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Mistras Group Inc
MISTRAS Announces Third Quarter 2025 Results
Business
Nov 4 2025
21 min read

MISTRAS Announces Third Quarter 2025 Results

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Robust Quarterly Organic Revenue Growth of 7.0%,
with an Expansion in Quarter-Over-Quarter Gross Profit Margin of 300 Basis Points,
Generating Net Income of $13.1 million and Earnings Per Diluted Share of $0.41,
Achieving Record Adjusted EBITDA of $30.2 million

PRINCETON JUNCTION, N.J., Nov. 04, 2025 (GLOBE NEWSWIRE) -- MISTRAS Group, Inc. (NYSE: MG), a global leader in technology-enabled industrial asset integrity and testing solutions, reported financial results for its third quarter and nine months ended September 30, 2025.

Third Quarter 2025 Key Figures*

  • Revenue of $195.5 million, an increase of 7.0%, with growth across five largest industries

  • Gross profit of $58.2 million, up 19.0% or $9.3 million from $48.9 million, Gross profit margin of 29.8% as compared to 26.8%, an expansion of 300 basis points

  • Net income of $13.1 million and Earnings Per Diluted Share of $0.41

  • Adjusted EBITDA of $30.2 million, compared to $23.3 million, an increase of 29.6%; Adjusted EBITDA margin of 15.4% as compared to 12.7%, an expansion of 270 basis points

Year-to-Date 2025 Key Figures*

  • Revenue of $542.6 million, a decrease of 2.6%, yet essentially flat giving effect to the exclusion of voluntary Laboratory consolidations

  • Gross profit of $153.0 million, up 4.5% or $6.6 million from $146.4 million, Gross profit margin of 28.2% as compared to 26.3%, an expansion of 190 basis points

  • Net income of $12.9 million and Earnings Per Diluted Share of $0.41

  • Adjusted EBITDA of $66.3 million, compared to $61.6 million, an increase of 7.7%; Adjusted EBITDA margin of 12.2% as compared to 11.1%, an expansion of 110 basis points

*All comparisons are consolidated and versus the equivalent prior year period, unless otherwise noted and give effect to the reclassification of certain overhead and personnel expenses in the Unaudited Condensed Consolidated Statements of Income from SG&A to Cost of revenue. Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about the non-GAAP financial measures set forth in tables attached to this press release.

Natalia Shuman, President and Chief Executive Officer commented:
“I am pleased to report our third quarter performance, which resulted in quarterly Adjusted EBITDA of $30.2 million, up nearly 30% year-over-year, reflecting continued material improvement in our operating leverage and pursuit of profitable growth and diversification. We believe that this growth reflects the strength of our operating model, disciplined cost management, and continued focus on driving efficiencies across the business. We also achieved an increase in revenue of 7.0%, with growth generated in each of our five largest industries served, including double-digit growth in Aerospace & Defense, Industrials, Infrastructure, and Power Generation. This overall revenue growth was driven by market demand for our services and demonstrates the success of our comprehensive solutions and our ability to deliver on our customers’ expectations.”

Ms. Shuman continued, “We have the foundation, technical know-how, proven expertise and the people to win. We are advancing our organizational systems, empowering our technicians with digital tools, and investing in relationships with our customers to drive ROI and shareholder value.”

Third Quarter and First Nine Months 2025 Additional Detailed Highlights:
The Company’s prior year results reflect the reclassification of certain overhead and personnel expenses in the Unaudited Condensed Consolidated Statements of Income, from SG&A to cost of revenue. The reclassification recorded within the financials was $5.7 million and $15.4 million for the three and nine month periods ended September 30, 2024, respectively. This reclassification of overhead and personnel expenses had no impact on income from operations, net income or Adjusted EBITDA comparability.

Income from operations was $20.4 million in the third quarter of 2025, as compared to $11.9 million in the prior year comparable period, an increase of 71.9% year over year. Third quarter income from operations before special items (non-GAAP) was $22.3 million as compared to $13.1 million in the prior year comparable period.

The Company recorded $1.8 million of reorganization and other costs in the third quarter of 2025 related to the Company’s continued actions to reduce support, overhead, and other related costs.

Net income was $13.1 million in the third quarter of 2025, or $0.41 per diluted share, as compared to net income of $6.4 million, or $0.20 per diluted share, in the prior year comparable period. Third quarter net income excluding special items (non-GAAP) was $14.6 million, or $0.46 per diluted share, as compared to net income excluding special items (non-GAAP) of $6.3 million, or $0.20 per diluted share, in the prior year comparable period.

