Mistras Group, Inc. SEC 10-Q Report

Mistras Group, Inc., a leading provider of advanced asset protection solutions, has released its Form 10-Q report for the third quarter ended September 30, 2025. The report highlights significant improvements in both financial and operational performance, driven by strong market demand and effective cost management strategies.

Financial Highlights

• Revenue: $195.5 million, an increase of 7.0% compared with the three months ended September 30, 2024, driven by increases in the Oil and Gas and Power Generation markets.
• Gross Profit: $58.2 million, representing 29.8% of Revenue, up from 26.8% in the prior year period, indicating improved efficiency and cost management.
• Income from Operations: $20.4 million, representing 10.4% of Revenue, compared to 6.5% in the prior year period, reflecting better operational performance.
• Net Income: $13.2 million, compared to $6.4 million in the prior year period, showing significant improvement in profitability.
• Net Income attributable to Mistras Group, Inc.: $13.1 million, compared to $6.4 million in the prior year period, highlighting strong financial performance.
• Basic earnings per share: $0.42, compared to $0.21 in the prior year period, indicating increased shareholder value.
• Diluted earnings per share: $0.41, compared to $0.20 in the prior year period, reflecting improved earnings performance.

Business Highlights

• Revenue Segments: The North America segment saw a 7.2% increase in revenue, driven by strong performance in the Oil and Gas and Power Generation markets. The International segment experienced a 5.5% increase, largely due to favorable foreign exchange rates. The Products and Systems segment reported a 23.2% increase in revenue, attributed to higher sales volume and shipments.
• Geographical Performance: The North America segment, primarily the United States, remains the largest contributor to revenue, with significant growth in the Oil and Gas sector. The International segment, covering Europe, the Middle East, Africa, Asia, and South America, showed growth due to favorable currency exchange impacts.
• Customer Segments: Oil and Gas customers accounted for approximately 54% of total revenue for the three months ended September 30, 2025. Aerospace and Defense customers contributed around 12% of total revenue during the same period.
• Operational Strategy: The company continues to focus on providing advanced asset protection solutions using proprietary, technology-enabled software and testing instruments. This includes the OneSuite platform, which integrates various software and services into a single ecosystem for enhanced customer data management.
• Future Outlook: The company anticipates continued growth in its target markets, despite potential challenges from macroeconomic and geopolitical factors affecting the Oil and Gas sector. The focus remains on leveraging technology and expanding service offerings to maintain competitive advantage.
• Market Trends: The decline in crude oil prices has impacted field-related services in the Oil and Gas sector, which could continue if prices remain low. However, the company is positioned to adapt to these changes with its diversified service offerings.
• Segment Strategy: The North America segment is focused on asset protection solutions, while the International segment targets select markets outside China and South Korea. The Products and Systems segment is dedicated to designing and servicing asset protection products primarily in the U.S.
• Operational Adjustments: A change in the classification of certain costs has been implemented to provide greater transparency in cost of revenue, aligning with how the business is managed. This change affects the presentation of overhead and personnel costs related to service delivery.

SEC Filing: Mistras Group, Inc. [ MG ] - 10-Q - Nov. 06, 2025