Mistras Group, Inc. (MG) Market Cap
Mistras Group, Inc. has a market capitalization of $568.6M.
Financials based on reported quarter end 2025-12-31
Price: $17.87
▼ -0.03 (-0.17%)
Market Cap: 568.56M
NYSE · time unavailable
CEO: Manuel N. Stamatakis
Sector: Industrials
Industry: Security & Protection Services
IPO Date: 2009-10-08
Website: https://www.mistrasgroup.com
Mistras Group, Inc. (MG) - Company Information
Market Cap: 568.56M · Sector: Industrials
Mistras Group, Inc. provides technology-enabled asset protection solutions worldwide. The company operates through three segments: Services, International, and Products and Systems. It offers non-destructive testing services; predictive maintenance assessments of fixed and rotating assets; inline inspection for pipelines; and develops enterprise inspection database management software and plant condition management software. The company also provides maintenance and light mechanical services, such as corrosion removal, mitigation and prevention, insulation installation and removal, electrical, heat tracing, industrial cleaning, pipefitting, and welding; engineering consulting services primarily for process equipment, technologies, and facilities; and utilizes scaffolding and rope access to access at-height and confined assets. In addition, it offers certified divers for subsea inspection and maintenance; unmanned aerial, land-based, and subsea systems for inspection applications; online condition-monitoring solutions; quality assurance and quality control solutions for new and existing metal and alloy components, materials, and composites. Further, the company designs and installs monitoring systems, as well as provides commissioning, training, reporting, technical support, and annual maintenance services; Web-based solutions; and custom-developed software. Additionally, it designs, manufactures, and sells acoustic emission sensors, instruments, and turnkey systems for monitoring and testing materials, pressure components, processes, and structures, as well as automated ultrasonic systems and scanners. The company serves oil and gas, commercial aerospace and defense, fossil and nuclear power, alternative and renewable energy, industrial, public infrastructure, petrochemical, transportation, and process industries, as well as research and engineering institutions. Mistras Group, Inc. was founded in 1978 and is headquartered in Princeton Junction, New Jersey.
Analyst Sentiment
Based on 18 ratings
Analyst 1Y Forecast: $16.00
Average target (based on 2 sources)
Consensus Price Target
Low
$16
Median
$16
High
$16
Average
$16
Downside: -10.5%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"MG reported revenue of $181.5M and a net income of $3.9M for the year ending December 31, 2025, resulting in an earnings per share of $0.12. The company has total assets of $578.8M and total liabilities of $343.1M, leading to total equity of $235.6M. While MG currently has zero operating cash flow, capital expenditure, or free cash flow, its stock has demonstrated robust price appreciation, with a one-year change of 39.61%. The current trading price is $14.91, close to a target consensus of $16. MG is under leveraged, with net debt of $214.6M compared to its equity position. While there are no dividends paid out, MG's strong stock performance reflects favorable market sentiment."
Revenue Growth
MG shows strong revenue streams with $181.5M but lacks historical data to evaluate growth trends.
Profitability
Net income of $3.9M indicates modest profitability, but the low EPS of $0.12 suggests limited earnings generation relative to share count.
Cash Flow Quality
Zero operating cash flow raises concerns about operational sustainability and cash management.
Leverage & Balance Sheet
The balance sheet is healthy, with a solid equity base and manageable debt levels.
Shareholder Returns
Strong 39.61% stock price increase over the past year reflects positive shareholder returns despite no dividends.
Analyst Sentiment & Valuation
Analyst consensus target price suggests potential upside, aligning with favorable market performance.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
MG exited Q4 2025 with clear margin and cash-generation improvements in the near term: gross margin +190 bps to 28.4%, and adjusted EBITDA margin +160 bps to 13.7% (highest-ever Q4). Management attributed this to mix/pricing discipline and operating efficiency, not just one-time actions. However, the Q&A pressure points were about durability and constraints: they explicitly confirmed aerospace/defense has capacity constraints that require the planned CapEx to lift utilization/throughput, and they tied 2026 revenue range primarily to the still-cautious oil & gas customer base. That creates a “good visibility but still levered to oil” setup—despite claiming the outlook does not assume macro acceleration. The mid-25% tax outlook and 2025 free cash flow decline drivers (DSO/ERP stabilization, restructuring, CapEx) reinforce that converting operating gains into cash at full-year scale remains a watch item.
