Mistras Group Posts Record Q4 Adjusted EBITDA of $24.8M and 28.4% Margin
Mistras Group reported full-year 2025 revenue of $724 million, with fourth-quarter revenue up 5.1% year-over-year and a 190 basis-point margin increase to 28.4% driven by aerospace, defense and a 61% laboratories segment surge. Adjusted EBITDA hit a record $24.8 million (up 18.2%) while non-GAAP earnings per share rose to $0.20.
1. Fourth-Quarter Profitability Surge
Fourth-quarter revenue rose 5.1% year-over-year as gross margin climbed 190 basis points to 28.4%, generating gross profit of $51.5 million. GAAP net income was $3.9 million ($0.12 EPS) and non-GAAP net income $7.9 million ($0.20 EPS), while adjusted EBITDA reached a fourth-quarter record $24.8 million (13.7% margin).
2. Full-Year Financial Metrics
For full-year 2025, consolidated revenue was $724 million with gross profit up 6.4% to $205 million and gross margin at 28.4%. GAAP net income totaled $16.8 million ($0.53 EPS) and non-GAAP net income was $28.1 million ($0.88 EPS), supported by 6% international revenue growth and industrial end-market strength.
3. Cash Flow, CapEx and Leverage
Operating cash flow in Q4 reached $32.1 million, yielding $24.6 million of free cash flow versus $20.8 million a year earlier, while full-year free cash flow declined to $3.8 million. Capital expenditures rose to $29.2 million for lab capacity and equipment expansion. Net debt was $150 million at 2.5 times leverage, with a $20 million debt paydown target for end-2026.
4. Vision 2030 Strategy Progress
Plant Condition Management Software grew 20.7% in Q4 and 25.2% for the full year, driven by new customer adoption and in-house implementations. Management plans to expand the OneSUI asset protection ecosystem from compliance tools to broader data solutions across infrastructure and industrial markets.