Matrix Service Company (MTRX) 2027 會計年度第一季財報電話會議：獲利能力與利潤率成長

重點摘要

• Matrix Service Company 公布 2027 會計年度第一季營收為 2.194 億美元，較去年同期的 2.119 億美元成長 4%，儘管部分已簽約專案的營收遞延至未來數季。
• 受惠於專案執行力提升及間接成本回收改善，毛利率自 6.7% 上升至 8.2%。稀釋後每股盈餘 (EPS) 自去年同期的虧損 0.13 美元改善至 0.22 美元。
• 調整後 EBITDA 從 250 萬美元增至 770 萬美元，為該公司連續第三季實現獲利。
• 截至 9 月 30 日，在手訂單金額為 8.73 億美元。單季新簽合約金額為 1.388 億美元，訂單出貨比為 0.6。
• 潛在商機規模成長約 11% 至 82 億美元，液化天然氣 (LNG)、發電、電力基礎設施以及採礦與礦產等領域均呈現成長。
• Matrix 的總流動資金達 2.22 億美元，並在本季回購 250 萬美元股票後，宣布啟動一項新的 2,500 萬美元庫藏股買回計畫。

核心財務數據

業務與營運表現

儲存與轉運站解決方案營收成長 12%，自 1.095 億美元增至 1.229 億美元。成長主要由特種儲槽業務及相關周邊配套工程 (BOP) 的增加所帶動。毛利率從 5.9% 提升至 9.0%，反映出執行力改善以及間接成本吸收效益提高。

公用事業與電力基礎設施營收自 7,450 萬美元下滑 21% 至 5,910 萬美元。天然氣尖峰調節業務減少，部分被發電工程增加所抵銷。受專案組合影響，毛利率自 9.1% 下降至 8.6%，但間接成本吸收改善部分抵銷了該降幅。

該部門獲得一項支援資料中心基礎設施的重要發電專案合約。管理階層表示，該專案擴大了 Matrix 在發電領域以及發展中資料中心市場的業務版圖。

製程與工業設施營收自 2,790 萬美元增至 3,740 萬美元，主因採礦與礦產工程增加。毛利率自 5.1% 降至 3.7%。本季解決了一起與 2023 會計年度完工專案相關的分包商爭議。管理階層表示，該爭議的和解應有助於降低 2027 會計年度預期的訴訟費用。

該公司本季還獲得了多項採礦與礦產專案合約。Matrix 正擴大招聘資源、強化與職業技校的合作，並完善內部職業晉升管道，以在維持安全與品質標準的同時提升專案執行能力。

管理階層展望

管理階層預期 2027 會計年度剩餘各季的平均季度營收將高於第一季水準。公司指出，8.73 億美元的在手訂單為本會計年度剩餘期間實現更高的營收運轉率和持續獲利提供了能見度。

公司預計新簽合約活動將在 2027 會計年度下半年增強。然而管理階層表示，大型合約主要預期將支撐 2028 會計年度的營收，而非對 2027 會計年度做出顯著貢獻。

管理階層指出，常態化的單季推銷、一般及管理費用 (SG&A) 運轉率約為 1,550 萬至 1,600 萬美元，具體取決於業務活動水準與變動薪酬。第一季業績受惠於組織重組後薪資、工資和股權獎勵開支的降低，以及與以現金結算的股權獎勵會計處理相關的 190 萬美元年增效益。

風險與關注事項

• 第一會計季度訂單出貨比為 0.6，反映出 2027 會計年度上半年新簽合約活動預期較為清淡。
• 大型客戶決策的時間點仍存在不確定性，且非公司所能掌控。
• 期內部分已簽約專案的營收遞延至未來數季。
• 強勁的專案需求對勞動力、人力供應及其他資源帶來壓力。
• 公用事業與電力基礎設施營收仍受到天然氣尖峰調節專案業務量減少的影響。

分析師問答焦點

針對 SG&A 費用，管理階層表示第一季的費用水準不應被視為未來的常態運轉率，因為以現金結算的股權獎勵和變動薪酬可能會導致季度波動。管理階層認為 1,550 萬至 1,600 萬美元是更具代表性的季度區間。

針對偏低的訂單出貨比，管理階層指出有多個大型潛在商機將在 2027 會計年度後期迎來客戶決策，包括 LNG 相關儲存專案。管理階層亦強調了涵蓋更多小型純建造、維修與保養專案的組合，這類專案能比大型統包工程 (EPC) 專案更快進場並產生營收。

管理階層表示，規模達 82 億美元的潛在商機多元分布於 LNG、天然氣凝析液 (NGL)、發電、電力基礎設施以及採礦與礦產等領域，降低了對單一專案或終端市場的依賴。

完整法說會逐字稿

完整財報電話會議逐字稿

管理層陳述

Operator

Good morning, and welcome to the Matrix Service Company conference call to discuss results for the first quarter of fiscal 2027. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Mr. Patrick Roberts, Director of Corporate Development and Investor Relations of Matrix Service Company.