Growth Catalysts
- Aerospace & defense revenue +21.9% YoY to $4.5M growth in Q4; demand for NDT/NDT testing supported growth
- Power generation revenue +33.2% YoY to $3.3M growth in Q4
- Infrastructure end market up +26.8% YoY in Q4 (analyst-highlighted business expansion)
- Record labs performance: labs business grew +661% YoY in Q4
- Plant Condition Management Software (PCMS) grew +20.7% in 2025 (and +25.2% full year vs prior year period)
Business Development
- Win announced Dec 2025: Bechtel for a new LNG terminal for Woodside (Sulfur, Louisiana)
- Partnership to deliver specialized inspection services: Bachelor and Kimball to BBNK data service center projects (mentioned as previously announced)
Financial Highlights
- Q4 consolidated revenue growth: +5.1% YoY
- Gross profit margin improvement: +190 bps to 28.4% in Q4 (gross profit nearly $51.5M)
- Q4 adjusted EBITDA: $24.8M (+18.2% YoY); adjusted EBITDA margin +160 bps to 13.7% (highest-ever Q4 adjusted EBITDA and margin)
- Q4 EPS: GAAP $0.12; non-GAAP $0.20
- Full-year 2025 adjusted EBITDA: $91.1M; EBITDA margin 12.6% (exceeded previously issued outlook)
- Full-year gross margin: 28.4% (+190 bps YoY; 26.3% prior year)
- Effective tax rate: 24.7% in 2025 vs 22% prior year; 2026 effective tax rate expected in the mid-25% range
- SG&A increase driven by strategic investments and unfavorable foreign translation; overhead/personnel reclassification from SG&A to cost of revenue (not impacting operating income/EBITDA comparability)
Capital Funding
- Free cash flow: $24.6M in 2025 (prior year $20.8M for comparison stated) and $3.8M full-year free cash flow (vs $27.1M prior year) — decline attributed to elevated DSO during ERP stabilization, higher restructuring, and growth-related CapEx
- Cash from operations: $32.1M in 2025 (vs $25.7M prior year in the comparison stated)
- Debt/leverage: total debt (gross debt) $178.0M at 12/31/2025 (vs $169.7M); net debt $150.0M (vs $151.3M)
- Bank-defined leverage ratio: ~2.5x at 12/31/2025 (vs ~2.3x at 12/31/2024), within max 3.75x
- Targeting debt paydown of ~$20.0M in fiscal 2026 to reach ~2.0x bank leverage ratio by end of 2026
- CapEx: $29.2M in 2025 (vs $23.0M prior year); maintaining CapEx ~4.5% of revenue into 2026
Strategy & Ops
- Operational model change: hub-and-spoke operating model in aerospace & defense
- Dynamic pricing strategies implemented in 2025; described as contributing to pricing discipline and improved margins
- Capacity constraint removal effort: investing in lab capacity to increase utilization/throughput in aerospace & defense
- AI/data investment: CapEx planned for AI capabilities in Data Solutions businesses
- Working capital mitigation plan: new Vice President of Working Capital Management to accelerate order-to-cash; focus on reducing accounts receivable below 2024 levels during 2026
Market Outlook
- 2026 guidance: full-year revenue $730M to $750M; adjusted EBITDA $91M to $93M
- 2026 outlook explicitly does NOT assume macro acceleration or strong oil & gas rebound, nor acquisitions
- Rationales for revenue range (Q4 caller follow-up): oil & gas customer caution drives low-end vs high-end scenarios; aerospace/defense visibility higher; power generation growth expected to be sufficient but smaller revenue share
Risks & Headwinds
- Oil & gas dependence risk: management stated oil & gas remains a large portion of revenue and customers are still cautious; performance materially depends on how oil & gas customers perform (key driver of guidance range).
- Capacity constraints in aerospace & defense: management confirmed constraints exist and that investments are intended to remove them to unlock demand into revenue.
- Middle East disruption (macro/geopolitical): management stated no material direct impact due to limited footprint, but continued to monitor; also noted upside scenario if oil prices rise leading to intensified U.S. upstream activity.
- Cash conversion pressure: full-year free cash flow declined in 2025 due to elevated DSO during ERP stabilization, higher restructuring charges, and growth-related CapEx.
Sentiment: MIXED
Note: This summary was synthesized by AI from the MG Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.