Matrix Service Company — Fiscal 2027 First Quarter Earnings Summary

Financial Performance:

• Revenue was $219.4 million, an increase from $211.9 million in the prior year period.
• Net income was $6.2 million ($0.22 per diluted share), compared to a net loss of $3.7 million ($(0.13) per share) in the prior year.
• Adjusted net income was $6.4 million ($0.23 per diluted share), compared to an adjusted net loss of $0.3 million ($(0.01) per share) in the prior year.
• Adjusted EBITDA was $7.7 million, compared to $2.5 million in the prior year.
• Gross profit was $18.1 million (8.2% of revenue), up from $14.2 million (6.7% of revenue) in the prior year.
• SG&A expenses were $13.3 million, down from $16.3 million in the prior year.
• Liquidity totaled $221.8 million, consisting of $182.4 million in unrestricted cash and cash equivalents and $39.4 million in borrowing availability under a $90 million ABL facility.
• The company had no outstanding debt as of September 30, 2026.
• Net cash used by operating activities was $36.9 million.

Guidance and Future Outlook:

• Management indicated a focus on converting the strong opportunity pipeline into high-quality backlog as larger pursuits reach final investment decision.
• Commercial priorities include deepening strategic customer relationships, expanding presence in growth markets, and broadening service capabilities.
• Operational priorities include recruiting and retaining skilled labor, applying disciplined bidding and pricing strategies, and delivering best-in-class project execution.
• Capital deployment will be disciplined, with evaluation of share repurchases and acquisitions that expand footprint and capabilities.

Business Segments and Product Lines:

• Storage and Terminal Solutions: Revenue increased 12% to $122.9 million; gross margin was 9.0% compared to 5.9% in the prior year. Growth was driven by specialty storage and mining activity.
• Utility and Power Infrastructure: Revenue decreased 21% to $59.1 million; gross margin was 8.6% compared to 9.1% in the prior year. Lower revenue was due to decreased natural gas peak shaving volumes, partially offset by increased power generation work.
• Process and Industrial Facilities: Revenue increased to $37.4 million; gross margin was 3.7% compared to 5.1% in the prior year. Revenue growth was driven by mining and minerals work, while margin decrease was due to the resolution of a subcontractor dispute.
• New awards included a limited notice to proceed for a power generation project supporting data center infrastructure and new mining and minerals work.
• The company was selected to complete the front-end engineering and design for the storage tank farm for the America First Refining facility in Brownsville, Texas.

Market and Competitive Landscape:

• The company sees favorable long-term investment trends in LNG, NGL infrastructure, power generation, electrical infrastructure, data centers, and mining and minerals.
• Book-to-bill ratios were at or above 1.0x in the Utility and Power Infrastructure (1.0x) and Process and Industrial Facilities (1.4x) segments.
• The Storage and Terminal Solutions segment had a book-to-bill ratio of 0.2x.
• Total backlog was $872.6 million as of September 30, 2026.
• Project awards totaled $138.8 million for the quarter, resulting in a total book-to-bill ratio of 0.6x.

Risks and Challenges:

• The Process and Industrial Facilities segment margin was impacted by the resolution of a subcontractor dispute for a project completed in fiscal 2023.
• Management noted risks related to the successful implementation of the business improvement plan and various economic, competitive, and other influences detailed in the company's SEC filings.

Management Commentary and Tone:

• CEO Shawn P. Payne stated results reflect the continued execution of the "WIN, EXECUTE, DELIVER" strategy and the third consecutive quarter of profitability.
• Management highlighted meaningful Adjusted EBITDA margin expansion and structural changes made over the past 18 months to improve execution and efficiency.
• Payne expressed confidence in the strategy and financial position, noting the company is focused on creating sustainable, profitable growth.

Other Key Points:

• The Board of Directors approved a new share buyback program for $25 million.
• The company executed open market purchases of treasury shares totaling $2.5 million during the quarter.
• The company is debt-free with a $90 million ABL facility maturing in September 2029.
• A conference call was held on November 5, 2026, with President and CEO Shawn P. Payne, Interim CFO A.J. Smith, and Director of Corporate Development and Investor Relations Patrick Roberts.