MISTRAS Announces Second Quarter and First Half 2025 Results
06-Aug-2025 16:15:08 EDT
MISTRAS Announces Second Quarter and First Half 2025 Results
GlobeNewswire August 06, 2025
Robust Quarterly Organic Revenue Growth in Aerospace & Defense and Industrial Markets, with a Significant Expansion in quarter-over-quarter Gross Profit Margin of 200 basis points, Generating Net Income of $3.0 million, and Achieving Adjusted EBITDA of $24.1 million for the Second Quarter of 2025
PRINCETON JUNCTION, N.J., Aug. 06, 2025 (GLOBE NEWSWIRE) — MISTRAS Group, Inc. (NYSE: MG), a global leader in technology-enabled industrial asset integrity and testing solutions, reported financial results for its second quarter and six months ended June 30, 2025.
Second Quarter 2025 Key Figures*
Revenue of $185.4 million, a decrease of 2.3%, yet flat giving effect to the exclusion of voluntary Laboratory consolidations
Gross profit of $53.9 million, up 5.1% or $2.6 million from $51.3 million, primarily due to an improved business mix and operating efficiencies; Gross profit margin of 29.1% as compared to 27.1%, an expansion of 200 basis points
Selling, general, and administrative (“SG&A”) expenses of $39.8 million, up 10.0% or $3.6 million from $36.2 million, primarily due to foreign exchange loss of $2.8 million
Net income of $3.0 millionand Earnings Per Diluted Share of $0.10; Net Income Excluding Special Items (Non-GAAP) of $5.8 million and Diluted Earnings Per Share Excluding Special Items (Non-GAAP) of $0.19
All-time highest second quarter Adjusted EBITDA of $24.1 million, compared to $22.1 million, an increase of 8.9%; Adjusted EBITDA margin of 13.0% as compared to 11.7%, an expansion of 130 basis points
*All comparisons are consolidated and versus the equivalent prior year period, unless otherwise noted and give effect to the reclassification of certain overhead and personnel expenses in the unaudited condensed consolidated statements of income (loss) from SG&A to cost of revenue. Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about the non-GAAP financial measures set forth in tables attached to this press release.
Second Quarter and First Half 2025 Additional Detailed Highlights: Second Quarter results reflect the reclassification of certain overhead and personnel expenses in the Unaudited Condensed Consolidated Statements of Income (Loss), from SG&A to cost of revenue, as the Company determined this reclassification provides greater transparency regarding the true cost of the Company's revenue, and aligns with how the Company's business is managed. These overhead and personnel expenses, which were determined to be directly related to the Company's delivery of services, are generally variable to revenue being recognized, and results in gross profit that fully encompasses all costs necessary to generate such revenue. The reclassification recorded within the financials was $4.8 million and $9.7 million for the three and six month periods ended June 30, 2024, respectively. The impact of the reclassification of these costs from SG&A to cost of revenue for full year 2024 was approximately $20.9 million. This reclassification of overhead and personnel expenses had no impact on Operating Income, Net Income or Adjusted EBITDA comparability.
The Company recorded $3.0 million of reorganization and other costs in the second quarter of 2025 related to the Company's continuing initiative to reduce and recalibrate overhead costs, in addition to incremental costs of other related actions.
Net income was $3.0 million in the second quarter, or $0.10 per diluted share, as compared to net income of $6.4 million, or $0.20 per diluted share in the prior year comparable period. Second quarter net income excluding special items (non-GAAP), was $5.8 million, or $0.19 per diluted share, as compared to net income excluding special items (non-GAAP) of $6.8 million, or $0.21 per diluted share, in the prior year comparable period.
In the first half of 2025, net cash used in operating activities was $3.5 million, a decrease from $5.1 million of net cash provided by operating activities in the prior year period, largely due to an increase in days sales outstanding and working capital timing. Specifically, in the second quarter of 2025, the Company had a buildup in unbilled accounts receivable and a delay in invoicing related to its conversion to a new enterprise resource planning (ERP) system effective as of April 1, 2025. Although unbilled and billed accounts receivable balances increased significantly during the period ended June 30, 2025 related to this ERP implementation, the Company expects a reduction in these balances over the remainder of the year.
