Highlights

  • Revenue for the three months ended June 30, 2026 was $193.1 million, an increase of $7.7 million, or 4.2%.
  • Net income attributable to Mistras Group was $7,581 thousand for the quarter, with diluted earnings per share of $0.23.
  • Oil and gas customers made up approximately 49% of second quarter revenue, compared with approximately 55% a year earlier.
  • Management raised 2026 guidance to $740 million to $755 million in revenue and $92 million to $95 million in adjusted EBITDA.

Mistras Group, Inc. (NYSE: MG) shares were trading at USD 20.42 on October 27, 2026, down 3.86%, with a relative volume at time of 5.57. The asset integrity company filed its 10-Q on August 10, 2026, amended its Credit Agreement on August 5, 2026, and reported results for the quarter ended June 30, 2026, along with higher full year guidance.

Mistras Group is incorporated in Delaware and lists its principal executive offices in Princeton Junction, New Jersey. The company provides technology-enabled asset integrity solutions to oil and gas, aerospace and defense, power and utilities, manufacturing and civil infrastructure customers. Its services include non-destructive testing, pipeline inspections, condition monitoring, engineering and maintenance, supported by the OneSuite software platform. It reports three segments: North America, International, and Products and Systems. Its fiscal year ends December 31.

Second Quarter 2026 Results

Revenue was $193,132 thousand for the three months ended June 30, 2026, against $185,405 thousand a year earlier. The company said the increase came predominantly from a low-single-digit organic rise in aerospace and defense, power generation and transmission, infrastructure, research and engineering, and petrochemical markets.

North America segment revenue rose 5.8%. International segment revenue fell 2.7%, which the company attributed predominantly to a mid-single-digit organic decrease tied to lower market demand. Products and Systems revenue rose 43.0%.

Gross profit was $56,445 thousand, or 29.2% of revenue, compared with $53,945 thousand, or 29.1%. Income from operations was $12,946 thousand, against $8,428 thousand. Net income was $7,552 thousand, against $3,126 thousand, and diluted earnings per share were $0.23, against $0.10.

Oil and gas customer revenue was approximately 49% of total revenue, against approximately 55%. Aerospace and defense was approximately 14%, against approximately 13%. The top ten customers made up approximately 35% of revenue in both periods. For the six months, revenue was $362,166 thousand and diluted earnings per share were $0.30.

Cash Flow, Debt and Credit Agreement

Net cash provided by operating activities for the six months ended June 30, 2026 was $17.7 million, compared with net cash used of $3,619 thousand a year earlier. Cash used in investing activities was $11.9 million, and net cash used in financing activities was $11.2 million.

Cash and cash equivalents were approximately $22.0 million at June 30, 2026. Borrowings under the Credit Agreement were $170.5 million, with $3.8 million of letters of credit outstanding and $106.3 million of unused commitments. Total debt was $172,093 thousand, against $177,992 thousand at December 31, 2025. The company said it was in compliance with the Credit Agreement terms.

On August 5, 2026, the company amended the Credit Agreement with JPMorgan Chase Bank, N.A. as administrative agent. The amendment moved the maturity of the $190.0 million revolving credit facility and approximately $90.6 million term loan from July 30, 2027 to July 28, 2028. The company incurred an extension fee equal to 0.15% of the committed amount held by participating lenders.

Management Commentary and 2026 Outlook

On its earnings call, management reported non-GAAP net income of $9.1 million and non-GAAP earnings per diluted share of $0.28 for the second quarter. Adjusted EBITDA, a non-GAAP measure, was $25.8 million, with a margin of 13.3%.

Management said some oil and gas customers had deferred maintenance and project activity, and that it expects most first half 2026 deferrals to be pushed further out. It said oil and gas revenue declined by $8.5 million, or 8.2%, in the second quarter.

For full year 2026, management said it is raising guidance to $740 million to $755 million in revenue and $92 million to $95 million in adjusted EBITDA. It expects an effective tax rate of approximately 25% for 2026 and a bank-defined leverage ratio of 2x by the end of 2026. The filing notes that tariffs, trade policy and conflicts in the Middle East may affect results.