MATRIX SERVICE CO Q1 FY2025 earnings call

• Safety: Matrix emphasizes a zero-incident workplace, with safety extending beyond occupational to include combating discrimination/harassment. - Backlog and Execution: Started fiscal 2025 with $1.4 billion backlog, project execution strong; expect backlog conversion to revenue to increase. - Segments: Storage and Terminal Solutions driven by LNG, NGL, ammonia projects; Utility and Power Infrastructure by LNG peak shaving, data centers, etc.; Process and Industrial Facilities expected to improve in H2 due to turnarounds. - Book-to-Bill: Consolidated book-to-bill ratio 0.9 for Q1, trailing twelve-month 1.1

Storage and Terminal Solutions segment revenue was $78.2 million in the first quarter compared to $90.1 million in the first quarter of fiscal 2024. Utility and Power Infrastructure segment revenue increased over 70% to $55.9 million in the first quarter of fiscal 2025 compared to $32.4 million in the first quarter of fiscal 2024. Process and Industrial Facilities segment revenue was $31 million compared to $75.1 million in the first quarter of fiscal 2024. Storage and Terminal Solutions contributed approximately 47.2% to Q1 2025 revenue ($78.2M / $165.6M), Utility and Power Infrastructure contributed ~33.7% ($55.9M / $165.6M), and Process and Industrial Facilities contributed ~18.7% ($31M / $165.6M)

• Revenue guidance maintained at $900 million to $950 million, year-over-year increase 24%-30%. - Storage and Terminal Solutions: Revenue to increase each quarter driven by backlog and opportunity funnel. - Utility and Power Infrastructure: Growth to continue from LNG peak shaving and other projects. - Process and Industrial Facilities: Improvement expected in H2 with turnarounds and new projects

• Variables affecting awards and project starts: Presidential election, legislative/regulatory environment, customer investment decisions. - Construction overhead impact: Negative impact in Q1 expected to diminish as revenue increases

Q: Good morning, everyone. Thanks for taking the questions. I would like to start with the quarter. I was a little surprised, I guess, with the lower revenue that you have gotten in the utility business. Was there anything unusual in the business, especially when compared to the fourth quarter tracking?

A: In the utility segment, no. It is really around timing on the new projects that are starting. We thought it would be down a little bit in the first quarter, but from this point forward, those projects are underway, and we would expect a trend of increasing revenues quarter over quarter for the rest of the year.

Q: Hey. Thanks. Good morning. Hey, John. I was a little surprised the book-to-bill was not a little stronger this quarter, especially given the lower revenue levels. I am just wondering if maybe there is a little bit of hesitation in moving things forward due to the election, or is it just simply timing here?

A: It is timing. We have a couple of large projects going on, but the bigger ones that create more momentum in the quarterly award cycle, we had anticipated at least one of those to hit the first quarter. More than likely now to be in the second quarter. To some extent, it is just the timing of the awards that we live with. As it relates to the whole election cycle, there are mixed opinions from our clients. Some specifically said they are waiting to see what happens, and we had a couple of other clients that were pretty agnostic to whoever won from a business standpoint. It is hard to say. I am sure it is reflected a little bit in some of the decision-making