In the first nine months of 2025, net cash provided by operating activities was $0.8 million, a decrease from $24.5 million of net cash provided by operating activities in the prior year period. Free cash flow (non-GAAP) was negative $20.9 million in the first nine months of 2025, compared to positive $6.3 million in the prior year comparable period. This decrease in net cash provided by operating activities and free cash flow (non-GAAP) is largely due to an increase in accounts receivable related to working capital timing.

The Company’s gross debt was $202.3 million as of September 30, 2025, compared to $169.6 million and $189.4 million as of December 31, 2024 and June 30, 2025, respectively. The Company’s net debt, a non-GAAP financial measure, was $174.5 million as of September 30, 2025 as compared to $151.3 million and $168.8 million as of December 31, 2024 and June 30, 2025, respectively.

2025 Outlook
Although strong revenue growth was achieved in the third quarter, the Company expects full-year 2025 revenue to be between $716.0 million to $720.0 million. This would represent essentially flat performance compared to the prior year, giving effect to the exclusion of voluntary Laboratory consolidations of approximately 1% in full year 2025 revenue resulting from the Company’s ongoing efforts to exit unprofitable business during 2025.

Adjusted EBITDA has continued to improve and is expected to increase for full-year 2025. Accordingly, the Company is raising its prior qualitative Adjusted EBITDA guidance range of exceeding the 2024 Adjusted EBITDA level of $82.5 million. Based on the strong third quarter performance and the current fourth quarter forecast, the Company now expects its full-year Adjusted EBITDA to be between $86.0 million to $88.0 million.

Conference Call
In connection with this release, MISTRAS will hold a conference call on November 5, 2025, at 9:00 a.m. Eastern Standard Time. To listen to the live webcast of the conference call, visit the Investor Relations section of MISTRAS Group’s website at www.mistrasgroup.com. Individuals wishing to participate in the live question and answer session may pre-register at: https://mistras-q3-earnings-2025.open-exchange.net/.   Following the conference call, an archived webcast of the call will be available for one year by visiting the Investor Relations section of MISTRAS Group’s website.

About MISTRAS Group, Inc. - One Source for Asset Protection Solutions®
MISTRAS Group, Inc. (NYSE: MG) is a global leader in technology-enabled industrial asset integrity and testing solutions, serving critical industries including oil & gas, aerospace & defense, power & utilities, manufacturing, and civil infrastructure. The company provides a diversified portfolio of products and services, ranging from advanced non-destructive testing and pipeline inspections to real-time condition monitoring, maintenance planning, and specialized engineering, powered by a proprietary management software suite that centralizes integrity data for predictive analytics and benchmark analysis. With a long-standing track record of innovation and deep industry expertise, MISTRAS helps clients reduce risk, extend asset life, and optimize operational performance. Learn more at www.mistrasgroup.com.

INVESTORS CONTACT:
Edward Prajzner
Senior Executive Vice President & Chief Financial Officer
+1 (833) MISTRAS | investors@mistrasgroup.com

