Mistras Q4 Revenue Up 5.1% to $181.5M, Record EBITDA of $24.8M
Mistras posted Q4 revenue of $181.5M, up 5.1%, gross margin of 28.4% (+190bps), net income of $3.9M and EPS $0.12, driving record adjusted EBITDA of $24.8M (+18.2%) with a 13.7% margin. For full-year 2025, revenue reached $724.0M, adjusted EBITDA hit $91.1M (+10.5%), margin expanded 130bps.
1. Fourth Quarter Financial Highlights
Mistras delivered Q4 revenue of $181.5 million, a 5.1% increase year-over-year, with gross profit of $51.5 million and a 28.4% margin, up 190 basis points. Net income was $3.9 million, or $0.12 per diluted share, while adjusted EBITDA hit a record $24.8 million, up 18.2%, yielding a 13.7% margin.
2. Full-Year 2025 Performance
For the twelve months ended December 31, 2025, revenue rose to $724.0 million after excluding $7.0 million of voluntary laboratory consolidations. Full-year gross profit was $204.5 million, a 28.2% margin (+190bps), net income was $16.8 million ($0.53 per share), and adjusted EBITDA reached $91.1 million, up 10.5% with a 12.6% margin.
3. Profitability Drivers and Cost Initiatives
Margin expansion was driven by disciplined execution, a $20.9 million reclassification of overhead into cost of revenue, and targeted reorganization charges of $12.7 million for the full year and $4.9 million in Q4. Non-GAAP net income excluding special items was $28.1 million for 2025, or $0.88 per diluted share.
4. Cash Flow and Leverage Position
Net cash provided by operating activities declined to $33.0 million from $50.1 million, and free cash flow fell to $3.8 million from $27.1 million, largely due to working capital timing and higher capex. Gross debt stands at $178.0 million, net debt $150.0 million, with a bank leverage ratio of 2.5x, well below the 3.75x covenant.