매트릭스 서비스(MTRX) 2026 회계연도 4분기 실적 발표회: 수익성 개선

핵심 요약

• 2026 회계연도 4분기 매출은 저장 및 터미널 솔루션 부문의 활동 증가에 힘입어 전년 동기 대비 13% 증가한 2억 4,450만 달러를 기록했습니다.
• 매출총이익은 1,950만 달러로 140% 증가했으며, 매출총이익률은 전년 동기의 3.8%에서 8.0%로 개선되었습니다.
• 조정 주당순이익(EPS)은 전년 동기 0.28달러 손실에서 0.16달러로 흑자 전환했습니다. 조정 EBITDA는 480만 달러 손실에서 630만 달러로 개선되었습니다.
• 2026 회계연도 연간 매출은 14% 성장했고, 매출총이익률은 210bp 확대되었으며, 연간 조정 EPS는 1.19달러 개선되어 0.26달러를 기록했습니다.
• 연말 수주잔고는 9억 5,300만 달러였습니다. 경영진은 해당 수주잔고의 약 70%~80%가 2027 회계연도 중에 소진될 것으로 예상합니다.
• 매트릭스는 2억 2,300만 달러의 사용 제한 없는 현금 및 현금성 자산을 포함해 총 2억 8,390만 달러의 유동성을 확보하고 미상환 부채 없이 분기를 마감했습니다.

주요 재무 데이터

2026 회계연도 연간 기준으로 매트릭스는 14%의 매출 성장과 210bp의 매출총이익률 개선을 기록했습니다. 판관비는 2025 회계연도 대비 760만 달러 감소했으며, 연간 조정 EPS는 0.26달러였습니다.

사업 및 영업 실적

저장 및 터미널 솔루션 부문은 2026 회계연도 4분기에 전년 동기 9,610만 달러에서 43% 증가한 1억 3,740만 달러의 매출을 올렸습니다. 특수 선박 및 LNG 저장 프로젝트의 물량 증가가 이러한 상승세를 이끌었습니다. 부문 매출총이익률은 마이너스 1.1%에서 6.4%로 개선되었으며, 전년 동기 실적은 레거시 프로젝트 중재 건의 영향을 받았으나 해당 건은 2026 회계연도에 완전 해결되었습니다.

유틸리티 및 전력 인프라 부문 매출은 전년 동기 7,300만 달러 대비 7,350만 달러로 전반적으로 안정적인 수준을 유지했습니다. 매출총이익률은 견조한 프로젝트 수행을 반영하여 9.1%에서 12.8%로 상승했습니다. 매트릭스는 버지니아 북부 및 펜실베이니아 동부의 데이터 센터 관련 전력 수요를 지원하는 변전소 건설을 계속 진행 중이라고 강조했습니다.

공정 및 산업 시설 부문 매출은 정유 가동 감소와 프로젝트 믹스 변화로 인해 전년 동기 4,730만 달러에서 3,360만 달러로 감소했습니다. 매출총이익률은 5.9%에서 2.9%로 하락했습니다. 그러나 이 부문은 대형 광산 관련 프로젝트를 포함해 해당 분기 동안 1억 800만 달러의 신규 수주를 달성하며 3.2배의 북투빌(book-to-bill) 비율을 기록했습니다.

4분기 전체 신규 수주액은 1억 6,900만 달러로, 북투빌 비율 0.7배를 나타냈습니다. 연말 기준 수주잔고는 9억 5,300만 달러였으며, 회사의 수주 기회 파이프라인은 70억 달러를 넘어섰습니다. 파이프라인의 40% 이상이 LNG 및 NGL 프로젝트로 구성되어 있습니다.

매트릭스는 텍사스주 브라운스빌에 위치한 아메리카 퍼스트 리파이닝(America First Refining) 시설의 저장 탱크 팜에 대한 기본설계(FEED) 작업을 수행할 업체로도 선정되었습니다. 경영진은 이를 매우 큰 기회로 설명하면서도, 현재 수주잔고에는 FEED 작업만 포함되어 있음을 강조했습니다.