Forward-Looking and Cautionary Statements
Certain statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, enhancements in our organizational systems, tools and integrated solutions, the Company's efforts to voluntarily exit unprofitable business and our outlook and expectations for full-year 2025 revenue and Adjusted EBITDA. Such forward-looking statements relate to MISTRAS' financial results and estimates, products and services, business model, operational and strategic initiatives to improve operating leverage, strategy, growth opportunities, profitability and competitive position, and other matters. These forward-looking statements generally use words such as "future," "possible," "potential," "targeted," "anticipate," "believe," "estimate," "expect," "intend," "plan," "predict," "project," "will," "may," "should," "could," "would" and other similar words and phrases. Such statements are not guarantees of future performance or results and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved, if at all. These statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. A list, description and discussion of these and other risks and uncertainties can be found in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission on March 11, 2025, as updated by our reports on Form 10-Q and Form 8-K. The forward-looking statements are made as of the date hereof, and MISTRAS undertakes no obligation to update such statements as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Measures
In addition to financial information prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP"), this press release also contains adjusted financial measures that are not prepared in accordance with GAAP and that we believe provide investors and management with supplemental information relating to the Company’s operating performance and trends that facilitate comparisons between periods and with respect to trends and projected information. The term "Adjusted EBITDA" used in this release is a financial measure not calculated in accordance with GAAP and is defined by the Company as net income attributable to MISTRAS Group, Inc. plus: interest expense, provision for income taxes, depreciation and amortization, share-based compensation expense, certain acquisition related costs (including transaction due diligence costs and adjustments to the fair value of contingent consideration), foreign exchange (gain) loss, other income, non-cash impairment charges, reorganization and other costs and, if applicable, certain additional special items which are noted. A reconciliation of Adjusted EBITDA to Net Income (Loss) as computed under GAAP is set forth in a table attached to this press release. The Company also uses the term “free cash flow” a non-GAAP financial measure. The Company defines "free cash flow" as cash provided by operating activities less capital expenditures (which is classified as an investing activity). The Company additionally uses the terms: “Segment and Total Company Income (Loss) from Operations (GAAP) to Income (Loss) from Operations before Special Items (non-GAAP)”, “Net Income (Loss) (GAAP) and Diluted EPS (GAAP) to Net Income Excluding Special Items (non-GAAP) and Diluted EPS Excluding Special Items (non-GAAP)” which reconciles the non-GAAP amounts to the GAAP financial measure. The non-GAAP financial performance measure "Income (loss) from operations before special items” is used for each of our three operating segments, the Corporate segment and the "Total Company". Income (Loss) from operations before Special Items excludes: (a) transaction expenses related to acquisitions, such as professional fees and due diligence costs, (b) the net changes in the fair value of acquisition-related contingent consideration liabilities, (c) impairment charges, (d) reorganization and other costs, which includes items such as severance, labor relations matters and asset and lease termination costs and (e) other special items such as environmental expense and legal settlement and insurance recoveries. These adjustments have been excluded from the GAAP measure because these expenses and credits are not related to our or any individual segment's core business operations. The acquisition related costs and special items can be a net expense or credit in any given period. This press release also includes the term “net debt”, a non-GAAP financial measure which the Company defines as the sum of the current and long-term portions of long-term debt, less cash and cash equivalents. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are also set forth in tables attached to this press release. Each of these non-GAAP financial measures has material limitations as a performance or liquidity measure and should not be considered alternatives to Net Income (Loss) or any other measures derived in accordance with GAAP. Because Income (loss) from operations before special items and other non-GAAP financial measures used in this press release may not be calculated in the same manner by all companies, these measures may not be comparable to other similarly titled measures used by other companies.


Mistras Group, Inc. and Subsidiaries
Unaudited Summary Condensed Consolidated Balance Sheets
(in thousands)

 

 

September 30, 2025

 

December 31, 2024

ASSETS

 

(unaudited)

 

 

Cash and cash equivalents

 

$

27,805

 

$

18,317

Accounts receivable, net

 

 

174,787

 

 

127,281

Other current assets

 

 

34,906

 

 

26,872

Property, plant and equipment, net

 

 

87,658

 

 

80,892

Goodwill

 

 

183,725

 

 

181,442

Other long-term assets

 

 

87,375

 

 

88,234

Total assets

 

$

596,256

 

$

523,038

LIABILITIES AND EQUITY

 

 

 

 

Accounts payable

 

$

18,375

 

$

11,128

Current portion of long-term debt

 

 

13,035

 

 

11,591

Other current liabilities

 

 

94,381

 

 

92,206

Long-term debt, net of current portion

 

 

189,235

 

 

158,056

Other long-term liabilities

 

 

53,404

 

 

51,162

Equity

 

 

227,826

 

 

198,895

Total liabilities and equity

 

$

596,256

 

$

523,038


Mistras Group, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)

 

Three months ended September 30,

 

Nine months ended September 30,

 

2025

 

2024

 

2025

 

2024

 

 

 

 

 

 

 

 

Revenue

$

195,549

 

$

182,694

 

 

$

542,569

 

$

556,909

 

Cost of revenue

 

131,826

 

 

128,064

 

 

 

372,851

 

 

392,956

 

Depreciation

 

5,530

 

 

5,725

 

 

 

16,688

 

 

17,556

 

Gross profit

 

58,193

 

 

48,905

 

 

 

153,030

 

 

146,397

 

Selling, general and administrative expenses

 

33,478

 

 

33,200

 

 

 

