Matrix Service Company · NASDAQ:MTRX

Matrix Service — Q4 2024 Earnings Presentation

24 slides from Matrix Service's earnings presentation, Sep 10, 2024

  1. Slide 1: FY24 Q4 Earnings Call

    FY24 Q4 EARNINGS CALL 1

  2. Slide 2: Safe Harbor

    SAFE HARBOR This presentation contains certain forward-looking statements concerning Matrix Service Company’s operations, economic performance and management’s best judgment as to what may occur in the future. The actual results for the current and future periods and other corporate developments wil

  3. Slide 3: Investor Conferences and Corporate Access Opportunities

    INVESTOR CONFERENCES AND CORPORATE ACCESS OPPORTUNITIES SEPTEMBER 18-20, 2024 D. A. Davidson 23 rd Annual Diversified Industrials & Services Conference Nashville, Tennessee CONTACT Kellie Smythe, Senior Director of Investor Relations ir@matrixservicecompany.com 3

  4. Slide 4: 4

    4

  5. Slide 5: FY 2024 | An Important Inflection Point

    FY 2024 | AN IMPORTANT INFLECTION POINT BACKLOG $1,430M PROJECT AWARDS OPPORTUNITY PIPELINE $1,091M $798M $271M $104M $1.1B $3.2B $1.2B $460M $804M 1.5x Book-to-Bill $182M 52% $6.1B 20% $380M $1.7B $360M 28% $252M Data is as of 06/30/24 and includes projects that have been or are expected to be bid

  6. Slide 6: Global Megatrends Are Driving Significant Infrastructure Demand

    GLOBAL MEGATRENDS ARE DRIVING SIGNIFICANT INFRASTRUCTURE DEMAND PROVIDING LONG RUNWAY AND MULTI-BILLION DOLLAR PROJECT OPPORTUNITY PIPELINE GLOBAL MEGATRENDS LOW CARBON / ENERGY GLOBAL DEMAND SYSTEM RELIABILITY GEOPOLITICAL CLEAN ENERGY SUPPLY FOR LOW-COST AND RESILIENCE INSTABILITY TRANSITION ASSUR

  7. Slide 7: Opportunity Pipeline

    OPPORTUNITY PIPELINE Our opportunity pipeline demonstrates the strength $3.2B $1.2B $6.1B of our end-markets and our ability to continue a 52% 20% long-term trend of backlog growth and an expected annual book-to-bill ratio of 1.0x or greater. $1.7B Data is as of 06/30/24 and includes projects that h

  8. Slide 8: Backlog and Revenue

    BACKLOG AND REVENUE $1,429 $1,429 $ in millions FY 2025 REVENUE $1,098 $1,101 $1,090 $1,090 GUIDANCE AS OF SEPTEMBER 9, 2024 $795 $900-$950M $758 $758 $708 $673 $728 24-30% GROWTH $589 $589 OVER FY 2024 $463 $463 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 EXTERNAL MARKET FACTORS GLOBAL PANDEMIC (OFFI

  9. Slide 9: Quarterly Results | Consolidated

    QUARTERLY RESULTS | CONSOLIDATED (In thousands except %) FY2024, Q4 FY2024, Q3 • Consolidated revenue improved by 14% from the Revenue $ 189,499 $ 166,013 prior quarter Gross Profit 12,447 5,578 • Gross margin of 6.6% was impacted by over 400 Gross Margin 6.6% 3.4% basis points as a result of under-

  10. Slide 10: Quarterly Results | Storage and Terminal Solutions

    QUARTERLY RESULTS | STORAGE AND TERMINAL SOLUTIONS (In thousands except %) FY2024, Q4 FY2024, Q3 • Revenue increased 30% to $70 million from the Revenue $ 69,992 $ 54,304 prior quarter as work began on previously awarded specialty vessel projects. Gross Profit 2,193 2,313 Gross Margin 3.1% 4.3% • Gr

  11. Slide 11: Quarterly Results | Utility and Power Infrastructure

    QUARTERLY RESULTS | UTILITY AND POWER INFRASTRUCTURE (In thousands except %) FY2024, Q4 FY2024, Q3 • Revenue increased over 40% to $65M as from the Revenue $ 65,261 $ 46,120 prior period, driven by increased activity on previously awarded peak shaver projects. Gross Profit 2,712 1,409 Gross Margin 4

  12. Slide 12: Quarterly Results | Process and Industrial Facilities

    QUARTERLY RESULTS | PROCESS AND INDUSTRIAL FACILITIES (In thousands except %) FY2024, Q4 FY2024, Q3 • Revenue decreased 18% to $54 million from the prior Revenue $ 54,246 $ 65,589 quarter and is expected to be substantially lower over the next couple of quarters due to seasonality, timing Gross Prof

