Matrix Service (MTRX) 10-Q 9 May 24 2024 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Mar. 31, 2024	May 08, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	1-15461
Entity Registrant Name	MATRIX SERVICE CO
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	73-1352174
Entity Address, Address Line One	15 East 5th Street, Suite 1100
Entity Address, City or Town	Tulsa
Entity Address, State or Province	OK
Entity Address, Postal Zip Code	74103
City Area Code	918
Local Phone Number	838-8822
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	MTRX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Emerging Growth Company	false
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		27,308,795
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000866273
Current Fiscal Year End Date	--06-30
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenue	$ 166,013	$ 186,895	$ 538,714	$ 589,166
Cost of revenue	160,435	182,476	510,688	573,041
Gross profit	5,578	4,419	28,026	16,125
Selling, general and administrative expenses	19,948	16,862	52,792	51,218
Goodwill impairment	0	0	0	12,316
Restructuring costs	0	316	0	2,881
Operating loss	(14,370)	(12,759)	(24,766)	(50,290)
Other income (expense):
Interest expense	(143)	(268)	(787)	(1,556)
Interest income	165	94	477	164
Other	(235)	(116)	4,481	(706)
Loss before income tax expense	(14,583)	(13,049)	(20,595)	(52,388)
Provision for federal, state and foreign income taxes	(2)	(363)	4	(363)
Net loss	$ (14,581)	$ (12,686)	$ (20,599)	$ (52,025)
Basic loss per common share (in dollars per share)	$ (0.53)	$ (0.47)	$ (0.75)	$ (1.93)
Diluted loss per common share (in dollars per share)	$ (0.53)	$ (0.47)	$ (0.75)	$ (1.93)
Weighted Average Number of Shares Outstanding, Basic	27,443	27,038	27,357	26,969
Weighted Average Number of Shares Outstanding Diluted	27,443	27,038	27,357	26,969

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Statement of Other Comprehensive Income [Abstract]
Net income (loss)	$ (14,581)	$ (12,686)	$ (20,599)	$ (52,025)
Other comprehensive income (loss), net of tax:
Foreign currency translation loss	(548)	(234)	(524)	(722)
Comprehensive loss	$ (15,129)	$ (12,920)	$ (21,123)	$ (52,747)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Current assets:
Cash and cash equivalents	$ 69,658	$ 54,812
Accounts receivable, less allowances (March 31, 2024—$428 and June 30, 2023—$1,061)	172,924	145,764
Costs and estimated earnings in excess of billings on uncompleted contracts	34,600	44,888
Inventories	9,057	7,437
Income taxes receivable	325	496
Prepaid expenses	6,606	5,741
Other current assets	0	3,118
Total current assets	293,170	262,256
Restricted cash	25,000	25,000
Property, plant and equipment - net	44,711	47,545
Operating lease right-of-use assets	17,911	21,799
Goodwill	29,061	29,120
Other intangible assets, net of accumulated amortization	1,925	3,066
Other assets, non-current (Note 2)	28,227	11,718
Total assets	440,005	400,504
Current liabilities:
Accounts payable	55,192	76,365
Billings on uncompleted contracts in excess of costs and estimated earnings	167,657	85,436
Accrued wages and benefits	18,068	13,679
Accrued insurance	5,699	5,579
Operating lease liabilities	3,624	4,661
Other accrued expenses	2,009	1,815
Total current liabilities	252,249	187,535
Deferred income taxes	25	26
Operating lease liabilities	17,947	20,660
Borrowings under asset-backed credit facility	0	10,000
Other liabilities, non-current	3,982	799
Total liabilities	274,203	219,020
Commitments and contingencies
Stockholders’ equity:
Common stock—$0.01 par value; 60,000,000 shares authorized; 27,888,217 shares issued as of March 31, 2024 and June 30, 2023; 27,304,734 and 27,047,318 shares outstanding as of March 31, 2024 and June 30, 2023, respectively	279	279
Additional paid-in capital	142,634	140,810
Retained earnings	38,318	58,917
Accumulated other comprehensive loss	(9,293)	(8,769)
Treasury stock, at cost — 583,483 shares as of March 31, 2024, and 840,899 shares as of June 30, 2023	(6,136)	(9,753)
Total stockholders' equity	165,802	181,484
Total liabilities and stockholders’ equity	$ 440,005	$ 400,504

