Reinvigorated senior leadership with recently on-boarded, high-caliber positions with proven industry experience, to focus on delivering value to customers
Integrated Data Solutions capabilities for customers worldwide combining data-centric services, software solutions, and technology, to evolve a scalable, full life cycle asset protection ecosystem
Unified accredited laboratories with integrated service capabilities, to significantly reduce cycle times, increase speed to market and simplify quality assurance across Aerospace and Defense platform
Highlights for the First Quarter 2025*
- Revenue of
$161.6 million , a decrease of 12.4% - Gross profit of
$40.9 million , with gross profit margin of 25.3%, an increase of 30 basis points - Selling, general, and administrative (“SG&A”) expenses of
$35.7 million , down 1.7% - Net loss of
$3.2 million inclusive of Special items of$3.6 million , with Adjusted EBITDA of$12.0 million - Net cash provided by operating activities of
$5.6 million , an increase of$5.0 million
*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 consolidated statement 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.
For the first quarter of 2025, consolidated revenue was
Although gross profit declined in the first quarter of 2025, gross profit margin nevertheless increased 30 basis points. This improvement was due to lower healthcare claims expense in the current year period and a favorable sales mix.
The Company's results reflect certain overhead and personnel expenses which have been reclassified in the Consolidated Statements of Income (loss) from SG&A to Cost of Revenue, as it is determined this reclassification would be preferable as it provides greater transparency regarding the true cost of the Company’s revenue and aligns with how the business is managed. These overhead and personnel costs, 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 that revenue. The reclassification recorded within the financials was
SG&A in the first quarter of 2025 was
The Company reported a quarterly net loss of
Adjusted EBITDA was
Cash Flow and Balance Sheet
The Company’s net cash provided by operating activities was
The Company’s gross debt was
Reorganization and Other Costs
For the first quarter of 2025, the Company recorded
2025 Outlook
The Company is not providing full year guidance for fiscal 2025 due to unprecedented market uncertainty as a result of tariffs, changes to
Conference Call
In connection with this release, MISTRAS will hold a conference call on
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://mistras-q1-earnings.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
INVESTORS CONTACT:
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 and recently announced
Use of Non-GAAP Financial Measures
In addition to financial information prepared in accordance with generally accepted accounting principles in the
“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. 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.
Unaudited Condensed Consolidated Balance Sheets (in thousands, except share and per share data) | ||||||||
ASSETS | (unaudited) | |||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 18,536 | $ | 18,317 | ||||
Accounts receivable, net | 128,192 | 127,281 | ||||||
Inventories | 14,141 | 14,485 | ||||||
Prepaid expenses and other current assets | 15,104 | 12,387 | ||||||
Total current assets | 175,973 | 172,470 | ||||||
Property, plant and equipment, net | 82,796 | 80,892 | ||||||
Intangible assets, net | 39,187 | 39,708 | ||||||
181,530 | 181,442 | |||||||
Deferred income taxes | 6,351 | 6,267 | ||||||
Other assets | 40,952 | 42,259 | ||||||
Total assets | $ | 526,789 | $ | 523,038 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 13,385 | $ | 11,128 | ||||
Accrued expenses and other current liabilities | 85,485 | 85,233 | ||||||
Current portion of long-term debt | 12,374 | 11,591 | ||||||
Current portion of finance lease obligations | 5,735 | 5,317 | ||||||
Income taxes payable | 573 | 1,656 | ||||||
Total current liabilities | 117,552 | 114,925 | ||||||
Long-term debt, net of current portion | 159,500 | 158,056 | ||||||
Obligations under finance leases, net of current portion | 15,871 | 15,162 | ||||||
Deferred income taxes | 2,093 | 1,973 | ||||||
Other long-term liabilities | 32,772 | 34,027 | ||||||
