Matrix Service Co (MTRX) 2025 Q3 法說會逐字稿

Good morning, and welcome to the Matrix Service Company conference call to discuss results for the third quarter of fiscal 2025. (Operator Instructions) As a reminder, this conference call is being recorded.

早安，歡迎參加 Matrix Service Company 電話會議，討論 2025 財年第三季的業績。（操作員指示）提醒一下，本次電話會議正在錄音。

I would like to turn the conference over to today's host, Ms. Kellie Smythe, Senior Director of Investor Relations for Matrix Service Company. Please go ahead.

我想將會議交給今天的主持人，Matrix Service Company 投資者關係高級總監 Kellie Smythe 女士。請繼續。

Thank you, Didi. Good morning, and welcome to Matrix Service Company's third quarter fiscal 2025 earnings call. Participants on today's call include John Hewitt, President and Chief Executive Officer; and Kevin Cavanah, Vice President and Chief Financial Officer. Following our prepared remarks, we will open up the call 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.

謝謝你，滴滴。早安，歡迎參加 Matrix Service Company 2025 財年第三季財報電話會議。參加今天電話會議的人員包括總裁兼執行長約翰休伊特 (John Hewitt) 和副總裁兼財務長凱文卡瓦納 (Kevin Cavanah)。在我們準備好發言之後，我們將開始提問。今天網路廣播中提到的演示材料可以在 matrixservicecompany.com 的投資者關係部分的活動和演示下找到。

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.

提醒一下，在今天的電話會議上，我們可能會對 Matrix Service Company 的未來預期、計劃和前景做出各種評論，這些評論構成《1995 年私人證券訴訟改革法案》規定的前瞻性陳述。由於各種因素，包括我們最近的 10-K 表年度報告中討論的因素以及公司隨後向美國證券交易委員會提交的文件中討論的因素，實際結果可能與這些前瞻性陳述所示的結果存在重大差異。今天做出的前瞻性陳述僅自今天起有效。

To the extent we use non-GAAP measures, reconciliations will be provided in various press releases, periodic SEC filings, and on our website. Finally, all comparisons today are for the same period of the prior year, unless specifically stated.

如果我們使用非公認會計準則 (non-GAAP) 衡量標準，我們將在各種新聞稿、定期向美國證券交易委員會 (SEC) 提交的文件以及我們的網站上提供對帳資訊。最後，除非特別說明，今天的所有比較都是針對去年同期的。

Related to investor conferences and corporate access opportunities, Matrix will be participating in the Sidoti Micro-Cap Virtual Conference on May 21 and 22, and we'll also be participating in the Stifel Cross-Sector Insights Conference on June 3 and 4 in Boston. If you'd like additional information on these events or would like to have a conversation with management, I invite you to contact me through the Matrix Service Company Investor Relations website.

與投資者會議和企業訪問機會相關，Matrix 將於 5 月 21 日和 22 日參加 Sidoti Micro-Cap 虛擬會議，我們還將參加 6 月 3 日和 4 日在波士頓舉行的 Stifel 跨行業洞察會議。如果您想了解有關這些事件的更多資訊或希望與管理層進行對話，我邀請您透過 Matrix Service Company 投資者關係網站與我聯繫。

Turning now to safety. At Matrix, our people take pride in the fact that our work shapes a brighter future, enhances quality of life, and generates lasting value for our employees, partners, shareholders, and the communities we serve.

現在轉向安全。在 Matrix，我們的員工為我們的工作創造了更美好的未來、提高了生活品質並為我們的員工、合作夥伴、股東和我們服務的社區創造了持久的價值而感到自豪。

We do so by engineering, constructing, and maintaining energy and industrial infrastructure that elevates the standard of living, not just here but around the globe. This infrastructure is essential for powering our homes, fueling transportation, supporting businesses and providing the foundational elements for producing clothing, medicine, technology, recreational activities, among many other things.

我們透過設計、建造和維護能源和工業基礎設施來實現這一目標，從而提高生活水平，不僅在這裡，而且在世界各地。這種基礎設施對於家庭供電、交通燃料、企業支援以及服裝生產、藥品生產、技術生產、娛樂活動等許多領域的基礎要素至關重要。

To fulfill our objective, on our work sites and in our offices, we must maintain a steadfast commitment to the safety as our leading core value and prioritize quality execution in our work. This week, we join our clients and others in the construction industry for the Construction Safety Week 2025, marking the 12th annual industry-wide initiative dedicated to highlighting the importance of safety in the workplace.

為了實現我們的目標，在我們的工作現場和辦公室，我們必須堅定不移地將安全作為我們的首要核心價值，並優先考慮工作中的品質執行。本週，我們與客戶和建築業的其他人一起參加 2025 年建築安全週，這是第 12 屆年度全行業倡議，旨在強調工作場所安全的重要性。

At Matrix, our safety culture is rooted in a genuine concern for the mental and physical well-being of our people. It shapes our expectations, informs our leadership and is vital to our ability to realize our mission. On behalf of the company's leadership team, I would like to express my gratitude to the employees for your commitment and responsibility in safely pursuing our mission.

在 Matrix，我們的安全文化植根於對員工身心健康的真正關懷。它塑造了我們的期望，指導了我們的領導力，對於我們實現使命的能力至關重要。我謹代表公司領導團隊，向員工們表示感謝，感謝你們為安全地完成我們的使命所做的承諾和責任。

I'll turn the call over to John.

我會把電話轉給約翰。

Thank you, Kellie, and good morning, everyone. I want to begin by reviewing the organizational improvements we are making to represent a shift in the company's operational structure that will address several key business imperatives.

謝謝你，凱莉，大家早安。首先，我想回顧我們正在進行的組織改進，這些改進代表了公司營運結構的轉變，將解決幾個關鍵的業務需求。

Among them, creating a more efficient organization to ensure we deliver on the significant projects and opportunities in front of us; improving the competitiveness of our offering and strategic focus; and benefiting from the greater speed and agility through a leaner, flatter organization.