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Statement Condensed Consolidated Balance Sheets [Abstract]
Accounts receivable, allowances	$ 428	$ 1,061
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	60,000,000	60,000,000
Common stock, shares issued (in shares)	27,888,217	27,888,217
Common stock, shares, outstanding (in shares)	27,304,734	27,047,318
Treasury stock, common, shares (in shares)	583,483	840,899

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating activities:
Net income (loss)	$ (20,599)	$ (52,025)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization	8,337	10,499
Goodwill impairment	0	12,316
Stock-based compensation expense	5,765	5,154
Gain on sale of property, plant and equipment (Note 3)	(4,530)	(21)
Provision for uncollectible accounts	(33)	(63)
Other	202	189
Changes in operating assets and liabilities increasing (decreasing) cash:
Accounts receivable, net of allowance for credit losses	(43,080)	(9,484)
Costs and estimated earnings in excess of billings on uncompleted contracts	10,288	(8,646)
Inventories	(1,620)	1,947
Other assets and liabilities	1,653	10,401
Accounts payable	(20,923)	(9,344)
Billings on uncompleted contracts in excess of costs and estimated earnings	82,221	49,623
Accrued expenses	7,886	(8,143)
Net cash provided by operating activities	25,567	2,403
Investing activities:
Capital expenditures	(5,689)	(6,212)
Proceeds from asset sales	5,535	110
Net cash used by investing activities	(154)	(6,102)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from Long-Term Lines of Credit	10,000	10,000
Repayments of advances under asset-backed credit facility	(20,000)	(10,000)
Proceeds from issuance of common stock under employee stock purchase plan	132	200
Repurchase of common stock for payment of statutory taxes due on equity-based compensation	(456)	(310)
Net cash used by financing activities	(10,324)	(110)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(243)	(358)
Net increase (decrease) in cash, cash equivalents and restricted cash	14,846	(4,167)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning of Period	79,812	77,371
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, End of Period	94,658	73,204
Supplemental disclosure of cash flow information:
Income taxes	(148)	(13,286)
Interest	776	1,675
Non-cash investing and financing activities:
Purchases of property, plant and equipment on account	$ 39	$ 30

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock
Balances, beginning at Jun. 30, 2022	$ 227,706	$ 279	$ 139,854	$ 111,278	$ (8,175)	$ (15,530)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(52,025)			(52,025)
Other comprehensive income (loss)	(722)				(722)
Issuance of restricted stock	0		(5,149)			5,149
Treasury shares sold to Employee Stock Purchase Plan	200		(602)			802
Treasury shares purchased to satisfy tax withholding obligations	(310)					(310)
Stock-based compensation expense	5,154		5,154
Balances, ending at Mar. 31, 2023	180,003	279	139,257	59,253	(8,897)	(9,889)
Balances, beginning at Dec. 31, 2022	191,452	279	137,989	71,939	(8,663)	(10,092)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(12,686)			(12,686)
Other comprehensive income (loss)	(234)				(234)
Treasury shares sold to Employee Stock Purchase Plan	64		(139)			203
Stock-based compensation expense	1,407		1,407
Balances, ending at Mar. 31, 2023	180,003	279	139,257	59,253	(8,897)	(9,889)
Balances, beginning at Jun. 30, 2023	181,484	279	140,810	58,917	(8,769)	(9,753)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(20,599)			(20,599)
Other comprehensive income (loss)	(524)				(524)
Issuance of restricted stock	0		(3,868)			3,868
Treasury shares sold to Employee Stock Purchase Plan	132		(73)			205
Treasury shares purchased to satisfy tax withholding obligations	(456)					(456)
Stock-based compensation expense	5,765		5,765
Balances, ending at Mar. 31, 2024	165,802	279	142,634	38,318	(9,293)	(6,136)
Balances, beginning at Dec. 31, 2023	178,910	279	140,668	52,899	(8,745)	(6,191)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(14,581)			(14,581)
Other comprehensive income (loss)	(548)				(548)
Treasury shares sold to Employee Stock Purchase Plan	41		(14)			55
Stock-based compensation expense	1,980		1,980
Balances, ending at Mar. 31, 2024	$ 165,802	$ 279	$ 142,634	$ 38,318	$ (9,293)	$ (6,136)