경영진 전망

매트릭스는 정식 최고재무책임자(CFO)를 물색하는 동안 2027 회계연도 공식 가이던스를 제공하지 않습니다. 케빈 카바나(Kevin Cavanah) CFO의 사임에 따라 A.J. 스미스(A.J. Smith)가 2026년 9월 10일 자로 임시 CFO를 맡게 됩니다.

경영진은 연말 수주잔고의 70%~80%가 2027 회계연도 중에 소진될 것으로 예상합니다. 경영진은 수주잔고 이익률 프로필이 두 자릿수 실적과 부합하며, 현재 프로젝트들도 해당 수준에 가깝게 실현되고 있다고 밝혔습니다. 회사는 프로젝트 믹스 및 수행에 따라 수주잔고 이익률을 10% 이상으로 올리는 것을 목표로 하고 있습니다.

아메리카 퍼스트 리파이닝 프로젝트의 경우, 매트릭스는 2027 회계연도 2분기 말까지 FEED 작업을 완료할 것으로 예상합니다. 경영진은 고객사의 최종 투자 결정 이후 2027 회계연도 3분기 말 또는 4분기 초에 본 프로젝트 수주 가능성이 있다고 전망합니다. 조기 조달 또는 현장 작업은 2026년 말 이전에 시작될 수 있습니다.

회사는 이전에 선수금을 수령한 진행 중인 프로젝트를 지원하기 위해 2027 회계연도 상반기 동안 현금을 사용할 것으로 예상합니다. 경영진은 프로젝트에서 순양(+)의 현금 자산 상태를 유지하고자 한다고 말했습니다. 매트릭스는 또한 재무상태표와 흑자 전환을 바탕으로 자사주 매입을 적극적으로 검토하고 있습니다.

리스크 및 관전 포인트

• 분기 전체 신규 수주액은 1억 6,900만 달러로 매출액을 하회하여 북투빌 비율 0.7배를 기록했습니다. 저장 및 터미널 솔루션과 유틸리티 및 전력 인프라 부문의 수주 활동은 완만한 수준으로 평가되었습니다.
• 경영진은 2027 회계연도 하반기까지 매출을 유지하고 2028 회계연도의 기반을 마련하는 데 필요한 수주를 확보하는 데 집중하고 있습니다.
• 주요 수주 기회의 본계약 전환은 FEED 작업, 인허가, 고객사의 투자 결정 및 프로젝트 타이밍에 따라 달라질 수 있습니다.
• 공정 및 산업 시설 부문은 정유 작업 감소와 불리한 프로젝트 믹스 전환으로 인해 매출 감소와 이익률 약화를 겪었습니다.
• 2027 회계연도 가이던스는 정식 CFO가 선임되어 사업을 평가할 때까지 연기됩니다.

애널리스트 Q&A 주요 내용

경영진은 주요 조직 구조조정 조치가 대부분 완료되었다고 밝혔습니다. 개별 분기별로 수십만 달러의 비용이 포함될 수는 있지만, 2027 회계연도 구조조정 비용은 상대적으로 미미할 것으로 예상됩니다.

수주잔고와 관련해 경영진은 대형 프로젝트의 경우 장기간의 FEED, 인허가 및 승인 절차가 필요하기 때문에 최근의 수주 패턴은 예상된 일이었다고 말했습니다. 회사는 대체 수주를 모색하는 한편, 2027 회계연도 첫 3개 분기 동안 대형 프로젝트의 상당 부분을 진행 및 소진할 것으로 예상하고 있습니다.

아메리카 퍼스트 리파이닝과 관련해 경영진은 해당 프로젝트가 수주 기회 파이프라인에는 포함되어 있지만, 수주잔고에는 FEED 범위만 반영되어 있다고 밝혔습니다. 더 큰 규모의 본계약 전환은 고객사의 최종 투자 결정에 따라 2027 회계연도 3분기 말 또는 4분기 초로 예상됩니다.

