Matrix Service Company (MTRX): Business Model Canvas [11-2024 Updated]
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Matrix Service Company (MTRX) Bundle
Understanding the Business Model Canvas of Matrix Service Company (MTRX) reveals how this key player in the energy sector operates and delivers value. From forging strategic partnerships with industry leaders to offering comprehensive services in engineering and maintenance, MTRX's business model is designed to address the complex needs of energy companies. Dive deeper into each component of their canvas to discover the strengths and strategies that drive their success in a competitive market.
Matrix Service Company (MTRX) - Business Model: Key Partnerships
Collaborations with energy sector firms
Matrix Service Company engages in various collaborations with energy sector firms to enhance its service offerings in construction and maintenance. As of September 30, 2024, the Utility and Power Infrastructure segment reported revenues of $55.9 million, a 73% increase from the previous year, primarily driven by higher volumes of work for LNG peak shaving projects.
Matrix's backlog as of September 30, 2024, was approximately $1.4 billion, with significant contributions from energy projects. These collaborations are crucial for accessing innovative technologies and methodologies that improve project execution efficiency.
Strategic alliances with construction suppliers
Matrix maintains strategic alliances with various construction suppliers to secure necessary materials and equipment. In the first quarter of fiscal 2025, total revenues decreased to $165.6 million from $197.7 million, impacted by reduced revenue volumes in the Storage and Terminal Solutions and Process and Industrial Facilities segments. However, the company continues to invest in supplier relationships to mitigate risks associated with supply chain disruptions.
The cost of revenue in the Storage and Terminal Solutions segment was $73.5 million, indicating the importance of reliable supplier partnerships to manage expenses effectively. In fiscal 2024, capital expenditures were approximately $1.9 million, reflecting ongoing investments in operational capabilities.
Partnerships with regulatory bodies for compliance
Partnerships with regulatory bodies are essential for Matrix to remain compliant with industry standards. The effective tax rate for the three months ended September 30, 2024, was zero, influenced by valuation allowances on deferred tax assets. The company actively collaborates with regulatory agencies to navigate compliance requirements, which is crucial given the complex regulatory environment of the construction and energy sectors.
Matrix's liquidity position as of September 30, 2024, was $181.2 million, which includes availability under its ABL Facility. This robust liquidity allows Matrix to engage proactively with regulatory bodies and ensure compliance across its operations.
| Partnership Type | Key Metrics | Impact on Business |
|---|---|---|
| Energy Sector Collaborations | Utility and Power Infrastructure Revenue: $55.9M (73% increase) | Enhanced project execution and revenue growth |
| Construction Supplier Alliances | Cost of Revenue (Storage and Terminal Solutions): $73.5M | Risk mitigation in supply chain management |
| Regulatory Partnerships | Liquidity: $181.2M | Improved compliance and operational stability |
Matrix Service Company (MTRX) - Business Model: Key Activities
Engineering, procurement, and construction services
The engineering, procurement, and construction (EPC) services segment is critical for Matrix Service Company, providing comprehensive solutions for various industrial projects. For the three months ended September 30, 2024, total revenue from this segment was approximately $31.4 million, a significant decrease of 58% compared to the same period in the previous year, where it stood at $75.1 million. The decrease is primarily attributed to lower revenue volumes from a completed large renewable diesel project. Despite this decline, Matrix reported a backlog in this segment of approximately $252.1 million as of September 30, 2024.
Maintenance and repair for industrial facilities
Maintenance and repair services are a vital component of Matrix's operations, particularly in the Process and Industrial Facilities segment. This segment generated revenues of $55.9 million for the three months ended September 30, 2024, reflecting a 73% increase compared to $32.4 million in the prior year. The company has a strong focus on maintaining relationships with key clients in the refining and processing sectors, which has led to increased demand for maintenance contracts. The backlog for maintenance and repair projects was approximately $358.2 million as of the end of the reporting period.
