Matrix Service Company's (NASDAQ:MTRX) share price jumped 25% on January 13th on the news it had signed an MOU (memorandum of understanding) with Chart Industries (GTLS) to develop standardized hydrogen solutions in North America.
After such a jump, it wouldn't be unusual for momentum investors to question if the $3+ gain in share price is exhausted. But it's very likely not too late. The commemoration of this partnership should prove to be a cornerstone in the hydrogen solutions market.
Matrix Service, The Company
Matrix Service Company is an engineering, fabrication, construction and repair & maintenance services provider with a focus on North America's infrastructure in the energy and industrial markets. Prior to the pandemic, Matrix Service had already been honing its business model to align with its long-term growth strategy. With the beginning of its fiscal 2021 in the second half of 2020, the company shifted its reporting to three segments: Utility and Power Infrastructure, Process and Industrial Facilities, and Storage and Terminal Solutions.
In its fiscal 2020 ending June 30, 2020, Matrix Service eliminated its exposure to the domestic iron and steel industry in the Industrial segment. When the pandemic and subsequent shutdown forced a dramatic decline in energy demand, Matrix Service was negatively impacted. For the full year, consolidated revenue declined 22.3% and adjusted EPS fell 60% to just $0.40 per share.
We experienced delayed project awards and starts as well as significantly reduced near-term capital and maintenance spending by our clients.
Matrix Service reported fiscal 2021 first-quarter results on November 4th, 2020. Consolidated revenue of $182.8 million was 46% less than the $338.1 million in the fiscal 2020 first quarter. Of the three segments, revenue decreased in both the Process and Industrial Facilities and Storage and Terminal Solutions segments. The Utility and Power Infrastructure segment saw a 27+% improvement of $12.9 million.