실적 발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Unknown Speaker

Thank you. I'm sorry. Thank you.

Operator

Patrick Roberts, Director of Corporate Development and Investor Relations for Matrix Service Company. Please go ahead.

Unknown Speaker

Welcome to Matrix Service Company's Fourth Quarter Fiscal 2026 Earnings Call. Participants on today's call include Chief Executive Officer Shawn Payne and Chief Financial Officer Kevin Cavanah. Following our prepared remarks, we will open the call up for questions. The presentation materials referred to during the webcast today can be found under Events and Presentations on the Investor Relations section of matrixservicecompany.com. As a reminder, on today's call we may make various remarks about future expectations, plans, and prospects for Matrix Service Company that constitute forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements because of various factors, including those discussed in our most recent annual report on Form 10-K, and in subsequent filings made by the company with the SEC. The forward-looking statements made today are effective only as of today.

To the extent we utilize non-GAAP measures, reconciliations will be provided in various press releases, periodic SEC filings, and on our website. Before we get started, I want to share a project highlight that also illustrates our commitment to safety and quality. This is 1 of 4 air raises that Matrix has safely completed in the last 4 months, each supporting infrastructure for different fuels and feedstocks, including LNG, ethane, liquid propane gas, ammonia, and butane. An air raise is a complex process that uses air pressure to safely lift and position a large steel dome roof. The weight of which can be well over 1 million pounds. This is a pivotal step in the construction of the storage tank. The project being highlighted here is for Dominion Energy's Brunswick-Greensville storage facility, which is a greenfield project for Matrix and supports the Brunswick County and Greensville County power stations. The project features a 25 million gallon full containment LNG storage tank, providing backup fuel supply for 700,000 businesses and homes.

Logics like these are core to our mission of supporting major energy companies, advancing American infrastructure, and connecting U.S. energy to the world. The successful execution of these consecutive air raises on complex high-profile projects highlights Matrix's technical expertise, commitment to safety, and dedication to delivering exceptional outcomes for our clients and the communities that rely on these critical assets. I now turn the call over to Shawn.

Shawn Payne

Thank you, Patrick.

It is a privilege to address you as President and Chief Executive Officer of Matrix Service Company. I am grateful for the confidence of our Board of Directors and excited to lead the company into its next chapter. As I begin, I also want to recognize and thank our dedicated employees in the field and across our offices. Your commitment to safety, quality, and execution is the foundation of everything we do and the driving force behind our success. Throughout my 30-year career in the industrial engineering and construction industry, I have had the privilege of leading high-performing operations, project controls, and finance teams, helping deliver complex projects, improving organizational performance, and creating lasting value for customers and stakeholders. Those experiences have given me a genuine understanding of what good looks like and a deep appreciation for the characteristics required to achieve it. They have reinforced my belief that sustainable success is built on exceptional people, a strong culture, operational excellence, customer focus, and an unwavering commitment to the safety and well-being of everyone involved.

These are the very same characteristics that have defined Matrix for decades and helped establish our reputation as a leading heavy industrial contractor that engineers, constructs, and maintains the critical infrastructure that supports industries and communities across North America. While those characteristics have shaped our history, they are equally important to our future and provide the foundation from which we will continue to grow and evolve. As the needs of our clients continue to develop, we are evolving alongside them, expanding our capabilities, strengthening our expertise, and reinforcing our position as a trusted partner in the markets we serve. Today, our expertise, brand, and reputation provide a distinct advantage as many of our core and emerging markets are experiencing generational levels of investment. But I want to recognize that while Matrix has long been well positioned to benefit from these opportunities, our past performance has not always reflected the strength of our capabilities or the opportunities before us. The company has yet to unlock its full potential, and we have more work to do. In 2025, the Board and Executive Leadership tasked me with bringing a fresh perspective to the organization, first as President of Engineering and Construction and then as Chief Operating Officer.