其中包括：創造一個更有效率的組織，以確保我們能夠完成眼前的重大專案和機會；提高我們的產品和策略重點的競爭力；並透過更精簡、更扁平的組織獲得更快的速度和更高的靈活性。

First, we eliminated senior-level positions to ensure we have a more efficient and effective organization. Second, from an operating perspective, we have streamlined our engineering and construction services to create a more seamless offering. Specifically, we recently promoted Shawn Payne to the newly-created position of President of Engineering & Construction.

首先，我們取消了高階職位，以確保我們的組織更有效率、更有效率。其次，從營運角度來看，我們簡化了工程和施工服務，以提供更無縫的服務。具體來說，我們最近將肖恩·佩恩（Shawn Payne）提升至新設立的工程與建築總裁職位。

The new position will have oversight responsibility of the company's operating subsidiaries and client services. Shawn joined Matrix in 2012 and most recently served as President of the company's non-union construction subsidiary. John will report directly to me.

新職位將負責監督公司的營運子公司和客戶服務。肖恩於 2012 年加入 Matrix，最近擔任該公司非工會建築子公司的總裁。約翰將直接向我報告。

Third, we are decentralizing elements of our business development organization to create a more integrated sales and operations function. The large EPC projects get a significant amount of attention across the enterprise during the proposal process.

第三，我們正在分散業務發展組織的各個部分，以創造更整合的銷售和營運功能。大型EPC專案在投標過程中受到整個企業的極大關注。

These projects are critical to our growth strategy. But the foundational services of our business in small capital construction, construction-only, turnarounds, maintenance, and repair are equally important to the baseload revenue for the company.

這些項目對我們的成長策略至關重要。但我們業務中小型資本建設、僅建設、週轉、維護和維修的基礎服務對於公司的基本負載收入同樣重要。

Directly reconnecting the business development teams to the P&L leaders will create more momentum, opportunities and awards for this part of our revenue platform. These foundational services deepen customer relationships, build bench strength and keep us competitive. Overall, this reorientation of the business development function will improve capture rates, growth strategies and, ultimately, revenue across the company.

將業務開發團隊與損益表領導者直接重新連結將為我們收入平台的這一部分創造更多的動力、機會和獎勵。這些基礎服務加深了客戶關係，增強了後備實力並維持了我們的競爭力。總體而言，業務發展職能的重新定位將提高整個公司的捕獲率、成長策略，並最終提高公司的收入。

Finally, the company has begun the process of winding down our Northeast transmission and distribution service line. This piece of our ongoing electrical business was competitively disadvantaged due to a mismatch in scale and constrained geography. Growth in scale was highly dependent on capital and strategic investments that do not currently fit the company's direction.

最後，該公司已開始逐步關閉東北輸配電服務線路。由於規模不匹配和地域限制，我們正在進行的這部分電氣業務在競爭中處於劣勢。規模的成長高度依賴資本和策略投資，而這目前並不符合公司的發展方向。

While this may seem sudden, the lack of sufficient awards throughout the year confirmed our decision to exit this service line. That said, Matrix has been in the electrical services business in the Northeast, Mid-Atlantic and Ohio Valley for over 20 years, and we'll continue to provide services to our utility, energy, and industrial customers as they face rising demand for electrical infrastructure. This infrastructure includes power generation, backup fuel supply, midstream energy infrastructure, manufacturing expansion, substations, and data centers to name a few.

雖然這看起來很突然，但全年缺乏足夠的獎項堅定了我們退出該服務線的決定。話雖如此，Matrix 已在東北部、大西洋中部和俄亥俄河谷從事電力服務業務超過 20 年，我們將繼續為我們的公用事業、能源和工業客戶提供服務，因為他們面臨著對電力基礎設施日益增長的需求。這些基礎設施包括發電、備用燃料供應、中游能源基礎設施、製造業擴張、變電站和資料中心等等。

The electrical infrastructure market presents strong growth potential and its capital investment demand aligns better today with our long-term business performance targets. As Matrix continues its progress toward a return to profitability with marked improvement in its financial performance, we must continue to evolve for the future. I'm confident that this new structure will enhance communication, accountability, and collaboration throughout all levels of the organization.

電力基礎設施市場呈現強勁的成長潛力，其資本投資需求與我們的長期業務績效目標更為契合。隨著 Matrix 繼續朝著恢復獲利的方向發展，財務表現也顯著改善，我們必須繼續為未來而發展。我相信，這個新架構將加強組織各層面的溝通、責任和協作。

In line with our strategic priorities, we remain committed to delivering sustainable long-term shareholder value by building a resilient, growth-oriented platform that meets the evolving needs of our customers. From a market outlook perspective, we are also closely monitoring the impacts of evolving US trade and environmental policies that have introduced a heightened level of macroeconomic uncertainty.

按照我們的策略重點，我們將繼續致力於透過建立一個具有彈性、以成長為導向的平台來滿足客戶不斷變化的需求，從而實現可持續的長期股東價值。從市場前景來看，我們也密切關注美國貿易和環境政策的變化所帶來的影響，這些政策帶來了更高的宏觀經濟不確定性。

While the underlying demand environment remains strong, some clients may elect to delay final investment decisions and in turn, project starts, as they assess the potential impact of these policies on project economics, including offtake agreements with global partners, as well as supply chain and operational costs. However, we believe this uncertainty to be temporary.

儘管潛在的需求環境仍然強勁，但一些客戶可能會選擇推遲最終投資決策，進而推遲專案啟動，因為他們要評估這些政策對專案經濟的潛在影響，包括與全球合作夥伴的承購協議，以及供應鏈和營運成本。然而，我們相信這種不確定性是暫時的。

Specific to existing projects and new awards, our contract formats and proposal discipline generally protect us from pricing risk created by the tariff activity. In addition, we are actively collaborating with our customers to find cost optimization opportunities.