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Issuance of restricted stock (in shares)			297,026	259,529
Treasury shares sold to Employee Stock Purchase Plan (in shares)	4,249	10,233	15,714	40,377
Treasury shares purchased to satisfy tax withholding obligations (in shares)			55,324	52,864
Other comprehensive income (loss)	$ (548)	$ (234)	$ (524)	$ (722)
Total stockholders' equity	165,802	180,003	165,802	180,003
Net loss	(14,581)	(12,686)	(20,599)	(52,025)
Treasury shares sold to Employee Stock Purchase Plan	41	64	132	200
Stock-based compensation expense	$ 1,980	$ 1,407	$ 5,765	$ 5,154

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting Policies Basis of Presentation The condensed consolidated financial statements include the accounts of Matrix Service Company and its subsidiaries (“Matrix”, “we”, “our”, “us”, “its” or the “Company”), unless otherwise indicated. Intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X for interim financial statements required to be filed with the Securities and Exchange Commission and do not include all information and footnotes required by U.S. generally accepted accounting principles ("GAAP") for complete financial statements. The information furnished reflects all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary for a fair statement of the results of operations, cash flows and financial position for the interim periods presented. The accompanying condensed consolidated financial statements should be read in conjunction with the audited financial statements for the year ended June 30, 2023, included in our Annual Report on Form 10-K. The results of operations for the three and nine month periods ended March 31, 2024 may not necessarily be indicative of the results of operations for the full year ending June 30, 2024. Significant Accounting Policies Our significant accounting policies are detailed in “Note 1 - Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended June 30, 2023. Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands disclosures about a public entity’s reportable segments and requires enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The update will be effective for annual periods beginning after December 15, 2023 (fiscal 2025). Adoption of this ASU will result in additional disclosure, but will not impact the Company's consolidated financial position, results of operations or cash flows. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024 (fiscal 2026). Adoption of this ASU will result in additional disclosure, but will not impact the Company's consolidated financial position, results of operations or cash flows. Other accounting pronouncements issued but not effective until after March 31, 2024 are not expected to have a material impact on the Company's consolidated financial position, results of operations, or cash flows.

Revenue

Revenue	9 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Remaining Performance Obligations We had $680.0 million of remaining performance obligations yet to be satisfied as of March 31, 2024. We expect to recognize $431.9 million of our remaining performance obligations as revenue within the next twelve months. Contract Balances Contract terms with customers include the timing of billing and payments, which usually differs from the timing of revenue recognition. As a result, we carry contract assets and liabilities in our balance sheet. These contract assets and liabilities are calculated on a contract-by-contract basis and are classified as current. We present our contract assets in the balance sheet as Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts ("CIE"). CIE consists of revenue recognized in excess of billings. We present our contract liabilities in the balance sheet as Billings on Uncompleted Contracts in Excess of Costs and Estimated Earnings ("BIE"). BIE consists of billings in excess of revenue recognized. The following table provides information about CIE and BIE: March 31, June 30, Change (In thousands) Costs and estimated earnings in excess of billings on uncompleted contracts $ 34,600 $ 44,888 $ (10,288) Billings on uncompleted contracts in excess of costs and estimated earnings (167,657) (85,436) (82,221) Net contract liabilities $ (133,057) $ (40,548) $ (92,509) The difference between the beginning and ending balances of our CIE and BIE primarily results from the timing of revenue recognized relative to the billings on the associated contract. The amount of revenue recognized during the nine months ended March 31, 2024 that was included in the June 30, 2023 BIE balance was $84.7 million. Progress billings in accounts receivable at March 31, 2024 and June 30, 2023 included retentions to be collected within one year of $12.7 million and $16.3 million, respectively. Contract retentions collectible beyond one year are included in other assets, non-current in the Condensed Consolidated Balance Sheets and totaled $25.9 million as of March 31, 2024 and $10.0 million as of June 30, 2023. Unpriced Change Orders and Claims Costs and estimated earnings in excess of billings on uncompleted contracts included revenues for unpriced change orders and claims of $12.0 million at March 31, 2024 and $9.7 million at June 30, 2023. The amounts ultimately realized may be significantly different than the recorded amounts resulting in a material adjustment to future earnings. The determination of our legal basis for a claim requires significant judgment. Generally, collection of amounts related to unpriced change orders and claims is expected within twelve months. However, since customers may not pay these amounts until final resolution of related claims, collection of these amounts may extend beyond one year. Disaggregated Revenue Revenue disaggregated by reportable segment is presented in Note 9 - Segment Information. The following tables presents revenue disaggregated by geographic area where the work was performed and by contract type: Geographic Disaggregation: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) United States $ 153,181 $ 178,261 $ 487,140 $ 524,731 Canada 11,998 6,932 43,419 52,742 Other international 834 1,702 8,155 11,693 Total Revenue $ 166,013 $ 186,895 $ 538,714 $ 589,166 Contract Type Disaggregation: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) Fixed-price contracts $ 90,878 $ 96,755 $ 305,346 $ 311,511 Time and materials and other cost reimbursable contracts 75,135 90,140 233,368 277,655 Total Revenue $ 166,013 $ 186,895 $ 538,714 $ 589,166 Revisions in Estimates During fiscal 2023, unfavorable changes in the estimated recovery of change orders and increased forecasted costs to complete and closeout certain midstream gas processing construction work in the Process and Industrial Facilities segment resulted in a reduction of gross profit of $3.3 million and $12.7 million during the three and nine months ended March 31, 2023, respectively. This was primarily the result of the client not approving adequate compensation to us for the impact that excessive scope changes had on our ability to progress the work according to forecast and for the impacts of global supply chain issues and inflation.

