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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on MTRX

Matrix Service Company's recent performance was driven by a record $1.4B order backlog, indicating strong demand for its engineering and construction services. The company is benefiting from trends in LNG-related projects and grid upgrades, positioning it for long-term growth across its key segments. Additionally, Matrix Service Company's improving margins and pristine balance sheet, with no long-term debt and $185M in cash, support stability during its transition back to profitability.

1.c. Company Highlights

2. Matrix Service Company Delivers Strong Start to Fiscal 2026

Matrix Service Company reported a robust first quarter of fiscal 2026, with revenue increasing 28% to $211.9 million, driven by strong performance across its segments. The company's gross margin expanded to 6.7%, its highest quarterly gross margin in over 2 years, resulting in an 82% increase in consolidated gross profit to $14.2 million. The net loss was $3.7 million, with a GAAP EPS loss of $0.13, while adjusted EPS was nearly breakeven at a loss of $0.01, beating estimates of a loss of $0.03. The company's revenue growth and margin expansion demonstrate its ability to execute on its projects and improve its operational efficiency.

Publication Date: Nov -30

📋 Highlights
  • Revenue Growth & Gross Margin:: Revenue surged 28% to $211.9M; gross profit soared 82% to $14.2M (6.7% margin, highest in 2+ years).
  • Net Loss & Adjusted EPS:: GAAP net loss of $3.7M ($0.13/share) vs. adjusted EPS loss of $0.01/share (nearly breakeven).
  • Backlog & Pipeline:: Removed $197M in backlog from 2 projects, but total backlog remains at $1.2B; opportunity pipeline reached $6.7B.
  • Segment Performance:: Storage & Terminal Solutions revenue up 40% to $109.5M (5.9% margin); Utility & Power Infrastructure revenue up 33% to $74.5M (9.1% margin).
  • Restructuring & Breakeven:: Breakeven point reduced to $210–215M; revenue needed for full overhead recovery lowered to $250M.

Segment Performance

The Storage and Terminal Solutions segment drove revenue growth, with a 40% increase to $109.5 million and a segment gross margin of 5.9%. The Utility and Power Infrastructure segment also performed well, with a 33% revenue increase to $74.5 million and a segment gross margin of 9.1%. The Process and Industrial Facilities segment revenue was $27.9 million, with a segment gross margin of 2.7%. The company's diversified segment portfolio and improving margins across most segments are positive indicators of its operational strength.

Backlog and Pipeline

The company's backlog was impacted by the removal of approximately $197 million related to two projects, but it remains robust at $1.2 billion. The total opportunity pipeline sits at $6.7 billion, providing a strong foundation for future growth. The company expects the competitive landscape for larger projects to remain stable, with a reacceleration of large project work anticipated. The company's brand position and market strength enable it to selectively pursue projects with acceptable risk and remuneration.

Valuation and Outlook

With a P/S Ratio of 0.4, the company's valuation appears reasonable, considering its revenue growth prospects. Analysts estimate revenue growth of 15.7% for the next year, which is a positive indicator. The company's efforts to improve its operations and return to profitability are evident in its restructuring efforts, which have decreased its breakeven point to $210-215 million. The current valuation metrics and growth prospects suggest that the company's stock may be undervalued, presenting a potential investment opportunity.

3. NewsRoom

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Boston Partners Has $11.42 Million Stock Position in Matrix Service Company $MTRX

Nov -29

Source: defenseworld.net

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Matrix Service Company (MTRX) Q1 2026 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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MTRX or ACM: Which Is the Better Value Stock Right Now?

Nov -06

Source: zacks.com

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Is Matrix Service (MTRX) Outperforming Other Construction Stocks This Year?