具體到現有項目和新授予，我們的合約格式和提案紀律通常可以保護我們免受關稅活動造成的定價風險。此外，我們正積極與客戶合作尋找成本優化機會。

We're also optimizing our own supply chain by making advanced purchases where we can, working closely with our current suppliers and exploring additional supplier options. This proactive strategy enables us to remain agile and responsive to market changes and ensures we continue to provide outstanding value to our customers.

我們還透過盡可能提前採購、與現有供應商密切合作以及探索其他供應商選擇來優化我們自己的供應鏈。這種積極主動的策略使我們能夠保持敏捷並對市場變化做出反應，並確保我們繼續為客戶提供卓越的價值。

At the same time, several of our energy clients have stated that their intentions are to fund, start, and complete as many infrastructure projects as possible over the next four years to take advantage of the more relaxed regulatory environment and higher demand for energy products both domestically and abroad.

同時，我們的幾位能源客戶表示，他們打算在未來四年內資助、啟動和完成盡可能多的基礎設施項目，以利用更寬鬆的監管環境和國內外對能源產品的更高需求。

Considering the current macroeconomic environment and our decision to exit the transmission and distribution business, we believe it's prudent to revise our fiscal 2025 revenue guidance by 10% to $770 million to $800 million, which Kevin will discuss in more detail during his remarks. Please note, our revised guidance continues to reflect quarter-over-quarter growth as we finish the year, as demonstrated by the 20% to 25% growth in the second half of fiscal 2025 compared to the first half.

考慮到當前的宏觀經濟環境以及我們退出輸配電業務的決定，我們認為將 2025 財年收入預期上調 10% 至 7.7 億美元至 8 億美元是明智之舉，Kevin 將在講話中對此進行更詳細的討論。請注意，我們修訂後的指引在年底繼續反映出環比增長，正如 2025 財年下半年與上半年相比增長 20% 至 25% 所證明的那樣。

Across the energy and industrial markets we serve, energy-related infrastructure spending remains elevated. The elevated level of spending is supported by an estimated 45% increase in US LNG export demand, as highlighted by the EIA in its recent Annual Energy Outlook.

在我們服務的能源和工業市場中，與能源相關的基礎設施支出仍然很高。美國能源資訊署 (EIA) 在最近的年度能源展望中強調，美國液化天然氣出口需求預計將增加 45%，這支撐了支出水準的上升。

Furthermore, the EIA outlook also projects an 8% increase in demand on the 38 trillion cubic feet of natural gas over the next six years in response to rapidly-growing domestic and international demand for LNG and other natural gas-related products.

此外，EIA 展望也預測，由於國內外對液化天然氣和其他天然氣相關產品的需求快速增長，未來六年對 38 兆立方英尺天然氣的需求將增加 8%。

This outlook underpins our $7 billion pipeline of project opportunities, which gives us confidence in achieving a sustainable and profitable growth trajectory as we move into fiscal 2026 and beyond. As a reminder, many of the projects we are currently pursuing are expected to be bid and awarded within the next 12 to 18 months. And once awarded, they will unfold over multiyear construction timelines, providing us with long-term revenue visibility and improved earnings consistency.

這一前景支撐了我們價值 70 億美元的專案機會，使我們有信心在邁入 2026 財年及以後實現可持續的獲利成長軌跡。提醒一下，我們目前正在進行的許多項目預計將在未來 12 到 18 個月內進行招標和授予。一旦獲得批准，這些項目將在多年的建設時間內展開，為我們提供長期的收入可見度和提高盈利的一致性。

Now turning to the quarter. Revenue volume continued to accelerate, culminating in our highest quarterly revenues in two years as project activity ramped up throughout the period. As is typical for our fiscal third quarter, we also benefited from elevated activity in our refinery services business.

現在轉向本季。隨著整個期間專案活動的增加，收入量持續加速成長，最終達到了兩年來最高的季度收入。正如我們第三財季的典型情況一樣，我們也受惠於煉油服務業務活動的增加。

The company grew backlog by nearly 8% sequentially to over $1.4 billion [and] $301 million of project awards, resulting in a book-to-bill of 1.5. This also increased our year-to-date book-to-bill to 1.0. Storage and Terminal Solutions accounted for $205 million of the quarterly awards, which increases backlog to $848 million, the highest level in the company's history.

公司訂單儲備較上月成長近8%，超過14億美元，專案合約金額達3.01億美元，訂單出貨比達1.5。這也使年初至今的訂單出貨比提升至1.0。倉儲和終端解決方案部門的季度合約金額達2.05億美元，使訂單儲備金額增加至8.48億美元，創下公司歷史最高水準。

The quarter activity included a project for the engineering and construction of multiple storage vessels for propane, butane, and related NGL products. We are also seeing strength in the Process and Industrial Facilities segment which had $59 million in awards, primarily in our refinery services business.

本季度活動包括為丙烷、丁烷和相關 NGL 產品設計和建造多個儲存容器的項目。我們也看到製程和工業設施部門實力強勁，該部門獲得了 5,900 萬美元的獎勵，主要集中在我們的煉油服務業務上。

Overall, our strategy remains anchored around three pillars; to win, execute, and deliver. Through this framework, we will continue to focus on project discipline with the right clients, commercial structure, and timing of delivery.

整體而言，我們的策略仍然圍繞著三大支柱：取勝、執行和交付。透過這個框架，我們將繼續專注於專案紀律、合適的客戶、商業結構和交付時間。

Apply our resume and brand leadership to not only our core markets in energy, industrial, and power infrastructure but also expanding into new high-value verticals. Delivering projects safely, on time, on budget and with high quality. And enhancing operating leverage to drive strong profitability, cash generation and disciplined capital deployment.

