Fiscal 2026 fourth quarter and full year
Filed Sep 2, 2026Matrix reported fourth-quarter revenue growth and a return to GAAP and adjusted profitability, while full-year results remained a GAAP net loss and total backlog declined.
Fourth-quarter revenue rose to $244.5 million, gross margin expanded to 8.0%, and net income was $1.1 million, but fiscal 2026 ended with a net loss of $(2,580) (In thousands), a total book-to-bill ratio of 0.7x, and backlog of $953.2 million versus $1,382,108 (In thousands) at June 30, 2025.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Fourth quarter revenueGAAP | $244.5M | – | 13% |
| Fourth quarter gross profitGAAP | $19.5M | – | – |
| Fourth quarter gross marginGAAP | 8.0% of revenue | – | – |
| Fourth quarter selling, general and administrative expensesGAAP | $16.9M | – | – |
| Fourth quarter restructuring costs and otherGAAP | $3.4M | – | – |
| Fourth quarter operating lossGAAP | −$891K | – | – |
| Fourth quarter net incomeGAAP | $1.1M | – | – |
| Fourth quarter diluted income per common shareGAAP | $0.04 | – | – |
| Fourth quarter adjusted net incomenon-GAAP | $4.6M | – | – |
| Fourth quarter adjusted income per fully diluted sharenon-GAAP | $0.16 | – | – |
| Fourth quarter Adjusted EBITDAnon-GAAP | $6.3M | – | – |
| Fiscal 2026 revenueGAAP | $873.6M | – | – |
| Fiscal 2026 gross profitGAAP | $63.95M | – | – |
| Fiscal 2026 selling, general and administrative expensesGAAP | $63.61M | – | – |
| Fiscal 2026 restructuring costs and otherGAAP | $9.96M | – | – |
| Fiscal 2026 operating lossGAAP | −$9.62M | – | – |
| Fiscal 2026 net lossGAAP | −$2.58M | – | – |
| Fiscal 2026 diluted loss per common shareGAAP | $(0.09) | – | – |
| Fiscal 2026 adjusted net incomenon-GAAP | $7.38M | – | – |
| Fiscal 2026 adjusted income per fully diluted sharenon-GAAP | $0.26 | – | – |
| Fiscal 2026 Adjusted EBITDAnon-GAAP | $16M | – | – |
| Total backlog as of June 30, 2026other | $953.2M | – | – |
| Fourth quarter project awardsother | $169M | – | – |
| Fourth quarter total book-to-bill ratioother | 0.7x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Storage and Terminal Solutions, fourth quarter fiscal 2026Higher specialty storage activity. | $137.4M | – | 43% |
| Utility and Power Infrastructure, fourth quarter fiscal 2026Revenue was consistent with the prior year period; gross margin increased due to strong project execution. | $73.5M | – | – |
| Process and Industrial Facilities, fourth quarter fiscal 2026Lower revenue volumes for refinery work were partially offset by increased revenue for a mining project. | $33.6M | – | – |
| Storage and Terminal Solutions, fiscal 2026Fiscal-year segment revenue was reported in the Results of Operations table. | $458.3M | – | – |
| Utility and Power Infrastructure, fiscal 2026Fiscal-year segment revenue was reported in the Results of Operations table. | $283.4M | – | – |
| Process and Industrial Facilities, fiscal 2026Fiscal-year segment revenue was reported in the Results of Operations table. | $131.9M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
What drove it
- Fourth-quarter revenue growth was led by specialty storage activity in Storage and Terminal Solutions and continued execution in Utility and Power Infrastructure.
- Fourth-quarter consolidated gross-margin improvement reflected higher gross margins in Storage and Terminal Solutions and Utility and Power Infrastructure, partly offset by lower gross margin in Process and Industrial Facilities.
- SG&A declined primarily due to lower costs associated with organizational realignment initiatives, partly offset by variable compensation tied to profitable performance.
- Process and Industrial Facilities received a major mining construction award in the western United States and reported a fourth-quarter book-to-bill ratio of 3.2x.
- Management stated that its opportunity pipeline has grown to over $7 billion, with activity across LNG and NGL infrastructure, power generation, electric-grid modernization, data centers, and mining and minerals production.
Concerns
- Total fourth-quarter book-to-bill was 0.7x, and total backlog was $953.2 million at June 30, 2026 versus $1,382,108 (In thousands) at June 30, 2025.
- Process and Industrial Facilities gross margin was 2.9% versus 5.9%, reflecting work mix and higher under-recovery of overhead costs resulting from lower revenue.
- The Company incurred $3.4 million of restructuring costs and other expenses in the fourth quarter, including leadership-transition costs and workforce-reduction actions.
- Fiscal 2026 remained a GAAP net-loss year, with net loss of $(2,580) (In thousands) and operating loss of $(9,618) (In thousands).
- Fiscal 2026 operating cash flow was $6,907 (In thousands), compared to $117,471 (In thousands) in fiscal 2025.
What to watch
- Award activity and backlog conversion in the larger, multi-year opportunities that management said have advanced meaningfully toward final investment decision.
- Whether the major mining project expands the Company's non-ferrous mining and critical minerals position and customer relationship.
- Sustainability of Storage and Terminal Solutions activity and Utility and Power Infrastructure project execution.