Project management for complex energy projects
Matrix Service Company excels in project management for complex energy projects, particularly in the Utility and Power Infrastructure segment. The segment's revenue for the three months ended September 30, 2024, was $78.2 million, down 13% from $90.1 million the previous year. The decline was driven by reduced volumes of work in storage and terminal solutions, however, the utility sector remains robust, with an increasing pipeline of projects. The company reported a total backlog of $801.7 million for energy projects, indicating strong future revenue potential.
| Segment | Revenue (Q1 2024) | Revenue (Q1 2023) | Change (%) | Backlog (as of Sept 2024) |
|---|---|---|---|---|
| Engineering, Procurement, and Construction | $31.4 million | $75.1 million | -58% | $252.1 million |
| Maintenance and Repair | $55.9 million | $32.4 million | +73% | $358.2 million |
| Utility and Power Infrastructure | $78.2 million | $90.1 million | -13% | $801.7 million |
Matrix Service Company (MTRX) - Business Model: Key Resources
Skilled workforce and technical expertise
Matrix Service Company employs a highly skilled workforce, essential for delivering complex engineering and construction projects. The workforce is comprised of professionals with expertise across various sectors including energy, petrochemical, and industrial facilities. As of September 30, 2024, the company reported an increase in operations headcount to support strong market demand, contributing to overall project execution and client satisfaction.
Strong capital base with zero debt
Matrix Service Company maintains a strong capital base, characterized by a total liquidity of $181.2 million as of September 30, 2024. This liquidity is composed of $124.6 million in unrestricted cash and cash equivalents and $56.6 million available under its asset-based lending facility. Importantly, the company operates with zero debt on its balance sheet, allowing it to leverage financial flexibility for future growth opportunities.
| Financial Metrics | As of September 30, 2024 |
|---|---|
| Total Liquidity | $181.2 million |
| Unrestricted Cash and Cash Equivalents | $124.6 million |
| Available under ABL Facility | $56.6 million |
| Total Debt | $0 |
Established brand reputation in energy sectors
Matrix Service Company has cultivated a strong brand reputation within the energy sector, particularly in LNG, NGL, and renewable energy projects. As of September 30, 2024, the company reported a backlog of $1.4 billion, indicating robust demand for its services and a solid market position. The company's established relationships with key clients and stakeholders further enhance its competitive edge.
| Backlog by Segment | As of September 30, 2024 |
|---|---|
| Storage and Terminal Solutions | $801.7 million |
| Utility and Power Infrastructure | $358.2 million |
| Process and Industrial Facilities | $252.1 million |
| Total Backlog | $1.4 billion |
Matrix Service Company (MTRX) - Business Model: Value Propositions
Comprehensive service offerings for energy infrastructure
Matrix Service Company provides a wide range of services tailored to the energy infrastructure sector. The company's revenue for the three months ended September 30, 2024, was $165.6 million, reflecting a 16% decrease from $197.7 million in the same period in 2023. This revenue is derived from its three primary segments: Storage and Terminal Solutions, Utility and Power Infrastructure, and Process and Industrial Facilities.
| Segment | Revenue (Q1 2024) | Revenue (Q1 2023) | Change (%) |
|---|---|---|---|
| Storage and Terminal Solutions | $78.2 million | $90.1 million | -13% |
| Utility and Power Infrastructure | $55.9 million | $32.4 million | +73% |
| Process and Industrial Facilities | $31.4 million | $75.1 million | -58% |
Expertise in renewable energy projects
Matrix has demonstrated a commitment to renewable energy projects, particularly in the Utility and Power Infrastructure segment, which saw a significant increase in revenue by $23.5 million, or 73%, compared to the previous year. The company's backlog as of September 30, 2024, stands at $1.4 billion, indicating strong future revenue potential from renewable projects.
This segment's backlog includes significant opportunities related to LNG peak shaving projects and renewable energy initiatives, which are expected to drive growth.
Commitment to safety and quality in service delivery
Matrix Service Company emphasizes a robust commitment to safety and quality, which is integral to its operations. This commitment is reflected in its operational protocols and employee training programs. The company reported a decrease in selling, general, and administrative expenses to $18.6 million in Q1 2024, down from $17.1 million in Q1 2023, showcasing efficiency improvements.
The focus on safety is critical in maintaining client trust and securing contracts in a competitive market, especially in industries such as oil, gas, and renewable energy.
Matrix Service Company (MTRX) - Business Model: Customer Relationships
Long-term contracts with key clients
Matrix Service Company engages in long-term contracts primarily in the Storage and Terminal Solutions, Utility and Power Infrastructure, and Process and Industrial Facilities segments. As of September 30, 2024, the company reported a backlog of $1.41 billion, which includes significant long-term agreements that ensure sustained revenue streams. The company secured project awards totaling $81.7 million in Storage and Terminal Solutions, $34.4 million in Utility and Power Infrastructure, and $32.0 million in Process and Industrial Facilities during the first quarter of fiscal 2025.