Property, Plant, and Equipment

Property, Plant, and Equipment	9 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, Plant and Equipment Building Purchase During the third quarter of fiscal 2024, we purchased a fabrication facility in Bakersfield, California for $4.1 million to replace a facility currently being leased by the Company. Building Disposals During the second quarter of fiscal 2024, we sold a facility in Catoosa, Oklahoma for $2.7 million in net proceeds, which resulted in a gain of $2.0 million. Proceeds were received in January 2024. The gain was included in Other income in the Condensed Consolidated Statements of Income. The facility was previously utilized for our industrial cleaning business, which was sold during the fourth quarter of fiscal 2023. The sale of the Catoosa, Oklahoma facility completed our divestiture and closure of a non-core service offering of the business as part of our strategy to focus the business on core markets. During the first quarter of fiscal 2024, we sold a previously utilized facility in Burlington, Ontario for $2.7 million in net proceeds, which resulted in a gain of $2.5 million. The gain was included in Other income in the Condensed Consolidated Statements of Income. We closed this previously utilized facility during the second quarter of fiscal 2023 because it was no longer strategic to the future of the business.

Goodwill

Goodwill	9 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill During the second quarter of fiscal 2023, we had indicators of a potential impairment and performed an interim impairment test within the Process and Industrial Facilities segment. We concluded that its $12.3 million of goodwill was fully impaired and recognized the impairment in operating income during the three and six months ended December 31, 2022. We did not record any impairments during the three and nine months ended March 31, 2024.