Patrick Roberts

Thank you, and good morning, everyone. Welcome to Matrix Service Company's First Quarter Fiscal 2027 Earnings Call. Participants on today's call include Chief Executive Officer, Shawn Payne; Interim Chief Financial Officer, A.J. Smith; and Chief Financial Officer-elect Dominic Savarino. 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 the 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.

On our last call, I highlighted a project that showcased the depth of our capabilities and the type of complex work Matrix is built to deliver. I'd like to continue that practice today because it provides useful context around the markets we serve and how Matrix has evolved. While many investors may still associate Matrix primarily with storage tanks, today's Matrix supports critical infrastructure across a much broader set of end markets, including power generation, LNG and NGLs, utilities, mining and minerals and increasingly data centers.

One area that illustrates this evolution particularly well is the power sector. For decades, Matrix has supported customers through the construction and maintenance of critical power facilities and systems. Our capabilities extend across power generation facilities, substations and other supporting systems. These capabilities are becoming increasingly important as electrical demand continues to grow and customers seek greater certainty of supply. Whether through additional generation capacity, backup power systems or on-site LNG fuel infrastructure, organizations are investing in solutions that enhance reliability and resiliency.

We continue to see strong growth in our opportunity pipeline associated with these specialized services. That demand comes from a diverse customer base that includes public utilities, private utilities, power producers, industrial customers and energy companies. More recently, we have also begun supporting the rapidly expanding data center market, providing these same services for customer-owned energy and power assets as developers and owners look for ways to secure reliable power, greater certainty of supply and enhanced operational resiliency.

Matrix's experience in power generation, backup fuel, electrical systems and construction execution positions us well to participate in that growth. Most recently, we were awarded a project in this space, which Shawn will discuss in more detail in his remarks. What these opportunities demonstrate is the versatility of Matrix's capabilities. Whether supporting LNG, power generation, electrical infrastructure, mining and minerals, or data centers, we are able to leverage the same core strengths across multiple end markets where critical infrastructure investment continues to grow. Regardless of the market we serve, our focus remains unchanged, delivering projects safely with quality and in a manner that creates value for our customers and shareholders.

With that, I'll turn the call over to Shawn.

Shawn Payne

Thank you, Patrick, and good morning, everyone. Before discussing our first quarter results, I'd like to welcome Dominic Savarino to Matrix as Senior Vice President and Chief Financial Officer, effective tomorrow, November 6. Following a comprehensive search, we selected Dominic because he brings a combination of financial leadership and operational experience that is particularly well suited to Matrix.

He has built his career in engineering, construction, energy and industrial infrastructure businesses and has held roles in both financial leadership and with direct operational and P&L responsibility. That experience gives him a strong understanding of how financial discipline, project execution, commercial strategy and risk management come together to drive profitable growth. His perspective will be especially valuable as we continue executing on our win, execute, deliver strategy and position Matrix for its next phase of growth. We are excited to have Dominic on the team and look forward to his contributions.

Now to the quarter. As I discussed last quarter, win, execute, deliver is how we run the company. It turns our strategy into everyday choices about what we pursue, how we work, how we allocate resources and the results we create. Over the past 18 months, we've taken meaningful actions to improve execution, create a more efficient operating model and drive consistent profitability as we grow. Today, I want to focus on how those actions are strengthening our business and translating into better results. Under the win pillar of our strategy, our focus is on building a stronger business by improving the quality and diversity of our backlog, strengthening customer relationships and expanding into attractive end markets.

Since we last reported, our opportunity pipeline has increased from approximately $7.4 billion to $8.2 billion. Importantly, that growth is not concentrated in a single market. We have seen expansion across all of our segments, including LNG, power generation, electrical infrastructure and mining and minerals, reinforcing our confidence in both the demand environment and the opportunities ahead. The breadth of this growth reflects the continued diversification of our business and gives us a stronger, more balanced opportunity set from which to drive profitable growth. We are already seeing tangible results from this approach. This quarter, we were awarded a meaningful power generation project supporting data center infrastructure.

This project is particularly significant because it aligns several strategic priorities for Matrix. It expands our participation in the growing power generation market, strengthens our position in the rapidly developing data center ecosystem, and it also demonstrates the continued importance of construction-only opportunities in supporting a stable and diversified revenue base. As another example of our win strategy in action, we continue to see strong momentum in the mining and minerals space. In addition to the significant award we discussed last quarter, we secured several awards in Q1 with another important client in multiple facilities specifically targeted under our strategic growth plan.

