Mistras Group IncNYSE: MG

MISTRAS Announces Second Quarter and First Half 2025 Results

· Issued by Mistras Group Inc via GlobeNewswire

Robust Quarterly Organic Revenue Growth in Aerospace & Defense and Industrial Markets, with a Significant Expansion in quarter-over-quarter Gross Profit Margin of 200 basis points, Generating Net Income of $3.0 million, and Achieving Adjusted EBITDA of $24.1 million for the Second Quarter of 2025

PRINCETON JUNCTION, N.J., Aug. 06, 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 second quarter and six months ended June 30, 2025.

Second Quarter 2025 Key Figures*

  • Revenue of $185.4 million, a decrease of 2.3%, yet flat giving effect to the exclusion of voluntary Laboratory consolidations

  • Gross profit of $53.9 million, up 5.1% or $2.6 million from $51.3 million, primarily due to an improved business mix and operating efficiencies; Gross profit margin of 29.1% as compared to 27.1%, an expansion of 200 basis points

  • Selling, general, and administrative (“SG&A”) expenses of $39.8 million, up 10.0% or $3.6 million from $36.2 million, primarily due to foreign exchange loss of $2.8 million

  • Net income of $3.0 million and Earnings Per Diluted Share of $0.10; Net Income Excluding Special Items (Non-GAAP) of $5.8 million and Diluted Earnings Per Share Excluding Special Items (Non-GAAP) of $0.19

  • All-time highest second quarter Adjusted EBITDA of $24.1 million, compared to $22.1 million, an increase of 8.9%; Adjusted EBITDA margin of 13.0% as compared to 11.7%, an expansion of 130 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 (loss) 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.

Second Quarter and First Half 2025 Additional Detailed Highlights:
Second Quarter results reflect the reclassification of certain overhead and personnel expenses in the Unaudited Condensed Consolidated Statements of Income (Loss), from SG&A to cost of revenue, as the Company determined this reclassification provides greater transparency regarding the true cost of the Company’s revenue, and aligns with how the Company's business is managed. These overhead and personnel expenses, which were determined to be directly related to the Company’s delivery of services, are generally variable to revenue being recognized, and results in gross profit that fully encompasses all costs necessary to generate such revenue. The reclassification recorded within the financials was $4.8 million and $9.7 million for the three and six month periods ended June 30, 2024, respectively. The impact of the reclassification of these costs from SG&A to cost of revenue for full year 2024 was approximately $20.9 million. This reclassification of overhead and personnel expenses had no impact on Operating Income, Net Income or Adjusted EBITDA comparability.

The Company recorded $3.0 million of reorganization and other costs in the second quarter of 2025 related to the Company’s continuing initiative to reduce and recalibrate overhead costs, in addition to incremental costs of other related actions.

Net income was $3.0 million in the second quarter, or $0.10 per diluted share, as compared to net income of $6.4 million, or $0.20 per diluted share in the prior year comparable period. Second quarter net income excluding special items (non-GAAP), was $5.8 million, or $0.19 per diluted share, as compared to net income excluding special items (non-GAAP) of $6.8 million, or $0.21 per diluted share, in the prior year comparable period.

In the first half of 2025, net cash used in operating activities was $3.5 million, a decrease from $5.1 million of net cash provided by operating activities in the prior year period, largely due to an increase in days sales outstanding and working capital timing. Specifically, in the second quarter of 2025, the Company had a buildup in unbilled accounts receivable and a delay in invoicing related to its conversion to a new enterprise resource planning (ERP) system effective as of April 1, 2025. Although unbilled and billed accounts receivable balances increased significantly during the period ended June 30, 2025 related to this ERP implementation, the Company expects a reduction in these balances over the remainder of the year.

Free cash flow (non-GAAP) was negative $16.2 million in the first half of 2025, compared to negative $6.9 million in the prior year comparable period, attributable to the same factors impacting the Company's operating cash flow. On a trailing twelve month basis, which better normalizes year-over-year differences, net cash provided by operating activities was $41.6 million and free cash flow was $17.8 million, despite the first half 2025 year-over-year lagging results, compared to the prior year period. The Company expects free cash flow to normalize in the coming quarters and remains committed to strong free cash flow generation over the second half of 2025.

The Company’s gross debt was $189.4 million as of June 30, 2025, compared to $169.6 million as of December 31, 2024 and $171.9 million as of March 31, 2025. The increase in gross debt during the period was attributable to the impacts to cash flow described above. The Company’s net debt, a non-GAAP financial measure, was $168.8 million as of June 30, 2025.