Debt

Debt	9 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Debt	Debt On September 9, 2021, the Company and our primary U.S. and Canada operating subsidiaries entered into an asset-based credit agreement, which was amended on May 3, 2024 (as amended, the "ABL Facility"), with Bank of Montreal, as Administrative Agent, Swing Line Lender and a Letter of Credit Issuer, and the lenders named therein. The maximum amount of loans under the ABL Facility is limited to $90.0 million. The ABL Facility's available borrowings may be increased by an amount not to exceed $15.0 million, subject to certain conditions, including obtaining additional commitments. The ABL Facility is intended to be used for working capital, capital expenditures, issuances of letters of credit and other lawful purposes. Our obligations under the ABL Facility are guaranteed by substantially all of our U.S. and Canadian subsidiaries and are secured by a first lien on all our assets and the assets of our co-borrowers and guarantors under the ABL Facility. The ABL Facility matures, and any outstanding amounts become due and payable, on September 9, 2026. The maximum amount that we may borrow under the ABL Facility is subject to a borrowing base, which is based on restricted cash plus a percentage of the value of certain accounts receivable, inventory and equipment, reduced for certain reserves. We are required to maintain a minimum of $25.0 million of restricted cash at all times, but such amounts are also included in the borrowing base. The borrowing base is recalculated on a monthly basis and at March 31, 2024, our borrowing base was $72.3 million. The Company had $7.0 million in letters of credit outstanding as of March 31, 2024, which resulted in availability of $65.3 million under the ABL Facility. Borrowings under the ABL Facility bear interest through maturity at a variable rate based upon, at our option, an annual rate of either a base rate (“Base Rate”), an Adjusted Term Secured Overnight Financing Rate ("Adjusted Term SOFR"), or at the Canadian Prime Rate, plus an applicable margin. The Adjusted Term SOFR is defined as (i) the SOFR plus (ii) 11.448 basis points for a one-month tenor and 26.161 basis points for a three-month tenor; provided that the Adjusted Term SOFR cannot be below zero. The Base Rate is defined as a fluctuating interest rate equal to the greater of: (i) rate of interest announced by Bank of Montreal from time to time as its prime rate; (ii) the U.S. federal funds rate plus 0.50%; (iii) Adjusted Term SOFR for one month period plus 1.00%; or (iv) 1.00%. Depending on the amount of average availability, the applicable margin is between 1.00% to 1.50% for Base Rate and Canadian Prime Rate borrowings, which includes either U.S. or Canadian prime rate, and between 2.00% and 2.50% for Adjusted Term SOFR borrowings. Interest is payable either (i) monthly for Base Rate or Canadian Prime Rate borrowings or (ii) the last day of the interest period for Adjusted Term SOFR borrowings, as set forth in the ABL Facility. The fee for undrawn amounts is 0.25% per annum and is due quarterly. The ABL Facility contains customary conditions to borrowings, events of default and covenants, including, but not limited to, covenants that restrict our ability to sell assets, engage in mergers and acquisitions, incur, assume or permit to exist additional indebtedness and guarantees, create or permit to exist liens, pay cash dividends, issue equity instruments, make distribution or redeem or repurchase capital stock. In the event that our availability is less than the greater of (i) $15.0 million and (ii) 15.00% of the commitments under the ABL Facility then in effect, a consolidated Fixed Charge Coverage Ratio of at least 1.00 to 1.00 must be maintained. We were in compliance with all covenants of the ABL Facility as of March 31, 2024.

Income Taxes

Income Taxes	9 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Effective Tax Rate Our effective tax rates were zero for each of the three and nine months ended March 31, 2024. During the three and nine months ended March 31, 2023, our effective tax rates were 2.8% and 0.7%, respectively. The effective tax rates during fiscal 2024 were impacted by valuation allowances of $4.4 million and $5.8 million placed on deferred tax assets during the three and nine months ended March 31, 2024, respectively. The effective tax rates during fiscal 2023 were impacted by valuation allowances of $3.6 million and $13.3 million placed on deferred tax assets during the three and nine months ended March 31, 2023, respectively. Valuation Allowance We placed a valuation allowance on our deferred tax assets in the second quarter of fiscal 2022 due to the existence of a cumulative loss over a three-year period. We will continue to place valuation allowances on newly generated deferred tax assets and will realize the benefit associated with the deferred tax assets for which the valuation allowance has been provided to the extent we generate taxable income in the future.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Insurance Reserves We maintain insurance coverage for various aspects of our operations. However, we retain exposure to potential losses through the use of deductibles, self-insured retentions and coverage limits. Typically, our contracts require us to indemnify our customers for injury, damage or loss arising from the performance of our services and provide warranties for materials and workmanship. We may also be required to name the customer as an additional insured up to the limits of insurance available, or we may be required to purchase special insurance policies or surety bonds for specific customers or provide letters of credit in lieu of bonds to satisfy performance and financial guarantees on some projects. We maintain a performance and payment bonding line sufficient to support the business. We generally require our subcontractors to indemnify us and our customer and name us as an additional insured for activities arising out of the subcontractors’ work. We also require certain subcontractors to provide additional insurance policies, including surety bonds in favor of us, to secure the subcontractors’ work or as required by the subcontract. There can be no assurance that our insurance and the additional insurance coverage provided by our subcontractors will fully protect us against a valid claim or loss under the contracts with our customers. Litigation During fiscal 2020, we commenced litigation in an effort to collect an account receivable from an iron and steel customer on a reimbursable contract following the deterioration of the relationship. In connection with our suit, the customer filed certain counterclaims against us. In September 2023, a jury returned a verdict in our favor and awarded us the full contract balance. We received full payment of $16.8 million in the second quarter of fiscal 2024. During fiscal 2022, we filed an arbitration demand in an effort to collect outstanding balances of $32.7 million from a customer for which we completed a crude oil storage terminal project. The customer has filed counterclaims for liquidated damages and miscellaneous warranty items. We deny all claims and believe we are entitled to collect the full amount owed under the contract. Our hearing for this matter is currently scheduled for October 2024. During fiscal 2023, we completed cost reimbursable construction services for a customer at a mining and minerals facility. In late fiscal 2023, after numerous attempts to collect outstanding receivables, we filed a notice of default for lack of payment of outstanding balances, and in early fiscal 2024, we filed a lien on the facility. The customer responded by commencing litigation against us, alleging breach of contract and breach of express warranty. We deny all claims and filed a countersuit against the customer for failure to pay outstanding amounts of accounts receivable, which totaled $5.6 million as of March 31, 2024. Our trial for this matter is currently scheduled for January 2025. Litigation is unpredictable; however, we believe we have set appropriate reserves based on our evaluation of the possible outcomes of the litigation. We and our subsidiaries are participants in various other legal actions. It is the opinion of management that none of the other known legal actions will have a material impact on our financial position, results of operations or liquidity.