Together, with an enterprise-wide team, we established a strategic framework: Win, Execute, Deliver. This comprehensive business strategy addresses growth, revenue diversification, operational excellence, accountability, and organizational effectiveness, ultimately delivering sustainable profitability and value to our shareholders. More than just a list of goals or business as usual, this framework represents a deliberate shift towards a culture of consistent performance, excellence, and value creation. While we still have work to do, we have accomplished a lot in a relatively short period of time. Once our strategy was defined, we ensured the organization was properly sized and structured to support its successful execution. Recognizing our overhead had been built to support a larger anticipated revenue base, we took decisive action to streamline and flatten the organization, establishing a more sustainable cost structure that increased our speed to market while preserving our ability to capitalize on future growth opportunities. At Parallel, we transformed our commercial organization by strengthening strategic account management, improving opportunity qualifications, aligning our business development operational resources around targeted markets and focusing on opportunities that provide the best risk and reward profile for our business.

With a clear strategy guiding our decisions, a transformed commercial focus, and an optimized cost structure, we built a stronger, more agile organization, positioned to deliver consistent execution, profitable growth, and long-term value creation. Today, every role and resource is aligned around our Win, Execute, and Deliver strategic framework. Our progress is tangible, evidenced by our return to profitability in the third and fourth quarters of fiscal 2026. Looking forward, our strategy is straightforward. Win the right work, execute with excellence, and deliver the results expected by our customers, employees, and shareholders. Each pillar plays a critical role in strengthening our business and creating long-term value. To provide greater context around our progress, I would like to highlight several key initiatives within each pillar.

First, our WIN strategy is centered on pursuing opportunities that align with our capabilities, our risk parameters and create the greatest potential for profitable growth. This includes expanding our presence in both legacy and selected new and re-emerging markets, growing our geographic reach, expanding our construction-only services, and strengthening our relationships with existing customers, as well as increasing new customer acquisitions. Market intelligence and client insight continue to support strong demand across our traditional LNG and NGL infrastructure markets, particularly for peak shaving facilities, backup fuel terminals, and related infrastructure. In fact, over 40% of our current opportunity pipeline is comprised of LNG and NGL projects. Another example of our Win strategy at work and our legacy markets is a project for which we have been selected subsequent to the quarter, which we announced by press release after market closed yesterday. This project is for the Front End Engineering and Design of the storage tank farm for the America First Refining facility in Brownsville, Texas, the first new major refinery to be constructed in the U.S. in more than 50 years. We are extremely proud to have been selected to complete this major step for AFR in reaching financial investment decision.

At the same time, we are actively pursuing opportunities being driven by new and re-emerging markets, such as power generation and related infrastructure investments that is driven by the rapid growth of data centers, aging power infrastructure, and the increasing domestic electricity demand. Specific to data centers, our ability to deliver power infrastructure and substation solutions that support our customers' expanding energy requirements is critical. Evidence of our Win strategy at work in this end market includes 2 recently completed substation projects to bring more power to the Northern Virginia Data Center Alley. We are currently on site constructing additional substations in the same geographical area as well as the Eastern Pennsylvania region. Another example of us leveraging our experience to participate in a re-emerging market is our focus on the mining and mineral sector, where increased commodity pricing and the demand for critical minerals essential to energy, technology, defense, and AI infrastructure continues to grow. To support our position in this market, we have invested additional capital and resources into our existing Southwest operation. As a result, we have received and have mobilized on a significant award, which was taken into backlog in the fourth quarter.

Beyond our market focus, we are also heavily focused on expanding our geographic reach across key strategic regions and pursuing more construction-only opportunities. As a result of our construction-only initiatives, we have also been able to we have received several balance plan awards across the organization in the fourth quarter. At the same time, our improved strategic account management approach enables us to strengthen relationships with key customers while expanding our presence among new clients. This reinforces our position as a trusted long-term partner across multiple service offerings and project life cycles. Collectively, these initiatives with our improved speed to market and lower cost structure will strengthen our backlog, expand our market share, diversify our revenue stream, and drive sustainable, profitable organic growth. The Execution pillar is where our reputation is earned and trust is built. That trust depends on our ability to deliver high-quality projects safely, on time, and on budget.

