Revenue: As of FY2026 Q2, the actual value is USD 210.51 M, missing the estimate of USD 215.42 M.EPS: As of FY2026 Q2, the actual value is USD -0.03, missing the estimate of USD 0.035.EBIT: As of FY2026 Q2, the actual value is USD -3.604 M.<h4>Consolidated Financial Performance</h4><ul><li>Net Loss<ul><li>For the three months ended December 31, 2025, Matrix Service Company reported a net loss of - $894 thousand, an 84% improvement compared to a net loss of - $5,533 thousand for the same period in 2024.</li><li>For the six months ended December 31, 2025, the net loss was - $4,557 thousand, representing a 71% improvement from a net loss of - $14,756 thousand in the prior year period.</li></ul></li><li>Operating Loss<ul><li>The operating loss for the three months ended December 31, 2025, was - $2,179 thousand, an improvement from - $6,394 thousand in the comparable 2024 period.</li><li>For the six months ended December 31, 2025, the operating loss was - $7,679 thousand, compared to - $17,161 thousand for the six months ended December 31, 2024.</li></ul></li><li>Gross Profit and Margin<ul><li>Gross profit for the three months ended December 31, 2025, increased by 21% to $13,135 thousand (6.2% gross margin) from $10,892 thousand (5.8% gross margin) in 2024.</li><li>For the six months ended December 31, 2025, gross profit grew by 46% to $27,317 thousand (6.5% gross margin) from $18,705 thousand (5.3% gross margin) in 2024.</li></ul></li><li>Selling, General and Administrative (SG&amp;A) Expenses<ul><li>SG&amp;A expenses decreased by 13% to $15,112 thousand for the three months ended December 31, 2025, primarily due to organizational realignment and reduced stock-based compensation.</li><li>For the six months ended December 31, 2025, SG&amp;A expenses decreased by 12% to $31,446 thousand, attributed to cost reductions from organizational realignment, including a $1.3 million decrease in salaries and wages, a $1.2 million decrease in facilities costs, and a $1.0 million decrease related to cash-settled stock-based compensation fluctuations.</li></ul></li><li>Restructuring Costs<ul><li>Restructuring costs amounted to $202 thousand for the three months ended December 31, 2025, and $3,550 thousand for the six months ended December 31, 2025.</li></ul></li><li>Interest Income and Expense<ul><li>Interest income was $1,543 thousand for the three months ended December 31, 2025, consistent with the prior year period.</li><li>For the six months ended December 31, 2025, interest income increased by $0.2 million to $3,345 thousand, mainly due to a higher cash balance, partially offset by lower average interest rates.</li><li>Interest expense was - $118 thousand for the three months ended December 31, 2025, and - $245 thousand for the six months ended December 31, 2025.</li></ul></li><li>Other Income (Expense)<ul><li>Other income increased by $0.6 million to $23 thousand for the three months ended December 31, 2025, primarily due to reduced foreign currency transaction losses.</li><li>For the six months ended December 31, 2025, other income increased by $0.7 million to $254 thousand, also mainly due to a reduction in foreign currency transaction losses.</li></ul></li><li>Effective Tax Rate and Valuation Allowance<ul><li>The effective tax rates were -22.3% and -5.4% for the three and six months ended December 31, 2025, respectively, impacted by valuation allowances of - $0.7 million and $0.6 million on deferred tax assets.</li></ul></li></ul><h4>Segmented Performance</h4><ul><li>Storage and Terminal Solutions Segment<ul><li>Revenue: Increased by 5% to $99,852 thousand for the three months ended December 31, 2025, and by 20% to $209,311 thousand for the six months ended December 31, 2025, driven by LNG and NGL projects.</li><li>Gross Profit (Loss): Decreased by -35% to $4,754 thousand (4.8% gross margin) for the three months, and by -6% to $11,251 thousand (5.4% gross margin) for the six months, primarily due to a $3.6 million reduction from warranty-type items and third-party commercial matters in Q2 FY26, and under-recovery of overhead costs.</li><li>Operating Income (Loss): Reported an operating loss of - $788 thousand for the three months and - $1,598 thousand for the six months ended December 31, 2025.</li><li>Capital Expenditures: $343 thousand for the three months and $1,214 thousand for the six months ended December 31, 2025.</li><li>Depreciation and Amortization: $506 thousand for the three months and $1,040 thousand for the six months ended December 31, 2025.</li><li>Total Assets: $152,551 thousand as of December 31, 2025, down from $194,354 thousand as of June 30, 2025.