NASDAQ$MTRX

Matrix Service Co · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Matrix Service Company reported Q3 2024 results with a significant backlog increase but a revenue decline.

Matrix Service Company reported a 11% decrease in revenue to $166.0 million for the third quarter of fiscal year 2024, while backlog increased by 74% year-over-year to $1.45 billion. The company experienced a net loss per share of ($0.53) and an adjusted EBITDA of ($9.8) million. Despite the revenue decline, project performance remained strong, and the company is positioned for improved profitability in fiscal 2025.

  • Total backlog increased by 74% year-over-year to $1.45 billion, the highest in company history.
  • Total project awards reached $186.8 million, resulting in a book-to-bill ratio of 1.1x.
  • Revenue declined by 11% year-over-year to $166.0 million.
  • Cash flow from operations was $25 million, a 25% increase year-over-year.

Headline financials

Total Revenue

$166M

Previous: $187M-11.2%
EPS

-$0.53

Previous: -$0.33-60.6%
Adjusted EBITDA

-$9.98M

No prior period
Capital Expenditures

-$5.69M

Previous: -$6.21M+8.4%
Free Cash Flow

-$20.3M

Previous: -$18.9M-7.3%
Net Income

-$14.6M

Previous: -$12.7M-14.9%
Operating Income

-$14.4M

Previous: -$12.8M-12.6%
Gross Profit

$5.58M

Previous: $4.42M+26.2%
Stock-Based Comp

$1.98M

Previous: $1.41M+40.7%

Revenue & EPS history

Matrix Service · Revenue · Quarterly

$166M

Q3 2024-11.2%vs Q3 2023
Beat estimate in 2 of 14 quarters(14%)
ActualEstimate

Revenue by segment

Matrix Service · $123M total across 1 segment · Q4 2020

  • Storage and Terminal Solutions
    $123M-17.8%

Forward guidance

The company expects revenue to increase in the fourth quarter as backlog converts to revenue. Revenue volumes are expected to increase in the Storage and Terminal Solutions and Utility and Power Infrastructure segments, while the Process and Industrial Facilities segment is expected to see a decrease.

Tailwinds

  • Overall backlog quality remains strong.
  • Revenue is expected to increase in the fourth quarter.
  • Storage and Terminal Solutions segment expects increased revenue volumes due to specialty vessel projects.
  • Utility and Power Infrastructure segment expects increased revenue volumes due to LNG peak shaving projects.
  • Company expects improvement in project activity versus third quarter results, positioning the company to realize improved fixed cost absorption into fiscal year-end

Headwinds

  • Process and Industrial Facilities segment expects revenue to decrease as existing projects near completion.
  • Gross margins were negatively impacted by the under-recovery of construction overhead costs due to low revenue.
  • Gross margin was impacted by reduced labor demand for turnaround and maintenance services in the final year of a three-year refinery maintenance contract.
  • SG&A expenses increased primarily due to an increase in expense associated with the variable accounting for cash-settled stock compensation, and increased project pursuit costs.
  • The Company's effective tax rate for the third quarter of fiscal 2024 was zero, impacted by the valuation allowance placed on all our deferred tax assets due to the existence of a cumulative loss over a three-year period.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

-2.0%

Avg return

Earnings day

-0.9%

Avg return

5 days after

+1.7%

Avg return

30 days after

46%

29 / 63 earnings

Positive

+27.3%

Q2 2014

Best reaction

-34.3%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-12.0%-11.9%-1.9%
Q2 2026-16.7%-15.5%-18.8%
Q1 2026-18.8%-19.7%-25.1%
Q3 2025+11.1%+5.8%+1.6%
Q2 2025+0.1%+6.7%-16.6%
Q1 2025+13.1%+13.8%+14.3%
Q4 2024+12.5%+17.0%+21.6%
Q3 2024-10.8%-8.7%-9.1%
Q2 2024+20.5%+30.8%+38.9%
Q1 2024+2.2%-1.7%-14.1%
Q4 2023+13.4%+14.1%+51.4%
Q3 2023+2.8%+3.1%+8.3%
Q2 2023-19.2%-26.3%-30.9%
Q1 2023+6.7%+8.9%+15.6%
Q4 2022-7.4%-12.2%+13.6%
Q3 2022-17.0%-23.4%+3.2%
Q2 2022+2.6%-2.2%+31.5%
Q1 2022-0.9%-1.0%-18.6%
Q4 2021-4.5%-5.7%-0.8%
Q3 2021-8.2%-10.2%-20.3%
Q2 2021-1.6%+1.2%+22.7%
Q4 2020-5.8%+6.9%-7.8%
Q3 2020-2.7%-5.5%+24.2%
Q2 2020-34.3%-35.3%-36.3%
Q1 2020-0.7%-7.0%+6.5%
Q4 2019+17.8%+7.3%-5.0%
Q3 2019+12.1%+7.9%-3.6%
Q2 2019-12.4%-7.4%-10.7%
Q1 2019+7.9%-2.7%-12.1%
Q4 2018+2.1%+22.6%+9.3%
Q3 2018+0.9%+2.7%+11.3%
Q2 2018-14.7%-12.4%-8.3%
Q1 2018+3.9%+9.2%+19.7%
Q4 2017+14.4%+17.7%+16.0%
Q3 2017-6.5%-8.4%-19.2%
Q2 2017-12.9%-17.9%-26.4%
Q1 2017+2.4%+11.5%+28.6%
Q4 2016+13.2%+13.2%+13.3%
Q3 2016-23.2%
Q2 2016-12.0%
Q1 2016-5.9%
Q4 2015+7.0%
Q3 2015-15.3%
Q2 2015-12.9%
Q1 2015-8.4%
Q4 2014-19.5%
Q3 2014+14.4%
Q2 2014+27.3%
Q1 2014-4.6%
Q4 2013+4.7%
Q3 2013+4.9%
Q2 2013+4.4%
Q1 2013+4.4%
Q4 2010-8.8%
Q4 2012-11.0%
Q3 2011-8.9%
Q3 2012-10.9%
Q2 2011+0.2%
Q2 2012+1.1%
Q1 2012-6.0%
Q1 2011-6.0%
Q4 2011-6.0%
Q3 2010+11.8%

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