Like our Win strategy, our Execute strategy is built around many initiatives, 45 in this case. These initiatives were developed to strengthen project delivery and drive consistent operational excellence across the organization. Each initiative is supported by dedicated teams with clear accountability for solution development, implementation, and results. These initiatives focus on improving proposal and contracting discipline, enhancing engineering and construction processes, strengthening our safety culture and protocols, advancing change management practices, and reinforcing quality management systems. Collectively, these efforts are intended to improve project outcomes and reduce execution risk. During the year, we also completed the final phase of our enterprise services transformation by transitioning project controls and proposal delivery into the organization. These were the last remaining service-related functions that had not yet been centralized. With this transformation now complete, our shared services organization, operating under dedicated leadership, is focused on delivering consistent support, improving resource efficiency, and driving continuous improvement across the company.

By bringing greater discipline and standardization to critical business processes, this structure allows our operations teams to concentrate on what they do best, winning the right work, executing projects with excellence, and delivering successful outcomes for our customers. The function is exact. Our entire enterprise is focused on execution and measurable results. Moving on to the third pillar, Deliver. We are committed to delivering consistent results and sustainable value. Our operational strategies and focused capital deployment create a resilient, future-ready enterprise. Already, we have reduced SG&A expenses by 11% year-over-year and driven improvements in operating performance. These are not isolated actions, they are evidence of a company committed to change, discipline, and results. Overall, our strategic framework ensures we are aligned around a common purpose, focused on both organic and targeted acquisitive growth and executing consistently across the enterprise.

As we enter this next phase, we do so from a position of financial strength, supported by a healthy balance sheet, robust liquidity, and no debt. The actions we have taken have strengthened our foundation, enhanced our ability to pursue profitable growth, and positioned Matrix to create sustainable long-term value for our shareholders, customers, employees, and the communities we serve. On behalf of the entire Matrix team, we look forward to earning your trust and support as we build on our legacy and pursue the opportunities ahead. I will now turn the call over to Kevin Cavanah.

Kevin Cavanah

Before I get into the fourth quarter, I want to highlight a few ways this strategic framework is already having a positive impact. Successful execution of our backlog allowed us to achieve 14% revenue growth and a 210 basis point gross margin improvement in fiscal 2026. We have successfully leveraged our experience and reputation to re-enter the mining and mineral space as demonstrated by significant project taken into backlog this quarter. Our focus on flattening our organizational structure to achieve greater efficiency and effectiveness contributed to a decrease in SG&A expenses, which fell by $7.6 million in fiscal 2026 compared to fiscal 2025. As a result of these efforts, we returned to profitability this year with full year adjusted EPS of $0.26 and an increase of $1.19 compared to last year. Now to the quarter. Our results represented a good finish to fiscal 2026, as well as positive indicators of the opportunity ahead. In the fourth quarter, our revenue increased 13% to $244.5 million compared to $216.4 million in the fourth quarter of fiscal 2025.

The increase in the quarter was expected and driven by the Storage and Terminal Solutions segment, partially offset by lower revenue in the Process and Industrial Facilities segment. Gross profit increased 140% to $19.5 million compared to $8.1 million in the prior year quarter. The quarter gross margin was 8% compared to 3.8% in the prior year. While SG&A in the fourth quarter was impacted by higher variable compensation costs related to returning to profitable performance, SG&A still decreased to $16.9 million in the fourth quarter versus $17.6 million last year. The lower SG&A cost combined with the higher revenue allowed SG&A as a percent of revenue to decrease to 6.9% compared to 8.1% in the same period last year. The company also incurred $3.4 million of restructuring costs in the fourth quarter associated with executive transitions and previously announced corporate realignment. Including the restructuring costs, the company produced an operating loss of $0.9 million in the recent quarter compared to an operating loss of $12.9 million in the prior year fourth quarter. The company continues to generate interest income.

