Matrix (MTRX) Q3 2026 Earnings Transcript

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DATE

Thursday, May 7, 2026 at 10:30 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — John Hewitt
• Chief Operating Officer — Sean Payne
• Chief Financial Officer — Kevin Cavanah
• Director of Investor Relations — Patrick Roberts

TAKEAWAYS

• Adjusted Earnings per Share -- $0.13 per diluted share, returning the business to profitability despite weather- and client-driven revenue delays.
• Revenue -- $206.7 million, a 3.2% increase, driven by Storage and Terminal Solutions but partially offset by lower Process and Industrial Facilities revenue.
• Gross Margin -- $17.2 million, or 8.3%, up from $12.9 million, or 6.4%, due to improved direct project margins and reduced under-recovered overhead.
• SG&A Expenses -- $15.2 million, down from $17.7 million, reflecting lower compensation costs and executive separations.
• Net Income -- $0.8 million, or $0.03 per diluted share, compared to a net loss of $3.4 million, or $0.12 per diluted share.
• Adjusted EBITDA -- $4.9 million, compared to breakeven in the prior year period.
• Restructuring Charges -- $3 million, attributed to CEO transition and a lease impairment from consolidating office space.
• Storage and Terminal Solutions Segment Revenue -- $111.6 million, up 16%, marking the highest level in six years, with gross margin improving to 7% from 3.9%.
• Utility and Power Infrastructure Segment Revenue -- $60 million with a 13.6% gross margin, up from 9.4%.
• Process and Industrial Facilities Segment Revenue -- $35.1 million, down from $45.4 million, with gross margin declining to 2.5% from 8.3%.
• Cash Balance -- Increased by $34 million to $258 million, largely from project cash flows and positive earnings.
• Liquidity -- $297 million at quarter-end.
• Opportunity Pipeline -- $6.9 billion, now including increased mining, minerals, power generation, and data center–related bids alongside LNG business.
• Book-to-Bill in Electrical Business -- "Well over 1.0," mainly from data center and enhanced power demand projects.
• Backlog -- Over $1 billion, with "solid margin work," according to management statements.
• Deferred Revenue -- Approximately $20 million to $25 million shifted out of the period, mainly due to weather and permitting delays; recognized to impact future quarters.
• Revenue Guidance Revision -- Midpoint reduced 2.2% to $880 million from $900 million due to delayed revenue timing.
• Legal Resolutions -- Two major legacy disputes settled, expected to increase cash by almost $20 million and decrease future legal expenses.
• Major Awards -- Post quarter-end, received a limited notice to proceed for a key mining construction project and secured $30 million in electrical awards tied to data center growth.
• Organizational Changes -- Upcoming CEO transition to Sean Payne effective July 1, 2026; CFO Kevin Cavanah departs in September; the chief administrative officer role to be eliminated as duties are redistributed.
• Office Location Strategy -- Most executive leadership relocating to Houston, increasing proximity to top energy clients.

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RISKS

• Gross margin in the Process and Industrial Facilities segment dropped to 2.5% from 8.3%, mainly due to work mix and legal settlements, with management citing anticipated future recovery but acknowledging current weakness.
• Revenue guidance midpoint was reduced by 2.2% to $880 million due to client and weather-related delays, impacting near-term visibility.
• Backlog has been "drifting lower" over the past four quarters, and management has not committed to immediate reversal, noting timing of large project awards remains uncertain until mid–fiscal 2027.
• Ongoing restructuring charges, including a $3 million expense this quarter, contributed negatively to reported net income.

SUMMARY

Matrix Service Company (NASDAQ:MTRX) delivered a return to profitability on an adjusted basis during the quarter, with earnings primarily driven by significant growth in the Storage and Terminal Solutions segment and cost reductions across the organization. Management’s strategic updates highlight a transition in leadership and a deliberate pivot toward higher-growth markets, notably mining, data centers, and LNG infrastructure, evidenced by a growing project pipeline and awarded contracts. Legal resolutions are poised to improve liquidity and cut future overhead, while segment results point to outperforming areas alongside acknowledged near-term softness in Process and Industrial Facilities. The revised revenue outlook, sequential margin improvement in targeted segments, and clear operational roadmap increase investor visibility into sustained profitability and evolving business mix.