Under the execute pillar of our strategy, our focus is on creating value through safe, disciplined and consistent project delivery. We continue to see encouraging results from the operational discipline we've implemented across the business. Project execution remains solid, and we are seeing greater consistency in how opportunities are evaluated, risks are managed and the work is delivered. During the quarter, we advanced several initiatives designed to strengthen the decision-making process and increase accountability throughout the project life cycle.

Another important component of execution is workforce development. Capturing the opportunities ahead requires not only the right projects, but the right people to deliver them safely and successfully. We have established a more coordinated enterprise-wide approach to recruiting, developing and retaining craft and supervisory talent, including adding field recruiting resources and strengthening our trade school relationships and internal career paths. These efforts are supporting our execution capacity while upholding our rigorous safety and quality standards. Ultimately, the objective of win and execute is to deliver. Deliver means producing consistent results, generating sustainable, profitable growth and creating long-term value for our shareholders, customers, employees and communities.

While we are still early on this journey, our third consecutive quarter of profitability is a clear indicator of the progress we are making. During the quarter, we also purchased $2.5 million of our shares. This effort is consistent with the deliver pillar of our strategy related to disciplined capital allocation and creating long-term shareholder value.

So, in summary, we have a clear strategy, a stronger operating foundation and a leaner, more efficient cost structure. We are a stronger company today with meaningful opportunities ahead and the focus, discipline and capabilities to convert those opportunities into consistent profitable growth and long-term shareholder value. As Dominic officially assumes the Chief Financial Officer position tomorrow, A.J. Smith will be reviewing our first quarter financial results today.

With that, I will turn the call over to A.J.

Andrew John Smith

Thanks, Shawn. Our results this quarter reflect the continued momentum behind our win, execute, deliver framework, culminating in the third straight quarter of profitable performance. During the first quarter, despite some revenue from several booked projects slipping into future quarters, revenue increased 4% to $219.4 million compared to $211.9 million in the first quarter of fiscal 2026. We expect quarterly revenue levels for the remainder of the year to be on average higher than in the first quarter.

Gross profit was $18.1 million, or 8.2% of revenue, during the quarter compared to $14.2 million, or 6.7% of revenue, for the first quarter of fiscal 2026. Gross margins during the period benefited from strong project execution and improved overhead recovery. SG&A expenses were $13.3 million in the first quarter of fiscal 2027, or 6% of revenue. SG&A decreased by $3 million compared to the prior year period due in part to lower salary and wage expense and stock compensation expense resulting from our organizational restructuring plan. Additionally, SG&A decreased $1.9 million year-over-year due to the variable accounting for cash-settled stock-based compensation.

As a result of our higher revenue, higher gross margins and lower SG&A expense, the company had positive EPS during the quarter of $0.22 compared to a loss of $0.13 per share in the prior year quarter. On an adjusted basis, EPS was $0.23 per share compared to an adjusted net loss of $0.01 per share in the prior year period. Adjusted EBITDA also improved to $7.7 million in the first quarter compared to $2.5 million in the first quarter of last year.

Moving to the segments. Storage and Terminal Solutions segment revenue increased 12% to $122.9 million in the first quarter of fiscal 2027 compared to $109.5 million in the first quarter of fiscal 2026, driven by an increased volume of work for specialty tanks and the associated balance of plant work. Gross margin was 9% in the first quarter of fiscal 2027 compared to 5.9% in the first quarter of fiscal 2026. Segment gross margin was driven by improved project execution overall as well as improvement in overhead cost absorption. Utility and Power Infrastructure segment revenue decreased 21% to $59.1 million in the first quarter of fiscal 2027 compared to $74.5 million in the first quarter of fiscal 2026 due to a decrease in volume of work for natural gas peak shaving projects, partially offset by an increase in power generation work. Gross margin was 8.6% in the first quarter of fiscal 2027 compared to 9.1% for the first quarter of fiscal 2026, a decrease of 0.5%, primarily due to mix of work, partially offset by improved overhead cost absorption.

Process and Industrial Facilities segment revenue increased to $37.4 million in the first quarter of fiscal 2027 compared to $27.9 million in the first quarter of fiscal 2026, primarily due to increased revenue volumes for mining and minerals work. Gross margin was 3.7% in the first quarter of fiscal 2027 compared to 5.1% in the first quarter of fiscal 2026. Current quarter margins were impacted by the resolution of a subcontractor dispute for a project originally completed in fiscal 2023. While resulting in a decrease in segment margins in the current quarter, the impact is a net positive for the business based on savings of anticipated fiscal 2027 legal costs.

