Matrix Service Company (MTRX): Business Model Canvas [Dec-2025 Updated]

You're digging into the engine room of Matrix Service Company (MTRX), and frankly, it's a model built on executing massive, complex energy projects, from LNG tanks to utility upgrades. As a former head analyst, I can tell you the real story isn't just the $769.3 million in revenue they booked for fiscal year 2025, but the $1.4 billion project backlog waiting to be converted-that's the near-term gold mine. This Business Model Canvas distills exactly how they partner for specialized skills, maintain near-perfect customer retention, and manage the heavy labor and material costs that define this high-stakes construction segment. Dive in below to see the nine building blocks that keep this critical infrastructure player running smoothly.

Matrix Service Company (MTRX) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships Matrix Service Company (MTRX) relies on to execute its large-scale engineering and construction contracts, especially in the energy and industrial infrastructure space. These partnerships are key to managing scope, risk, and specialized execution.

Co-contractors for large, complex projects like the Delaware River Partners dual service tank

Matrix Service Company, through its Matrix NAC operating company, secures major awards by integrating its specialty storage capabilities with other contractors for full project delivery. A prime example is the work for Delaware River Partners at the Repauno Port and Rail Terminal.

The company secured the balance of plant construction work supporting a large, dual-service full containment storage tank, which followed a previous award for the inner steel tank scope.

• The tank capacity is specified at 100,000 m3, which equates to 630,000 barrels.
• The balance of plant award was added to the backlog in the first quarter of fiscal 2026.
• The project is estimated to create up to 300 local construction jobs.

Here's a breakdown of the known project scope and partners for this critical infrastructure build:

This integrated approach helps Matrix Service Company manage the full lifecycle of specialty storage projects, which is a differentiator when securing work against a total backlog reported at $1.4 billion as of June 30, 2025.

Specialized material and equipment suppliers for LNG/cryogenic storage

Executing projects involving liquefied natural gas (LNG) and other cryogenic materials demands a reliable supply chain for highly specialized components. While specific supplier names aren't always public, the nature of the work dictates reliance on vendors capable of meeting stringent material specifications for these demanding environments.

Matrix Service Company's Storage and Terminal Solutions segment revenue was $96.1 million in the fourth quarter of fiscal 2025, driven by specialty vessel and LNG storage projects, showing the scale of material throughput required.

• The company supports facilities for liquid natural gas, natural gas liquids, hydrogen, and ammonia.
• The total liquidity position as of June 30, 2025, stood at $284.5 million, which supports procurement and working capital needs for these projects.

Labor unions and skilled trade organizations for project staffing

Staffing large construction projects requires access to skilled trades, and Matrix Service Company addresses this through internal development and respecting external organizing rights. The company's Human Rights Policy, effective September 9, 2025, explicitly covers this relationship.

The policy commits that Matrix will respect its employees' right to join or form a labor union without fear of reprisal, intimidation or harassment, following all applicable laws and regulations.

Furthermore, the Fiscal 2025 Sustainability Report highlighted enhancements to labor recruitment, including a comprehensive onboarding process and robust training and development opportunities for its workforce.

Third-party experts for climate-related risk assessment and ESG strategy

Matrix Service Company actively partners with external specialists to validate and guide its Environmental, Social, and Governance (ESG) framework. This is a formal part of their reporting structure.

The Fiscal 2025 Sustainability Report confirms that Matrix evaluated its climate-related risks and opportunities in partnership with third-party experts, affirming its ESG strategy.

• This partnership work supported the identification and reporting of material Scope 3 GHG emissions at corporate and regional offices.
• In Fiscal 2024, third-party evaluation also supported investments in systems to drive global supply chain compliance and performance.

Finance: review Q1 FY2026 cash flow projections against the $1.4 billion backlog by end of next week.