• The planned CEO and CFO changes, combined with the flattening of the corporate structure, signal management’s emphasis on operational agility and succession continuity for 2027.
• The company’s $6.9 billion opportunity pipeline and recent mining contract award suggest potential for backlog and revenue momentum as new project types diversify risk exposures.
• Segment-level performance disparities reveal future margin opportunity if Process and Industrial Facilities rebounds as forecast by management.
• Leadership’s office relocation to Houston may strengthen Matrix’s competitive positioning within the consolidating energy client base.

INDUSTRY GLOSSARY

• Book-to-bill: The ratio of projects contracted ("booked") to those completed and billed within a period; values above 1.0 indicate backlog expansion.
• Peak shaving: Power sector projects or solutions that reduce or shift electricity usage during periods of high demand to limit grid stress and operational costs.
• Limited notice to proceed: Contractual authorization allowing work to begin ahead of a full notice, typically to accelerate project timelines or preparatory work.

Full Conference Call Transcript

Patrick Roberts: As John mentioned, participants on today's call include Chief Executive Officer, John Hewitt; Chief Operating Officer, Sean Payne; and Chief Financial Officer, Kevin Cavanah. Following our prepared remarks, we will open the call up for questions. The presentation materials referred to during the webcast today can be found under Events and Presentations on the Investor Relations section of matrixservicecompany.com. As a reminder, on today's call, we may make various remarks about future expectations, plans, and prospects for Matrix Service Company that constitute forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995.

Actual results may differ materially from those indicated by these forward-looking statements because of various factors, including those discussed in our most recent Annual Report on Form 10-K and in subsequent filings made by the company with the SEC. The forward-looking statements made today are effective only as of today. To the extent we utilize non-GAAP measures, reconciliations will be provided in various press releases, periodic SEC filings, and on our website. Related to investor conferences and corporate access opportunities, Matrix will be participating in the Sidoti MicroCap Virtual Conference in May and will also be participating in the Stifel Cross Sector Insights Conference in June in Boston, and the Northland Growth Virtual Conference on June 23.

If you would like additional information on these events or would like to have a conversation with management, I invite you to contact me through the Matrix Service Company Investor Relations website. Turning now to safety. As we begin our earnings call, I want to recognize that May is Mental Health Awareness Month. At Matrix, we believe that safety goes beyond physical well-being. Mental health is just as important. In our industry, the pressures of strenuous work and extended periods away from home can take a significant toll. Unfortunately, the construction industry faces some of the highest rates of suicide, making it critical for us to address these challenges directly.

But whether you work in the construction industry or elsewhere, each of us faces challenges in life that can put our mental health at risk, and we need to know that resources are available and it is okay to ask for help. Matrix is committed to reducing the stigma surrounding mental health. We strive to foster an environment where everyone feels comfortable seeking support, and we provide resources to help our employees take care of themselves and each other. By prioritizing both physical and mental safety, we reaffirm that every aspect of our team's well-being is paramount. We encourage each of you to do the same. Together, we can make a difference and ensure that no one feels alone.

I will now turn the call over to John.

John Hewitt: Thank you, and good morning again, everyone, and thank you for joining us. I want to highlight many of the key events that have happened in the quarter that will provide clarity on the progress we are making on our win, execute, and deliver strategy. First, the business returned to profitability in the quarter as we earned $0.13 per fully diluted share on an adjusted basis despite revenue levels being impacted by client-related delays and weather during the quarter. We expect revenues to decline in Q4 and profitable performance to continue. The lower revenues in Q3 principally came in our book work caused by abnormal and unforeseeable weather events and late client deliverables.

These delayed revenues are moving into later quarters. This profitable outcome was driven by the quality backlog, good operating performance against that backlog, and organization streamlining that has occurred over the past twelve months. As it relates to our revenue guidance, the revenue movement I mentioned contributes to a 2.2% reduction in the midpoint of our guidance range from what was $900 million to a new midpoint of $880 million. Even with the slight reduction in the midpoint of the guidance range, the revenue in the fourth quarter is expected to turn upwards and supports our continued profitability. During the quarter, we reached positive resolution on two legacy legal issues.

The first was a collection issue from an industrial client working toward commercial viability and the other, a contract dispute with a midstream company for whom we built a crude terminal during the COVID outbreak. The collective result was in line with our balance sheet position, will increase our cash balance by nearly $20 million, and will allow us to reduce our legal spend in the future. These two items present final closure to the remaining significant legacy disputes that have distracted the organization these past few years. Our opportunity pipeline remains strong at $6.9 billion, which represents not only our traditional LNG business, but the addition of more opportunities in mining, minerals, power generation, and data center–related activities.