Dedicated customer service teams
Matrix Service Company maintains dedicated customer service teams to enhance client relationships. The company reported an increase in Selling, General and Administrative expenses by $1.5 million, or 9%, primarily due to the hiring of additional personnel to support operational demands. This strategic focus on customer service is critical in a competitive market where effective communication and responsiveness are paramount for client satisfaction.
Regular communication and project updates
Regular communication with clients is integral to Matrix Service Company's operational strategy. The company emphasizes project updates and engagement with clients to foster transparency and trust. During the three months ended September 30, 2024, the company reported total revenues of $165.6 million, which reflects a need for consistent dialogue with clients regarding project status, challenges, and expectations. This proactive approach aims to mitigate risks and enhance project delivery timelines.
| Segment | Revenue (Q1 FY2025) | Project Awards (Q1 FY2025) | Backlog (as of Sept 30, 2024) |
|---|---|---|---|
| Storage and Terminal Solutions | $78,239,000 | $81,700,000 | $801,667,000 |
| Utility and Power Infrastructure | $55,912,000 | $34,400,000 | $358,150,000 |
| Process and Industrial Facilities | $31,428,000 | $32,000,000 | $252,054,000 |
| Total | $165,579,000 | $148,100,000 | $1,411,871,000 |
Matrix Service Company (MTRX) - Business Model: Channels
Direct sales through business development teams
Matrix Service Company employs dedicated business development teams that focus on direct sales efforts to engage potential clients across various sectors, notably in the utility, power, and industrial markets. The company has reported a total revenue of $165.6 million for the three months ended September 30, 2024, down 16% from $197.7 million in the same period of 2023. The decline in revenue reflects challenges in the Storage and Terminal Solutions and Process and Industrial Facilities segments.
Online platforms for project information
Matrix utilizes online platforms to provide project information and updates to clients and stakeholders. This digital engagement enhances communication and transparency regarding project progress. The company reported that as of September 30, 2024, it had a backlog of $1.41 billion across its segments, which includes significant projects in LNG and renewable energy. This backlog indicates a strong pipeline of future revenue opportunities driven in part by effective online communication channels.
Industry trade shows and networking events
Participation in industry trade shows and networking events is a crucial channel for Matrix Service Company to showcase its capabilities and foster relationships with potential clients. In the first quarter of fiscal 2025, the company secured $81.7 million in project awards in the Storage and Terminal Solutions segment. Events such as these provide opportunities for direct engagement with key industry players and decision-makers, which can lead to new contracts and partnerships.
| Channel | Details | Recent Performance |
|---|---|---|
| Direct Sales | Business development teams targeting utility and industrial sectors | Revenue: $165.6 million (Q1 FY2025) |
| Online Platforms | Project information dissemination and client communication | Backlog: $1.41 billion (as of September 30, 2024) |
| Trade Shows | Networking opportunities to connect with potential clients | Project awards: $81.7 million (Q1 FY2025) |
Matrix Service Company (MTRX) - Business Model: Customer Segments
Energy companies (oil, gas, renewables)
Matrix Service Company serves a diverse range of energy companies, including those in oil, gas, and renewable sectors. The revenue from the Utility and Power Infrastructure segment, which includes LNG projects, increased by $23.5 million, or 73%, in the three months ended September 30, 2024, compared to the same period last year, highlighting the growing demand for their services in the energy sector.
Industrial facilities needing maintenance
The Process and Industrial Facilities segment saw a significant revenue decline of $43.7 million, or 58%, in the three months ended September 30, 2024, primarily due to the completion of a large renewable diesel project. However, the company maintains a strong backlog of projects, indicating ongoing demand for maintenance services in industrial facilities.
