Matrix Service Company (NASDAQ:MTRX) Q4 2023 Earnings Call Transcript

Kevin Cavanah: So I think the biggest benefit you’re going to see in fiscal ‘24 to start with is going to be in storage. I think you’ll see revenues increases and move through the year. And that’s going to eliminate that under recovery issue that’s been pretty significant in that segment. And on top of that, the growth is going to be coming from projects that do present a good margin opportunity. So I think you can expect good margin growth in that segment. I would say the second segment, the utility segment, is going to be pretty good from a margin aspect from the result of the peak shaver work that we’ve got combined with our work in power delivery, those teams this last year really performed extremely strong for us and some of the best in the company.

So that’s been good to see. And I’m sure they’ll be trying to continue that. I think we talked about process and industrial facilities. I think the profitability is going to be better on lower revenues, but again, the rest of the business it has performed pretty well throughout the year. Now that’s a mix of capital work and reimbursable maintenance work. So it has a little bit of different project mix that can impact the margins a bit because it’s heavily weighted to reimbursable. But I think all three margins, or all three segments should see, or forecast to see good margins, in the year. Now, will we get to the consolidated 10%? I think we can. It definitely would not, probably not happen until the second half of the year.

John Franzreb: Great, Kevin. Thank you. That was very helpful for the insight. And John, get your arm ready.

John Hewitt: Okay. You’re in trouble.

Operator: Thank you. I’d now like to turn the call back over to John Hewitt for any closing remarks.

John Hewitt: Just thank you to everybody for attending today’s call. Appreciate your continued support of the company. And I wish everybody to have a safe quarter until we speak to you again. Thank you.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.