The awards in the quarter were below our expectations, affected mostly by timing of client decision-making. Activity in the quarter and the month of April do contain some key strategic wins for the company. First, following the close of the quarter, we received a limited notice to proceed for a major mining construction project for a client in the Western United States. Second, over $30 million of our electrical-related awards received in the quarter are directly related to the build-out of data centers and enhanced power demand. Book-to-bill in our electrical business for the quarter was well over 1.0. We expect to see continued growth in both of these markets.

The impact of the Iran conflict on our business has been minimal to date. However, we believe it will only serve to emphasize that as countries around the world look to find secure, reliable oil, gas, LNG, and NGLs, the United States can play a major role in filling that need. This will continue to support the infrastructure designed and constructed by Matrix Service Company. Finally, in the quarter, we continued our organizational realignment that started nearly twelve months ago. As previously disclosed, Sean Payne, our chief operating officer, will succeed me as CEO on July 1. I have had the privilege of working with Sean in various capacities and companies for more than thirty years.

He is a seasoned strategic leader with strong values and a deep operations and finance background that position him well to lead the company forward. Last week, we announced that Kevin Cavanah, our chief financial officer, will depart the company in September. Kevin has been with Matrix Service Company for more than 22 years, fifteen of which have been as our CFO. Kevin has built a strong and experienced finance organization with a deep bench of talent and well-established financial and control processes. The company has begun a comprehensive internal and external search for our next CFO, and Kevin will ensure a smooth and seamless transition through the completion of our fiscal year-end reporting.

In addition, while not a public-facing role, Nancy Austin, who has served as our chief administrative officer and has been with Matrix Service Company for twenty-six years, will also be departing the company. Nancy has been instrumental in establishing a strong foundation for key support services, most importantly focused on ensuring that we can attract and retain the needed labor resources. Nancy's responsibilities are being redistributed and the position will not be backfilled, reflecting the company's commitment to flattening our organization structure while ensuring we remain efficient and responsive to the needs of our customers and partners. Before moving on, I want to thank them both for their many years of dedication, hard work, and leadership.

The transition to Sean's leadership of the business, including these changes, as well as his vision on organizational structure and operational priorities, has already commenced. The core elements of our win, execute, and deliver strategy, of which he is the principal architect, contain guiding principles for the company that are already positively impacting the bottom line and will be the focus moving into 2027. Most of the executive leadership will soon be operating out of our Houston office, which has the added benefit of putting us closer to many of our top energy clients. The organization is now better prepared for growth, has enhanced focus on our priority markets, is more competitive, and will have a more consistent execution approach.

I am excited for this new group of leaders to continue our journey and drive continued success and value creation across the business. I want to turn the call over to Sean for a few words on the recent mining award and his focus areas.

Sean Payne: Thank you, John. Good morning, everyone. As John mentioned, our profitable third quarter results show the progress we are making with our Win, Execute, Deliver strategy. These results demonstrate that the execution improvement initiatives related to the execute pillar of our strategy are driving clear, measurable gains in profitability. We are bringing the same disciplined approach to the win pillar of our strategy, where we are continuing to strengthen our leading EP position for critical LNG and NGL infrastructure, as well as expanding into new and reemerging markets across North America. This approach is building real momentum in our sales pipeline and has already led to early successes across several areas.

One example is a limited notice to proceed that we received for an important mining sector project that we are kicking off today, which John mentioned earlier. The project is expected to start in Q4 and continue throughout fiscal 2027. After nearly a decade of limited capital spending, increases in demand and rising nonferrous metal prices are starting to support new development activity. As a result, our project opportunity pipeline in the sector has grown significantly. We have a strong history in mining, and reestablishing our presence as the market rebounds is a key part of our strategy.

Moving forward, as I get ready to assume the CEO role, I have taken several early steps this quarter to continue shaping how the organization operates. These changes are intended to create a more efficient and operationally focused organization that can make decisions faster and respond more quickly to market opportunities and our clients. Examples of recent changes include streamlining, as well as the decision not to add a COO back into the organization once I become CEO. With operations reporting directly to me, we eliminate unnecessary handoffs and sharpen our organizational alignment around what matters most: our clients, our projects, and the safety of our workforce.

Over my first hundred days, my focus will be on implementing a clear roadmap for how we drive higher growth and continue improving profitability. I will provide additional insight into those priorities on our fourth quarter earnings call. Before I turn the call over to Kevin to review our third quarter results, I want to say how grateful I am for the opportunity to build on our strong foundation and lead this organization into the future. Kevin?

