What does Mistras Group do and what are its main business segments?

What were the key takeaways from Mistras Group’s earnings call?

What is the revenue and EPS growth rate for Mistras Group year over year?

What factors drove the changes in Mistras Group's revenue and profit?

Did Mistras Group beat or miss consensus estimates last quarter?

What is Mistras Group's latest dividend and current dividend yield?

What is Mistras Group's gross profit margin?

What guidance did Mistras Group's management provide for the next earnings period?

- **Revenue Beat**: 7% YoY growth driven by diversified end markets, including 10.6% in Aerospace & Defense and 15.8% in Industrials.
- **Profit Margin Expansion**: Gross margin +300 bps to 29.8%, EBITDA margin 15.4% (vs. 12.7% YoY). Adjusted EBITDA up 29.6%.
- **Strategic Wins**: Secured data center and infrastructure projects, reducing oil & gas cyclicality risk.
- **2026 Growth Drivers**: Aerospace, infrastructure, and power generation. Cross-selling integrated solutions to existing customers.
- **Cash Flow Focus**: Normalizing free cash flow in 2026 after ERP implementation delays.

**【CEO Summary Section】**
- **Revenue Growth**: 7% year-over-year (YoY) driven by all five largest end markets, including 8.1% in Energy, 10.6% in Aerospace & Defense, and 15.8% in Industrials.
- **Profitability**: Record adjusted EBITDA of $30.2 million (15.4% margin), up 29.6% YoY. Gross margin expanded 300 basis points to 29.8% due to favorable business mix and operational efficiencies.
- **Strategic Wins**: Secured long-term projects with Batchelor & Kimball (data centers) and Bechtel (Hanford P Project), diversifying beyond core energy markets.
- **Vision 2030**: Focused on integrated solutions (e.g., PCMS adoption), new customer acquisition, and operational efficiency improvements.

**【CFO Financial Commentary】**
- **Q3 Financials**: Revenue $195.5 million (+7% YoY), gross profit up $9.3 million (19% growth). Adjusted EBITDA $30.2 million (+29.6% YoY). GAAP net income $13.1 million ($0.41 EPS).
- **Full Year Guidance**: Revenue $716-720 million (flat YoY), adjusted EBITDA $86-88 million (vs. $82.5 million in 2024). Free cash flow expected in Q4, with normalization in 2026.
- **Liquidity**: Net debt $174.5 million, trailing 12-month leverage ~2.7x. Prioritized debt reduction and cash flow management.

**【Q&A Highlights】**
- **Oil & Gas Breakdown**: Removed subcategory reporting due to customer overlap. Downstream (+14%), midstream (low single-digit), upstream (stable). LNG sector strong.
- **Field Services vs. Labs**: Field services down 1% YoY, but in-lab services up 12% (driven by aerospace & defense). PCMS (data solutions) grew 25% YoY.
- **Aerospace Growth**: Capacity expansion via hub-and-spoke model, with joint customer funding for CapEx. Defense sector growth and European expansion opportunities.
- **Data Centers**: New projects (e.g., Batchelor & Kimball) leverage existing testing methods (UT, thermal imaging) for data infrastructure.
- **2026 Outlook**: Aerospace, infrastructure, and power generation expected to lead growth. Cross-selling integrated solutions (e.g., PCMS + rope access) generating $3-3.5 million in Q3.

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