Nov -06

Source: zacks.com

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Matrix Service Company Announces Award for the Balance of Plant Supporting a Large, Dual Service Full Containment Storage Tank for Delaware River Partners

Nov -06

Source: globenewswire.com

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Matrix Service (MTRX) Reports Q1 Loss, Beats Revenue Estimates

Nov -06

Source: zacks.com

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Matrix Service Company Reports Fiscal Year 2026 First Quarter Results; Reaffirms Fiscal 2026 Revenue Guidance

Nov -05

Source: globenewswire.com

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Matrix Service Company - MTRX

Oct -23

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.43%)

6. Segments

Process and Industrial Facilities

Expected Growth: 7%

Strong demand for energy infrastructure, increasing investment in renewable energy, and growing need for process and industrial facility upgrades drive Matrix Service Company's 7% growth. Additionally, the company's expertise in engineering, procurement, and construction management (EPCM) services, as well as its strong relationships with major energy companies, contribute to its growth momentum.

Storage and Terminal Solutions

Expected Growth: 9%

Matrix Service Company's Storage and Terminal Solutions segment growth is driven by increasing demand for energy infrastructure, expansion of midstream operations, and strategic acquisitions. Additionally, growing need for crude oil and natural gas storage, coupled with rising investments in terminal expansions and upgrades, contribute to the 9% growth rate.

Utility and Power Infrastructure

Expected Growth: 6%

Matrix Service Company's Utility and Power Infrastructure segment growth is driven by increasing demand for renewable energy, grid modernization, and infrastructure upgrades. Strong relationships with major utilities, a growing backlog of projects, and strategic acquisitions also contribute to the 6% growth rate.

7. Detailed Products

Electrical Infrastructure

Design, construction, and maintenance of electrical infrastructure, including transmission lines, substations, and distribution systems.

Oil and Gas Construction

Construction and maintenance of oil and gas infrastructure, including pipelines, processing facilities, and storage terminals.

Industrial Construction

Design, construction, and maintenance of industrial facilities, including power plants, chemical plants, and manufacturing facilities.

Storage Solutions

Design, construction, and maintenance of storage facilities, including tanks, terminals, and other storage infrastructure.

Engineering and Consulting

Engineering, procurement, and construction management (EPCM) services for industrial and energy projects.

8. Matrix Service Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Matrix Service Company operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the availability of alternative services.

Bargaining Power Of Customers

Matrix Service Company has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's services are often critical to its customers' operations, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Matrix Service Company relies on a few key suppliers for its operations, giving them some bargaining power. However, the company's size and scale of operations mitigate this risk to some extent.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including the need for specialized equipment and expertise. Additionally, Matrix Service Company's established relationships with customers and suppliers make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The industry in which Matrix Service Company operates is highly competitive, with several established players competing for market share. This intense rivalry puts pressure on the company to maintain its market position and pricing power.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 16.29%
Debt Cost 5.77%
Equity Weight 83.71%
Equity Cost 10.22%
WACC 9.50%
Leverage 19.46%

11. Quality Control: Matrix Service Company passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Value: 4.5

Growth: 5.3

Quality: 3.6

Yield: 7.0

Momentum: 8.0

Volatility: 3.7

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Matrix Service

A-Score: 4.9/10

Value: 8.4

Growth: 4.8

Quality: 5.2

Yield: 0.0

Momentum: 7.0

Volatility: 4.0

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A-Score: 4.6/10

Value: 5.9

Growth: 4.7

Quality: 4.4

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Volatility: 3.0

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Value: 6.8

Growth: 4.1

Quality: 4.5

Yield: 0.0

Momentum: 6.0

Volatility: 5.3

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Orion Holdings

A-Score: 4.4/10

Value: 5.2

Growth: 5.7

Quality: 4.2

Yield: 0.0

Momentum: 9.0

Volatility: 2.3

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NV5 Global

A-Score: 4.3/10

Value: 4.1

Growth: 5.0

Quality: 5.3

Yield: 0.0

Momentum: 4.0

Volatility: 7.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.68$

Current Price

11.68$

Potential

-0.00%

Expected Cash-Flows