將我們的履歷和品牌領導不僅應用於能源、工業和電力基礎設施的核心市場，而且還擴展到新的高價值垂直市場。安全、準時、按預算、高品質地交付專案。並提高營運槓桿，以推動強勁的獲利能力、現金產生和嚴格的資本配置。

As we look ahead to the fourth quarter, we believe the momentum exiting the third quarter, combined with the strategic actions I spoke of earlier, will support improved fixed cost absorption, better operating leverage and resulting in positive adjusted EBITDA. Furthermore, we are confident that potential near-term project awards, some of which are insulated from recent macroeconomic developments, will help us end the year with a full year book-to-bill ratio around 1.

展望第四季度，我們相信第三季度的勢頭加上我先前提到的策略行動將有助於改善固定成本吸收、提高營運槓桿並實現正調整後 EBITDA。此外，我們相信，潛在的近期項目授予（其中一些不受近期宏觀經濟發展的影響）將幫助我們在今年年底實現全年訂單出貨比約為 1。

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

說完這些，我現在將電話轉給凱文。

Thank you, John. Revenue growth continued in the third quarter, increasing 21% to $200.2 million, compared to $166 million in the third quarter last year. The growth was driven by the Storage and Terminal Solutions and Utility and Power Infrastructure segments, partially offset by reduced revenue volumes in Process and Industrial Facilities.

謝謝你，約翰。第三季營收持續成長，成長 21% 至 2.002 億美元，去年第三季為 1.66 億美元。成長主要由儲存和終端解決方案以及公用事業和電力基礎設施部門推動，但被流程和工業設施收入的減少部分抵消。

Gross margin was $12.9 million or 6.4% in the quarter, compared to $5.6 million or 3.4% for the third quarter of fiscal 2024. I will discuss drivers for that improvement when I get into the segment results. I want to provide an update here on the impact of under-recovery of construction overhead costs.

本季毛利率為 1,290 萬美元，即 6.4%，而 2024 財年第三季的毛利率為 560 萬美元，即 3.4%。當我了解細分結果時，我將討論推動這項改進的驅動因素。我想在此提供有關建築間接成本回收不足的影響的最新情況。

As a result of the revenue growth in the quarter, the impact of under-recovered overhead decreased to 280 basis points. This compares to 370 basis points last year and is the lowest level in two years. As the revenue ramp continues, construction overhead will become fully recovered and the negative impact on margins will be eliminated.

由於本季營收成長，未收回的間接費用的影響下降至 280 個基點。相比之下，去年同期為 370 個基點，是兩年來的最低水準。隨著收入持續成長，建設費用將完全收回，對利潤率的負面影響也將被消除。

SG&A expenses were $17.7 million in the third quarter, compared to $19.9 million for the prior year. The decrease is primarily due to lower cash-settled stock-based compensation expense. For the third quarter of fiscal 2025, the company had a net loss of $3.4 million or $0.12 per share, compared to a net loss of $14.6 million or $0.53 per share in the third quarter of fiscal 2024. Adjusted EBITDA improved to breakeven in the quarter, compared to a loss of $10 million in the third quarter last year.

第三季銷售、一般及行政費用為 1,770 萬美元，去年同期為 1,990 萬美元。下降的主要原因是現金結算的股票薪酬費用減少。2025 財年第三季度，該公司淨虧損 340 萬美元，即每股 0.12 美元，而 2024 財年第三季淨虧損 1,460 萬美元，即每股 0.53 美元。本季調整後的 EBITDA 達到損益平衡，而去年第三季則虧損 1,000 萬美元。

Moving to the segments. Storage and Terminal Solutions segment revenue increased 77% to $96.1 million in the third quarter, compared to $54.3 million in the third quarter of fiscal 2024. The higher revenue is being driven by an increased volume of work for specialty vessel projects.

轉到各個部分。儲存和終端解決方案部門營收在第三季成長 77%，達到 9,610 萬美元，而 2024 財年第三季為 5,430 萬美元。收入增加是由於特種船舶項目工作量的增加。

Gross margin was 3.9% in the third quarter of fiscal 2025, compared to 4.3% in the third quarter of fiscal 2024. Although higher revenue has resulted in improved leverage of our cost structure, segment gross margin continues to be impacted by under-recovery as we allocate more resources to this segment in anticipation of continuing revenue growth. Additionally, the third quarter of fiscal 2025 was negatively impacted by lower-than-anticipated labor productivity on a crude terminal project that is nearing completion.

2025財年第三季的毛利率為3.9%，而2024財年第三季的毛利率為4.3%。儘管收入增加已導致我們的成本結構槓桿率提高，但由於我們預期收入將繼續增長，因此向該部門分配了更多資源，因此部門毛利率繼續受到回收不足的影響。此外，即將完工的原油終端專案勞動生產力低於預期，對2025財年第三季產生了負面影響。

Excluding the margin adjustment on this project, the year-to-date project execution for the Storage and Terminal Solutions segment would have been within our 10% to 12% target. As quarterly revenue continues to increase, the company expects to achieve full recovery of construction overheads and the targeted gross margin range.

不計入該專案的利潤率調整，儲存和終端解決方案部門年初至今的專案執行率將達到我們的 10% 至 12% 的目標。隨著季度收入的持續增長，該公司預計將實現建築費用的完全回收和目標毛利率範圍。

Utility and Power Infrastructure segment revenue increased 27% to $58.7 million in the third quarter, compared to $46.1 million in the prior-year period, benefiting from a higher volume of work associated with natural gas peak shaving projects. Gross margin was 9.4% in the third quarter, compared to 3.1% for the third quarter of fiscal 2024, due to strong project execution and improved construction overhead cost absorption.

公用事業和電力基礎設施部門第三季營收成長 27%，達到 5,870 萬美元，而去年同期為 4,610 萬美元，這得益於與天然氣調峰計畫相關的工作量增加。由於專案執行力度強勁且建築間接成本吸收能力增強，第三季毛利率為 9.4%，而 2024 財年第三季為 3.1%。

Process and Industrial Facilities segment revenue decreased to $45.4 million in the third quarter of fiscal 2025, compared to $65.6 million last year, primarily due to lower revenue volumes resulting from the completion of a large renewable diesel project. The company believes this reduction is temporary given our strong backlog and opportunity funnel.