Free cash flow (non-GAAP) was negative $16.2 million in the first half of 2025, compared to negative $6.9 million in the prior year comparable period, attributable to the same factors impacting the Company's operating cash flow. On a trailing twelve month basis, which better normalizes year-over-year differences, net cash provided by operating activities was $41.6 million and free cash flow was $17.8 million, despite the first half 2025 year-over-year lagging results, compared to the prior year period. The Company expects free cash flow to normalize in the coming quarters and remains committed to strong free cash flow generation over the second half of 2025.
The Company's gross debt was $189.4 million as of June 30, 2025, compared to $169.6 million as of December 31, 2024 and $171.9 million as of March 31, 2025. The increase in gross debt during the period was attributable to the impacts to cash flow described above. The Company's net debt, a non-GAAP financial measure, was $168.8 million as of June 30, 2025.
The Company's trailing 12-month total consolidated debt leverage ratio as defined in the Company's credit agreement was just under 2.75 to 1.0 as of June 30, 2025, which was up slightly from December 31, 2024, but still well within the total consolidated debt leverage ratio of 3.75 to 1.0 required under the credit agreement. The Company expects to end fiscal 2025 with a total consolidated debt leverage ratio below 2.50 to 1.0.
Natalia Shuman, President and Chief Executive Officer commented: “I am very pleased to report our second quarter performance, which resulted in a record Adjusted EBITDA of $24.1 million, up 8.9% year-over-year, reflecting significant improvement in our operating leverage as a result of our strategic initiatives. As we re-tool, re-shape and re-invigorate our business, we have taken many decisive steps to enhance profitability and sharpen our focus. This reflects the strength of our operating model, disciplined cost management, and continued focus on driving efficiencies across the business. These second quarter results demonstrated our ability to deliver value despite market volatility, positioning us well to restart our growth engine. We have adjusted our Company's organizational structure, delayered the organization, reinforced performance management at each of our labs, and implemented clear key performance indicators (KPIs) which we are using to continuously manage and control our costs. These are not just short-term cost calibrations, they are structural improvements designed to improve and expand decision making capacity, reinforce operational organization and help ensure operating leverage through all business cycles.”
Ms. Shuman continued, “As the market continues to evolve, we are focused on aligning our capabilities to meet increasing demand for more integrated, agile, and data-enabled solutions. By combining advanced technologies with deep operational expertise, we are positioning MISTRAS to lead in high-growth sectors and provide critical support where reliability, safety, and performance matter most.”
2025 Outlook The Company is not providing full year guidance for fiscal 2025, as the CEO and renewed senior management team are still reviewing the Company's entire portfolio of businesses. The Company is also continuously assessing market volatility, including the impact of changes in U.S. trade policies, the imposition of tariffs and related retaliatory tariffs, on its business and results for fiscal 2025. Nevertheless, the Company expects its 2025 Adjusted EBITDA to exceed the Adjusted EBITDA level in 2024, which had been the second highest annual level achieved all-time.
Conference Call In connection with this release, MISTRAS will hold a conference call on August 7, 2025, at 9:00 a.m. Eastern Standard Time. To listen to the live webcast of the conference call, visit the Investor Relations section of MISTRAS Group's website at www.mistrasgroup.com. Individuals may pre-register at: https://investors.mistrasgroup.com/events/event-details/fiscal-2025-q2-earnings-call. Following the conference call, an archived webcast of the call will be available for one year by visiting the Investor Relations section of MISTRAS Group's website.