The Company’s trailing 12-month total consolidated debt leverage ratio as defined in the Company's credit agreement was just under 2.75 to 1.0 as of June 30, 2025, which was up slightly from December 31, 2024, but still well within the total consolidated debt leverage ratio of 3.75 to 1.0 required under the credit agreement. The Company expects to end fiscal 2025 with a total consolidated debt leverage ratio below 2.50 to 1.0.

Natalia Shuman, President and Chief Executive Officer commented:
“I am very pleased to report our second quarter performance, which resulted in a record Adjusted EBITDA of $24.1 million, up 8.9% year-over-year, reflecting significant improvement in our operating leverage as a result of our strategic initiatives. As we re-tool, re-shape and re-invigorate our business, we have taken many decisive steps to enhance profitability and sharpen our focus. This reflects the strength of our operating model, disciplined cost management, and continued focus on driving efficiencies across the business. These second quarter results demonstrated our ability to deliver value despite market volatility, positioning us well to restart our growth engine. We have adjusted our Company’s organizational structure, delayered the organization, reinforced performance management at each of our labs, and implemented clear key performance indicators (KPIs) which we are using to continuously manage and control our costs. These are not just short-term cost calibrations, they are structural improvements designed to improve and expand decision making capacity, reinforce operational organization and help ensure operating leverage through all business cycles.”

Ms. Shuman continued, “As the market continues to evolve, we are focused on aligning our capabilities to meet increasing demand for more integrated, agile, and data-enabled solutions. By combining advanced technologies with deep operational expertise, we are positioning MISTRAS to lead in high-growth sectors and provide critical support where reliability, safety, and performance matter most.”

2025 Outlook
The Company is not providing full year guidance for fiscal 2025, as the CEO and renewed senior management team are still reviewing the Company’s entire portfolio of businesses. The Company is also continuously assessing market volatility, including the impact of changes in U.S. trade policies, the imposition of tariffs and related retaliatory tariffs, on its business and results for fiscal 2025. Nevertheless, the Company expects its 2025 Adjusted EBITDA to exceed the Adjusted EBITDA level in 2024, which had been the second highest annual level achieved all-time.

Conference Call
In connection with this release, MISTRAS will hold a conference call on August 7, 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 may pre-register at: https://investors.mistrasgroup.com/events/event-details/fiscal-2025-q2-earnings-call. 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 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, the impacts of foreign currency exchange risks, the impacts of our new ERP implementation, including the reduction and normalization of our accounts receivable balances, and recently announced tariffs and retaliatory tariffs and changes to U.S. trade policy on our business and financial results, and additional operational and strategic actions, such as the implementation of KPIs, that we have taken or expect or seek to take in furtherance of our strategies and activities to reduce overhead and related costs and enhance our financial results and future growth. 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, 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 terms “free cash flow” and "trailing twelve months free cash flow," non-GAAP financial measures. The Company defines "free cash flow" as cash provided by operating activities less capital expenditures (which is classified as an investing activity). For the term “trailing twelve months free cash flow,” the Company aggregates cash provided by operating activities for the trailing twelve-month period ended June 30, 2025 and subtracts aggregated capital expenditures over the same trailing twelve month period. 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. 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 Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)

June 30, 2025

December 31, 2024

ASSETS

(unaudited)

Current Assets

Cash and cash equivalents

$

20,602

$

18,317

Accounts receivable, net

159,823

127,281

Inventories

15,118

14,485

Prepaid expenses and other current assets

18,409

12,387

Total current assets

213,952

172,470

Property, plant and equipment, net

85,909

80,892

Intangible assets, net

39,571

39,708

Goodwill

185,125

181,442

Deferred income taxes

6,693

6,267

Other assets

39,793

42,259

Total assets

$

571,043

$

523,038

LIABILITIES AND EQUITY

Current Liabilities

Accounts payable

$

18,238

$

11,128

Accrued expenses and other current liabilities

90,482

85,233

Current portion of long-term debt

13,069

11,591

Current portion of finance lease obligations

5,677

5,317

Income taxes payable

1,028

1,656

Total current liabilities

128,494

114,925

Long-term debt, net of current portion

176,345

158,056

Obligations under finance leases, net of current portion

15,894

15,162

Deferred income taxes

2,216

1,973

Other long-term liabilities

31,919

34,027

Total liabilities

354,868

324,143

Commitments and contingencies

Equity

Preferred stock, 10,000,000 shares authorized

—

—

Common stock, $0.01 par value, 200,000,000 shares authorized, 31,538,050 and 31,010,375 shares issued and outstanding