Total liabilities | 327,788 | 324,143 | ||||||
Commitments and contingencies | ||||||||
Equity | ||||||||
Preferred stock, 10,000,000 shares authorized | — | — | ||||||
Common stock, | 406 | 402 | ||||||
Additional paid-in capital | 251,629 | 250,832 | ||||||
Accumulated deficit | (13,170 | ) | (9,984 | ) | ||||
Accumulated other comprehensive loss | (40,200 | ) | (42,682 | ) | ||||
Total Mistras Group, Inc. stockholders’ equity | 198,665 | 198,568 | ||||||
Noncontrolling interests | 336 | 327 | ||||||
Total equity | 199,001 | 198,895 | ||||||
Total liabilities and equity | $ | 526,789 | $ | 523,038 | ||||
Unaudited Condensed Consolidated Statements of Income (Loss) (in thousands, except per share data) | |||||||
Three months ended | |||||||
2025 | 2024 | ||||||
Revenue | $ | 161,615 | $ | 184,442 | |||
Cost of revenue | 115,286 | 132,355 | |||||
Depreciation | 5,437 | 5,934 | |||||
Gross profit | 40,892 | 46,153 | |||||
Selling, general and administrative expenses | 35,652 | 36,252 | |||||
Environmental expense | 540 | — | |||||
Reorganization and other costs | 3,087 | 1,558 | |||||
Research and engineering | 299 | 343 | |||||
Depreciation and amortization | 2,326 | 2,447 | |||||
(Loss) income from operations | (1,012 | ) | 5,553 | ||||
Interest expense | 3,324 | 4,430 | |||||
(Loss) income before (benefit) provision for income taxes | (4,336 | ) | 1,123 | ||||
(Benefit) provision for income taxes | (1,168 | ) | 119 | ||||
Net (loss) income | (3,168 | ) | 1,004 | ||||
Less: net income attributable to noncontrolling interests, net of taxes | 18 | 9 | |||||
Net (loss) income attributable to | $ | (3,186 | ) | $ | 995 | ||
Net (loss) income per common share | |||||||
Basic | $ | (0.10 | ) | $ | 0.03 | ||
Diluted | $ | (0.10 | ) | $ | 0.03 | ||
Weighted-average common shares outstanding: | |||||||
Basic | 31,095 | 30,680 | |||||
Diluted | 31,095 | 31,356 | |||||
Unaudited Operating Data by Segment (in thousands) | ||||||||
Three months ended | ||||||||
2025 | 2024 | |||||||
Revenues | ||||||||
$ | 128,902 | $ | 150,349 | |||||
International | 33,214 | 33,047 | ||||||
Products and Systems | 3,091 | 3,210 | ||||||
Corporate and eliminations | (3,592 | ) | (2,164 | ) | ||||
$ | 161,615 | $ | 184,442 | |||||
Three months ended | ||||||||
2025 | 2024 | |||||||
Gross profit | ||||||||
$ | 30,165 | $ | 35,245 | |||||
International | 9,088 | 9,269 | ||||||
Products and Systems | 1,623 | 1,613 | ||||||
Corporate and eliminations | 16 | 26 | ||||||
$ | 40,892 | $ | 46,153 | |||||
Unaudited Revenues by Category (in thousands) | ||||||||||||||||
Revenue by industry was as follows: | ||||||||||||||||
Three Months Ended | International | Products & Systems | Corp/Elim | Total | ||||||||||||
Oil & Gas | $ | 85,731 | $ | 10,646 | $ | 187 | — | $ | 96,564 | |||||||
Aerospace & Defense | 14,007 | 6,281 | 116 | — | 20,404 | |||||||||||
Industrials | 11,688 | 6,517 | 365 | — | 18,570 | |||||||||||
3,224 | 985 | 444 | — | 4,653 | ||||||||||||
Other | 6,501 | 3,744 | 8 | — | 10,253 | |||||||||||
Infrastructure, Research & Engineering | 3,701 | 2,562 | 958 | — | 7,221 | |||||||||||
Petrochemical | 2,523 | 110 | — | — | 2,633 | |||||||||||
Other | 1,527 | 2,369 | 1,013 | (3,592 | ) | 1,317 | ||||||||||
Total | $ | 128,902 | $ | 33,214 | $ | 3,091 | $ | (3,592 | ) | $ | 161,615 | |||||
Three Months Ended | International | Products & Systems | Corp/Elim | Total | ||||||||||||
Oil & Gas | $ | 103,027 | $ | 10,066 | $ | 72 | — | $ | 113,165 | |||||||
Aerospace & Defense | 15,375 | 6,732 | 11 | — | 22,118 | |||||||||||
Industrials | 8,909 | 5,853 | 437 | — | 15,199 | |||||||||||
3,592 | 1,682 | 578 | — | 5,852 | ||||||||||||
Other | 7,928 | 3,933 | 39 | — | 11,900 | |||||||||||
Infrastructure, Research & Engineering | 3,972 | 2,205 | 409 | — | 6,586 | |||||||||||
Petrochemical | 3,813 | 531 | — | — | 4,344 | |||||||||||
Other | 3,733 | 2,045 | 1,664 | (2,164 | ) | 5,278 | ||||||||||
Total | $ | 150,349 | $ | 33,047 | $ | 3,210 | $ | (2,164 | ) | $ | 184,442 | |||||
Oil & Gas Revenue by sub-industry was as follows: | ||||||
Three months ended | ||||||
2025 | 2024 | |||||
($ in thousands) | ||||||
Oil and Gas Revenue | ||||||
Upstream | $ | 40,251 | $ | 41,767 | ||
Midstream | 15,808 | 21,392 | ||||
Downstream | 40,505 | 50,006 | ||||
Total | $ | 96,564 | $ | 113,165 | ||
