million (improvement of $4.6 million YoY), and project awards of ~ $177 million (book‑to‑bill 0.8); backlog stands at $1.1 billion with an opportunity pipeline of $7.3 billion. The balance sheet remains strong with $224 million cash, $258 million liquidity and no debt; SG&A was $15.1 million (quarterly run rate ≈ $16.5 million) down 13% YoY; segment mix: Storage $99.9M (47% of revenue, 4.8% margin), Utility $75.4M (36%, 9.6% margin) and Process $35.3M (17%, 3.5% margin). Management said the $3.6M issue is contained, expects margin improvement as backlog converts, and noted additional CEO‑transition expenses in H2.Matrix Service Company Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
66
Positive
Cash Flow
72
Positive
| 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 | 19.39M | 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
Neutral
11.54
Price Trends
11.95
Negative
12.14
Negative
12.95
Negative
Market Momentum
-0.39
Negative
48.96
Neutral
33.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTRX, the sentiment is Neutral. The current price of 11.54 is above the 20-day moving average (MA) of 10.79, below the 50-day MA of 11.95, and below the 200-day MA of 12.95, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 48.96 is Neutral, neither overbought nor oversold. The STOCH value of 33.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MTRX.
Matrix Service Company Risk Analysis
Matrix Service Company disclosed 31 risk factors in its most recent earnings report. Matrix Service Company reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Matrix Service Company Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $254.27M | 12.61 | 3.91% | 1.11% | 16.80% | -98.32% | |
58 Neutral | $307.16M | -92.28 | -13.58% | ― | 17.16% | 24.10% | |
58 Neutral | $360.65M | -30.18 | 3.32% | ― | -8.98% | -38.23% | |
55 Neutral | $438.51M | 158.32 | 1.60% | ― | 7.02% | ― | |
45 Neutral | $11.68M | ― | -578.91% | ― | 23.25% | -343.35% | |
42 Neutral | $70.35M | -0.77 | -68.71% | ― | -9.10% | 21.10% |
* Industrials Sector Average
MTRX
Matrix Service Company
11.54
-1.50
-11.50%
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Matrix Service Company Corporate Events
Business Operations and StrategyExecutive/Board Changes
Matrix Service announces leadership transition at union subsidiary
Neutral
Jan 6, 2026
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 dep...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.