108,923

 

 

105,632

 

Reorganization and other costs

 

1,764

 

 

2,143

 

 

 

7,802

 

 

4,219

 

Environmental expense

 

199

 

 

 

 

 

1,257

 

 

 

Legal settlement and insurance recoveries, net

 

 

 

(868

)

 

 

 

 

(808

)

Research and engineering

 

210

 

 

241

 

 

 

778

 

 

816

 

Depreciation and amortization

 

2,161

 

 

2,331

 

 

 

6,473

 

 

7,170

 

Income from operations

 

20,381

 

 

11,858

 

 

 

27,797

 

 

29,368

 

Other income

 

 

 

(1,479

)

 

 

 

 

(1,479

)

Interest expense

 

3,381

 

 

4,303

 

 

 

10,944

 

 

13,145

 

Income before provision for income taxes

 

17,000

 

 

9,034

 

 

 

16,853

 

 

17,702

 

Provision for income taxes

 

3,797

 

 

2,618

 

 

 

3,692

 

 

3,909

 

Net income

 

13,203

 

 

6,416

 

 

 

13,161

 

 

13,793

 

Less: net income attributable to noncontrolling interests, net of taxes

 

95

 

 

15

 

 

 

222

 

 

28

 

Net income attributable to Mistras Group, Inc.

$

13,108

 

$

6,401

 

 

$

12,939

 

$

13,765

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

Basic

$

0.42

 

$

0.21

 

 

$

0.41

 

$

0.45

 

Diluted

$

0.41

 

$

0.20

 

 

$

0.41

 

$

0.44

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

31,543

 

 

31,002

 

 

 

31,361

 

 

30,895

 

Diluted

 

31,880

 

 

31,660

 

 

 

31,920

 

 

31,513

 


Mistras Group, Inc. and Subsidiaries
Unaudited Operating Data by Segment
(in thousands)

 

Three months ended September 30,

 

Nine months ended September 30,

 

2025

 

2024

 

2025

 

2024

Revenue

 

 

 

 

 

 

 

North America

$

160,609

 

 

$

149,845

 

 

$

437,503

 

 

$

456,588

 

International

 

35,521

 

 

 

33,662

 

 

 

107,812

 

 

 

100,972

 

Products and Systems

 

4,036

 

 

 

3,276

 

 

 

9,867

 

 

 

9,860

 

Corporate and Eliminations

 

(4,617

)

 

 

(4,089

)

 

 

(12,613

)

 

 

(10,511

)

Total

$

195,549

 

 

$

182,694

 

 

$

542,569

 

 

$

556,909

 


 

Three months ended September 30,

 

Nine months ended September 30,

 

2025

 

2024

 

2025

 

2024

Gross profit

 

 

 

 

 

 

 

North America

$

45,103

 

 

$

37,173

 

$

115,653

 

 

$

112,423

International

 

11,190

 

 

 

9,912

 

 

32,548

 

 

 

29,068

Products and Systems

 

2,192

 

 

 

1,802

 

 

5,152

 

 

 

4,836

Corporate and Eliminations

 

(292

)

 

 

18

 

 

(323

)

 

 

70

Total

$

58,193

 

 

$

48,905

 

$

153,030

 

 

$

146,397


Mistras Group, Inc. and Subsidiaries
Unaudited Revenues by Category
(in thousands)

Revenue by industry was as follows:

Three Months Ended September 30, 2025

North America

 

International

 

Products & Systems

 

Corp/Elim

 

Total

Oil & Gas

$

97,484

 

$

8,125

 

$

60

 

$

 

 

$

105,669

Aerospace & Defense

 

17,675

 

 

6,395

 

 

137

 

 

 

 

 

24,207

Industrials

 

15,469

 

 

6,773

 

 

360

 

 

 

 

 

22,602

Power Generation & Transmission

 

10,074

 

 

3,714

 

 

696

 

 

 

 

 

14,484

Other Process Industries

 

4,722

 

 

4,014

 

 

38

 

 

 

 

 

8,774

Infrastructure, Research & Engineering

 

5,285

 

 

3,610

 

 

1,674

 

 

 

 

 

10,569

Petrochemical

 

3,694

 

 

15

 

 

 

 

 

 

 

3,709

Other

 

6,206

 

 

2,875

 

 

1,071

 

 

(4,617

)

 

 

5,535

Total

$

160,609

 

