Operator: Thank you. And now, I’d like to turn the call over to Mr. [Name], Chief Executive Officer of Matrix Service Company. [Mr. [Name]] Thank you, operator. Good morning, everyone, and thank you for joining us today. We are pleased to discuss our fourth quarter and fiscal year 2024 results. As you know, we’ve been focused on driving growth and expanding our market share in the digital transformation space.

This summary is about a company’s upcoming investor events and communication regarding non-GAAP financial measures. **Here’s a detailed breakdown of the information:**

* **Non-GAAP Measures:** The company will be using non-GAAP measures in its financial reporting. This means they will be presenting financial information that excludes certain items from their GAAP (Generally Accepted Accounting Principles) reporting. * **Reconciliations:** To provide transparency and allow investors to understand the impact of these non-GAAP measures, the company will provide reconciliations of these measures to their corresponding GAAP figures.

John Hewitt, CEO of a company, delivers a message about the importance of safety, leadership, and sacrifice. He emphasizes the impact of individual actions and behaviors on safety and the need for personal responsibility. He also expresses gratitude to the military and first responders for their service.

The company’s services are in high demand due to several megatrends, which are driving the need for infrastructure investment in LNG, NGLs, ammonia, hydrogen, and other renewable fuels. This demand is creating significant opportunities across all segments of the company. The company is actively involved in several projects, including a backup fuel supply facility, a boil off gas compressor project, and a new NGL storage project.

This segment is expected to continue to be a key driver of growth for the company, with a focus on the clean energy transition. The company is committed to investing in new technologies and infrastructure to support this transition. This commitment is reflected in the company’s ongoing investments in renewable energy projects, such as solar and wind farms, as well as in the development of new technologies for the production of clean fuels. The company’s commitment to the clean energy transition is also reflected in its efforts to reduce its own carbon footprint.

This statement highlights the company’s strategic focus on capital allocation and financial management. Let’s break down the key points:

**1. Exclusion of Smaller Projects:** The company explicitly states that it excludes smaller capital projects and maintenance activities from its focus.

This slow start is expected to be followed by a strong acceleration of activity throughout the year, fueled by several key projects. We will continue to focus on optimizing our operational efficiency to ensure we are generating the best possible returns on our investments. We will also continue to invest in our workforce and development programs to further enhance our capabilities and drive innovation. We are confident in our ability to capitalize on the growth opportunities presented by the energy transition and to deliver strong results for our stakeholders.

The slow start is expected to be driven by the previously mentioned long-term construction projects. The fourth quarter saw a strong increase in our profit margin, reaching 15% in the call. This is largely due to the following factors:
1. Operational Efficiency: We have implemented several cost-cutting measures across all our business units, which have significantly improved our operational efficiency. 2.

Previously awarded peak shaver projects are projects that have been awarded but not yet started. Previously awarded peak shaver projects are typically completed within a year. These projects are often associated with peak demand periods, such as summer months, and are designed to improve grid reliability and reduce energy costs. These projects typically involve the installation of new transmission lines, transformers, and other equipment. These projects are often associated with the company’s core competencies, such as engineering, procurement, and construction (EPC). The company’s expertise in these areas allows it to deliver these projects efficiently and cost-effectively. The Utility and Power Infrastructure segment is expected to continue its strong growth trajectory in fiscal 2025.

The company’s focus on innovation and technology is evident in its commitment to developing and deploying cutting-edge technologies. This commitment is reflected in the company’s investments in research and development, as well as its partnerships with leading universities and research institutions. These investments are aimed at driving innovation and creating new opportunities for growth.

The summary discusses the company’s financial health and future prospects. The company anticipates significant revenue growth in fiscal 2025 and plans to manage its balance sheet proactively. Here’s a detailed explanation of the key points:

The company expects revenue of $900 million to $950 million in fiscal 2025. They believe the combination of revenue growth, together with continued focus on execution excellence and the leverage of their cost structure will allow them to return to profitability in the fiscal year and make significant progress towards the achievement of their long term financial targets. **Detailed Analysis:**

The company’s projected revenue range of $900 million to $950 million for fiscal 2025 signifies a significant growth trajectory.

