Mistras Group Inc
NYSE:MG
Mistras Group Inc
MISTRAS Group, Inc. engages in the provision of technology-enabled asset protection solutions. The company is headquartered in Princeton Junction, New Jersey and currently employs 5,400 full-time employees. The company went IPO on 2009-10-08. The Company’s segments include Services, International and Products and Systems. Services provides asset protection solutions in North America segment with concentration on the United States along with a Canadian services business, consisting of non-destructive testing and inspection. International offers services products and systems to select markets in Europe, the Middle East, Africa, Asia and South America, and Products. Products and Systems segment designs, manufactures, sells, installs, and services the Company's asset protection products and systems, including equipment and instrumentation, primarily in the United States. The firm is integrating asset protection throughout supply chains and centralizing integrity data through a suite of Industrial Internet of things (IoT) connected digital software and monitoring solutions, including OneSuite, which serves as an ecosystem platform.
MISTRAS Group, Inc. engages in the provision of technology-enabled asset protection solutions. The company is headquartered in Princeton Junction, New Jersey and currently employs 5,400 full-time employees. The company went IPO on 2009-10-08. The Company’s segments include Services, International and Products and Systems. Services provides asset protection solutions in North America segment with concentration on the United States along with a Canadian services business, consisting of non-destructive testing and inspection. International offers services products and systems to select markets in Europe, the Middle East, Africa, Asia and South America, and Products. Products and Systems segment designs, manufactures, sells, installs, and services the Company's asset protection products and systems, including equipment and instrumentation, primarily in the United States. The firm is integrating asset protection throughout supply chains and centralizing integrity data through a suite of Industrial Internet of things (IoT) connected digital software and monitoring solutions, including OneSuite, which serves as an ecosystem platform.
Revenue Growth: MISTRAS delivered Q3 revenue of $195.5 million, up 7% year-over-year and ahead of expectations, with growth across all five major industry verticals.
Margin Expansion: Gross margin increased by 300 basis points to 29.8%, and adjusted EBITDA margin rose to 15.4%, driven by favorable business mix, operational efficiencies, and closure of unprofitable labs.
Profitability: Net income doubled to $13.1 million ($0.41 per diluted share) from $6.4 million in the prior year, significantly exceeding expectations.
Guidance Raised: Full-year adjusted EBITDA guidance raised to a range of $86 million to $88 million (above $82.5 million in 2024), with revenue expected to be $716–$720 million (flat year-over-year after adjusting for business exits).
Cash Flow & Debt: Working capital timing from an ERP upgrade continued to drag cash flow in Q3, but management expects positive free cash flow and debt paydown in Q4 and normalization in H1 2026.
Strategic Progress: The Vision 2030 plan focuses on expanding integrated solutions, diversifying end markets (with new wins in data centers and infrastructure), and driving operational efficiencies.
Sector Outlook: Management sees growth prospects for aerospace & defense, infrastructure (including data centers), and power generation into 2026, with continued efforts to increase wallet share in oil & gas.