465

402

Additional paid-in capital

253,879

250,832

Accumulated deficit

(10,153

)

(9,984

)

Accumulated other comprehensive loss

(28,343

)

(42,682

)

Total Mistras Group, Inc. stockholders’ equity

215,848

198,568

Noncontrolling interests

327

327

Total equity

216,175

198,895

Total liabilities and equity

$

571,043

$

523,038

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

Three months ended June 30,

Six months ended June 30,

2025

2024

2025

2024

Revenue

$

185,405

$

189,773

$

347,020

$

374,215

Cost of revenue

125,739

132,536

241,025

264,892

Depreciation

5,721

5,897

11,158

11,831

Gross profit

53,945

51,340

94,837

97,492

Selling, general and administrative expenses

39,793

36,181

75,445

72,431

Reorganization and other costs

2,951

518

6,038

2,076

Environmental expense

518

—

1,058

—

Legal settlement and insurance recoveries, net

—

60

—

60

Research and engineering

269

231

568

575

Depreciation and amortization

1,986

2,391

4,312

4,839

Income from operations

8,428

11,959

7,416

17,511

Interest expense

4,239

4,413

7,563

8,842

Income (loss) before provision (benefit) for income taxes

4,189

7,546

(147

)

8,669

Provision (benefit) for income taxes

1,063

1,173

(105

)

1,292

Net income (loss)

3,126

6,373

(42

)

7,377

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

109

4

127

13

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

$

3,017

$

6,369

$

(169

)

$

7,364

Net income (loss) per common share

Basic

$

0.10

$

0.21

$

—

$

0.24

Diluted

$

0.10

$

0.20

$

—

$

0.23

Weighted-average common shares outstanding:

Basic

31,439

30,979

31,268

30,842

Diluted

31,693

31,293

31,268

31,358

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

Three months ended June 30,

Six months ended June 30,

2025

2024

2025

2024

Revenue

North America

$

147,992

$

156,394

$

276,894

$

306,743

International

39,077

34,264

72,291

67,311

Products and Systems

2,740

3,373

5,831

6,583

Corporate and eliminations

(4,404

)

(4,258

)

(7,996

)

(6,422

)

Total

$

185,405

$

189,773

$

347,020

$

374,215

Three months ended June 30,

Six months ended June 30,

2025

2024

2025

2024

Gross profit

North America

$

40,384

$

39,874

$

70,549

$

75,250

International

12,270

9,890

21,358

19,157

Products and Systems

1,337

1,555

2,960

3,036

Corporate and eliminations

(46

)

21

(30

)

49

$

53,945

$

51,340

$

94,837

$

97,492

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

Revenue by industry was as follows:

Three Months Ended June 30, 2025

North America

International

Products & Systems

Corp/Elim

Total

Oil & Gas

$

92,634

$

9,943

$

239

$

—

$

102,816

Aerospace & Defense

16,848

7,014

140

—

24,002

Industrials

11,647

7,597

360

—

19,604

Power Generation & Transmission

9,320

2,097

376

—

11,793

Other Process Industries

5,877

5,172

—

—

11,049

Infrastructure, Research & Engineering

3,461

4,020

579

—

8,060

Petrochemical

3,112

1

—

—

3,113

Other

5,091

3,234

1,046

(4,404

)

4,967

Total

$

147,992

$

39,077

$

2,740

$

(4,404

)

$

185,405

Three Months Ended June 30, 2024

North America

International

Products & Systems

Corp/Elim

Total

Oil & Gas

$

96,356

$

12,735

$

165

$

—

$

109,256

Aerospace & Defense

16,596

5,697

47

—

22,340

Industrials

11,853

5,878

563

—

18,294

Power Generation & Transmission

7,332

1,254

447

—

9,033

Other Process Industries

10,368

4,504

37

—

14,909

Infrastructure, Research & Engineering

5,125

2,813

695

—

8,633

Petrochemical

3,848

171

—

—

4,019

Other

4,916

1,212

1,419

(4,258

)

3,289

Total

$

156,394

$

34,264

$

3,373

$

(4,258

)