Utility companies requiring infrastructure support
Matrix provides essential infrastructure support to utility companies, as evidenced by the $55,912 thousand in revenue generated in the Utility and Power Infrastructure segment for the three months ended September 30, 2024. This segment is crucial for utilities, particularly in the context of expanding LNG facilities and other infrastructure projects aimed at meeting rising energy demands.
| Customer Segment | Revenue (in thousands) | Revenue Change (%) | Gross Profit (in thousands) | Gross Profit Change (%) |
|---|---|---|---|---|
| Utility and Power Infrastructure | $55,912 | 73% | $1,307 | -65% |
| Process and Industrial Facilities | $31,428 | -58% | $1,997 | -61% |
| Storage and Terminal Solutions | $78,239 | -13% | $4,697 | -5% |
Matrix Service Company (MTRX) - Business Model: Cost Structure
Labor costs for skilled workforce
As of September 30, 2024, Matrix Service Company reported total selling, general, and administrative expenses of $18.58 million, reflecting a 9% increase from $17.11 million in the same period of the previous year. This increase is primarily attributed to a rise in operations headcount necessary to support market demand.
The company has a focus on skilled labor, which involves significant costs associated with recruitment, training, and retention of employees. Labor costs are critical given the company's reliance on a skilled workforce for project execution across its operational segments.
Equipment and material procurement expenses
Matrix Service Company incurs substantial costs related to the procurement of equipment and materials necessary for its projects. In the three months ended September 30, 2024, the total cost of revenue was reported at $157.77 million, compared to $185.80 million for the same period in 2023, indicating a decrease of approximately 15%.
The breakdown of costs by segment for the same period includes:
| Segment | Cost of Revenue (in thousands) |
|---|---|
| Storage and Terminal Solutions | $73,542 |
| Utility and Power Infrastructure | $54,605 |
| Process and Industrial Facilities | $29,431 |
| Corporate | $188 |
The procurement of specialized equipment and materials is essential for the execution of projects, especially in the energy sector, which can be capital-intensive.
Administrative and operational overhead
The administrative and operational overhead is another significant component of the cost structure for Matrix Service Company. The corporate segment incurred an operating loss of $7.46 million for the three months ended September 30, 2024, compared to a loss of $9.72 million in the same period of the previous year, reflecting a decrease of 23%.
This overhead includes costs associated with corporate governance, compliance, facility maintenance, and general administrative functions. The decrease in corporate losses indicates improvements in operational efficiency, but the overhead remains a critical area of expenditure for the company.
Matrix Service Company (MTRX) - Business Model: Revenue Streams
Contract revenues from construction projects
In the three months ended September 30, 2024, Matrix Service Company reported total revenues of $165,579,000. This represents a decrease of 16% compared to the $197,659,000 reported for the same period in 2023. The revenue breakdown by segment for the current quarter is as follows:
| Segment | Revenue (in thousands) | Revenue Change (in thousands) | Percentage Change |
|---|---|---|---|
| Storage and Terminal Solutions | $78,239 | $(11,905) | (13%) |
| Utility and Power Infrastructure | $55,912 | $23,517 | 73% |
| Process and Industrial Facilities | $31,428 | $(43,692) | (58%) |
The total revenue from construction projects has been influenced by various factors, including project awards and the completion of significant contracts. The backlog as of September 30, 2024, was $1,411,871,000, indicating a healthy pipeline for future construction revenues.
Maintenance service fees
Matrix Service Company also generates revenue through maintenance services. For the three months ended September 30, 2024, the company recognized maintenance service fees primarily from its Utility and Power Infrastructure segment, which saw a substantial revenue increase of 73%. This growth was largely due to higher volumes of work for LNG peak shaving projects. The gross profit for this segment for the same period was reported at $1,307,000, reflecting a significant decline in gross margin to 2.3%, primarily due to under-recovery of construction overhead costs.
Consulting and project management fees
Consulting and project management services also contribute to the revenue streams of Matrix Service Company. Although specific figures for these fees are typically encapsulated within the overall service fees, they are an integral part of the company’s offerings in the Process and Industrial Facilities segment. The decline in revenue for this segment, which decreased by 58% to $31,428,000, underscores the challenges in this market area. The gross profit for this segment was $1,997,000, with a significant operating loss reported at $(231,000).
Overall, the diverse revenue streams from construction projects, maintenance service fees, and consulting services are critical to Matrix Service Company's business model, with ongoing projects and a robust backlog indicating potential for future revenue growth.
Updated on 16 Nov 2024
Resources:
- Matrix Service Company (MTRX) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Matrix Service Company (MTRX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Matrix Service Company (MTRX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.