2025 財年第三季度，加工和工業設施部門收入下降至 4,540 萬美元，而去年同期為 6,560 萬美元，這主要是由於大型再生柴油項目的完成導致收入減少。鑑於我們強大的積壓訂單和機會管道，公司認為這種減少是暫時的。

Gross margin was 8.3% in the third quarter, compared to 2.7% for the third quarter of fiscal 2024. Last year's gross margin was impacted by an accounting adjustment on a refinery maintenance contract.

第三季毛利率為 8.3%，而 2024 財年第三季為 2.7%。去年的毛利率受到煉油廠維護合約會計調整的影響。

Last quarter, I discussed some keys to our financial performance. Before we move away from operating results, I want to review those keys and our long-term financial targets. First, revenue level is critical to our earnings. Revenue growth started in the second quarter and continued in the third. We anticipate revenue growth to continue reaching $250 million and above.

上個季度，我討論了我們財務表現的一些關鍵因素。在我們討論經營績效之前，我想回顧一下這些關鍵點和我們的長期財務目標。首先，收入水準對我們的獲利至關重要。收入成長從第二季開始，並在第三季持續。我們預計營收成長將持續達到 2.5 億美元及以上。

Second, project execution has been strong, producing overall direct project margins that are approaching our target range. Focus on project execution continues and the margin opportunity within our $1.4 billion backlog and our $7 billion opportunity funnel continues to support a long-term consolidated gross margin target of 10% to 12%.

其次，專案執行情況良好，產生的整體直接專案利潤接近我們的目標範圍。我們繼續關注專案執行，我們 14 億美元積壓訂單和 70 億美元機會管道中的利潤機會繼續支持 10% 至 12% 的長期綜合毛利率目標。

Third, the company continues to proactively manage its cost structure and has taken additional steps to improve our operating effectiveness, as John discussed. This will enhance our competitiveness and allow for continued improvement in the leverage of our cost structure.

第三，正如約翰所討論的，公司繼續積極管理其成本結構，並採取額外措施來提高我們的營運效率。這將增強我們的競爭力，並使我們的成本結構槓桿率不斷提高。

Construction overhead recovery has been a significant issue but is improving and will be eliminated based on anticipated revenue growth. Leverage of SG&A will also improve due to flattening of the organization as well as revenue growth, driving toward our target of 6.5% of revenue. Finally, the combination of these items will drive the improved performance toward our long-term targets.

建築間接費用回收一直是一個重大問題，但正在改善，並將根據預期的收入成長而消除。由於組織的扁平化以及收入的成長，銷售、一般和行政費用的槓桿率也將提高，推動我們實現 6.5% 的收入目標。最後，這些項目的結合將推動績效的提高，並實現我們的長期目標。

Moving to the balance sheet. Our disciplined approach to capital allocation remains a cornerstone of our strategy. Working capital management has been strong throughout fiscal 2025. Net cash provided by operating activities was $31.2 million during the third fiscal quarter and $76.8 million year to date.

轉到資產負債表。我們對資本配置的嚴謹態度仍是我們策略的基石。2025財年全年營運資本管理表現強勁。第三季經營活動提供的淨現金為 3,120 萬美元，年初至今為 7,680 萬美元。

Cash flow activity during the year has also further strengthened our balance sheet. Available liquidity has increased to $247.1 million as of the end of the quarter. Liquidity is comprised of $185.5 million of unrestricted cash and $61.5 million of borrowing availability under the credit facility.

本年度的現金流量活動也進一步增強了我們的資產負債表。截至本季末，可用流動資金已增加至 2.471 億美元。流動資金包括 1.855 億美元的非限制現金和 6,150 萬美元的信貸額度下的可用借款。

The company also has $25 million of restricted cash to support the credit facility. And our debt position remains at zero. We'll continue to proactively manage the balance sheet and have the financial strength and liquidity needed to support the execution of our backlog and to deploy capital towards opportunistic organic growth.

該公司還擁有 2500 萬美元的受限現金來支持信貸額度。我們的債務狀況仍然為零。我們將繼續積極管理資產負債表，並擁有所需的財務實力和流動性，以支持我們完成積壓訂單並將資本部署到機會性有機成長。

Before we open the call for questions, I want to touch on the outlook. As we noted in our press release, second half revenue levels have been impacted by the timing of awards in the third quarter as well as the uncertainty around macroeconomic and environmental policy. In addition, full year revenue has been impacted by our transmission and distribution business, which we are now exiting. The full year revenue impact of exiting this business is approximately $50 million.

在我們開始提問之前，我想談談前景。正如我們在新聞稿中指出的那樣，下半年的收入水平受到第三季授予時間以及宏觀經濟和環境政策不確定性的影響。此外，我們目前正在退出輸配電業務，這影響了全年收入。退出該業務對全年收入的影響約為 5,000 萬美元。

As a result, we reduced revenue guidance for fiscal 2025 by 10% to $770 million to $800 million. Even with this reduction, this implies continued strong year-over-year growth of over 20% in the fourth quarter and a return to profitable performance.

因此，我們將 2025 財年的營收預期下調 10% 至 7.7 億美元至 8 億美元。即使有所減少，這也意味著第四季度仍將保持 20% 以上的強勁同比增長，並恢復盈利。

Our backlog and revenue growth is coming from larger multiyear projects. As a result, we expect to operate at or above these levels -- revenue levels for the foreseeable future. This combined with the changes we are making to improve operating effectiveness, should lead to strong bottom line results and the achievement of our long-term targets.

我們的積壓訂單和收入成長來自於更大的多年期項目。因此，我們預計在可預見的未來，我們的收入水準將達到或超過這些水準。結合我們為提高營運效率所做的改變，這將帶來強勁的獲利業績並實現我們的長期目標。

This concludes our prepared remarks, so we will open it up for questions.

我們的準備好的演講到此結束，因此我們將開始提問。

Thank you. (Operator Instructions)

謝謝。（操作員指示）

John Franzreb, Sidoti & Company.