Matrix Service Company (MTRX) - Canvas Business Model: Key Activities

You're looking at how Matrix Service Company actually generates its revenue right now, late in 2025. It boils down to heavy-duty, complex industrial construction and the ongoing support for those assets. The core of their work falls under what they call Engineering, Procurement, Fabrication, and Construction (EPFC) services, which they organize into three main buckets.

The execution of that massive project pipeline is what keeps the lights on. Matrix Service Company started fiscal year 2026 with a total project backlog of $1.2 billion as of September 30, 2025. That's down a bit from the $1.4 billion they carried at the end of fiscal 2025, but that backlog is what they convert into sales. For instance, in the first quarter of fiscal 2026, they converted $211.9 million of that work into revenue, which was a solid 28% jump compared to the same quarter last year.

Engineering, Procurement, Fabrication, and Construction (EPFC) Services

Matrix Service Company structures its EPFC activities across three segments. These segments show where the company is focusing its engineering and construction muscle. The Utility and Power Infrastructure segment, for example, saw its revenue increase by 33% year-over-year in the first quarter of fiscal 2026, hitting $74.5 million. This is driven by work like natural gas peak shaving projects.

Here's a quick look at the revenue generated from these core activities in the first quarter of fiscal 2026:

Specialty Vessel and Cryogenic/Low-Temperature Storage Construction

This is a key differentiator for Matrix Service Company, falling squarely within their Storage and Terminal Solutions segment. The demand for LNG (liquefied natural gas) storage and specialty vessel work is clearly strong, as this segment led the revenue growth. In the first quarter of fiscal 2026, this segment brought in $109.5 million in revenue, a 40% increase from the prior year period.

The backlog composition as of September 30, 2025, shows the weight of this activity:

• Storage & Terminal Solutions Backlog: $796.7 million
• Total Backlog: $1.2 billion

Maintenance, Repair, and Turnaround Services for Industrial Facilities

Maintenance, repair, and turnaround (MR&T) work is typically embedded within the Process and Industrial Facilities segment, which also handles things like thermal vacuum chambers and refinery work. While the revenue for this segment was lower in the most recent quarter compared to the prior year-$47.3 million in Q4 FY2025 versus $54.2 million in Q4 FY2024-the backlog still supports future activity. The company is focused on higher-margin specialty engineering and construction, but MR&T provides a steady base of service revenue.

The distribution of the backlog as of September 30, 2025, shows where future MR&T and other industrial work is expected:

• Process & Industrial Facilities Backlog: $101.9 million
• Utility & Power Infrastructure Backlog: $262.3 million

Executing a $1.4 Billion Project Backlog to Drive Revenue Conversion

The ability to convert that backlog into recognized revenue is the critical activity here. Matrix Service Company ended fiscal 2025 with a $1.4 billion backlog, and they are actively working to convert it, as seen by the $211.9 million in revenue for Q1 FY2026. They are guiding for full-year fiscal 2026 revenue between $875 million and $925 million. Honestly, they expect about 85% of that midpoint revenue guidance to be supported by the existing backlog, which is a strong indicator of near-term revenue visibility.

Here's how that backlog conversion is translating to their financial stability:

• Cash flow from operations (Q1 FY2026): $45.5 million (for the first half of fiscal 2026)
• Liquidity (as of September 30, 2025): $248.9 million
• Outstanding Debt: Zero

Finance: draft 13-week cash view by Friday.

Matrix Service Company (MTRX) - Canvas Business Model: Key Resources

You're looking at the core assets Matrix Service Company (MTRX) relies on to deliver its engineering and construction services across the energy and industrial sectors. These aren't just line items; they are the tangible and human capital that underpins their ability to win and execute complex, multi-year contracts. Honestly, the financial strength here is a major differentiator right now.

The immediate financial resources provide a strong foundation for operations and strategic flexibility. As of the end of the fourth quarter of fiscal 2025, specifically June 30, 2025, the balance sheet looked solid:

This liquidity position, coupled with zero outstanding debt as of that date, gives Matrix Service Company significant staying power. They can fund working capital needs without immediate external pressure. That's a key resource for any company managing long-cycle industrial projects.