$

35,521

 

$

4,036

 

$

(4,617

)

 

$

195,549


Three Months Ended September 30, 2024

North America

 

International

 

Products & Systems

 

Corp/Elim

 

Total

Oil & Gas

$

90,460

 

$

9,040

 

$

3

 

$

 

 

$

99,503

Aerospace & Defense

 

16,181

 

 

5,663

 

 

42

 

 

 

 

 

21,886

Industrials

 

12,285

 

 

6,749

 

 

478

 

 

 

 

 

19,512

Power Generation & Transmission

 

8,029

 

 

3,081

 

 

544

 

 

 

 

 

11,654

Other Process Industries

 

7,836

 

 

3,900

 

 

79

 

 

 

 

 

11,815

Infrastructure, Research & Engineering

 

5,189

 

 

2,744

 

 

797

 

 

 

 

 

8,730

Petrochemical

 

3,806

 

 

198

 

 

 

 

 

 

 

4,004

Other

 

6,059

 

 

2,287

 

 

1,333

 

 

(4,089

)

 

 

5,590

Total

$

149,845

 

$

33,662

 

$

3,276

 

$

(4,089

)

 

$

182,694


Nine Months Ended September 30, 2025

North America

 

International

 

Products & Systems

 

Corp/Elim

 

Total

Oil & Gas

$

275,849

 

$

28,714

 

$

486

 

$

 

 

$

305,049

Aerospace & Defense

 

48,530

 

 

19,690

 

 

393

 

 

 

 

 

68,613

Industrials

 

38,804

 

 

20,887

 

 

1,085

 

 

 

 

 

60,776

Power Generation & Transmission

 

22,618

 

 

6,796

 

 

1,516

 

 

 

 

 

30,930

Other Process Industries

 

17,100

 

 

12,930

 

 

46

 

 

 

 

 

30,076

Infrastructure, Research & Engineering

 

12,447

 

 

10,192

 

 

3,211

 

 

 

 

 

25,850

Petrochemical

 

9,329

 

 

126

 

 

 

 

 

 

 

9,455

Other

 

12,826

 

 

8,477

 

 

3,130

 

 

(12,613

)

 

 

11,820

Total

$

437,503

 

$

107,812

 

$

9,867

 

$

(12,613

)

 

$

542,569


Nine Months Ended September 30, 2024

North America

 

International

 

Products & Systems

 

Corp/Elim

 

Total

Oil & Gas

$

289,843

 

$

31,841

 

$

240

 

$

 

 

$

321,924

Aerospace & Defense

 

48,152

 

 

18,092

 

 

100

 

 

 

 

 

66,344

Industrials

 

33,047

 

 

18,480

 

 

1,478

 

 

 

 

 

53,005

Power Generation & Transmission

 

18,953

 

 

6,017

 

 

1,569

 

 

 

 

 

26,539

Other Process Industries

 

26,132

 

 

12,337

 

 

155

 

 

 

 

 

38,624

Infrastructure, Research & Engineering

 

14,286

 

 

7,762

 

 

1,901

 

 

 

 

 

23,949

Petrochemical

 

11,467

 

 

900

 

 

 

 

 

 

 

12,367

Other

 

14,708

 

 

5,543

 

 

4,417

 

 

(10,511

)

 

 

14,157

Total

$

456,588

 

$

100,972

 

$

9,860

 

$

(10,511

)

 

$

556,909


Consolidated Revenue by type was as follows:

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2025

 

2024

 

2025

 

2024

Revenue by type

 

 

 

 

 

 

 

Field Services

$

125,873

 

$

127,246

 

$

359,532

 

$

388,129

Laboratories

 

16,838

 

 

15,014

 

 

47,549

 

 

49,147

Data Analytical Solutions

 

19,600

 

 

17,876

 

 

51,911

 

 

51,757

Other

 

33,238

 

 

22,558

 

 

83,577

 

 

67,876

Total

$

195,549

 

$

182,694

 

$

542,569

 

$

556,909


Mistras Group, Inc. and Subsidiaries
Unaudited Reconciliation of Segment and Total Company Income (Loss) from Operations (GAAP) to
Income (Loss) from Operations before Special Items (non-GAAP)
(in thousands)

 

Three months ended September 30,

 

Nine months ended September 30,

 

2025

 

2024

 

2025

 

2024

North America:

 

 

 

 

 