約翰‧弗蘭茲雷布 (John Franzreb)，西多蒂公司 (Sidoti & Company)。

Good morning, everyone, and thanks for taking the questions. I guess I'd like to start with the revenue guidance. Kevin, you just said $50 million was baked into that business, I guess, for this fiscal year. Can you just walk us through the decision-making process to exit the business? Is there a potential buyer out there? Will you just wind it down? And what's the relative cost savings from exiting that business?

大家早安，感謝你們回答問題。我想先從收入指導開始。凱文，你剛才說，我猜，本財年該業務的投資是 5,000 萬美元。您能否向我們介紹一下退出該業務的決策過程？那裡有潛在買家嗎？你能把它結束嗎？退出該業務可以節省多少相對成本？

I'll give you some of the strategic stuff there, John. So going into the year, the market for the business was higher than $50 million. But -- because we're, probably simply put, we are too big to be small and too small to be big, and so our competitive dynamics in that business made it difficult for us to win work at acceptable margins. And plus the capital investment in that business would be dramatically higher than the rest of the company.

我會給你一些策略性的東西，約翰。因此，進入今年以來，該業務的市場規模已超過 5,000 萬美元。但是——因為我們，可能簡單地說，我們太大而不能小，太小而不能大，所以我們在該業務中的競爭動態使我們很難以可接受的利潤率贏得工作。此外，該業務的資本投資將遠高於公司的其他業務。

So it was sort of on our watch list this year, that if we were able to pick up some good projects with acceptable commercial terms, then we would -- it would modify or at least would guide our decision on whether we thought there was an opportunity to continue to grow it or that we needed to sell it or that we needed to just shut it down.

因此，它在今年的觀察名單上，如果我們能夠選擇一些具有可接受商業條款的好項目，那麼我們就會——它將修改或至少指導我們的決定，即我們是否認為有機會繼續發展它，或者我們需要出售它，或者我們需要關閉它。

So as we moved into the -- and what we saw was the opportunity for us to win some nice projects in the back half of the fiscal year. And we didn't win any of them. And so, trying to win those projects around the commercial framework that we think is accessible to the business.

因此，當我們進入——我們看到的是，我們有機會在財政年度下半年贏得一些不錯的項目。但我們一場都沒贏。因此，我們試圖在我們認為企業可以接受的商業框架中贏得那些專案。

So when we started to see that those projects were not going to come into our backlog, we made a decision that we're going to wind the business down. Without any kind of positive looking backlog, it would be difficult to find a buyer for the business where just they're picking up equipment and people. So we made the decision that we just wind the business down and we'll eventually sell off some of the construction assets that are associated with that business.

因此，當我們開始發現這些項目不會進入我們的積壓工作時，我們決定逐步結束業務。如果沒有任何積極的積壓訂單，那麼他們很難找到買家購買設備和人員。因此，我們決定逐步結束該業務，並最終出售與該業務相關的一些建築資產。

We still have some small contracts that we're going to be working on out into fiscal '26, but doesn't represent a lot of revenue. And we're doing that with clients that we do other business with. So we just don't want to just walk away from those jobs, which you can't contractually anyway. So we want to continue to support those clients because, again, because they have other work that our electrical business does. That's kind of how we got to where we are.

我們還有一些小合同，將在 26 財年繼續執行，但這不會帶來太多收入。我們也與有其他業務往來的客戶這樣做。所以我們不想放棄這些工作，無論如何，根據合約我們也不能放棄。因此，我們希望繼續支持這些客戶，因為他們還有我們的電氣業務要做的其他工作。這就是我們到達現在位置的過程。

Understood. And the potential cost savings?

明白了。以及潛在的成本節省？

It's more about -- there are cost savings and that -- but there's also a reallocation of some resources to the electrical and instrumentation business that we're keeping. And then I think that business has been operating at a loss. So that's probably the bigger savings than the cost structure. It was a relatively low-overhead business than the equipment. And the reason for that is this was a business that we grew organically. This wasn't from an acquisition.

更重要的是——節省成本等等——但我們也會將一些資源重新分配給我們保留的電氣和儀器業務。然後我認為該業務一直在虧損經營。因此，這可能比成本結構節省更多。與設備相比，這是一項開銷相對較低的業務。原因在於這是我們有機發展的業務。這並不是透過收購實現的。

Okay. Fair enough, Kevin. The other part of the adjustment to the revenue guidance was what you said, was deferrals. I'm curious, is the entire balance deferrals, or some cancellations? And the deferrals, what kind of timing are we talking about now versus three months ago?

好的。公平地說，凱文。收入指引調整的另一部分就是您所說的延期。我很好奇，是全部餘額延期，還是部分餘額取消？至於延期，我們現在談的時間與三個月前相比是怎麼樣的？

So some of it is -- it's a combination of a couple of things. One is that one of the major projects that was in the awards for the Q3, which was in storage, we had anticipated actually winning in Q2 and had started negotiating a contract for that project in Q2. And as we moved into Q3, we thought that, that project will get awarded in January and we'd be able to get engineering started, we'd be able to get our procurement for all the plate steel associated started, and probably get on site and start doing some of the civil work.

所以其中一些是——它是幾件事的結合。一是，第三季授予的其中一個主要項目是倉儲項目，我們預計它實際上會在第二季獲勝，並且已在第二季開始就該項目的合約進行談判。當我們進入第三季時，我們認為該專案將在一月份授予，我們將能夠開始工程，我們將能夠開始採購所有相關的鋼板，並可能進入現場開始進行一些土木工程。

So we had expected an earlier award and revenue flowing from that project impacting this fiscal year's revenues. But we actually don't sign the contract till the very last day in March. And so basically what that did is pushed all a majority of what we thought was going to be some revenue off that project into June and probably into fiscal '26. So that's one thing. And that's just about the how long it took to put the contract together, which is not always -- it's not necessarily unusual.