- Process and Industrial Facilities revenue volumes, overhead recovery, and gross-margin performance.
- The effects of workforce-reduction and organizational-realignment actions on costs and profitability.
Balance sheet and cash flow
- Total liquidity at June 30, 2026 was $283.9 million.
- Unrestricted cash and cash equivalents at June 30, 2026 were $223.0 million.
- Borrowing availability under the credit facility at June 30, 2026 was $60.9 million.
- Restricted cash at June 30, 2026 was $25.0 million.
- The Company had no outstanding debt as of June 30, 2026.
- Net cash used by operating activities was $(8,810) (In thousands) for the three months ended June 30, 2026, compared to $40,708 (In thousands).
- Net cash provided by operating activities was $6,907 (In thousands) for fiscal 2026, compared to $117,471 (In thousands).
- Capital expenditures were $(1,379) (In thousands) for the three months ended June 30, 2026 and $(5,483) (In thousands) for fiscal 2026.
- Net cash used by investing activities was $(920) (In thousands) for the three months ended June 30, 2026 and $(3,541) (In thousands) for fiscal 2026.
- Cash and cash equivalents were $222,966 (In thousands) at June 30, 2026, compared to $224,641 (In thousands) at June 30, 2025.
Analysis
Matrix delivered a substantially improved fourth quarter. Revenue was $244.5 million versus $216.4 million, gross profit was $19.5 million versus $8.1 million, and gross margin improved to 8.0% of revenue from 3.8% of revenue. The Company reported net income of $1.1 million, or $0.04 per share, compared with a net loss of $(11.3) million, or $(0.40) per share. Adjusted EBITDA was $6.3 million versus a loss of $(4.8) million, marking the second consecutive profitable quarter on both the management-adjusted measure and the reported-quarter profitability commentary.
The revenue mix was led by Storage and Terminal Solutions, where revenue increased 43% to $137.4 million on higher specialty storage activity. Storage and Terminal Solutions gross margin improved to 6.4% from (1.1)%. Utility and Power Infrastructure revenue was $73.5 million and gross margin rose to 12.8% from 9.1% due to strong project execution. Process and Industrial Facilities revenue fell to $33.6 million from $47.3 million, and gross margin declined to 2.9% from 5.9% because of work mix and higher under-recovery of overhead costs associated with lower revenue.
Cost actions supported the quarter, with SG&A expenses declining to $16.9 million from $17.6 million. The Company attributed the decrease primarily to organizational realignment initiatives, partly offset by variable compensation. Restructuring costs and other expenses were $3.4 million during the quarter, including leadership-transition costs and costs of workforce reductions. For the full fiscal year, revenue was $873.6 million versus $769.3 million and Adjusted EBITDA was $16.0 million versus $(12.9) million, but the Company still reported a GAAP net loss of $(2,580) (In thousands) and an operating loss of $(9,618) (In thousands).
Backlog conversion supported revenue, but new awards did not match quarterly revenue at the consolidated level. Fourth-quarter awards totaled $169.0 million, producing a 0.7x total book-to-bill ratio, while backlog ended at $953.2 million. Storage and Terminal Solutions and Utility and Power Infrastructure reported book-to-bill ratios of 0.2x and 0.4x, respectively. Process and Industrial Facilities generated a 3.2x book-to-bill ratio, driven primarily by a major mining construction project, and ended the quarter with $166,287 (In thousands) of backlog.
Liquidity remained a clear balance-sheet support, at $283.9 million as of June 30, 2026, including $223.0 million of unrestricted cash and cash equivalents and $60.9 million of borrowing availability. The Company had no outstanding debt. Cash generation warrants attention: fourth-quarter net cash used by operating activities was $(8,810) (In thousands), and fiscal-year operating cash flow was $6,907 (In thousands) compared with $117,471 (In thousands) in fiscal 2025. The release provided no fiscal 2027 financial guidance; management instead emphasized the over $7 billion opportunity pipeline and its expectation for higher award activity as larger opportunities reach final investment decision.
Management, verbatim
Our fourth quarter results reflect the continued execution of our WIN, EXECUTE, DELIVER strategy. The combination of strong project execution, a more efficient cost structure, and a disciplined focus on the initiatives that matter most resulted in our second consecutive quarter of profitable growth.
Shawn P. Payne, President and Chief Executive Officer
We secured nearly $170 million of project awards in the fourth quarter, including a major mining construction project in the western United States.
Shawn P. Payne, President and Chief Executive Officer
Our opportunity pipeline has grown to over $7 billion, reflecting generational levels of investment underway across the markets we serve, including LNG and NGL infrastructure, power generation, electric grid modernization, data centers, and mining and minerals production.
Shawn P. Payne, President and Chief Executive Officer
Not in the filing
stated, not guessed- Fiscal 2027 financial guidance, including revenue, gross margin, operating expenses, tax rate, capital expenditures, and earnings guidance
- Previous-release outlook and guidance comparison
- Free cash flow
- Dividends and share repurchases
- Quarter-over-quarter comparisons for revenue, earnings, margins, segments, and cash flow
- Fiscal 2026 consolidated gross-margin percentage
- Fiscal 2026 segment gross-margin percentages
- Prior-year comparisons for fourth-quarter project awards, book-to-bill ratios, and segment backlog
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.