The forward-looking pipeline is secured by a substantial backlog. This represents committed future revenue, which is crucial for forecasting and resource planning. As of June 30, 2025, the backlog stood at a large, multi-year level:

• Large, multi-year project backlog: $1.4 billion.

This backlog figure is the direct result of project awards across their key segments, giving you a clear view of contracted work converting into future revenue. It's the work that's already in the books.

Next, let's look at the people and the physical assets that actually build the projects. Matrix Service Company structures its specialized talent and physical resources across four distinct operating companies:

• Matrix PDM Engineering: Provides world-class multi-discipline engineering.
• Matrix NAC: Their union construction operating company.
• Matrix Service: The core construction operating company.
• Matrix Applied Technologies: Focuses on aboveground storage tank products globally.

The human capital is supported by a culture that retains talent; they boast a 90% retention rate and have maintained Great Place to Work® certification status since 2015. This suggests a stable pool of experienced professionals, which is vital for complex engineering and construction work. You need people who know how to handle the technical demands of LNG storage or utility infrastructure.

The physical assets are geographically distributed to support their North American footprint. The fabrication capability is particularly noteworthy:

While the exact size of the construction equipment fleet isn't itemized with a specific count in the latest reports, the ability to execute a $1.4 billion backlog across segments like Utility and Power Infrastructure and Storage and Terminal Solutions implies ownership or ready access to the necessary heavy machinery and specialized tools for large-scale industrial builds. The focus on high-level certifications, like the OSHA VPP Star status for their fabrication shops, acts as a proxy for the quality and maintenance of their physical plant.

Matrix Service Company (MTRX) - Canvas Business Model: Value Propositions

Full project life cycle service: engineering through maintenance for critical infrastructure.

Matrix Service Company supports the entire asset life-cycle for energy and utility infrastructure customers, a track record spanning over 40+ years. The company's backlog as of September 30, 2025, stood at $1.2 billion, providing revenue visibility. For the first quarter of fiscal 2026, total project awards were $187.8 million. The company's full-year fiscal 2026 revenue guidance projects revenue between $875 million and $925 million.

The business is structured around key segments that reflect this end-to-end capability:

• Storage and Terminal Solutions segment revenue in Q1 FY2026 was $109.5 million.
• Utility and Power Infrastructure segment revenue in Q1 FY2026 was not explicitly stated, but the segment drove strong project awards.
• Process and Industrial Facilities segment revenue in Q1 FY2026 was not explicitly stated.

Expertise in high-growth areas like LNG, NGL, and ammonia storage.

The company is uniquely positioned to capitalize on multi-year spending cycles within LNG and NGL infrastructure. This focus is evident in segment performance, where the Storage and Terminal Solutions segment saw revenue increase 40% year-over-year in the first quarter of fiscal 2026, reaching $109.5 million. This activity is driven primarily by work for LNG storage and specialty vessel projects. The demand for LNG, NGL, and ammonia storage and terminal infrastructure remains robust.

Here is a look at the segment performance driving this value proposition in the latest reported quarter:

The Storage and Terminal Solutions segment's book-to-bill ratio of 1.2x in Q1 FY2026 shows new awards outpaced revenue recognition for that specific area.

High-quality, safe execution of complex, large-scale industrial projects.

The company emphasizes disciplined execution across its expanding project base. While specific safety metrics like Total Recordable Incident Rate are not provided, operational performance is reflected in revenue growth and margin targets. For the first quarter of fiscal 2026, consolidated revenue grew 28% year-over-year to $211.9 million. The company noted that direct gross margins were aligned to its 10% target.

The company's financial strength supports complex project execution:

• Liquidity at September 30, 2025, was $248.9 million.
• The Company had no outstanding debt as of September 30, 2025.
• Cash flow from operations for the quarter was positive.