On the company's strong cash position, interest income was $2.2 million in the quarter compared to $2 million in the prior year quarter. Bottom line, the company produced EPS of $0.04 in the quarter compared to a $0.40 loss in the prior year. Adjusted EPS, which excludes restructuring, was a positive $0.16 in the fourth quarter versus a $0.28 loss in the prior year quarter. Adjusted EBITDA was also improved to $6.3 million in the fourth quarter compared to a $4.8 million loss in the prior year fourth quarter. Moving to the segments, Storage and Terminal Solutions segment revenue increased 43% to $137.4 million in the fourth quarter of fiscal 2026 compared to $96.1 million last year due to increased volume of work for specialty vessel and LNG storage projects. Gross margin in the fourth quarter of fiscal 2026, which was 6.4% compared to a negative 1.1% in the prior year quarter, which was impacted by lowered recovery expectations on a legacy project completed in fiscal 2021 that was in arbitration. The matter was fully resolved in fiscal 2026. In Utility and Power Infrastructure, segment revenue was $73.5 million in the fourth quarter compared to $73 million in the same period a year ago. Gross margin improved to 12.8% in the fourth quarter compared to 9.1% last year.

The increase was due to strong project execution, and Process Industrial Facility segment revenue decreased to $33.6 million in the fourth quarter compared to $47.3 million last year, primarily due to lower revenue from refinery work, due to a change in mix of work. Gross margin was 2.9% in the fourth quarter of fiscal 2026 compared to 5.9% last year. Now let's discuss backlog. Project award activity was mixed in the fourth quarter with total awards of $169 million for 0.7x book-to-bill. The Process and Industrial Facility segment had a strong fourth quarter with awards of $108 million, including a significant mining related project, resulting 3.2x book-to-bill. Fourth quarter award activity in the other 2 segments was modest. The company entered the quarter with backlog of $953 million. The year-end backlog level is supportive of strong revenue performance as we move into fiscal 2027 and we are heavily focused on the awards that are required to maintain strong revenue through the back half of fiscal 2027 and to build a strong foundation for fiscal 2028.

As previously mentioned, our markets are strong throughout the business as evidenced by the opportunity funnel, which is over $7 billion. Moving to the balance sheet, we ended the quarter with total liquidity of $283.9 million. Liquidity is comprised of $223 million of unrestricted cash and cash equivalents and $60.9 million of borrowing availability under the credit facility. The contribution is $2.3 million. The company continues to have $25 million of restricted cash to support the credit facility and has no outstanding debt as of the end of the quarter. While the company expects to utilize cash in the first half of fiscal 2027 to support current project activities. We enter the year in a strong financial position that provides the liquidity needed to support the execution of our backlog and to deploy capital toward growth. Based on the strength of our balance sheet and our return to profitability, we are actively evaluating a stock buyback.

With that, I will turn the call back to Shawn for additional comments. Thank you, Kevin. Before we open the call for questions, I would like to take a moment to recognize Kevin Cavanah, who will be transitioning from his role as Chief Financial Officer at the end of the week. Kevin joined Matrix in 2003 and has been an integral part of our success for more than 23 years, including the last 15 years as our Chief Financial Officer. Throughout his tenure, Kevin helped guide Matrix through significant industry cycles, evolving regulatory requirements, and major strategic initiatives. His leadership played an important role in strengthening our financial discipline, enhancing our reporting and control processes, and helping position the company for long-term success. On behalf of the Board of Directors and everyone at Matrix, I want to thank Kevin for his many contributions to the company. On a personal level, I am grateful for his partnership and support over the years and have always valued his expertise, thoughtful perspective, and commitment to Matrix. We wish Kevin and his family all the best in the next chapter. We have been selecting a thorough process over the past several months to identify the right long-term financial leader for Matrix.

We continue to make good progress and remain committed to finding the best candidate to join me in Houston to drive the company's next phase of growth. While we are being deliberate and patient in that process, A.J. Smith has been appointed as the Interim Chief Financial Officer effective September 10, 2026. A.J. has been serving as Senior Director of Accounting and Treasury overseeing our accounting, SEC reporting, and Treasury functions. His deep knowledge of the business and strong leadership make him well positioned to support the organization during this transition. As we search for our next Chief Financial Officer, we believe it is important that the successful candidate have the opportunity to become familiar with the business and our strategy. As a result, we will not be providing guidance at this time.