Moving to backlog. During the quarter, project awards were $138.8 million, resulting in a book-to-bill of 0.6. Awards in the Utility and Power Infrastructure segment include the award of a meaningful power generation project supporting data center infrastructure that Shawn previously mentioned. As we've noted in previous quarters, we believe award activity will pick back up in the second half of our fiscal 2027, but those awards will primarily solidify our fiscal 2028 revenue base. Our backlog as of September 30 of $873 million provides clear visibility into improved revenue run rate through the remainder of the fiscal year, along with continued profitability.

We continue to maintain a strong balance sheet and liquidity position. Total liquidity is $222 million, including $182 million of unrestricted cash and $39 million of borrowing availability under our credit facility. With our liquidity position, we executed $2.5 million of share buybacks during the quarter. Also this week, we amended our credit facility to expand our annual stock repurchase limit, and our Board approved a new buyback program of $25 million, which expires in 2 years. We will opportunistically repurchase stock under the program based on market conditions and our liquidity position.

With that, I will turn the call back to Shawn for a few additional comments.

Shawn Payne

Thank you, A.J. Before moving to Q&A, I want to thank A.J. for his leadership and dedication while serving as Interim Chief Financial Officer while we conducted our search for a new CFO. A.J. helped ensure continuity and stability during an important period of transition for Matrix. A.J.'s contributions have been invaluable, and I appreciate his continued partnership.

With that, I'd like to open up the call for questions.

Operator

[Operator Instructions] Our first question will be coming from the line of John Franzreb of Sidoti.

分析師問答

John Franzreb

Welcome aboard, Dominic. I'd like to start with the recent results, particularly the SG&A line. It was down rather noticeably. You kind of called out some of those based on change in the share price. But you also said that there's an organizational restructuring. So, I'm kind of curious how much of the change in SG&A is temporary? And how much of it is it on a permanent basis?

Andrew John Smith

Yes, I'll take this one. So, our SG&A run rate, I think, like you mentioned, was impacted by some of the variable expense rate versus cash stock-based compensation. I think there's always going to be some variability in that line. But, generally speaking, a good run rate probably $15.5 million to $16 million a quarter, depending on activity levels and variable compensation.

John Franzreb

Got it. Got it. And it's hard to ignore the book-to-bill profile. Can you talk a little bit, particularly what's going on in storage, what you're seeing there and maybe a little bit about the competitive landscape and how that's shaping out?

Shawn Payne

Yes, you bet, John. Yes. So, I know the book-to-bill is relatively low. We've discussed that over the last few quarters, right? We expected the award activity to be lighter in the first half of fiscal '27. I'll say that we have several large opportunities that are progressing towards customer decision points later in the fiscal year. And we think that's really going to strengthen the award activity in the second half. Some of those projects are storage, particularly LNG-related. Also, I should note there, those larger awards aren't expected to contribute really meaningfully to full year '27 revenues.

So, our focus with those is really on positioning the business for fiscal 2028. I think also important there is while we can't control the timing -- the exact timing of the customer decisions, larger or small projects, what really gives us confidence there is the strength and the breadth of our opportunity set. As we said on the call, our pipeline increased approximately 11%, up to $8.2 billion with opportunities across LNG, NGLs, power generation, electrical infrastructure and mining and minerals. So, important to note there that we're not dependent on any single project or single project end market.

And then lastly, John, just tell you there that we're also seeing a broader mix of smaller, quick construction projects, like construction-only work and also repair and maintenance work. That's important to us because with those projects, we can convert that revenue faster, we can get to the field faster. And that's one of our strategies, right, is to provide a more consistent baseload of activity to make sure we have that work during the ebbs and flows of some of the large EPC works. So, I think together with those 2 things, those 2 factors, it really gives us a balanced path to rebuilding backlog and entering into fiscal '28 from a stronger position.

John Franzreb

Yes. And just to clarify a bit the competitive landscape, I mean, maybe you could give some color what the margin profile is on new jobs being written today versus, say, 6 months ago? Any kind of color there you could provide would be helpful.

Shawn Payne

Yes. I would -- it really depends on what we're bidding. We're into a lot of different things, different markets, certainly different customers, different contract types. But I would say, in general, there's a lot of demand right now, obviously, going on, a lot of projects that's putting pressure on labor, workforce and just general resources. Typically, when that happens, what you see, John, is the margin on those projects, particularly larger projects.

Operator

[Operator Instructions] Seeing there are no more questions in the queue, and I'm going to pass the call back over to Patrick for closing remarks. Please go ahead.

Patrick Roberts

Thank you, everyone, for your participation today. Matrix Service Company will be participating in the upcoming Northland Growth Conference on December 16. If you will be attending, we welcome the opportunity to visit 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.

Operator

Thank you for participating in today's program. You may now disconnect.