Turnkey solutions that enhance system reliability and resilience.

The Utility and Power Infrastructure segment is driven by customer prioritization of investment in grid reliability and resilience. This segment benefits from work associated with LNG peak shaving projects. The company's focus on its Win, Execute, Deliver strategy supports this value proposition. The overall backlog as of June 30, 2025, was $1.4 billion, which supported 85% of the midpoint of the fiscal 2026 revenue guidance.

Matrix Service Company (MTRX) - Canvas Business Model: Customer Relationships

You're looking at how Matrix Service Company keeps its clients locked in for the long haul, which is key when you're dealing with massive capital projects in the energy and industrial sectors. The relationship focus here is less about quick transactions and more about securing multi-year revenue visibility, even if the exact repeat revenue percentage isn't publically stated in the latest filings.

The strength of the relationship is definitely visible in the size of the committed work. As of September 30, 2025, Matrix Service Company had a total backlog of $1.2 billion, which represents future revenue visibility. This backlog is the direct result of successful sales and bidding efforts, which is how they secure these large engineering and construction (E&C) contracts.

For large capital expenditure clients, the goal is clearly multi-year commitment. Management commentary confirms this strategic push, noting they are actively pursuing several large, multi-year project awards for late fiscal 2026 and into fiscal 2027. This signals a relationship strategy built on multi-year project lifecycles, not just one-off jobs. To be fair, even for maintenance contracts without minimums, the company only includes revenue expected over the next 12 months in the backlog calculation, showing a conservative approach to recognizing relationship-based recurring revenue.

The direct sales and bidding process is quantified by the flow of new work. You see this activity reflected in the project awards announced throughout the fiscal year. For example, in the first quarter of fiscal 2026, project awards totaled $187.8 million. This constant flow of new awards against the recognized revenue defines the success of their direct engagement model. If onboarding takes 14+ days, churn risk rises, but for MTRX, the risk is more about award timing.

Here's a quick look at the contract flow metrics from the recent reporting periods:

The relationship strategy is supported by the overall financial outlook, which suggests confidence in future client commitments. Matrix Service Company reaffirmed its full-year fiscal 2026 revenue guidance to be between $875 million and $925 million, implying year-over-year growth of 14% to 20%. This forward guidance is a direct reflection of the company's perceived strength of its customer relationships and the pipeline visibility they have cultivated.

The structure of client engagement involves several key relationship touchpoints:

• Securing work through competitive bidding processes.
• Focusing on specialty E&C markets.
• Pursuing long-term, multi-year contracts.
• Maintaining a robust opportunity pipeline, over $6.7 billion as of early Q1 FY2026.

Finance: draft 13-week cash view by Friday.

Matrix Service Company (MTRX) - Canvas Business Model: Channels

You're looking at how Matrix Service Company (MTRX) gets its engineering and construction services in front of the right industrial and utility clients. It's a high-touch, project-driven approach, which makes sense given their focus on large-scale infrastructure.

The direct sales effort is supported by a workforce of 2,239 total employees as of late 2025, focused on the three main segments: Storage and Terminal Solutions, Utility and Power Infrastructure, and Process and Industrial Facilities. This team targets major energy and industrial players who need complex, multi-year build-outs.

The physical footprint is key to service delivery and client proximity. Matrix Service Company maintains a network of over 20+ Locations globally, which includes corporate, regional, and fabrication facilities. This physical presence helps them manage projects across North America and internationally.

Here's a breakdown of where you can find their operations:

• Corporate Headquarters: Tulsa, OK.
• International Offices: Sydney, Australia, and Seoul, South Korea.
• Canadian Presence: Regional/International Office in Leduc, AB.
• US Fabrication Facilities: Bakersfield, CA; Bellingham, WA; Catoosa, OK.

