Q2 2026 Mistras Group Inc Earnings Call Transcript
Key Points
- Revenue increased 4.2% to $193 million, marking the fourth consecutive quarter of year-over-year growth.
- Record second quarter adjusted EBITDA of $25.8 million, with adjusted EBITDA margin expanding 30 basis points to 13.3%.
- Strategic end markets (aerospace and defense, infrastructure, power) grew 28% in aggregate, with infrastructure up 76.5% and power up 26.4%.
- Free cash flow improved by $23.9 million quarter-over-quarter, driven by better working capital management and higher net income.
- Leverage ratio decreased to 2.2 times, the lowest since 2018, and the company raised full-year guidance for revenue and adjusted EBITDA.
- Oil and gas revenue declined 8.2% year-over-year due to customer program exits and deferred maintenance activity.
- Deferrals in oil and gas maintenance and turnarounds are expected to continue pushing out through the second half of 2026.
- In-lab testing demand is temporarily outpacing capacity, limiting near-term revenue growth despite strong demand.
- Labor market for qualified technicians remains tight, requiring enhanced recruiting and benefit plans to fill gaps.
- SG&A expenses increased 4.6% year-over-year (excluding FX impact), reflecting ongoing investment costs.
Good day, everyone. My name is [Lenis], and I will be your conference operator today. At this time, I would like to welcome you to the Mistras Group, Inc. Q2 2026 Earning's Call.
(Operator Instructions)
At this time, I would like to turn the call over to Thomas Tobolski, Senior Vice President of Finance and Treasurer.
Good morning, everyone, and welcome to Mistras Group's Second Quarter 2026 Earnings Conference Call. I'm joined today by Natalia Shuman, President and Chief Executive Officer; and Ed Prajzner, Senior Executive Vice President and Chief Financial Officer.
Before we start, I want to remind everyone that remarks made during this conference call as well as supplemental information provided on our website contain certain forward-looking statements and involve risks and uncertainties as described in Mistras' SEC filings.
The company's factors that can cause actual results to differ are discussed in the company's most recent annual
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