Overview

• US engineering and construction firm's fiscal Q3 revenue rose yr/yr

• Adjusted EPS and adjusted EBITDA improved from prior year

• Company lowered fiscal 2026 revenue guidance due to client and weather-related delays

Outlook

• Matrix Service lowers fiscal 2026 revenue guidance to $870 mln-$890 mln

• Company says revenue guidance lowered due to client and weather-related delays shifting project activities

• Matrix Service says project opportunity pipeline remains healthy at over $6.9 bln

Result Drivers

• CLIENT AND WEATHER DELAYS - Co said Q3 revenue was affected by client-related engineering and permitting delays, as well as severe weather

• PROJECT EXECUTION AND COST STRUCTURE - Improved project execution and cost structure supported adjusted EPS, per CEO John Hewitt

• SEGMENT PERFORMANCE - Storage and Terminal Solutions segment revenue and margin increased due to higher LNG project activity and improved execution

Company press release: ID:nGNX1mZFtv

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Matrix Service Co is $20.00, about 43.6% above its May 5 closing price of $13.93

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 21 three months ago

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