The physical locations are critical for supporting the direct sales force and executing the work. For instance, their Q2 Fiscal 2025 results showed revenue growth driven by work in specialty vessels and LNG storage, which requires local execution support. Here's a look at some of their key operational hubs:

Client acquisition heavily relies on formal bidding for large utility and energy projects. You see this in the backlog numbers; for example, in Q1 Fiscal 2025, project awards totaled $148.0 million, leading to a total backlog of $1.4 billion. This indicates a steady stream of successful proposals being converted into secured work.

The formal proposal process is how they secure the massive contracts that drive their revenue, which was guided to be between $900 million and $950 million for the full Fiscal Year 2025. A concrete example of a successful bid channel is the November 2025 announcement where Matrix NAC was awarded the balance of plant work for a 100,000 m3, (630,000 barrels) storage tank for Delaware River Partners. That project followed a previous award in Fiscal 2025 for the inner steel tank scope, showing repeat business secured through competitive, formal processes.

The book-to-bill ratio is a direct indicator of this channel's effectiveness. In Q3 Fiscal 2025, they hit a 1.5x book-to-bill ratio from $301.2 million in awards, which is exactly what you want to see when relying on large project bids.

Finance: draft 13-week cash view by Friday.

Matrix Service Company (MTRX) - Canvas Business Model: Customer Segments

You're looking at the core client base for Matrix Service Company (MTRX) as of late 2025, which is defined by the end-markets served across its three operating segments. The company's focus remains on providing engineering, fabrication, construction, maintenance, and repair services to foundational North American energy and industrial infrastructure.

The customer segments map closely to the company's reporting structure. The Storage and Terminal Solutions segment serves clients needing storage tanks and terminals, heavily involved in LNG and NGL infrastructure. The Utility and Power Infrastructure segment supports investor-owned utilities and power generation, with strong momentum noted in Q3 and Q4 Fiscal 2025 from work associated with LNG peak shaving projects. The Process and Industrial Facilities segment supports petrochemicals, refining, and other industrial clients.

Here's a look at the segment revenue contribution based on the Third Quarter Fiscal 2025 Trailing Twelve Month (TTM) data, which gives a good view of the full-year customer mix:

The full-year revenue for Fiscal 2025 was reported at $769.3 million. You can see the Storage and Terminal Solutions segment showed significant year-over-year growth, with Q4 FY25 revenue at $96.1 million compared to $70.0 million in Q4 FY24. Still, the Process and Industrial Facilities segment saw revenue decrease in Q4 FY25 to $47.3 million from $54.2 million in Q4 FY24, partly due to the completion of a large renewable diesel project.

The pipeline of future work shows where Matrix Service Company expects its customer base to grow and where it is focusing business development efforts:

• Total backlog stood at $1.4 billion as of the end of Q3 Fiscal 2025.
• The identified opportunity pipeline was approximately $7.0 billion as of March 31, 2025.
• This opportunity pipeline is heavily weighted toward the Storage & Terminal Solutions segment at 60%.
• Process & Industrial Facilities accounted for 23% of the opportunity pipeline.
• Utility & Power Infrastructure represented 17% of the opportunity pipeline.

The company is positioned to benefit from anticipated multi-year spending cycles, with management guiding for Fiscal 2026 revenue between $875 million and $925 million, implying 17% growth at the midpoint over the Fiscal 2025 total. This forward view suggests continued reliance on these core industrial and utility customers.

Matrix Service Company (MTRX) - Canvas Business Model: Cost Structure

You're looking at the expense side of the Matrix Service Company (MTRX) operations as of late 2025, which is heavily weighted towards project execution costs and managing the fallout from past projects. The cost structure reflects a business scaling up headcount to meet market demand while simultaneously dealing with legacy project issues.

Labor and personnel costs (direct and construction overhead)

Direct labor and construction overhead are central to the cost of revenue. Matrix Service Company structured its construction overhead resources to support anticipated revenue growth and a heavy proposal environment. However, this led to periods of under-recovery, meaning overhead costs were not fully absorbed by the revenue recognized.