</li></ul></li><li>Utility and Power Infrastructure Segment<ul><li>Revenue: Increased by 23% to $75,406 thousand for the three months ended December 31, 2025, and by 28% to $149,907 thousand for the six months ended December 31, 2025, driven by LNG peak shaving and power delivery projects.</li><li>Gross Profit (Loss): Increased by 112% to $7,228 thousand (9.6% gross margin) for the three months, and by 197% to $14,012 thousand (9.3% gross margin) for the six months, due to strong project execution and improved overhead cost absorption.</li><li>Operating Income (Loss): Reported an operating income of $4,952 thousand for the three months and $8,119 thousand for the six months ended December 31, 2025.</li><li>Capital Expenditures: $329 thousand for the three months and $1,180 thousand for the six months ended December 31, 2025.</li><li>Depreciation and Amortization: $78 thousand for the three months and $170 thousand for the six months ended December 31, 2025.</li><li>Total Assets: $223,037 thousand as of December 31, 2025, up from $98,582 thousand as of June 30, 2025.</li></ul></li><li>Process and Industrial Facilities Segment<ul><li>Revenue: Increased by 15% to $35,250 thousand for the three months ended December 31, 2025, and by 2% to $63,174 thousand for the six months ended December 31, 2025, primarily from refinery turnarounds and maintenance work.</li><li>Gross Profit (Loss): Increased by 229% to $1,219 thousand (3.5% gross margin) for the three months, and by 12% to $2,648 thousand (4.2% gross margin) for the six months, due to improved overhead cost absorption.</li><li>Operating Income (Loss): Reported an operating loss of - $401 thousand for the three months and - $1,008 thousand for the six months ended December 31, 2025.</li><li>Capital Expenditures: - $0 thousand for the three months and $81 thousand for the six months ended December 31, 2025.</li><li>Depreciation and Amortization: $192 thousand for the three months and $409 thousand for the six months ended December 31, 2025.</li><li>Total Assets: $29,348 thousand as of December 31, 2025, down from $39,490 thousand as of June 30, 2025.</li></ul></li></ul><h4>Other Key Financial and Operational Metrics</h4><ul><li>Backlog<ul><li>Total backlog as of December 31, 2025, was $1,127,073 thousand, a decrease from $1,382,108 thousand as of June 30, 2025.</li><li>Project awards for the three months ended December 31, 2025, totaled $176,561 thousand, with a book-to-bill ratio of 0.8x.</li><li>For the six months ended December 31, 2025, project awards totaled $364,316 thousand, with a book-to-bill ratio of 0.9x.</li><li>Backlog adjustments included the removal of two projects totaling - $196,959 thousand due to changes in contractual terms and project execution strategies.</li></ul></li><li>Remaining Performance Obligations<ul><li>As of December 31, 2025, Matrix Service Company had $1.0 billion in remaining performance obligations, with $686.4 million expected to be recognized as revenue within the next twelve months.</li></ul></li><li>Cash Flow<ul><li>Net cash used by operating activities was - $18,445 thousand for the six months ended December 31, 2025, compared to net cash provided of $45,516 thousand in the prior year period.</li><li>Net cash used by investing activities remained consistent at - $2,703 thousand for the six months ended December 31, 2025, compared to - $2,696 thousand in the prior year period.</li><li>Net cash used by financing activities was - $4,274 thousand for the six months ended December 31, 2025, compared to - $1,133 thousand in the prior year period, primarily due to tax withholding obligations for stock-based compensation.</li></ul></li><li>Liquidity<ul><li>Total liquidity, including unrestricted cash and ABL Facility availability, was $257,579 thousand as of December 31, 2025.</li><li>Unrestricted cash and cash equivalents totaled $198,964 thousand, and availability under the ABL Facility was $58,615 thousand as of December 31, 2025.</li></ul></li></ul><h4>Outlook and Strategy</h4>Matrix Service Company anticipates activity to accelerate through the remainder of the fiscal year, supported by its strong backlog, a growing opportunity pipeline, and robust demand across its core markets. The company’s balance sheet offers a competitive advantage, providing financial capacity and flexibility for pursuing high-quality opportunities, investing in execution, and managing risk. Long-term growth is expected to be driven by structural macrotrends such as the clean energy transition, increasing power requirements from data centers, industrial reshoring, and a heightened focus on grid reliability.

Matrix | 10-Q: FY2026 Q2 Revenue Misses Estimate at USD 210.51 M