 

 

Income from operations (GAAP)

$

22,753

 

 

$

17,455

 

 

$

46,026

 

 

$

49,742

 

Reorganization and other costs

 

283

 

 

 

835

 

 

 

2,754

 

 

 

927

 

Legal settlement and insurance recoveries, net

 

 

 

 

(868

)

 

 

 

 

 

(808

)

Income from operations before special items (non-GAAP)

$

23,036

 

 

$

17,422

 

 

$

48,780

 

 

$

49,861

 

International:

 

 

 

 

 

 

 

Income from operations (GAAP)

$

3,838

 

 

$

1,778

 

 

$

8,923

 

 

$

4,548

 

Reorganization and other costs

 

171

 

 

 

147

 

 

 

441

 

 

 

410

 

Income from operations before special items (non-GAAP)

$

4,009

 

 

$

1,925

 

 

$

9,364

 

 

$

4,958

 

Products and Systems:

 

 

 

 

 

 

 

Income from operations (GAAP)

$

1,051

 

 

$

670

 

 

$

1,714

 

 

$

1,479

 

Reorganization and other costs

 

 

 

 

182

 

 

 

151

 

 

 

184

 

Income from operations before special items (non-GAAP)

$

1,051

 

 

$

852

 

 

$

1,865

 

 

$

1,663

 

Corporate and Eliminations:

 

 

 

 

 

 

 

Loss from operations (GAAP)

$

(7,261

)

 

$

(8,045

)

 

$

(28,866

)

 

$

(26,401

)

Environmental expense

 

199

 

 

 

 

 

 

1,257

 

 

 

 

Reorganization and other costs

 

1,310

 

 

 

979

 

 

 

4,456

 

 

 

2,698

 

Loss from operations before special items (non-GAAP)

$

(5,752

)

 

$

(7,066

)

 

$

(23,153

)

 

$

(23,703

)

Total Company:

 

 

 

 

 

 

 

Income from operations (GAAP)

$

20,381

 

 

$

11,858

 

 

$

27,797

 

 

$

29,368

 

Environmental expense

 

199

 

 

 

 

 

 

1,257

 

 

 

 

Reorganization and other costs

 

1,764

 

 

 

2,143

 

 

 

7,802

 

 

 

4,219

 

Legal settlement and insurance recoveries, net

 

 

 

 

(868

)

 

 

 

 

 

(808

)

Income from operations before special items (non-GAAP)

$

22,344

 

 

$

13,133

 

 

$

36,856

 

 

$

32,779

 


Mistras Group, Inc. and Subsidiaries
Unaudited Summary Cash Flow Information
(in thousands)

 

Three months ended September 30,

 

Nine months ended September 30,

 

2025

 

2024

 

2025

 

2024

Net cash provided by (used in):

 

 

 

 

 

 

 

Operating activities

$

4,462

 

 

$

19,356

 

 

$

843

 

 

$

24,471

 

Investing activities

 

(7,548

)

 

 

(5,935

)

 

 

(18,964

)

 

 

(17,152

)

Financing activities

 

11,306

 

 

 

(11,508

)

 

 

26,216

 

 

 

(6,247

)

Effect of exchange rate changes on cash

 

(372

)

 

 

1,270

 

 

 

1,393

 

 

 

1,642

 

Net change in cash and cash equivalents

$

7,848

 

 

$

3,183

 

 

$

9,488

 

 

$

2,714

 


Mistras Group, Inc. and Subsidiaries
Unaudited Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP)
(in thousands)

 

Three months ended September 30,

 

Nine months ended September 30,

 

2025

 

2024

 

2025

 

2024

Net cash provided by operating activities (GAAP)

$

4,462

 

 

$

19,356

 

 

$

843

 

 

$

24,471

 

Less:

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

(8,532

)

 

 

(4,716

)

 

 

(18,534

)

 

 

(14,315

)

Purchases of intangible assets

 

(874

)

 

 

(1,428

)

 

 

(3,166

)

 

 

(3,832

)

Free cash flow (non-GAAP)

$

(4,944

)

 

$

13,212

 

 

$

(20,857

)

 

$

6,324

 


Mistras Group, Inc. and Subsidiaries
Unaudited Reconciliation of Gross Debt (GAAP) to Net Debt (non-GAAP)
(in thousands)

 

 

September 30, 2025

 

December 31, 2024

Current portion of long-term debt

 