$

189,773

Six Months Ended June 30, 2025

North America

International

Products & Systems

Corp/Elim

Total

Oil & Gas

$

178,365

$

20,589

$

426

$

—

$

199,380

Aerospace & Defense

30,855

13,295

256

—

44,406

Industrials

23,335

14,114

725

—

38,174

Power Generation & Transmission

12,544

3,082

820

—

16,446

Other Process Industries

12,378

8,916

8

—

21,302

Infrastructure, Research & Engineering

7,162

6,582

1,537

—

15,281

Petrochemical

5,635

111

—

—

5,746

Other

6,620

5,602

2,059

(7,996

)

6,285

Total

$

276,894

$

72,291

$

5,831

$

(7,996

)

$

347,020

Six Months Ended June 30, 2024

North America

International

Products & Systems

Corp/Elim

Total

Oil & Gas

$

199,383

$

22,801

$

237

$

—

$

222,421

Aerospace & Defense

31,971

12,429

58

—

44,458

Industrials

20,762

11,731

1,000

—

33,493

Power Generation & Transmission

10,924

2,936

1,025

—

14,885

Other Process Industries

18,296

8,437

76

—

26,809

Infrastructure, Research & Engineering

9,097

5,018

1,104

—

15,219

Petrochemical

7,661

702

—

—

8,363

Other

8,649

3,257

3,083

(6,422

)

8,567

Total

$

306,743

$

67,311

$

6,583

$

(6,422

)

$

374,215

The Company has retrospectively reclassified certain Oil and Gas sub-category revenues for the periods shown below in order to conform the classification with the current period presentation. Total Oil and Gas sub-category revenues were unchanged in total.

2024 Quarterly Revenues

Three months ended
March 31,

Three months ended
June 30,

Three months ended
September 30,

Three months ended
December 31,

Oil and Gas Revenue by sub-category

Upstream

$

39,514

$

41,013

$

40,756

$

36,753

Midstream

18,533

20,786

20,790

20,033

Downstream

55,118

47,457

37,957

40,212

Total

$

113,165

$

109,256

$

99,503

$

96,998

2025 Quarterly Revenues

Three months ended March 31,

Oil and Gas Revenue by sub-category

Upstream

$

36,820

Midstream

15,341

Downstream

44,403

Total

$

96,564

Three Months Ended June 30,

Six Months Ended June 30,

2025

2024

2025

2024

Oil and Gas Revenue by sub-category

Upstream

$

38,180

$

41,013

$

75,000

$

80,527

Midstream

18,575

20,786

33,916

39,319

Downstream

46,061

47,457

90,464

102,575

Total

$

102,816

$

109,256

$

199,380

$

222,421

Consolidated Revenue by type was as follows:

Three Months Ended June 30,

Six Months Ended June 30,

2025

2024

2025

2024

Revenue by type

Field Services

$

123,484

$

134,528

$

233,659

$

260,883

Shop Laboratories

15,682

16,938

30,711

34,133

Data Analytical Solutions

18,330

18,342

32,311

33,881

Other

27,909

19,965

50,339

45,318

Total

$

185,405

$

189,773

$

347,020

$

374,215

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 June 30,

Six months ended June 30,

2025

2024

2025

2024

North America:

Income from operations (GAAP)

$

16,758

$

18,727

$

23,273

$

32,287

Reorganization and other costs

1,113

92

2,471

92

Legal settlement and insurance recoveries, net

—

60

—

60

Income from operations before special items (non-GAAP)

$

17,871

$

18,879

$

25,744

$

32,439

International:

Income from operations (GAAP)

$

4,004

$

1,647

$

5,085

$

2,771

Reorganization and other costs

92

161

270

263

Income from operations before special items (non-GAAP)

$

4,096

$

1,808

$

5,355

$

3,034

Products and Systems:

Income from operations (GAAP)

$

336

$

495

$

663

$

809

Reorganization and other costs

—

—

151

2

Income from operations before special items (non-GAAP)

$

336

$

495

$

814

$

811

Corporate and Eliminations:

Loss from operations (GAAP)

$

(12,670

)

$

(8,910

)

$

(21,605

)

$

(18,356

)

Environmental expense

518

—

1,058

—

Reorganization and other costs

1,746

265

3,146

1,719

Loss from operations before special items (non-GAAP)

$

(10,406

)

$

(8,645

)

$

(17,401

)

$

(16,637

)

Total Company:

Income from operations (GAAP)

$

8,428

$

11,959

$

7,416

$

17,511

Environmental expense

518

—

1,058

—

Reorganization and other costs

2,951

518

6,038

2,076

Legal settlement and insurance recoveries, net

—

60

—

60

Income from operations before special items (non-GAAP)

