Matrix Extends Profit Streak as Storage Segment Margins Improve
Net income reached $6.2 million, or $0.22 a share, as Storage and Terminal Solutions gross margin hit 9.0%.
Matrix Service Company (MTRX), a heavy industrial contractor that engineers, constructs, and maintains energy, power, and industrial infrastructure, reported net income of $6.2 million, or $0.22 a share, for the first quarter of fiscal 2027 ended September 30, 2026, reversing a year-earlier net loss of $3.7 million, or $(0.13) a share.
The company said the quarter was its third consecutive period of profitability. Adjusted net income was $6.4 million, or $0.23 a share, compared with an adjusted net loss of $0.3 million, or $(0.01) a share, a year earlier. Adjusted EBITDA was $7.7 million.
Revenue was $219.4 million, up from $211.9 million in the first quarter of fiscal 2026. Sequential revenue declined from $244.5 million in the fiscal 2026 fourth quarter, when year-over-year growth had been 13%. The company attributed the year-over-year increase to higher revenue in Storage and Terminal Solutions and Process and Industrial Facilities, partially offset by lower revenue in Utility and Power Infrastructure.
Gross profit was $18.1 million, or 8.2% of revenue, versus $14.2 million, or 6.7% of revenue, a year earlier. The company said the increase was due to higher gross margins in Storage and Terminal Solutions, partially offset by lower gross margins in Process and Industrial Facilities, and that overall gross margins benefited from strong project execution and improved overhead recovery. SG&A expenses were $13.3 million. The company said the decline included lower salaries and wages and stock compensation from an organizational restructuring plan, plus a $1.9 million decrease tied to variable accounting for cash-settled stock-based compensation. Restructuring costs and other were $229 thousand.
Storage and Terminal Solutions revenue increased 12% to $122.9 million from $109.5 million a year earlier, which the company said was driven by an increased volume of work for specialty tanks and associated balance of plant. Segment gross margin was 9.0%.
Utility and Power Infrastructure revenue decreased 21% to $59.1 million from $74.5 million a year earlier, due to a decrease in volume of work for natural gas peak shaving projects, partially offset by an increase in power generation work. Segment gross margin was 8.6%.
Process and Industrial Facilities revenue increased to $37.4 million from $27.9 million a year earlier, primarily due to increased revenue volumes for mining and minerals work. Segment gross margin was 3.7%, which the company said was primarily due to the resolution during the quarter of a subcontractor dispute for a project originally completed in fiscal 2023. The company said the impact would be offset by savings of anticipated legal costs.
Backlog was $872.6 million as of September 30, 2026, down from $953.2 million at June 30, 2026, after $138.8 million of project awards against $219.4 million of revenue, for a 0.6x book-to-bill ratio. Awards in Utility and Power Infrastructure included a limited notice to proceed for a power generation project supporting data center infrastructure. Book-to-bill was 1.0x in Utility and Power Infrastructure and 1.4x in Process and Industrial Facilities. Storage and Terminal Solutions book-to-bill was 0.2x.
The company also said it was selected to complete front-end engineering and design of the storage tank farm for the America First Refining facility in Brownsville, Texas. Chief Executive Officer Shawn P. Payne said first-quarter awards included new mining and minerals work and that the company remains focused on converting its opportunity pipeline into high-quality backlog.
Liquidity was $221.8 million at September 30, 2026, with no outstanding debt, versus $283.9 million at June 30, 2026. Liquidity comprised $182.4 million of unrestricted cash and cash equivalents and $39.4 million of borrowing availability under a $90 million ABL facility maturing in September 2029. The company also had $25.0 million of restricted cash. The board approved a new $25 million share buyback program.
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