On Friday Guardian of the stock market, many titles closed on active territory, but Matrix Service (NASDAQ: MTRX) Not one of them. Investors sold stocks after disturbing quarterly earnings were released, a day that fell nearly 9%. at the same time, S&P 500 (snpindex: ^gspc) The closure is relatively flat.

Matrix increased its revenue by 21% year-on-year to more than $200 million in the third quarter of 2025. While doing so, it drastically narrowed its non-GAAP (universally accepted accounting principles) adjusted net loss; that was $3.3 million, or $0.12 per share, compared with a deficit of $14.6 million in the third quarter of last year.

Matrix has reduced its strength growth in its storage and terminal solutions as well as utilities and power infrastructure sectors, and these revenues benefit from large-scale projects.

However, as a group, analysts tracking stocks expect improvements. Their consensus on revenue is estimated to be more than $247 million, with a net loss of $0.05.

In the quarter, Matrix said its project backlog increased by nearly 8% year-on-year to $1.4 billion.

Another negative in Matrix's earnings report is the reduction in its full revenue guide for fiscal 2025. The company is now modeling at $770 million to $800 million, from the previous $850 million range from $900 million to $900 million. Although the new product line will receive $728 million for fiscal 2024, its average analyst estimate is $854 million.

The company does not provide any profitability forecast.

The difference between the expectations of matrix performance and its actual results is disturbing. I will sit on the fence until the company shows signs of stronger improvement.

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