Earnings per Common Share

Earnings per Common Share	9 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Earnings per Common Share	Earnings per Common Share Basic earnings per share (“Basic EPS”) is calculated based on the weighted average shares outstanding during the period. Diluted earnings per share (“Diluted EPS”) includes the dilutive effect of nonvested restricted stock shares. In the event we report a loss, nonvested restricted stock shares are not included since they are anti-dilutive. The computation of basic and diluted earnings per share is as follows: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands, except per share data) Basic EPS: Net loss $ (14,581) $ (12,686) $ (20,599) $ (52,025) Weighted average shares outstanding 27,443 27,038 27,357 26,969 Basic loss per share $ (0.53) $ (0.47) $ (0.75) $ (1.93) Diluted EPS: Net loss $ (14,581) $ (12,686) $ (20,599) $ (52,025) Diluted weighted average shares outstanding 27,443 27,038 27,357 26,969 Diluted loss per share $ (0.53) $ (0.47) $ (0.75) $ (1.93) The following securities are considered antidilutive and have been excluded from the calculation of Diluted EPS: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) Nonvested restricted stock shares 1,056 133 868 81

Restructuring Costs

Restructuring Costs	9 Months Ended
	Mar. 31, 2024
Restructuring and Related Activities [Abstract]
Restructuring Costs	Restructuring Costs In fiscal 2020, we initiated a business improvement plan to increase profitability and reduce our cost structure in order to help us become more competitive and deliver higher quality service. As a result of specific events, including the effects of the COVID-19 pandemic and related market disruptions, the Company expanded its business improvement plan. The business improvement plan consisted of an initial phase of discretionary cost reductions, workforce reductions, reduction of capital expenditures and the reduction in size or closure of certain offices in order to increase the utilization of our staff and bring the cost structure of the business in line with revenue volumes. In fiscal 2022, we commenced a second phase of our plan to focus on centralization of support functions, including business development, accounting, human resources, procurement and project services into shared service centers. During the three and nine months ended March 31, 2023, we incurred restructuring costs of $0.3 million and $2.9 million, respectively. The restructuring costs were primarily related to severance and other personnel-related costs in connection with the second phase of our plan as well as the closure of an underperforming operating location. Our restructuring efforts were substantially complete as of June 30, 2023. No restructuring costs were incurred during the three and nine months ended March 31, 2024.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income (loss)	$ (14,581)	$ (12,686)	$ (20,599)	$ (52,025)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The condensed consolidated financial statements include the accounts of Matrix Service Company and its subsidiaries (“Matrix”, “we”, “our”, “us”, “its” or the “Company”), unless otherwise indicated. Intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X for interim financial statements required to be filed with the Securities and Exchange Commission and do not include all information and footnotes required by U.S. generally accepted accounting principles ("GAAP") for complete financial statements. The information furnished reflects all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary for a fair statement of the results of operations, cash flows and financial position for the interim periods presented. The accompanying condensed consolidated financial statements should be read in conjunction with the audited financial statements for the year ended June 30, 2023, included in our Annual Report on Form 10-K. The results of operations for the three and nine month periods ended March 31, 2024 may not necessarily be indicative of the results of operations for the full year ending June 30, 2024.
Accounting Standards Not Yet Adopted	Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands disclosures about a public entity’s reportable segments and requires enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The update will be effective for annual periods beginning after December 15, 2023 (fiscal 2025). Adoption of this ASU will result in additional disclosure, but will not impact the Company's consolidated financial position, results of operations or cash flows. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024 (fiscal 2026). Adoption of this ASU will result in additional disclosure, but will not impact the Company's consolidated financial position, results of operations or cash flows. Other accounting pronouncements issued but not effective until after March 31, 2024 are not expected to have a material impact on the Company's consolidated financial position, results of operations, or cash flows.

