Matrix Service Projects 17% Revenue Growth on $1.4B Backlog for FY2026

Matrix Service Company (NASDAQ: MTRX), an engineering and construction services provider for energy and industrial markets, reported mixed financial results in fiscal 2025 with Q2 revenue rising 14.2% year-over-year to $216.4 million but missing Wall Street estimates, and a full-year revenue guidance midpoint of approximately $900 million falling short by 4.8%. Despite a 1.9% revenue decline over the past year and negative profitability metrics including a -$0.81 EPS and negative margins, the company projects 17% revenue growth for fiscal 2026, driven by a strong backlog where 85% of revenue is tied to long-term projects. CEO John Hewitt highlighted continued momentum in Q4 fiscal 2025 from large projects and improved fixed cost absorption, although project awards and large project decisions are impacted by broader macroeconomic uncertainties. Matrix's Utility and Power Infrastructure segment showed strong demand, with new LNG infrastructure contracts secured despite challenges such as labor cost overruns, contract disputes, and an unfavorable court ruling affecting recent quarterly net income. Analysts expect a significant revenue rebound over the next 12 months, signaling optimism about Matrix’s newer products and services catalyzing better performance, though the company’s longer-term revenue trend has been downwards over the past five years. Matrix maintains a low debt-to-equity ratio but faces liquidity concerns and carries some financial risk as indicated by its Altman Z-Score.