Matrix Service Reports Q3 Loss, Revenue Misses Estimates

Matrix Service Company reported strong revenue growth of 21% year-over-year in Q3 FY25, reaching $200.2 million, driven by a record backlog of $1.4 billion that provides multi-year visibility for growth in energy and utility infrastructure sectors. Despite top-line gains, the company posted a net loss of $0.12 per share and break-even adjusted EBITDA, though gross margins improved significantly, signaling progress toward profitability. The company maintained a robust liquidity position with no debt and generated $31.2 million in operating cash flow. Analysts noted that while the revenue growth was solid, it fell short of expectations, and long-term sales performance has shown some decline over recent years, although future revenue growth forecasts appear optimistic. Matrix's stock has experienced mixed reactions, with recent earnings missing some estimates and a modest stock price increase year-to-date. Overall, Matrix Service is positioned for growth amid favorable market conditions but continues to work toward consistent profitability.