Key Highlights

  • First-quarter fiscal 2027 Net Income was USD 6.2 million, or USD 0.22 per diluted share, against a net loss of USD 3.7 million, or USD 0.13 per share, a year earlier.
  • Adjusted net income, which excludes restructuring expense, was USD 6.4 million, or USD 0.23 per share, versus an adjusted loss of USD 0.3 million, and adjusted EBITDA rose to USD 7.7 million from USD 2.5 million.
  • Revenue was USD 219.4 million against USD 211.9 million, and gross Margin widened to 8.2% from 6.7%, while SG&A fell to USD 13.3 million from USD 16.3 million.
  • Backlog stood at USD 872.6 million after awards of USD 138.8 million, a book-to-bill ratio of 0.6x, and the board approved a new USD 25 million share buyback program.

Third Straight Profitable Quarter on Better Execution

Matrix Service (NASDAQ:MTRX) announced fiscal 2027 first-quarter results for the period ended September 30, 2026 on November 4, 2026. The Houston-based heavy industrial contractor engineers, builds and maintains energy, power and industrial infrastructure. Net income was USD 6.2 million, the company's third consecutive profitable quarter according to its CEO. Gross Profit rose to USD 18.1 million from USD 14.2 million, which management credited to strong project execution and improved overhead recovery. SG&A fell USD 3.0 million, helped by restructuring savings and a USD 1.9 million decrease tied to stock-price-linked cash-settled compensation. Adjusted EBITDA was about 3.5% of revenue, against about 1.2% a year earlier (calculated). Management said the results reflect structural changes made over the past 18 months to improve execution and create a more efficient operating model.

Storage Gains Offset a 21% Drop in Utility and Power

Storage and Terminal Solutions Revenue rose 12% to USD 122.9 million with gross margin of 9.0% against 5.9%. Utility and Power Infrastructure revenue fell 21% to USD 59.1 million as Natural Gas peak shaving work declined, with margin of 8.6%. Process and Industrial Facilities revenue rose to USD 37.4 million on Mining and minerals work, but margin slipped to 3.7% from 5.1% after the resolution of a subcontractor dispute on a project completed in fiscal 2023. The company expects that hit to be offset by saved legal costs.

Backlog, Awards and a USD 25 Million Buyback

Total Backlog was USD 872.6 million, of which USD 548.1 million sits in Storage and Terminal Solutions. Awards of USD 138.8 million included a limited notice to proceed on a power generation project supporting Data Center infrastructure and new mining work, plus front-end design of the tank farm for the America First Refining Facility in Brownsville, Texas. Storage book-to-bill was only 0.2x, while Utility and Power was 1.0x and Process and Industrial was 1.4x. Liquidity was USD 221.8 million with no outstanding debt, including borrowing availability under a USD 90 million Credit facility. The buyback would be used opportunistically, subject to market conditions.

Where Things Stand

That depends on conversion of awards. Matrix Service (NASDAQ:MTRX) has shown profit improvement, with EPS of USD 0.22 and wider margins, but quarterly awards of USD 138.8 million were well below revenue of USD 219.4 million, so backlog is being consumed faster than replaced. Management points to larger LNG, power, data center and mining pursuits awaiting final Investment decisions, while labor availability and bidding discipline remain execution risks. The release gives no guidance in the extract reviewed and no share price reaction. Next markers are the timing of those investment decisions, backlog trends next quarter and buyback activity.