The impact of this overhead management is clear in the gross margin figures:

• In the first quarter of fiscal 2025, the negative impact from the under-recovery of construction overhead costs was over 600 basis points.
• The company noted that construction overhead resources were structured to support strong market demand and anticipated revenue growth in each segment.

Materials and subcontractor costs for large-scale construction projects

While specific material costs aren't broken out separately from the cost of revenue, charges related to subcontractor performance are a notable cost component, especially for older projects. For instance, the fourth quarter of fiscal 2025 included a charge for an unfavorable court decision related to a subcontractor's failure to pay lower tier contractors on a pandemic-era project.

Selling, General, and Administrative (SG&A) expenses

SG&A expenses show a direct correlation with personnel growth needed to support market demand. You can see the quarterly fluctuation and the planned increase in headcount driving the Q1 figure.

Here's a look at the reported SG&A expenses across the first few quarters of fiscal 2025:

Costs associated with managing project disputes and legal arbitration

Matrix Service Company incurred significant, discrete charges in the fourth quarter of fiscal 2025 related to project issues and legal matters, which heavily impacted net income. The total impact from these four issues in Q4 FY2025 was $14.9 million.

These specific charges that hit the income statement include:

• A charge related to labor cost overruns on a crude oil terminal project that was complete.
• An updated reserve to a contract dispute on a project dating back to the pandemic, which was in arbitration.
• A charge for an unfavorable court decision related to a subcontractor on another pandemic era project.
• Restructuring costs of $3.4 million related to organizational realignment.

Also, gross margin in Q4 FY2025 was negatively impacted by a separate $6.4 million adjustment related to a legacy project completed in calendar 2021.

Matrix Service Company (MTRX) - Canvas Business Model: Revenue Streams

Matrix Service Company generates its revenue through three primary operating segments, which reflect its core industrial engineering, construction, and maintenance services across the energy and industrial markets. The Total annual revenue for fiscal year 2025 was $769.3 million.

The revenue composition across these segments shows varying performance throughout the fiscal year 2025, with significant growth in certain areas offsetting declines in others. Here's a look at the quarterly revenue figures for the first three reported quarters and the final quarter of fiscal 2025:

Construction and fabrication services for Storage and Terminal Solutions (e.g., LNG tanks) represent a key revenue driver. This segment saw revenue increase from $78.2 million in the first quarter of fiscal 2025 to $96.1 million in the fourth quarter of fiscal 2025. This activity is driven primarily by demand for LNG, NGL, and ammonia storage and terminal infrastructure.

Engineering and construction for Utility and Power Infrastructure (e.g., LNG peak shaving) also showed strong growth throughout the year. Revenue for this stream grew from $55.9 million in Q1 fiscal 2025 to $73.0 million in Q4 fiscal 2025. Management specifically highlighted strong multiyear demand in LNG peak shaving projects as a benefit.

Process and Industrial Facilities construction and maintenance services experienced more volatility. Revenue was $31.4 million in Q1 fiscal 2025, followed by $30.6 million in Q2 fiscal 2025, before rising to an estimated $47.3 million in Q4 fiscal 2025 (calculated from total Q4 revenue of $216.4 million minus the other two segments). The lower initial figures were attributed to the completion of a large renewable diesel project.

The company's overall revenue generation is supported by its backlog, which stood at $1.4 billion at the end of the fourth quarter of fiscal 2025. The total project awards for the full fiscal year 2025 amounted to $726.0 million, resulting in a full-year book-to-bill ratio of 0.9x.

• The fiscal 2025 full-year book-to-bill ratio of 0.9x indicates that new awards did not fully keep pace with revenue recognition for the year.
• Total project awards for the fourth quarter of fiscal 2025 were $186.3 million.
• Liquidity at the end of fiscal 2025 (June 30, 2025) was $284.5 million with no outstanding debt.
• Cash flow from operations for the full fiscal year 2025 was $117.5 million.