Matrix Service Company provides engineering, fabrication, construction, and maintenance services to support critical energy infrastructure and industrial markets.
The company maintains regional offices throughout the United States, Canada and other international locations, and operates through separate union and non-union subsidiaries. The company operates in all 50 states, in four Canadian provinces and in other international locations.
Segments
The company operates its business through thre...
Matrix Service Company provides engineering, fabrication, construction, and maintenance services to support critical energy infrastructure and industrial markets.
The company maintains regional offices throughout the United States, Canada and other international locations, and operates through separate union and non-union subsidiaries. The company operates in all 50 states, in four Canadian provinces and in other international locations.
Segments
The company operates its business through three reportable segments: Storage and Terminal Solutions, Utility and Power Infrastructure, and Process and Industrial Facilities.
Storage and Terminal Solutions
This segment primarily consists of engineering, procurement, fabrication, and construction services related to cryogenic and other specialty tanks and terminals for liquefied natural gas (‘LNG’), natural gas liquids (‘NGLs’), hydrogen, ammonia, propane, butane, liquid nitrogen/liquid oxygen, and liquid petroleum. The company also performs work related to traditional aboveground crude oil and refined product storage tanks and terminals. This segment also includes terminal balance of plant work, truck and rail loading/offloading facilities, and marine structures, as well as storage tank and terminal maintenance and repair. Finally, the company manufactures and sells precision engineered specialty tank products, including geodesic domes, aluminum internal floating roofs, floating suction and skimmer systems, roof drain systems and floating roof seals.
Utility and Power Infrastructure
This segment primarily consists of engineering, procurement, fabrication, and construction services to support growing demand for LNG utility peak shaving facilities. The company also performs traditional electrical work for public and private utilities, including the construction of new substations, upgrades of existing substations, transmission and distribution line installations, and upgrades and maintenance, including live wire work. Work may also include emergency and storm restoration services. The company also provides construction services to a variety of power generation facilities, including natural gas fired facilities in simple or combined cycle configurations.
Process and Industrial Facilities:
This segment primarily consists of plant maintenance, repair, and turnarounds in the downstream and midstream markets for energy clients, including refining and processing of crude oil, fractionating, and marketing of natural gas and natural gas liquids. The company also performs engineering, procurement, fabrication, and construction for refinery upgrades and retrofits for renewable fuels, including hydrogen processing, production, loading and distribution facilities. The company also constructs thermal vacuum test chambers for aerospace and defense industries and other infrastructure for industries, including petrochemical, sulfur, mining and minerals primarily in the extraction of non-ferrous metals, cement, agriculture, wastewater treatment facilities and other industrial customers.
Customers and Marketing
The company provided services to approximately 270 customers in the year ended June 30, 2024 (fiscal 2024). Most of the company’s revenue comes from long-term customer relationships. One customer accounted for 10.5% of the company’s consolidated revenue in fiscal 2024, which was primarily included in the Storage and Terminal Solutions segment. Another customer accounted for 10.3% of the company’s consolidated revenue in fiscal 2024, which was primarily included in the Process and Industrial Facilities segment.
The company markets its services and products primarily through the company’s marketing and business development personnel, senior professional staff and the company’s operating management. The company competitively bid most of its projects, however, the company has a number of preferred provider relationships with customers who award the company works through long-term agreements. The company’s projects have durations ranging from a few days to multiple years.
Seasonality
Within the Utility and Power Infrastructure segment, transmission and distribution work is generally scheduled by the public utilities when the demand for electricity is at its lowest. Therefore, revenue volume in the summer months is typically lower than in other periods throughout the year (year ended June 2024).
Patents and Proprietary Technology
The Flowdome trademark is used to market the company’s geodesic dome tank roofs. The company’s SwingMaster trademark is used to market the company’s central type swing joints. The patent for the Training Tank for Personnel Entry, Exit and Rescue relates to a training device that can be used to train personnel on equipment that is made to simulate confined space scenarios. The company holds two separate patents for Pipe Lifting and Orienting Apparatus and Method that is used to raise and lower pipes and to move them around the upper surface of floating roof of tanks. The Batten Joint for an Internal Floating Roof of a Fluid Tank allows the company to overcome many of the disadvantages associated with other types of joints used for internal floating roofs for floating tanks.
The company also holds a perpetual license to use various patents and technologies related to LNG storage tanks, liquid nitrogen/liquid oxygen storage tanks, liquid petroleum gas storage tanks and thermal vacuum chambers.
Regulation
The company’s operations are subject to regulation by the U.S. Department of Labor Occupational Safety and Health Administration (‘OSHA’) and Mine Safety and Health Administration (‘MSHA’), the U.S. Department of Transportation, and to regulation under state laws and by the Canadian Workers’ Compensation Board and its Workplace Health, Safety and Compensation Commission. Regulations promulgated by these agencies require employers and independent contractors to implement work practices, medical surveillance systems and personnel protection programs to protect employees from workplace hazards and exposure to hazardous chemicals and materials.
History
Matrix Service Company was founded in 1984 as an Oklahoma corporation. The company was incorporated in the state of Delaware in 1989.
The Analyst Price Target shows the analysts’ low, high, and average target at a glance.