$

13,035

 

 

$

11,591

 

Long-term debt, net of current portion

 

 

189,235

 

 

 

158,056

 

Total Debt (Gross)

 

 

202,270

 

 

 

169,647

 

Less: Cash and cash equivalents

 

 

(27,805

)

 

 

(18,317

)

Total Debt (Net)

 

$

174,465

 

 

$

151,330

 


Mistras Group, Inc. and Subsidiaries
Unaudited Reconciliation of Net Income (GAAP) to Adjusted EBITDA (non-GAAP)
(in thousands)

 

Three months ended September 30,

 

Nine months ended September 30,

 

2025

 

2024

 

2025

 

2024

 

 

 

 

 

 

Net income (GAAP)

$

13,203

 

 

$

6,416

 

 

$

13,161

 

$

13,793

 

Less: Net income attributable to non-controlling interests, net of taxes

 

95

 

 

 

15

 

 

 

222

 

 

28

 

Net income attributable to Mistras Group, Inc.

$

13,108

 

 

$

6,401

 

 

$

12,939

 

$

13,765

 

Interest expense

 

3,381

 

 

 

4,303

 

 

 

10,944

 

 

13,145

 

Income tax (benefit)/expense

 

3,797

 

 

 

2,618

 

 

 

3,692

 

 

3,909

 

Depreciation and amortization

 

7,691

 

 

 

8,056

 

 

 

23,161

 

 

24,726

 

Share-based compensation expense(1)

 

969

 

 

 

1,350

 

 

 

4,098

 

 

4,114

 

Other income

 

 

 

 

(1,479

)

 

 

 

 

(1,479

)

Reorganization and other related costs(1)

 

1,764

 

 

 

2,143

 

 

 

7,802

 

 

4,219

 

Environmental expense

 

199

 

 

 

 

 

 

1,257

 

 

 

Legal settlement and insurance recoveries, net

 

 

 

 

(868

)

 

 

 

 

(808

)

Foreign exchange loss (gain)

 

(735

)

 

 

765

 

 

 

2,420

 

 

(23

)

Adjusted EBITDA (non-GAAP)

$

30,174

 

 

$

23,289

 

 

$

66,313

 

$

61,568

 

_______________
(1) For the three months ended September 30, 2025, the Company recognized share-based compensation expense within Reorganization and other costs of $0.5 million. For the nine months ended September 30, 2025, the Company recognized share-based compensation expense within Reorganization and other costs of $2.0 million.


Mistras Group, Inc. and Subsidiaries
Unaudited Reconciliation of Net Income (GAAP) and Diluted EPS (GAAP) to
Net Income Excluding Special Items (non-GAAP) and Diluted EPS Excluding Special Items (non-GAAP)
(tabular dollars in thousands, except per share data)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2025

 

2024

 

2025

 

2024

Net income attributable to Mistras Group, Inc. (GAAP)

$

13,108

 

 

$

6,401

 

 

$

12,939

 

 

$

13,765

 

Special items

 

1,963

 

 

 

(204

)

 

 

9,059

 

 

 

1,932

 

Tax impact on special items

 

(462

)

 

 

58

 

 

 

(1,963

)

 

 

(463

)

Special items, net of tax

$

1,501

 

 

$

(146

)

 

$

7,096

 

 

$

1,469

 

Net income attributable to Mistras Group, Inc. Excluding Special Items (non-GAAP)

$

14,609

 

 

$

6,255

 

 

$

20,035

 

 

$

15,234

 

 

 

 

 

 

 

 

 

Diluted EPS (GAAP)(1)

$

0.41

 

 

$

0.20

 

 

$

0.41

 

 

$

0.44

 

Special items, net of tax

 

0.05

 

 

 

 

 

 

0.22

 

 

 

0.05

 

Diluted EPS Excluding Special Items (non-GAAP)

$

0.46

 

 

$

0.20

 

 

$

0.63

 

 

$

0.49

 

_______________
(1) For the three months ended September 30, 2025, 388,000 shares, related to stock options and 165,000 shares, related to restricted stock units ("RSUs") were anti-dilutive and therefore were excluded from the calculation of diluted earnings per share. For the nine months ended September 30, 2025, 379,000 shares, related to stock options and 227,000 shares, related to RSUs were anti-dilutive and therefore were excluded from the calculation of diluted earnings per share.