Consolidated Revenue by type was as follows: | ||||||
Three months ended | ||||||
2025 | 2024 | |||||
($ in thousands) | ||||||
Field Services | $ | 110,175 | $ | 126,355 | ||
15,029 | 17,195 | |||||
Data Analytical Solutions | 13,981 | 15,539 | ||||
Other | 22,430 | 25,353 | ||||
Total | $ | 161,615 | $ | 184,442 | ||
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 | ||||||||
2025 | 2024 | |||||||
Income from operations (GAAP) | $ | 6,515 | $ | 13,561 | ||||
Reorganization and other costs | 1,358 | — | ||||||
Income from operations before special items (non-GAAP) | $ | 7,873 | $ | 13,561 | ||||
International: | ||||||||
Income from operations (GAAP) | $ | 1,081 | $ | 1,124 | ||||
Reorganization and other costs | 178 | 102 | ||||||
Income from operations before special items (non-GAAP) | $ | 1,259 | $ | 1,226 | ||||
Products and Systems: | ||||||||
Income from operations (GAAP) | $ | 327 | $ | 314 | ||||
Reorganization and other costs | 151 | 2 | ||||||
Income from operations before special items (non-GAAP) | $ | 478 | $ | 316 | ||||
Corporate and Eliminations: | ||||||||
Loss from operations (GAAP) | $ | (8,935 | ) | $ | (9,446 | ) | ||
Environmental expense | 540 | — | ||||||
Reorganization and other costs | 1,400 | 1,454 | ||||||
Loss from operations before special items (non-GAAP) | $ | (6,995 | ) | $ | (7,992 | ) | ||
(Loss) income from operations (GAAP) | $ | (1,012 | ) | $ | 5,553 | |||
Environmental expense | 540 | — | ||||||
Reorganization and other costs | 3,087 | 1,558 | ||||||
Income from operations before special items (non-GAAP) | $ | 2,615 | $ | 7,111 | ||||
Unaudited Summary Cash Flow Information (in thousands) | ||||||||
Three months ended | ||||||||
2025 | 2024 | |||||||
Net cash provided by (used in): | ||||||||
Operating activities | $ | 5,645 | $ | 604 | ||||
Investing activities | (5,414 | ) | (5,648 | ) | ||||
Financing activities | (702 | ) | 5,127 | |||||
Effect of exchange rate changes on cash | 690 | (874 | ) | |||||
Net change in cash and cash equivalents | $ | 219 | $ | (791 | ) | |||
Unaudited Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP) (in thousands) | ||||||||
Three months ended | ||||||||
2025 | 2024 | |||||||
Net cash provided by operating activities (GAAP) | $ | 5,645 | $ | 604 | ||||
Less: | ||||||||
Purchases of property, plant and equipment | (4,555 | ) | (4,804 | ) | ||||
Purchases of intangible assets | (1,267 | ) | (1,117 | ) | ||||
Free cash flow (non-GAAP) | $ | (177 | ) | $ | (5,317 | ) | ||
Unaudited Reconciliation of Gross Debt (GAAP) to Net Debt (non-GAAP) (in thousands) | ||||||||
Current portion of long-term debt | $ | 12,374 | $ | 11,591 | ||||
Long-term debt, net of current portion | 159,500 | 158,056 | ||||||
Total Debt (Gross) | 171,874 | 169,647 | ||||||
Less: Cash and cash equivalents | (18,536 | ) | (18,317 | ) | ||||
Total Debt (Net) | $ | 153,338 | $ | 151,330 | ||||
Unaudited Reconciliation of Net Income (Loss) (GAAP) to Adjusted EBITDA (non-GAAP) (in thousands) | ||||||||
Three Months Ended | ||||||||
2025 | 2024 | |||||||
Net (loss) income (GAAP) | $ | (3,168 | ) | $ | 1,004 | |||
Less: Net income attributable to non-controlling interests, net of taxes | 18 | 9 | ||||||
Net (loss)/income attributable to | $ | (3,186 | ) | $ | 995 | |||
Interest expense | 3,324 | 4,430 | ||||||
Income tax (benefit)/expense | (1,168 | ) | 119 | |||||
Depreciation and amortization | 7,763 | 8,381 | ||||||
Share-based compensation expense | 1,302 | 1,228 | ||||||
Reorganization and other costs(1) | 3,087 | 1,558 | ||||||
Environmental expense | 540 | — | ||||||
Foreign exchange loss (gain) | 374 | (561 | ) | |||||
Adjusted EBITDA (non-GAAP) | $ | 12,036 | $ | 16,150 | ||||
(1) For the three months ended | ||||||||
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 | ||||||||
2025 | 2024 | |||||||
Net (loss) income attributable to | $ | (3,186 | ) | $ | 995 | |||
Special items | 3,627 | 1,558 | ||||||
Tax impact on special items | (781 | ) | (381 | ) | ||||
Special items, net of tax | $ | 2,846 | $ | 1,177 | ||||
Net (loss) income attributable to | $ | (340 | ) | $ | 2,172 | |||
Diluted EPS (GAAP)(1) | $ | (0.10 | ) | $ | 0.03 | |||
Special items, net of tax | 0.09 | 0.04 | ||||||
Diluted EPS Excluding Special Items (non-GAAP) | $ | (0.01 | ) | $ | 0.07 | |||
(1) For the three months ended | ||||||||

Source: MISTRAS Group, Inc.