Once our next CFO is onboarded and has had the opportunity to assess the business, we will evaluate our approach going forward. With that, I would like to open the call for questions.

Operator

Thank you. Ladies and gentlemen, if you have a question or a comment at this time, please press star 1-1 on your telephone. If your question has been answered and you wish to remove yourself from the queue, please press star 1-1 again. We will pause for a moment while we compile our Q&A roster. Our first question comes from John Franzreb with Sidoti & Company. Your line is open.

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John Franzreb

Good morning everyone and Shawn, welcome aboard and Kevin. It has been a pleasure working with you over the years. Shawn, I would like to start with your perspective in the firm. Can you talk a little about the current cost structure? You have been there for a while. You had a chance to evaluate. Are you satisfied with the way the company is currently constructed, or do you still envision additional restructuring charges in the year ahead?

Shawn Payne

Yes, John, in the last 18 months we have made measurable progress, right, getting that to where we think it needed to be, not just from a cost perspective, but also from an efficiency and a focus perspective. So today I feel like we really got it where we need to be. There could be some future tweaking. But right now I am satisfied that we have got the right organization, the right size to do the work that we have today as well as what we have got in our growth plans.

John Franzreb

So, how should we think about the nearly $10 million of restructuring actions in 2026? How much will continue to flow through the P&L in fiscal 2027?

Kevin Cavanah

John, this is Kevin. Enjoyed working with you too. I think when you look at the restructuring, you are not going to see anywhere near that level. There may be a few things, but it would be relatively insignificant. And as Shawn said, there may be some tweaks with the organization, but over the last 18 months we have implemented the majority of the changes we plan on doing right now. So I would not expect that restructuring to be significant. There will be some time, but it will not be major.

John Franzreb

Okay. I guess when I think about the $950 million in backlog, I guess 2 things. Can we kind of walk through why the diminishing order book we have seen in the past 4 quarters has been the case. And maybe on that $950 million backlog, how much is deliverable in the coming 12 months?

Shawn Payne

Yes, so I would say this, John. So 1, we are not surprised by the latter of bookings and the activity over the last few years. Certainly don't want that to overshadow the opportunities that we have in the pipeline. All of these projects have their different time to wind up going from the early process of a FEED or a permitting process. Good news is a lot of that has not changed for us. We knew this was going to look that way for a while. As far as the exact numbers on the backlog that we have in hand, certainly in the first quarter, second quarter, and third quarter, we will be getting through a fair share of the larger projects that we have been carrying.

But, again, we have got our outlook is to start replacing that with new projects.

Kevin Cavanah

Yes, I do not have the exact number in front of me, but I think 70-80% of that backlog will be worked off during fiscal 2027.

John Franzreb

Got it. And just 1 last question on the backlog. Is the margin profile, is it heading north from the fourth quarter or is that a stable kind of level? How should we think about that?

Kevin Cavanah

Well, so the margin profile of our backlog is in line with our, you know, with double-digit level performance. I think you will, you know, we made a big move in revenue in 4Q, and that helped under recovery. There is still a little bit more work to do there. But our projects are delivering close to that double-digit level now and I think when you look at the quality of the backlog plus the quality of opportunities in the funnel, I think that will continue to support that. And obviously we want to continue to grow that backlog margin above 10%. As we move forward, I think we have probably got the markets to do that.

John Franzreb

Great.

Operator

1 moment for our next question. Our next question comes from Ted Jackson with Northland. Your line is open.

Unknown Speaker

Thanks very much. So, Shawn, I had like a list of a half-dozen questions and in the course of your presentation you took almost all of them out. So you clearly did a good job in preparing your presentation. I have 2 questions for you. I would like to start out with, the, America First Refining. Can you provide a little more color with regards to, you know, like the size of the initial work you are doing on the front end and what it could mean in terms of just like the actual size of this project as it moves forward. How much of some of this stuff is in your project pipeline, is it what drove big jump that we saw in your project pipeline with regard to this quarter and then kind of what is the timeline for the family's board and then I have a follow-up.