Kevin Cavanah: Thank you, Sean. Revenue increased to $206.7 million in the quarter as compared to $200.2 million in the third quarter last year. The growth was driven by the Storage and Terminal Solutions segment, partially offset by reduced revenue in the Process and Industrial Facilities segment. Gross margin was $17.2 million, or 8.3%, in the quarter compared to $12.9 million, or 6.4%, for 2025. I will discuss specific drivers for that improvement when I get into the segment results, but on an overall basis, gross margin improved from both higher direct project margins and lower under-recovered overhead. Moving on to SG&A, which was $15.2 million in the third quarter, compared to $17.7 million for the prior year.

The decrease is due in part to lower compensation-related expenses resulting from continued efforts to improve organizational efficiency. Additionally, stock compensation expense was lower as a result of executive separations during the quarter. For 2026, the company produced net income of $0.8 million, or $0.03 per diluted share, compared to a net loss of $3.4 million, or $0.12 per diluted share, in 2025. The company incurred restructuring charges of $3 million in the quarter. Excluding those restructuring charges, adjusted earnings were a positive $0.13. Adjusted EBITDA improved to $4.9 million in the quarter compared to breakeven performance in the prior year third quarter. Moving to the segments.

Storage and Terminal Solutions segment revenue increased 16% to $111.6 million in the third quarter, compared to $96.1 million in 2025. This is the highest quarterly revenue level for the Storage and Terminal Solutions segment in six years. We expect this growth trend to continue, driven specifically by specialty vessel storage projects, including projects for LNG, ethane, and butane. The growth is also reflected in the segment gross margin, which increased to 7% in 2026 compared to 3.9% in 2025. Utility and Power Infrastructure segment third quarter revenue was $60 million, compared to $58.7 million last year.

Project execution was strong throughout the segment, including peak shaving and electrical, producing a 13.6% gross margin in the quarter compared to 9.4% in the third quarter last year. Process and Industrial Facilities segment revenue decreased to $35.1 million in the third quarter compared to $45.4 million last year. Gross margin was 2.5% in 2026 compared to 8.3% for 2025, a decrease of 5.8%, primarily due to mix of work and the settlement of a legacy legal matter discussed earlier. We expect revenue and margins in this segment to rebound in fiscal 2027 due in large part to the mining project previously mentioned. Moving to the balance sheet. Our cash balance increased $34 million in the quarter.

We ended the quarter with cash of $258 million, which also drove an increase in liquidity, which was $297 million at the end of the quarter. The growth in cash and liquidity was primarily due to the timing of cash flows on projects, as well as positive earnings. While we expect the timing of cash flows on projects will utilize some cash as we complete fiscal 2026 and move into fiscal 2027, the financial position of the company remains strong. I will now turn the call back over to John Hewitt.

John Hewitt: Thank you, Kevin. Before taking questions, here are the five critical takeaways from this call. First, the return to profitability in Q3 demonstrates the strength and credibility of our operating model and strategy even on lower revenues. Second, the Q3 revenue shortfall is due to timing issues from customer and weather-related delays that moved book work out of the period. Third, our balance sheet is strong and supports our financial growth and strategic objectives. Fourth, our book-to-bill is driven by timing with a strong backlog at over $1 billion. We expect awards in key sectors like mining, minerals, and LNG infrastructure to drive book-to-bill higher in fiscal 2027 and support continued profitability.

And fifth, the leadership and organization transition currently underway is planned, delivered, and controlled, ensuring strong continuity. The CFO search is in motion, and you can expect Sean to share his first hundred-day roadmap as Matrix Service Company's CEO on the next earnings call. That concludes our prepared remarks. We will now open the call for questions.

Operator: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, please press 1-1 and wait for your name to be announced. To withdraw your question, please press 1-1 again. Our first question comes from John Franzreb from Sidoti. Please go ahead.

John Franzreb: Congratulations on the return to profitability. Thank you. I guess I want to start with the just-reported quarter itself. There was a drop sequentially in the revenue in the utilities segment. There is a sizable increase in the gross margin of that business on a sequential basis. Can you walk us through the puts and takes on what is going on there?