About MISTRAS Group, Inc. – One Source for Asset Protection Solutions(R) MISTRAS Group, Inc. (NYSE: MG) is a global leader in technology-enabled industrial asset integrity solutions, serving critical industries including oil & gas, aerospace & defense, power & utilities, manufacturing, and civil infrastructure. The company provides a diversified portfolio of products and services, ranging from advanced non-destructive testing and pipeline inspections to real-time condition monitoring, maintenance planning, and specialized engineering, powered by a proprietary management software suite that centralizes integrity data for predictive analytics and benchmark analysis. With a long-standing track record of innovation and deep industry expertise, MISTRAS helps clients reduce risk, extend asset life, and optimize operational performance. Learn more at www.mistrasgroup.com.
INVESTORS CONTACT: Edward Prajzner Senior Executive Vice President & Chief Financial Officer +1 (833) MISTRAS |investors@mistrasgroup.com
Forward-Looking and Cautionary Statements Certain statements contained in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, the impacts of foreign currency exchange risks, the impacts of our new ERP implementation, including the reduction and normalization of our accounts receivable balances, and recently announced tariffs and retaliatory tariffs and changes to U.S. trade policy on our business and financial results, and additional operational and strategic actions, such as the implementation of KPIs, that we have taken or expect or seek to take in furtherance of our strategies and activities to reduce overhead and related costs and enhance our financial results and future growth. Such forward-looking statements relate to MISTRAS' financial results and estimates, products and services, business model, operational and strategic initiatives to improve operating leverage, strategy, growth opportunities, profitability and competitive position, and other matters. These forward-looking statements generally use words such as “future,” “possible,” “potential,” “targeted,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “predict,” “project,” “will,” “may,” “should,” “could,” “would” and other similar words and phrases. Such statements are not guarantees of future performance or results and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved, if at all. These statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. A list, description and discussion of these and other risks and uncertainties can be found in the “Risk Factors” section of the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission on March 11, 2025, as updated by our reports on Form 10-Q and Form 8-K. The forward-looking statements are made as of the date hereof, and MISTRAS undertakes no obligation to update such statements as a result of new information, future events or otherwise.
Use of Non-GAAP Financial Measures In addition to financial information prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”), this press release also contains adjusted financial measures that are not prepared in accordance with GAAP and that we believe provide investors and management with supplemental information relating to the Company's operating performance and trends that facilitate comparisons between periods and with respect to trends and projected information. The term “Adjusted EBITDA” used in this release is a financial measure not calculated in accordance with GAAP and is defined by the Company as net income attributable to MISTRAS Group, Inc. plus: interest expense, provision for income taxes, depreciation and amortization, share-based compensation expense, certain acquisition related costs (including transaction due diligence costs and adjustments to the fair value of contingent consideration), foreign exchange (gain) loss, non-cash impairment charges, reorganization and other costs and, if applicable, certain additional special items which are noted. A reconciliation of Adjusted EBITDA to Net Income (Loss) as computed under GAAP is set forth in a table attached to this press release. The Company also uses the terms “free cash flow” and “trailing twelve months free cash flow,” non-GAAP financial measures. The Company defines “free cash flow” as cash provided by operating activities less capital expenditures (which is classified as an investing activity). For the term “trailing twelve months free cash flow,” the Company aggregates cash provided by operating activities for the trailing twelve-month period ended June 30, 2025 and subtracts aggregated capital expenditures over the same trailing twelve month period. The Company additionally uses the terms:
“Segment and Total Company Income (Loss) from Operations (GAAP) to Income (Loss) from Operations before Special Items (non-GAAP)”, “Net Income (Loss) (GAAP) and Diluted EPS (GAAP) to Net Income Excluding Special Items (non-GAAP) and Diluted EPS Excluding Special Items (non-GAAP)” which reconciles the non-GAAP amounts to the GAAP financial measure. The non-GAAP financial performance measure “Income (loss) from operations before special items” is used for each of our three operating segments, the Corporate segment and the “Total Company”. Income (Loss) from operations before Special Items excludes: (a) transaction expenses related to acquisitions, such as professional fees and due diligence costs, (b) the net changes in the fair value of acquisition-related contingent consideration liabilities, (c) impairment charges, (d) reorganization and other costs, which includes items such as severance, labor relations matters and asset and lease termination costs and (e) other special items. These adjustments have been excluded from the GAAP measure because these expenses and credits are not related to our or any individual segment's core business operations. The acquisition related costs and special items can be a net expense or credit in any given period. This press release also includes the term “net debt”, a non-GAAP financial measure which the Company defines as the sum of the current and long-term portions of long-term debt, less cash and cash equivalents. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are also set forth in tables attached to this press release. Each of these non-GAAP financial measures has material limitations as a performance or liquidity measure and should not be considered alternatives to Net Income (Loss) or any other measures derived in accordance with GAAP. Because Income (loss) from operations before special items and other non-GAAP financial measures used in this press release may not be calculated in the same manner by all companies, these measures may not be comparable to other similarly titled measures used by other companies.
