Andrew Obin, Bank of America Merrill Lynch
Just a question, I guess, on labor costs. I would imagine with what is happening with energy prices, some people are being freed up and it is a benefit to you, but the same dynamic can work against you, right? With this decline in energy prices. What we are hearing from a lot of companies, they want to go to their service companies and demand much better deals so that is the flipside a few guys were discussing. How are you going to deal with that?
Sotirios J. Vahaviolos, Chairman, President, and CEO, MISTRAS Group, Inc.
I think, first of all, Andrew, the last couple of years they got all the support that we gave them in reducing the prices. I think right now where we are and there is not going to be any labor sources as we suspected before. We believe that the prices will remain where they are, if not better it.
Jonathan H. Wolk, EVP, CFO, and Treasurer, MISTRAS Group, Inc.
Yes, I think Andrew, what I would add to what Sotirios just said is that from a wage perspective, well it is true that there are perhaps potentially some people who are being displaced right now within the oil patch or oil services industry. Remember that, within our group, we use certified technicians and there is a shortage of those people. I do not expect that there is going to be a big impact upon our market because of the limited supply of very qualified individuals that our industry depends upon.
Sotirios J. Vahaviolos, Chairman, President, and CEO, MISTRAS Group, Inc.
It might be in some regions. I mean, it might be some difference in regions, but right now let us call it neutral. We believe that it is really neutral at this point.
Jonathan H. Wolk, EVP, CFO, and Treasurer, MISTRAS Group, Inc.
That is right. In terms of our pricing for our services and so forth, I mean, if anything the need for our services, we believe, is going to increase because of extension of life, because of busier refineries with increased demand that accompanies lower-priced patrol products. We do not see any demand slack in the offer of products or pricing pressures.
Andrew Obin, Bank of America Merrill Lynch
Thank you very much.
Sotirios J. Vahaviolos, Chairman, President, and CEO, MISTRAS Group, Inc.
Sure.
Operator
Our next question comes from Andy Wittmann with Baird. Your line is open.
Andrew Wittmann, Robert W. Baird & Co.
Hi, guys. Good morning.
Jonathan H. Wolk, EVP, CFO, and Treasurer, MISTRAS Group, Inc.
Hi Andrew.
Andrew Wittmann, Robert W. Baird & Co.
Hey Jon, just on the guidance, you tweaked the revenue guidance up, the EBITDA guidance stays the same. That implicitly means that maybe you are a little bit more cautious on the margin profile. Against the initiatives that you have got going on across the company to improve the margins, how should investors reconcile that?
Jonathan H. Wolk, EVP, CFO, and Treasurer, MISTRAS Group, Inc.
Well, it is true that we maintain the range of the EBITDA range that we have given. We did say that we expect to be in the upper end of that range. For us, I think that revenue we do expect will be a little bit above that range as we have said, but we also increased our expectation of where EBITDA will fall. I do not think it is a material difference.
Andrew Wittmann, Robert W. Baird & Co.
Okay. Then, just in terms of creative approaches to get after as you work with your customers in these discussions about how to best suit their needs while meeting your return goals on specific projects, can you talk about different contracting styles and risk profiles that you might be employing and what that could mean for your business and your financials going forward?
Sotirios J. Vahaviolos, Chairman, President, and CEO, MISTRAS Group, Inc.
Basically, Andy, we always tried to attempt to really change the way we do business and trying to improve because in this particular case, we are trying to improve our profitability. Some of the measures that we have taken is really normally just on the run and maintain areas where you have really nothing more than time and material. In some cases, there might be some benefits. There might be some bonuses that we can really create for the customer and ourselves. That is as much as we can say on this call, okay?