$

11,897

$

12,537

$

14,512

$

19,647

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

Three months ended June 30,

Six months ended June 30,

2025

2024

2025

2024

Net cash provided by (used in):

Operating activities

$

(9,098

)

$

4,511

$

(3,453

)

$

5,115

Investing activities

(6,451

)

(5,569

)

(11,865

)

(11,217

)

Financing activities

15,623

134

14,921

5,261

Effect of exchange rate changes on cash

1,992

1,246

2,682

372

Net change in cash and cash equivalents

$

2,066

$

322

$

2,285

$

(469

)

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 June 30,

Six months ended June 30,

2025

2024

2025

2024

Net cash provided by operating activities (GAAP)

$

(9,098

)

$

4,511

$

(3,453

)

$

5,115

Less:

Purchases of property, plant and equipment

(5,870

)

(4,795

)

(10,425

)

(9,599

)

Purchases of intangible assets

(1,048

)

(1,287

)

(2,315

)

(2,404

)

Free cash flow (non-GAAP)

$

(16,016

)

$

(1,571

)

$

(16,193

)

$

(6,888

)

Mistras Group, Inc. and Subsidiaries
Unaudited Trailing Twelve months Free Cash Flow (non-GAAP)
(in thousands)

Trailing twelve months ended(1)

June 30, 2025

Net cash provided by operating activities (GAAP)

$

41,561

Less:

Purchases of property, plant and equipment

(18,728

)

Purchases of intangible assets

(4,995

)

Free cash flow (non-GAAP)

$

17,838

_____________
(1) As reported and reconciled for each respective quarterly period during the trailing twelve months ended June 30, 2025. Refer to the Company's Current Reports on Form 8-K furnishing pursuant to Item 2.02 the Company's financial results for each respective quarterly period included in the trailing twelve month period.

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

June 30, 2025

December 31, 2024

Current portion of long-term debt

$

13,069

$

11,591

Long-term debt, net of current portion

176,345

158,056

Total Debt (Gross)

189,414

169,647

Less: Cash and cash equivalents

(20,602

)

(18,317

)

Total Debt (Net)

$

168,812

$

151,330

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

Three Months Ended June 30,

Six Months Ended June 30,

2025

2024

2025

2024

Net income (loss) (GAAP)

$

3,126

$

6,373

$

(42

)

$

7,377

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

109

4

127

13

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

$

3,017

$

6,369

$

(169

)

$

7,364

Interest expense

4,239

4,413

7,563

8,842

Income tax (benefit)/expense

1,063

1,173

(105

)

1,292

Depreciation and amortization

7,707

8,288

15,470

16,670

Share-based compensation expense

1,827

1,536

3,129

2,764

Reorganization and other related costs(1)

2,951

518

6,038

2,076

Environmental expense

518

—

1,058

—

Legal settlement and insurance recoveries, net

—

60

—

60

Foreign exchange loss (gain)

2,784

(227

)

3,157

(789

)

Adjusted EBITDA (non-GAAP)

$

24,106

$

22,130

$

36,141

$

38,279

_______________
(1) For the three months ended June 30, 2025, the Company recognized share-based compensation expense within Reorganization and other costs of $0.5 million. For the six months ended June 30, 2025, the Company recognized share-based compensation expense within Reorganization and other costs of $1.5 million.

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

Three Months Ended June 30,

Six Months Ended June 30,

2025

2024

2025

2024

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

$

3,017

$

6,369

$

(169

)

$

7,364

Special items

3,469

578

7,096

2,136

Tax impact on special items

(720

)

(140

)

(1,501

)

(521

)

Special items, net of tax

$

2,749

$

438

$

5,595

$

1,615

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

$

5,766

$

6,807

$

5,426

$

8,979

Diluted EPS (GAAP)(1)

$

0.10

$

0.20

$

—

$

0.23

Special items, net of tax

0.09

0.01

0.18

0.05

Diluted EPS Excluding Special Items (non-GAAP)

$

0.19

$

0.21

$

0.18

$

0.28

_______________
(1) For the three months ended June 30, 2025, 375,000 shares, related to stock options and 877,000 shares, related to restricted stock units were anti-dilutive and therefore were excluded from the calculation of diluted earnings (loss) per share. For the six months ended June 30, 2025, 106,000 shares, related to stock options and 867,000 shares, related to restricted stock units were excluded from the calculation of diluted earnings (loss) per share due to the net loss for the period.

Company analysis