Mistras Group, Inc. and Subsidiaries Unaudited Condensed Consolidated Balance Sheets (in thousands, except share and per share data)
June 30, 2025
December 31, 2024
ASSETS
(unaudited)
Current Assets
Cash and cash equivalents
$
20,602
$
18,317
Accounts receivable, net
159,823
127,281
Inventories
15,118
14,485
Prepaid expenses and other current assets
18,409
12,387
Total current assets
213,952
172,470
Property, plant and equipment, net
85,909
80,892
Intangible assets, net
39,571
39,708
Goodwill
185,125
181,442
Deferred income taxes
6,693
6,267
Other assets
39,793
42,259
Total assets
$
571,043
$
523,038
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable
$
18,238
$
11,128
Accrued expenses and other current liabilities
90,482
85,233
Current portion of long-term debt
13,069
11,591
Current portion of finance lease obligations
5,677
5,317
Income taxes payable
1,028
1,656
Total current liabilities
128,494
114,925
Long-term debt, net of current portion
176,345
158,056
Obligations under finance leases, net of current portion
15,894
15,162
Deferred income taxes
2,216
1,973
Other long-term liabilities
31,919
34,027
Total liabilities
354,868
324,143
Commitments and contingencies
Equity
Preferred stock, 10,000,000 shares authorized
—
—
Common stock, $0.01 par value, 200,000,000 shares authorized, 31,538,050 and 31,010,375 shares issued and outstanding
465
402
Additional paid-in capital
253,879
250,832
Accumulated deficit
(10,153
)
(9,984
)
Accumulated other comprehensive loss
(28,343
)
(42,682
)
Total Mistras Group, Inc. stockholders' equity
215,848
198,568
Noncontrolling interests
327
327
Total equity
216,175
198,895
Total liabilities and equity
$
571,043
$
523,038
Mistras Group, Inc. and Subsidiaries Unaudited Condensed Consolidated Statements of Income (Loss) (in thousands, except per share data)
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
Revenue
$
185,405
$
189,773
$
347,020
$
374,215
Cost of revenue
125,739
132,536
241,025
264,892
Depreciation
5,721
5,897
11,158
11,831
Gross profit
53,945
51,340
94,837
97,492
Selling, general and administrative expenses
39,793
36,181
75,445
72,431
Reorganization and other costs
2,951
518
6,038
2,076
Environmental expense
518
—
1,058
—
Legal settlement and insurance recoveries, net
—
60
—
60
Research and engineering
269
231
568
575
Depreciation and amortization
1,986
2,391
4,312
4,839
Income from operations
8,428
11,959
7,416
17,511
Interest expense
4,239
4,413
7,563
8,842
Income (loss) before provision (benefit) for income taxes
4,189
7,546
(147
)
8,669
Provision (benefit) for income taxes
1,063
1,173
(105
)
1,292
Net income (loss)
3,126
6,373
(42
)
7,377
Less: net income attributable to noncontrolling interests, net of taxes
109
4
127
13
Net income (loss) attributable to Mistras Group, Inc.