  13. Slide 13: Fiscal Year 2024, Q4 Cash and Liquidity

    FISCAL YEAR 2024, Q4 ($ in millions) • Cash increased $46 million during the quarter as operating activities produced $47 million of cash. • Liquidity increased $34.5 million in the quarter primarily from the positive cash generation. o Borrowing capacity under the credit facility fluctuates month-t

  14. Slide 14: Fiscal 2024 | Year in Review

    FISCAL 2024 | YEAR IN REVIEW • Backlog increased 31% on $1.1 billion in awards. • The issue for margin performance in fiscal 2024 revenue was impacted by recovery of construction • This current backlog of $1.4 billion supports our 10 to overheads, which impacted gross margins by almost 12 percent co

  15. Slide 15: The Matrix Opportunity

    THE MATRIX OPPORTUNITY KEY LONG-TERM FY 2025 REVENUE GUIDANCE FINANCIAL TARGETS* AS OF SEPTEMBER 9, 2024 $900-$950M < 6% < 6.5% 24-30% GROWTH Net working capital SG&A margin target OVER FY 2024 > 4.5% > 12% The combination of revenue growth, together with Operating margin ROIC target target continue

  16. Slide 16: Q&A

    Q&A 16

  17. Slide 17: Investor Conferences and Corporate Access Opportunities

    INVESTOR CONFERENCES AND CORPORATE ACCESS OPPORTUNITIES SEPTEMBER 18-20, 2024 D. A. Davidson 23 rd Annual Diversified Industrials & Services Conference Nashville, Tennessee CONTACT Kellie Smythe, Senior Director of Investor Relations ir@matrixservicecompany.com 17

  18. Slide 18: Appendix

    APPENDIX 18

  19. Slide 19: Adjusted Net Income (Loss)

    ADJUSTED NET INCOME (LOSS) (In thousands except per share amounts) FY2023, Q1 FY2023, Q2 FY2023, Q3 FY2023, Q4 FY2024, Q1 FY2024, Q2 FY2024, Q3 FY2024, Q4 Net Income (Loss), as reported $ (6,512) $ (32,827) $ (12,686) $ (336) $ (3,167) $ (2,851) $ (14,581) $ (4,377) Restructuring costs 1,287 1,278 3

  20. Slide 20: Adjusted EBITDA

    ADJUSTED EBITDA (In thousands) FY2023, Q1 FY2023, Q2 FY2023, Q3 FY2023, Q4 FY2024, Q1 FY2024, Q2 FY2024, Q3 FY2024, Q4 Net Income (Loss), as reported $ (6,512) $ (32,827) $ (12,686) $ (336) $ (3,167) $ (2,851) $ (14,581) $ (4,377) Restructuring costs 1,287 1,278 316 261 _ _ _ 501 Goodwill impairment

  21. Slide 21: Quarterly Results | Consolidated

    QUARTERLY RESULTS | CONSOLIDATED (In thousands except %) FY2024, Q4 FY2023, Q4 YTD 4Q24 YTD 4Q23 Revenue $ 189,499 $ 205,854 $ 728,213 $ 795,020 Gross Profit 12,447 14,695 40,473 30,820 Gross Margin 6.6% 7.1% 5.6% 3.9% SG&A Expense 17,293 17,031 70,085 68,249 Operating Income (Loss) (5,347) (2,597)

  22. Slide 22: Quarterly Results | Storage & Terminal Solutions

    QUARTERLY RESULTS | STORAGE & TERMINAL SOLUTIONS (In thousands except %) FY2024, Q4 FY2023, Q4 YTD 4Q24 YTD 4Q23 Revenue $ 69,992 $ 64,079 $ 276,800 $ 255,693 Gross Profit (Loss) 2,193 2,067 11,297 10,470 Gross Margin 3.1% 3.2% 4.1% 4.1% SG&A Expense 5,461 4,712 19,823 20,054 Operating Income (Loss)

  23. Slide 23: Quarterly Results | Utility & Power Infrastructure

    QUARTERLY RESULTS | UTILITY & POWER INFRASTRUCTURE (In thousands except %) FY2024, Q4 FY2023, Q4 YTD 4Q24 YTD 4Q23 Revenue $ 65,261 $ 39,075 $ 183,920 $ 169,504 Gross Profit 2,712 3,770 9,232 10,699 Gross Margin 4.2% 9.6% 5.0% 6.3% SG&A Expense 2,585 1,651 8,844 7,045 Operating Income (Loss) 75 2,11

  24. Slide 24: Quarterly Results | Process & Industrial Facilities

    QUARTERLY RESULTS | PROCESS & INDUSTRIAL FACILITIES (In thousands except %) FY 2024, Q4 FY2023, Q4 YTD 4Q24 YTD 4Q23 Revenue $ 54,246 $ 102,700 $ 266,260 $ 369,823 Gross Profit 8,336 8,397 21,852 10,756 Gross Margin 15.4% 8.2% 8.2% 2.9% SG&A Expense 2,470 3,601 10,354 14,909 Operating Income (Loss)

Matrix Service Company — Q4 2024 Earnings Presentation on 6ix