TULSA, Okla. – Matrix Service Company (NASDAQ:) reported better-than-expected fourth-quarter earnings and gave optimistic revenue guidance for fiscal 2025, sending shares up 7.77% in after-hours trading.
The industrial engineering and construction company posted an adjusted loss of $0.14 per share for the quarter ended June 30, beating analysts’ expectations of a loss of $0.21 per share. Revenue came in at $189.5 million, lower than the consensus forecast of $202.81 million, but up from $185.9 million in the same quarter last year.
For fiscal 2025, Matrix Service expects revenue between $900 million and $950 million, higher than Wall Street’s projection of $889.9 million. The strong expectations indicate growing momentum in the company’s project pipeline.
“As we enter fiscal 2025, Matrix is well positioned to deliver significant revenue improvements, a return to historic margins and improved profits,” said CEO John Hewitt. “We have reached an inflection point and as we move through the year, we believe that revenue from strong project execution and backlog conversion has put the company on a trajectory of upward growth and profitability.”
The company ended the quarter with an order backlog of $1.4 billion, up 31% year over year. Total project awards in the fourth quarter were $175.9 million, resulting in a book-to-bill ratio of 0.9x.
Matrix Service’s gross margin improved to 6.6% in the fourth quarter from 6.1% a year ago, reflecting stronger project execution. The company generated $47 million in operating cash flow during the quarter.
“We made progress on several major projects this quarter, which contributed to meaningful cash flow generation to end the fiscal year,” Hewitt said.
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