$
3,017
$
6,369
$
(169
)
$
7,364
Net income (loss) per common share
Basic
$
0.10
$
0.21
$
—
$
0.24
Diluted
$
0.10
$
0.20
$
—
$
0.23
Weighted-average common shares outstanding:
Basic
31,439
30,979
31,268
30,842
Diluted
31,693
31,293
31,268
31,358
Mistras Group, Inc. and Subsidiaries Unaudited Operating Data by Segment (in thousands)
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
Revenue
North America
$
147,992
$
156,394
$
276,894
$
306,743
International
39,077
34,264
72,291
67,311
Products and Systems
2,740
3,373
5,831
6,583
Corporate and eliminations
(4,404
)
(4,258
)
(7,996
)
(6,422
)
Total
$
185,405
$
189,773
$
347,020
$
374,215
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
Gross profit
North America
$
40,384
$
39,874
$
70,549
$
75,250
International
12,270
9,890
21,358
19,157
Products and Systems
1,337
1,555
2,960
3,036
Corporate and eliminations
(46
)
21
(30
)
49
$
53,945
$
51,340
$
94,837
$
97,492
Mistras Group, Inc. and Subsidiaries Unaudited Revenues by Category (in thousands)
Revenue by industry was as follows:
Three Months Ended June 30, 2025
North America
International
Products & Systems
Corp/Elim
Total
Oil & Gas
$
92,634
$
9,943
$
239
$
—
$
102,816
Aerospace & Defense
16,848
7,014
140
—
24,002
Industrials
11,647
7,597
360
—
19,604
Power Generation & Transmission
9,320
2,097
376
—
11,793
Other Process Industries
5,877
5,172
—
—
11,049
Infrastructure, Research & Engineering
3,461
4,020
579
—
8,060
Petrochemical
3,112
1
—
—
3,113
Other
5,091
3,234
1,046
(4,404
)
4,967
Total
$
147,992
$
39,077
$
2,740
$
(4,404
)
$
185,405
Three Months Ended June 30, 2024
North America
International
Products & Systems
Corp/Elim
Total
Oil & Gas
$
96,356
$
12,735
$
165
$
—
$
109,256
Aerospace & Defense
16,596
5,697
47
—
22,340
Industrials
11,853
5,878
563
—
18,294
Power Generation & Transmission
7,332
1,254
447
—
9,033
Other Process Industries
10,368
4,504
37
—
14,909
Infrastructure, Research & Engineering
5,125
2,813
695
—
8,633
Petrochemical
3,848
171
—
—
4,019
Other
4,916
1,212
1,419
(4,258
)
3,289
Total
$
156,394
$
34,264
$
3,373
$
(4,258
)
$
189,773
Six Months Ended June 30, 2025
North America
International
Products & Systems
Corp/Elim
Total
Oil & Gas
$
178,365
$
20,589
$
426
$
—
$
199,380
Aerospace & Defense
30,855
13,295
256
—
44,406
Industrials
23,335
14,114
725
—
38,174
Power Generation & Transmission
12,544
3,082
820
—
16,446
Other Process Industries
12,378
8,916
8
—
21,302
Infrastructure, Research & Engineering
7,162
6,582
1,537
—
15,281
Petrochemical
5,635
111
—
—
5,746
Other
6,620
5,602
2,059
(7,996
)
6,285
Total
$
276,894
$
72,291
$
5,831
$
(7,996
)
$
347,020
Six Months Ended June 30, 2024
North America
International
Products & Systems
Corp/Elim
Total
Oil & Gas
$
199,383
$
22,801
$
237
$
—
$
222,421
Aerospace & Defense
31,971
12,429
58
—
44,458
Industrials
20,762
11,731
1,000
—
33,493
Power Generation & Transmission
10,924
2,936
1,025
—
14,885
Other Process Industries
18,296
8,437
76
—
26,809
Infrastructure, Research & Engineering
9,097
5,018
1,104
—
15,219
Petrochemical
7,661
702
—
—
8,363
Other
8,649
3,257
3,083
(6,422
)
8,567
Total
$
306,743
$
67,311
$
6,583
$
(6,422
)
$
374,215
The Company has retrospectively reclassified certain Oil and Gas sub-category revenues for the periods shown below in order to conform the classification with the current period presentation. Total Oil and Gas sub-category revenues were unchanged in total.
