• Revenue: $165.6 million for Q1 fiscal 2025, down from $197.7 million in Q1 fiscal 2024.

• Storage and Terminal Solutions Segment Revenue: $78.2 million in Q1 fiscal 2025, compared to $90.1 million in Q1 fiscal 2024.

• Utility and Power Infrastructure Segment Revenue: $55.9 million in Q1 fiscal 2025, up from $32.4 million in Q1 fiscal 2024.

• Process and Industrial Facilities Segment Revenue: $31.4 million in Q1 fiscal 2025, compared to $75.1 million in Q1 fiscal 2024.

• Gross Margin: $7.8 million or 4.7% in Q1 fiscal 2025, compared to $11.9 million or 6% in Q1 fiscal 2024.

• SG&A Expenses: $18.6 million in Q1 fiscal 2025, compared to $17.1 million in Q1 fiscal 2024.

• Net Loss: $9.2 million or $0.33 per share in Q1 fiscal 2025, compared to an adjusted net loss of $5.7 million or $0.21 per share in Q1 fiscal 2024.

• Backlog: $1.4 billion at the end of Q1 fiscal 2025.

• Cash from Operations: $12 million generated in Q1 fiscal 2025.

• Cash Balance: $150 million at the end of Q1 fiscal 2025.

• Liquidity: $181 million at the end of Q1 fiscal 2025.

• Warning! GuruFocus has detected 6 Warning Sign with MTRX.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Matrix Service Co (NASDAQ:MTRX) began fiscal 2025 with a strong backlog of $1.4 billion, providing visibility into the current year and beyond.

• The company anticipates a return to profitability in fiscal 2025, supported by strong project execution and backlog conversion.

• Matrix Service Co (NASDAQ:MTRX) has a strategic focus on higher-margin specialty engineering and construction opportunities, which is expected to drive long-term value creation.

• The demand for LNG, NGL, and ammonia storage and terminal infrastructure is robust, supporting the company's growth strategy.

• Matrix Service Co (NASDAQ:MTRX) maintains a strong balance sheet with $150 million in cash and zero debt, ensuring financial stability and liquidity.

Negative Points

• Revenue for the first quarter of fiscal 2025 was $165.6 million, a decline from $197.7 million in the same period of fiscal 2024, primarily due to the completion of a large renewable diesel project.

• Gross margins were negatively impacted by the under-recovery of construction overhead costs, with a quarterly impact of over 600 basis points.

• The company reported a net loss of $9.2 million or 33 cents per share for the first quarter of fiscal 2025, compared to an adjusted net loss of $5.7 million or 21 cents per share in the prior year.

• The book-to-bill ratio for the first quarter was 0.9, indicating that new project awards were not keeping pace with revenue.

• There are multiple variables, such as the Presidential election and regulatory environment, that could affect the timing of project awards and starts.