Kevin Cavanah: Yes. If you look at the profitability, there was really good performance throughout the segment. The power delivery business outperformed what we expected from a margin standpoint, and we also saw the same in the peak shaving work. It was really good performance there. It shows when you have good performance throughout a segment what that can do to gross margin. Now, the revenue level did come down, and we expected that. We have been doing some work on a peak shaver project for well over two years now that still has more work to do, but the manpower required for that project is coming down a bit, and that is driving the revenue down.

If you look at the funnel for the company, peak shaving opportunities should continue to provide a lot of revenue into the future. We see a good piece of that in the funnel. It will take us a little bit of time to book the next one, so you will probably see the revenue for the utility segment level out for a while until that next peak shaver project is booked.

John Franzreb: Got it. And you mentioned, and I might have missed this, the restructuring charge that you incurred in the quarter—what was that for?

Kevin Cavanah: It related to a couple of primary things. One is our CEO transition. We also had a lease—because we have tried to become more efficient in what offices we have—that we are getting out of. We thought we were going to be able to sublease, but the market has not been as strong for a sublease on that facility as we had planned, and so we had to take a charge related to the lease, a lease impairment charge.

John Franzreb: Got it, Kevin. And just on the backlog, we had two years of elevated bookings and backlog; in the last four quarters, it has been drifting lower. What is the confidence level that the new projects you have been writing are of sufficient profitability to maintain profitability into fiscal 2027?

John Hewitt: I will hit that one. The backlog level is still at a billion dollars and contains solid margin work. Recall we booked two pretty major projects fairly close together that drove backlog up, and then it took a while for those projects to get started to really start burning revenue. We still feel really good about our opportunity pipeline, our expected award cadence over the next couple of quarters, and the award momentum we think will build as we move through fiscal 2027. Our expectation is to maintain a strong revenue level and profit on that revenue.

John Franzreb: On that note, I will get back into queue. Thank you.

Operator: Thank you. Our next question comes from Ted Jackson from Northland. Your line is open.

Ted Jackson: Thank you very much. Excuse me. A couple of questions. Let us start with the restructuring and what is going on. I know there are many moving parts, and you have been working for a long time to make it more efficient and improve its margin. When we think about this company at a steady state, with the management team in place and the restructuring efforts behind you, what is the pro forma business model? Where do you see, with this restructuring, a standard gross margin, operating margin, and net margin for Matrix when you are done and the business is mid-cycle?

Kevin Cavanah: I will give you a preliminary answer, and I would expect that as we bring in a new CFO, the new team will take a fresh assessment. John and I have published long-term metrics that we have been striving to achieve, and I would imagine the new team will reevaluate and put their own out there. Carrying on from the current metrics, the changes we are making to streamline the business will allow us to achieve the SG&A target we have out there, but at a much lower revenue level. You will see us around 6.5% SG&A in fiscal 2027, in my expectation. The gross margin target we have out there has proven viable.

The direct margins we are seeing in the business are meeting or at times beating 10% or better, and we are seeing improvement in the recovery of overheads, which has been a drag on earnings the past few years. As we take cost out and continue to grow the business, that will continue to get better. We are tracking to achieve those targets, and the organizational changes we have put in place are helping us get there. It lowers the breakeven level and the level of revenue required to get to full recovery. In effect, these changes increase the earnings power of the business.

Ted Jackson: My next question is about backlog and the pipeline, which remains robust. Your commentary suggests that you expect to see a turnaround in terms of bookings and backlog growth and a regrowth of backlog as we get into 2027. Previously, you indicated that would start to turn around mid–fiscal year. Does that scenario still hold, and given the size of projects in the funnel, what kind of bookings reacceleration could we anticipate?

John Hewitt: Our current backlog and what we see as the award cadence—what we have said in the past is we expect our awards to be wrapped around our normal day-to-day business plus some smaller and midsize projects. That will allow us to continue to burn backlog and maintain a revenue level that, as Kevin said, sustains our profitability as we move into and through fiscal 2027. Our expectation on the big project awards—the big chunk projects—is that they will be entering into our proposal pipeline sometime probably in mid–fiscal 2027 and would be coming to awards later on in 2027. We feel good about where our backlog is and where our opportunities are.

The award cadence and momentum, not only for the big projects but also for some of the smaller ones, will help us maintain a good quality backlog with good margins and maintain a revenue level that supports improving profitability. As some of those bigger projects enter our backlog and we start to burn that revenue, that will start to expand our margins.