2024 Quarterly Revenues
Three months ended March 31,
Three months ended June 30,
Three months ended September 30,
Three months ended December 31,
Oil and Gas Revenue by sub-category
Upstream
$
39,514
$
41,013
$
40,756
$
36,753
Midstream
18,533
20,786
20,790
20,033
Downstream
55,118
47,457
37,957
40,212
Total
$
113,165
$
109,256
$
99,503
$
96,998
2025 Quarterly Revenues
Three months ended March 31,
Oil and Gas Revenue by sub-category
Upstream
$
36,820
Midstream
15,341
Downstream
44,403
Total
$
96,564
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Oil and Gas Revenue by sub-category
Upstream
$
38,180
$
41,013
$
75,000
$
80,527
Midstream
18,575
20,786
33,916
39,319
Downstream
46,061
47,457
90,464
102,575
Total
$
102,816
$
109,256
$
199,380
$
222,421
Consolidated Revenue by type was as follows:
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Revenue by type
Field Services
$
123,484
$
134,528
$
233,659
$
260,883
Shop Laboratories
15,682
16,938
30,711
34,133
Data Analytical Solutions
18,330
18,342
32,311
33,881
Other
27,909
19,965
50,339
45,318
Total
$
185,405
$
189,773
$
347,020
$
374,215
Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Segment and Total Company Income (Loss) from Operations (GAAP) to Income (Loss) from Operations before Special Items (non-GAAP) (in thousands)
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
North America:
Income from operations (GAAP)
$
16,758
$
18,727
$
23,273
$
32,287
Reorganization and other costs
1,113
92
2,471
92
Legal settlement and insurance recoveries, net
—
60
—
60
Income from operations before special items (non-GAAP)
$
17,871
$
18,879
$
25,744
$
32,439
International:
Income from operations (GAAP)
$
4,004
$
1,647
$
5,085
$
2,771
Reorganization and other costs
92
161
270
263
Income from operations before special items (non-GAAP)
$
4,096
$
1,808
$
5,355
$
3,034
Products and Systems:
Income from operations (GAAP)
$
336
$
495
$
663
$
809
Reorganization and other costs
—
—
151
2
Income from operations before special items (non-GAAP)
$
336
$
495
$
814
$
811
Corporate and Eliminations:
Loss from operations (GAAP)
$
(12,670
)
$
(8,910
)
$
(21,605
)
$
(18,356
)
Environmental expense
518
—
1,058
—
Reorganization and other costs
1,746
265
3,146
1,719
Loss from operations before special items (non-GAAP)
$
(10,406
)
$
(8,645
)
$
(17,401
)
$
(16,637
)
Total Company:
Income from operations (GAAP)
$
8,428
$
11,959
$
7,416
$
17,511
Environmental expense
518
—
1,058
—
Reorganization and other costs
2,951
518
6,038
2,076
Legal settlement and insurance recoveries, net
—
60
—
60
Income from operations before special items (non-GAAP)
$
11,897
$
12,537
$
14,512
$
19,647
Mistras Group, Inc. and Subsidiaries Unaudited Summary Cash Flow Information (in thousands)
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
Net cash provided by (used in):
Operating activities
$
(9,098
)
$
4,511
$
(3,453
)
$
5,115
Investing activities
(6,451
)
(5,569
)
(11,865
)
(11,217
)
Financing activities
15,623
134
14,921
5,261
Effect of exchange rate changes on cash
1,992
1,246
2,682
372
Net change in cash and cash equivalents
$
2,066
$
322
$
2,285
$
(469
)
Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP) (in thousands)
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
Net cash provided by operating activities (GAAP)
$
(9,098
)
$
4,511
$
(3,453
)
$
5,115
Less:
Purchases of property, plant and equipment
(5,870
)
(4,795
)
(10,425
)
(9,599
)
Purchases of intangible assets
(1,048
)
(1,287
)
(2,315
)
(2,404
)
Free cash flow (non-GAAP)
$
(16,016
)
$
(1,571
)
$
(16,193
)
$
(6,888
)
Mistras Group, Inc. and Subsidiaries Unaudited Trailing Twelve monthsFree Cash Flow (non-GAAP) (in thousands)
Trailing twelve months ended(1)
June 30, 2025
Net cash provided by operating activities (GAAP)
$
41,561
Less:
Purchases of property, plant and equipment
(18,728
)
Purchases of intangible assets
(4,995
)
Free cash flow (non-GAAP)
$
17,838
_____________ (1) As reported and reconciled for each respective quarterly period during the trailing twelve months ended June 30, 2025. Refer to the Company's Current Reports on Form 8-K furnishing pursuant to Item 2.02 the Company's financial results for each respective quarterly period included in the trailing twelve month period.
Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Gross Debt (GAAP) to Net Debt (non-GAAP) (in thousands)
June 30, 2025
December 31, 2024
Current portion of long-term debt
$
13,069
$
11,591
Long-term debt, net of current portion
176,345
158,056
Total Debt (Gross)
189,414
169,647
Less: Cash and cash equivalents
(20,602
)
(18,317
)
Total Debt (Net)
$
168,812
$
151,330
Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Net Income (Loss) (GAAP) to Adjusted EBITDA (non-GAAP) (in thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Net income (loss) (GAAP)
$
3,126
$
6,373
$
(42
)
$
7,377
Less: Net income attributable to non-controlling interests, net of taxes
109
4
127
13
Net income (loss) attributable to Mistras Group, Inc.
$
3,017
$
6,369
$
(169
)
$
7,364
Interest expense
4,239
4,413
7,563
8,842
Income tax (benefit)/expense
1,063
1,173
(105
)
1,292
Depreciation and amortization
7,707
8,288
15,470
16,670
Share-based compensation expense
1,827
1,536
3,129
2,764
Reorganization and other related costs(1)
2,951
518
6,038
2,076
Environmental expense
518
—
1,058
—
Legal settlement and insurance recoveries, net
—
60
—
60
Foreign exchange loss (gain)
2,784
(227
)
3,157
(789
)
Adjusted EBITDA (non-GAAP)
$
24,106
$
22,130
$
36,141
$
38,279
_______________ (1) For the three months ended June 30, 2025, the Company recognized share-based compensation expense within Reorganization and other costs of $0.5 million. For the six months ended June 30, 2025, the Company recognized share-based compensation expense within Reorganization and other costs of $1.5 million.
Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Net Income (Loss) (GAAP) and Diluted EPS (GAAP) to Net Income (Loss) Excluding Special Items (non-GAAP) and Diluted EPS Excluding Special Items (non-GAAP) (tabular dollars in thousands, except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Net income (loss) attributable to Mistras Group, Inc. (GAAP)
$
3,017
$
6,369
$
(169
)
$
7,364
Special items
3,469
578
7,096
2,136
Tax impact on special items
(720
)
(140
)
(1,501
)
(521
)
Special items, net of tax
$
2,749
$
438
$
5,595
$
1,615
Net income attributable to Mistras Group, Inc. Excluding Special Items (non-GAAP)
$
5,766
$
6,807
$
5,426
$
8,979
Diluted EPS (GAAP)(1)
$
0.10
$
0.20
$
—
$
0.23
Special items, net of tax
0.09
0.01
0.18
0.05
Diluted EPS Excluding Special Items (non-GAAP)
$
0.19
$
0.21
$
0.18
$
0.28
_______________ (1) For the three months ended June 30, 2025, 375,000 shares, related to stock options and 877,000 shares, related to restricted stock units were anti-dilutive and therefore were excluded from the calculation of diluted earnings (loss) per share. For the six months ended June 30, 2025, 106,000 shares, related to stock options and 867,000 shares, related to restricted stock units were excluded from the calculation of diluted earnings (loss) per share due to the net loss for the period.
