Matrix Service Co (NASDAQ:MTRX),  a leading North American industrial engineering, construction, and maintenance contractor, stock surges 17.89% (As on September 10, 11:29:36 AM UTC-4, Source: Google Finance) after the company reported better-than-expected fourth quarter earnings and provided upbeat revenue guidance for fiscal 2025. Gross margin was $12.4 million, or 6.6%, in the fourth quarter of fiscal 2024 compared to $14.7 million, or 7.1% for fourth quarter fiscal 2023. Strong project execution in the fiscal fourth quarter was partly offset by lower revenue volumes due to slower than expected project start-ups. Adjusted net loss for the fourth quarter fiscal 2024 was $3.9 million compared to $3.0 million for the fourth quarter fiscal 2023. The Company’s backlog remained at near record levels in the fourth quarter of fiscal 2024, ending at $1.4 billion as of June 30, 2024. Project awards totaled $175.9 million in the fourth quarter of fiscal 2024, resulting in a full year book-to-bill ratio of 1.5x.

Moreover, Storage and Terminals Solutions segment revenue increased to $70.0 million in the fourth quarter compared to $64.1 million in the fourth quarter of fiscal 2023, due to increased activity on NGL storage projects. Utility and Power Infrastructure segment revenue increased to $65.3 million in the fourth quarter of fiscal 2024 compared to $39.1 million in the fourth quarter of fiscal 2023, benefiting from higher volumes of work associated with LNG peak shaving projects. Process and Industrial Facilities segment revenue decreased to $54.2 million in the fourth quarter of fiscal 2024 compared to $102.7 million in the fourth quarter of fiscal 2023, primarily due to lower revenue for midstream gas processing projects, refinery maintenance and turnarounds, and a recently completed large renewable diesel project.

MTRX in the fourth quarter of FY 24 has reported the adjusted loss per share of 14 cents, beating the analysts’ estimates for the adjusted loss per share of 21 cents. The company had reported the adjusted revenue decline of$189.5 million in the fourth quarter of FY 24 compared to $205.9 million in the fiscal fourth quarter of 2023, missing the analysts’ estimates for revenue of $202.81 million. The decline was due to lower revenues from refinery maintenance and turnarounds, and midstream gas processing projects, offset by increases in revenues from peak shaver projects and LNG storage projects.

For fiscal 2025, Matrix Service expects revenue to be between $900 million and $950 million, ahead of Wall Street’s projection of $889.9 million.