Overview

• US asset integrity solutions firm's Q1 revenue rose 4.6%, beating analyst expectations

• Adjusted EBITDA for Q1 increased 18.7% but missed analyst estimates

• Revenue growth driven by strength in strategic markets, offsetting Oil & Gas declines

Outlook

• MISTRAS reaffirms 2026 revenue guidance of $730 mln to $750 mln

• Company maintains 2026 adjusted EBITDA outlook of $91 mln to $93 mln

• Oil & Gas field inspections may remain impacted by high crude oil prices in Q2 2026

Result Drivers

• STRATEGIC MARKETS GROWTH - Revenue growth was primarily driven by a 30% increase in strategic markets including Aerospace & Defense, Power Generation, Infrastructure, and Industrials

• OIL & GAS DECLINE - Declines in Oil & Gas revenue due to project deferrals and lower activity from high crude oil prices partially offset overall growth

• MARGIN EXPANSION - Gross profit margin rose 120 basis points, driven by a shift to higher-value work, pricing discipline, and operational efficiencies

Company press release: ID:nGNX4xqcW0

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$169 mln	$166.23 mln (3 Analysts)
Q1 Net Income		$2.40 mln
Q1 Adjusted EBITDA	Miss	$14.30 mln	$14.80 mln (3 Analysts)
Q1 Gross Margin		26.50%
Q1 Gross Profit		$44.70 mln
Q1 Operating Cash Flow		-$4.50 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the integrated oil & gas peer group is "buy"

• Wall Street's median 12-month price target for Mistras Group Inc is $18.25, about 3.5% below its May 5 closing price of $18.91

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 14 three months ago

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