因此，我們預計該項目的早期獎勵和收入將影響本財年的收入。但實際上我們直到三月的最後一天才簽約。因此，這基本上意味著，我們認為該項目的大部分收入都推遲到了 6 月份，甚至可能推遲到了 26 財年。這是一回事。這只是製定合約所花的時間，這並不總是——這並不一定是不尋常的。

And then we had -- we got another project that we've been kind of verbally selected on, that one of its offtakers for that client is in the -- is on the other side of the ocean. And with some of the trade stuff that's going on, there has been a -- there had been a delay in getting that offtake sold. We think that delay is over with and are expecting that project to move forward here within the next -- within this quarter or the first quarter of '26.

然後，我們又得到了另一個項目，我們已經通過口頭選擇，該項目的承購商之一位於海洋的另一邊。由於一些貿易事宜正在進行，承購銷售出現了延遲。我們認為延遲已經結束，並預計該專案將在下個季度或 2026 年第一季內取得進展。

Other than that, I mean, I think it would be unreasonable for us to assume that these uncertainties around the tariff issues and finalization of environmental policy and the regulatory environment isn't keeping clients a little bit hesitant, in some cases, on how they're going to spend their capital dollars.

除此之外，我的意思是，我認為，如果我們假設圍繞關稅問題、環境政策和監管環境的最終確定等不確定性不會讓客戶在某些情況下對如何花費資本感到猶豫，那是不合理的。

But I can tell you, we've had several of our core clients tell us very strongly that their intentions are, over the next four years, to spend as much money as possible on their energy infrastructure in what they perceive to be a much easier regulatory environment. And so we're excited about that -- excited about us being able to take advantage of that opportunity because, A, because of our strong relationships with these clients, and two, because of the kind of services and strong brand position we have in those markets.

但我可以告訴你，我們的幾個核心客戶非常明確地告訴我們，他們打算在未來四年內在他們認為監管環境更加寬鬆的情況下，在能源基礎設施上投入盡可能多的資金。因此，我們對此感到很興奮——很高興我們能夠利用這個機會，因為，第一，因為我們與這些客戶建立了牢固的關係；第二，因為我們在這些市場擁有的服務類型和強大的品牌地位。

Got it, John. And one last question. You mentioned that you're targeting smaller jobs. Can you talk a little bit about what you think the opportunity profile is as you reengage in some of those smaller projects? Maybe size it for us and timeline it when you expect to start hitting on them?

明白了，約翰。最後一個問題。您提到您的目標是較小的工作。當您重新參與一些較小的專案時，您能否稍微談談您認為的機會概況？也許可以為我們確定尺寸，並確定您預計何時開始對他們進行打擊的時間表？

Yeah. So we -- I mean, we as an organization, our history in our organization has always been a mix in the portfolio of maintenance work, turnaround work, small capital projects, construction-only projects, mixed in with one or two large capital EPC jobs. And we continue to see the opportunity for these larger EPC projects to continue to enter the backlog, and probably for us in a more thoughtful way, that they fit into our execution plans and our resource availability.

是的。因此，我們 — — 我的意思是，作為一個組織，我們組織的歷史一直是維護工作、週轉工作、小型資本項目、僅建設項目的組合，混合了一兩個大型資本 EPC 工作。我們繼續看到這些大型 EPC 專案繼續進入積壓階段的機會，並可能以更周到的方式為我們帶來好處，使它們符合我們的執行計劃和資源可用性。

But that doesn't minimize the need in our business for this smaller activity that I've laid out. And I think part of our change in the business development structure is we sort of lost touch with that a little bit. I think these larger projects get a lot of attention from the organization. But we need those smaller projects. They build relationships with clients. They help us to build and strengthen our execution teams. They're great for brand recognition. They eat overhead.

但這並不會減少我們業務中對我所列出的這項較小活動的需求。我認為，我們業務發展結構的變化使我們有點失去了與此的聯繫。我認為這些較大的項目受到了組織的高度關注。但我們需要那些較小的項目。他們與客戶建立關係。他們幫助我們建立和加強我們的執行團隊。它們對於品牌認知度非常有幫助。他們吃得過頭了。

And so we just need to do a better job of pursuing and winning those smaller, what I'm calling foundational elements of our business, moving forward. And so some of the actions, strategic actions, we've taken are directly related to our desire to be better at that than we have been over the past 18 months.

因此，我們只需要更好地追求和贏得那些較小的、我稱之為我們業務基礎要素的東西，繼續前進。因此，我們採取的一些行動、策略行動與我們希望比過去 18 個月做得更好直接相關。

Okay. Well, good luck with that. I'll get back into the queue. Thank you, gentlemen.

好的。好吧，祝你好運。我會回到隊列中。謝謝各位。

Thank you.

謝謝。

Brent Thielman, D.A. Davidson.

布倫特·蒂爾曼、D.A.戴維森。

Hey, thanks. Good morning. John, real big-picture question here. I mean you've been through your share of cycles in the past and we value of your perspective here. But look, the geopolitical macroeconomic environment today, you take what you're seeing now, you look at prevailing commodity prices, to some degree influence how your customers spend.

嘿，謝謝。早安.約翰，這是一個真正的宏觀問題。我的意思是，您過去已經經歷過自己的週期，我們重視您的觀點。但看看今天的地緣政治宏觀經濟環境，你現在看到的，你看看當前的商品價格，在某種程度上影響你的客戶的消費方式。

I guess my question is, John, I mean, how is all of this stuff that we're seeing in the market? How do you think it might influence what your customers may end up doing here? Not necessarily in the short term, but thinking medium term. Is all of this ultimately a positive driver for your business? I'd just love your perspective there.

我想我的問題是，約翰，我的意思是，我們在市場上看到的所有這些東西怎麼樣？您認為它會對您的客戶最終在這裡的行為產生什麼影響？不一定是短期的，而是中期的考慮。所有這些最終會為您的業務帶來積極的推動作用嗎？我很喜歡你的觀點。

Well, I think, whether it's tariffs or no matter what it is we see in the media, there's a lot of rhetoric running around, both out of the Washington, D.C., and out of the media houses, and across the globe. So I think it's difficult for all of us, whether you're a business leader or a normal citizen, to figure out what the future looks like.