Shawn Payne

Sure. Yes, I guess first, Ted, I will say I probably will not want to talk too much about the specifics of the dollar value. This has not gone through FID yet. Obviously, it is a very large project on any scale. Just give you a little bit background on kind of what we are doing there in the timeline. So we have been awarded, we have been contracted the FEED, and that is due at the end of our fiscal Q2, at which point when we turn that over to the client, they will look to finalize FID. At that time, we will work to convert that FEED estimate to a lump sum price utilized in an open book process with the client. We anticipate that the award will be in late fiscal Q3 or early Q4. But I think it is worth mentioning here that it is possible that we could start some early purchasing and/or site work prior to the calendar year-end to support the client's desired schedule.

Unknown Speaker

And then when you move forward with some of the early purchasing and such, is that part of what would drive you to some, I guess you would say, call cash use in the first half. I believe that was referenced in your presentation that the first half of '27 would be kind of digging into your cash position and then flip over, I assume, in the second half. Is that what drove that? Yes.

Shawn Payne

The utilization for the cash is primarily going to be the projects that are being executed in the field that we have got advanced payments on. This cash here, we have not worked out exactly what that will look like, but we always look to maintain a net positive cash position on any of the work that we are doing, and we will certainly do that for this. Okay.

Unknown Speaker

So, in summary then, America First Refining, a very large project. It is not, it is really not in your project pipeline at this point because you are in the process of defining it and we would see that, you know, kind of move through in second half of fiscal '27 and then potentially, you know, once you get the product and then move into your bookings sometime in the second half of '27 that cover basically America First Refining.

Shawn Payne

Yes, so just to be clear, it is in our opportunity pipeline. We have been pursuing this effort and working closely with a client for for for several years on this developing this but to your point, yes, we do not have anything outside of the FEED work booked right now and within our backlog and that would be something we would be looking to convert again late Q3 or early Q4 to backlog.

Unknown Speaker

Okay. And then shifting over to pipeline and backlog, you know, in the past, as a management team, I think that the message has been pretty consistent. That you did expect to see the backlog work down, you know, you know. You know, as it has been through, you know, kind of we pull up mid-fiscal '27, and then some of the opportunity pipeline should be converting into bookings and rebuild back. That scenario still holds and. You know, we should be viewing this America First Refining in the last line as an indication of the kind of things that drive your backlog north as we get to the second half of fiscal '27.

Shawn Payne

Yes, that is accurate. That is what we see happening.

Unknown Speaker

Okay. And then my final question, which was kind of touched on, but just to make sure I am right, is that essentially as we roll through '27, that we should not be expecting to see any large-scale restructuring line items, expenses, in the numbers. It will be, anything in there will be in the numbers, correct?

Kevin Cavanah

That is correct. You would not expect anything significant. I mean, you might have a quarter that has a couple hundred thousand. But no, the big changes have been implemented in in fiscal 2025 and in fiscal 2026. Okay.

Unknown Speaker

But hey, I appreciate it. That is it for me. Congrats on the quarter. Thank you. Appreciate it.

Operator

And I am not showing any further questions at this time. I would like to turn the call back over to Patrick for any further remarks.

Unknown Speaker

Great. Thank you everyone for your participation. Before we close the call, I wanted to mention that we will be presenting at the upcoming 25th Annual Diversified Industrials and Services Conference in Nashville, Tennessee. If you will be attending, we would welcome the opportunity to connect with you. Additionally, if you would like to have a conversation with management, please contact me through the Matrix Service Company Investor Relations website. You may also sign up to receive MTRX news by scanning the QR code on your screen. Again, thank you for your time today, and have a good rest of your week.

Operator

Thank you, ladies and gentlemen. That will conclude today's presentation. We thank you for your participation. You may now disconnect and have a wonderful day.

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