Kevin Cavanah: I would add, peak shaving opportunities and specialty storage really drove the prior backlog growth, and those opportunities are still there. Now we have other emerging markets we can add, including the mining we talked about on the call. There are construction-only opportunities we are pursuing and opportunities related to the continued expansion of electrical infrastructure. There are a number of areas that will add to the markets that drive backlog. We also see a lot of opportunity in the power generation market, even if it is working as a construction partner with some of the bigger EPC firms. We have a deep resume in power generation that has been on the shelf for the last five to seven years.

With the return of higher demand across gas power generation—backup, peak shaving, simple cycle, or combined cycle—our resume applies strongly. We expect sometime in fiscal 2027 to be adding those kinds of projects into our backlog to support revenue.

Ted Jackson: Switching to the oil and gas market, with the situation in the Middle East and oil around $100 a barrel, and potential for more drilling in the U.S., how do you see that benefiting Matrix? Are you seeing any pickup in dialogue because of the changed global environment?

John Hewitt: We have a continuing client dialogue. Our view is that countries around the world are looking to ensure secure and reliable places to get their needed energy supplies—not only given what is going on in the Persian Gulf but also in Ukraine. Whether that is natural gas in the form of LNG or NGLs for chemical production, like ethane or ethylene, we believe this will create more investment in the U.S. for export and for the production of those energy assets. Those fit right within our wheelhouse. Construction of LNG facilities and natural gas liquids facilities are things we do day in and day out.

We think these macroeconomic and global issues will drive increased investment in the United States in those energy assets, and Matrix Service Company is well positioned to take advantage of that.

Ted Jackson: Final question: in your discussion about legal matters, you said you would see reduced legal spend going forward because of those settlements. Is that material enough to notice within the financial statements? How much were you spending, and what kind of expense is being removed with these resolutions?

John Hewitt: Those disputes were contract-related, project-related, so that expense hit in what we call construction overhead, and it was one of the things driving some under-recovery of overhead. It should make us more efficient in fully recovering our overhead. We have not disclosed the dollar amount of legal expenses, but lawyers are not cheap.

Operator: Thanks.

John Hewitt: Thank you.

Operator: As a reminder, to ask a question, you will need to press 1-1 on your telephone and wait for your name to be announced. Our next question comes from John Franzreb from Sidoti. Your line is open.

John Franzreb: Yes. I have a question about the deferred jobs. Do you expect them to fall into Q4, or are they deferred into fiscal 2027?

John Hewitt: Both, frankly. When we are waiting for permits or engineering, you are just pushing, for instance on the labor, your hiring and manpower levels down the road. Where we might have had in the quarter on a job—making numbers up—100 craftspeople that would have ramped up to 200 in the fourth quarter, now that 100 is happening in the fourth quarter and the 200 is happening in Q1. I am just giving you a sense that we are not going to make up for all of those delays in one quarter because it pushes the whole job down the path.

We certainly expect, as we said and based on our guidance, that revenues will climb in Q4 and the business will stay profitable in Q4 because of the quality of the work, the quality of our execution, and the level of revenues. Part of the message is that Q4 revenues are going to increase, and this pushes more revenue into 2027.

John Franzreb: Got it. And, John, how much revenue was actually deferred out of Q3?

John Hewitt: I would say it was probably $20 million to $25 million. The biggest piece was the weather, but there were some permitting issues too.

John Franzreb: Got it. And if I understood your commentary to one of my questions earlier, Kevin, it sounds like near-term the utility segment will be kind of flattish with potential to recover in 2027, for the reasons John outlined. To hit your midpoint, that might suggest that the storage business will have a strong Q4. Am I interpreting that properly, or are there other puts and takes I am not thinking about?

Kevin Cavanah: You are 100% right. I would expect the Process and Industrial Facilities segment and the Utility and Power Infrastructure segment to be relatively flat from Q3 to Q4. The growth is going to come in Storage and Terminal Solutions.

John Franzreb: Okay. Thank you for the clarity. I appreciate it.

Operator: I am showing no further questions at this time. I would now like to turn it back over for closing remarks.

Patrick Roberts: Thank you. As a reminder, we will be participating in the virtual Sidoti MicroCap Virtual Conference in May. We will also be attending the Stifel Cross Sector Insights Conference in June in Boston and the Northland Growth Virtual Conference on June 23. Additionally, if you would like to have a conversation with management, please contact me through the Matrix Service Company Investor Relations website. You may also sign up to receive MTRX news by scanning the QR code on your screen. Thank you for your time.

Operator: Thank you for your participation in today's conference. This does conclude the program, and you may now disconnect.

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