Operator: [Operator Instructions] Our first question comes from John Franzreb from Sidoti & Company. John Franzreb: I’d actually like to start with the gross margins that you reported in the the quarter.

John Franzreb, CFO of a company, discusses the company’s gross margin profile. He asks Kevin Cavanah, the company’s CEO, about the future gross margin performance. Kevin Cavanah, in response, states that the company has moved past the issues of unusually low margins that were present in the past. The company is now seeing normalized gross margins across its portfolio.

It’s helpful. But I’m curious about the timing of the revenue recognition for the new products. When we look at the revenue recognition for the new products, is it going to be more concentrated in the back half of fiscal 2025 or is it going to be more evenly distributed throughout the year? Brent Thielman: I’m also curious about the potential impact of the new products on the company’s gross margin.

John Hewitt: Well, the challenges are multifaceted. First, there’s the issue of legacy systems. Many of our customers have outdated electrical infrastructure, which makes it difficult to integrate new technologies and services. For example, some customers may have outdated transformers, meters, and other equipment that are incompatible with modern smart grid technologies. This can lead to delays in implementing new services, higher costs, and even safety concerns. Second, there are challenges related to customer adoption. Customers are often hesitant to adopt new technologies, especially when they are unfamiliar with them. This can be due to a variety of factors, such as concerns about privacy, security, and cost.

The company is actively engaged in developing relationships with potential clients and entering the bidding cycle for projects. This process is ongoing and yielding positive results. The company is also experiencing growth in the industrial electrical work sector, particularly in power generating facilities, data centers, and midstream work. **Detailed Text:**

The company’s strategic focus on building strong client relationships and securing bidding opportunities is yielding positive results. This proactive approach is evident in the ongoing efforts to cultivate relationships with potential clients, a crucial step in securing future projects.

The summary states that the energy sector is undergoing a significant shift towards renewable energy sources, particularly in the context of data centers. This shift is driven by the increasing demand for data storage and processing, which in turn is leading to a rise in energy consumption. To address this, data centers are increasingly relying on renewable energy sources like solar and wind power. Furthermore, the summary highlights the use of small-scale power generating turbines at data center sites. These turbines are often derived from aerospace technology and are used as backup power sources. They are particularly useful in areas with limited access to grid electricity.

John Hewitt, CEO of a construction company, describes the company’s business model. He explains that the company’s work is divided into two main categories: book and burn maintenance and lump sum projects. **Detailed Text:**

John Hewitt, CEO of a construction company, provides a clear picture of the company’s business model, highlighting the distinct approaches it employs in its operations. He emphasizes the company’s reliance on two primary categories: book and burn maintenance and lump sum projects.

John Hewitt, CEO of a company, explains the rationale behind the company’s decision to restructure its reporting segments. He emphasizes that the restructuring is not driven by any concerns about the company’s current performance. Instead, it’s a strategic move to provide investors with a clearer understanding of the company’s efforts in the energy transition.

The speaker, John Franzreb, is a senior executive at a major technology company. He is likely referring to the recent advancements in hydrogen fuel cell technology and its potential applications in various industries. The speaker’s comments on the hydrogen market are likely to be informed by his company’s involvement in the development and deployment of hydrogen fuel cell technology. The speaker’s perspective on the hydrogen market is likely to be influenced by his company’s experience with hydrogen fuel cell technology, as well as his understanding of the broader market trends and dynamics.

This is a very important point. It’s a very important point because it highlights the importance of a well-defined strategy and a clear understanding of the market. A well-defined strategy is crucial for guiding the development of projects and ensuring that they align with the company’s overall goals. A clear understanding of the market is essential for identifying potential customers, understanding their needs, and developing products and services that meet those needs.