嗯，我認為，無論是關稅還是我們在媒體上看到的任何東西，都有很多言論在流傳，無論是在華盛頓特區、媒體機構還是在世界各地。因此我認為，對於我們所有人來說，無論是商界領袖還是普通公民，都很難弄清楚未來會是什麼樣子。

But for me, I think -- and what we hear from our clients, I think they're being adding some more thoughtfulness to what their capital plans are. But I think overriding all of that is the, not only domestically, but globally, the demand for energy is continuing to rise. That demand has got to be met. It is not necessarily going to be 100% met by renewable energy sources. You've got huge electrical infrastructure needs in the US alone to fuel the growth in power demand.

但對我來說，我認為——根據我們從客戶那裡聽到的信息，我認為他們正在更加認真地考慮他們的資本計劃。但我認為最重要的是，不僅在國內，而且在全球範圍內，對能源的需求都在持續上升。這項需求必須得到滿足。再生能源不一定會 100% 滿足這項需求。光是在美國，就需要龐大的電力基礎設施來滿足電力需求的成長。

And so I think irrespective of how all the tariffs things settle out, which I personally think will get settled out here over the next three or four months, I think we're still going to see a lot of infrastructure put in place. We're going to see this huge demand globally for NGLs coming out of the US, and for LNG, because -- I mean, basically, the demand for energy is growing, like I said, and it supports a higher quality of life around the globe, and there's a lot of instability in the energy sources and people are going to be looking to the US to provide that stability.

因此，我認為無論所有關稅問題如何解決（我個人認為這些問題將在未來三到四個月內解決），我們仍將看到大量基礎設施的建設。我們將看到全球對來自美國的天然氣液體和液化天然氣的巨大需求，因為——我的意思是，基本上，對能源的需求正在增長，就像我說的，它支持著全球更高質量的生活，而且能源來源存在很多不穩定性，人們將期待美國提供這種穩定性。

So I'm pretty bullish and confident in the markets that we're in with our brand position, particularly around specialty vessels and specialty vessel storage and infrastructure, that we're going to play a strong role in that as we look out to the future.

因此，我對我們品牌在市場中的地位非常樂觀和有信心，特別是在特種船舶和特種船舶存儲和基礎設施方面，展望未來，我們將在其中發揮重要作用。

Yeah. Appreciate that. And then I guess another one, Kevin, this might be more for you. But there's been an expectation for sort of a progressive ramp in volume and revenue as the fiscal year has played out. And I think maybe more specific to storage, I mean you had terrific growth compared to last year, but the growth was somewhat muted relative to the previous quarter.

是的。非常感謝。然後我想另一個，凱文，這可能更適合你。但隨著財政年度的結束，人們預期銷售和收入將逐步增加。我認為也許更具體地針對存儲，我的意思是與去年相比，你們取得了驚人的增長，但與上一季度相比，增長有些放緩。

So as you kind of look at the fourth fiscal quarter, is there enough confidence here that we should see that segment step up? I think that's sort of critical to support the outlook. And I guess maybe the question, are you seeing the critical jobs moving forward now in that segment that really should contribute here?

那麼，當您回顧第四財季時，我們是否有足夠的信心看到該部門的成長？我認為這對於支持前景至關重要。我想也許問題是，您是否看到該領域中的關鍵工作正在向前發展，並且確實應該為此做出貢獻？

Yeah. So you're right that the revenue was, in the third -- in Q3 was pretty consistent with Q2. Part of that was just timing of procurement. Now when we're looking to 4Q, I'm expecting to see a really strong growth cycle in the Storage and Terminal Solutions segment.

是的。所以你說得對，第三季的收入與第二季的收入相當一致。其中一部分只是採購時機的問題。現在，當我們展望第四季時，我預計儲存和終端解決方案領域將出現真正強勁的成長週期。

So I think that is supportive of the outlook. I think you'll also see some growth in Utility and Power Infrastructure. Process and Industrial Facilities took a step-up this third quarter. I would expect it to be somewhere close to that same level here in the fourth quarter. So the combined should have a strong upward move in revenue level for 4Q.

所以我認為這對前景有利。我認為你還會看到公用事業和電力基礎設施的一些成長。第三季度，加工和工業設施取得了進展。我預計第四季的水平將接近這一水平。因此，合併後第四季的營收水準應該會強勁上升。

Got it.

知道了。

I think that'll benefit overhead recovery, and that the gross margin percentage, in a significant way.

我認為這將極大地有利於間接費用的回收，並提高毛利率。

Perfect. Okay, that's all I had. Thank you.

完美的。好的，這就是我所知道的全部。謝謝。

Thank you. This concludes our question-and-answer session. I would now like to turn it back to Kellie Smythe, Senior Director of Investor Relations, for closing remarks.

謝謝。我們的問答環節到此結束。現在我想請投資者關係高級總監凱莉·斯邁思 (Kellie Smythe) 致最後總結。

Thank you. As a reminder, we will be participating in the Sidoti Micro-Cap Virtual Conference on May 21 and 22. We'll also be attending the Stifel Cross-Sector Insights Conference on June 3 and 4 in Boston.

謝謝。提醒一下，我們將於 5 月 21 日和 22 日參加 Sidoti Micro-Cap 虛擬會議。我們也將於 6 月 3 日至 4 日參加在波士頓舉行的 Stifel 跨產業洞察會議。

Additionally, if you'd 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 Matrix news by scanning the QR code on your screen. Thank you for your time.

此外，如果您想與管理層交談，請透過 Matrix Service Company 投資者關係網站與我聯絡。您也可以透過掃描螢幕上的二維碼來註冊接收 Matrix 新聞。感謝您抽出時間。

This concludes today's conference call. Thank you for participating and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。