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Summary of Contract with Customer, Contract Asset, Contract Liability, and Receivable	The following table provides information about CIE and BIE: March 31, June 30, Change (In thousands) Costs and estimated earnings in excess of billings on uncompleted contracts $ 34,600 $ 44,888 $ (10,288) Billings on uncompleted contracts in excess of costs and estimated earnings (167,657) (85,436) (82,221) Net contract liabilities $ (133,057) $ (40,548) $ (92,509)
Summary of Revenue by Geographic Areas	The following tables presents revenue disaggregated by geographic area where the work was performed and by contract type: Geographic Disaggregation: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) United States $ 153,181 $ 178,261 $ 487,140 $ 524,731 Canada 11,998 6,932 43,419 52,742 Other international 834 1,702 8,155 11,693 Total Revenue $ 166,013 $ 186,895 $ 538,714 $ 589,166
Summary of Revenue by Contract Type	Contract Type Disaggregation: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) Fixed-price contracts $ 90,878 $ 96,755 $ 305,346 $ 311,511 Time and materials and other cost reimbursable contracts 75,135 90,140 233,368 277,655 Total Revenue $ 166,013 $ 186,895 $ 538,714 $ 589,166

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	9 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings Per Share	The computation of basic and diluted earnings per share is as follows: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands, except per share data) Basic EPS: Net loss $ (14,581) $ (12,686) $ (20,599) $ (52,025) Weighted average shares outstanding 27,443 27,038 27,357 26,969 Basic loss per share $ (0.53) $ (0.47) $ (0.75) $ (1.93) Diluted EPS: Net loss $ (14,581) $ (12,686) $ (20,599) $ (52,025) Diluted weighted average shares outstanding 27,443 27,038 27,357 26,969 Diluted loss per share $ (0.53) $ (0.47) $ (0.75) $ (1.93)
Antidilutive Securities Excluded from the Calculation of Diluted EPS	The following securities are considered antidilutive and have been excluded from the calculation of Diluted EPS: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) Nonvested restricted stock shares 1,056 133 868 81

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Remaining performance obligations yet to be satisfied		$ 680
Performance obligations to be recognized as revenue within next twelve months		431.9
Contract with customer, revenue recognized		84.7
Retentions to be collected within one year		12.7		$ 16.3
Contract retentions collectible beyond one year		25.9		10
Unapproved change orders and claims		$ 12		$ 9.7
Process and Industrial Facilities Segment
Disaggregation of Revenue [Line Items]
Loss on contracts	$ 3.3		$ 12.7

Revenue - Summary of Contract A

Revenue - Summary of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2024	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Costs and estimated earnings in excess of billings on uncompleted contracts	$ 34,600	$ 44,888
Change in CIE	(10,288)
Billings on uncompleted contracts in excess of costs and estimated earnings	(167,657)	(85,436)
Change in BIE	(82,221)
Net contract liabilities	(133,057)	$ (40,548)
Change in net contract balances	$ (92,509)

Revenue - Summary of Revenue by

Revenue - Summary of Revenue by Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Total Revenue	$ 166,013	$ 186,895	$ 538,714	$ 589,166
United States
Disaggregation of Revenue [Line Items]
Total Revenue	153,181	178,261	487,140	524,731
Canada
Disaggregation of Revenue [Line Items]
Total Revenue	11,998	6,932	43,419	52,742
Other international
Disaggregation of Revenue [Line Items]
Total Revenue	$ 834	$ 1,702	$ 8,155	$ 11,693

Revenue - Summary of Revenue _2

Revenue - Summary of Revenue by Contract Types (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Total Revenue	$ 166,013	$ 186,895	$ 538,714	$ 589,166
Fixed-price contracts
Disaggregation of Revenue [Line Items]
Total Revenue	90,878	96,755	305,346	311,511
Time and materials and other cost reimbursable contracts
Disaggregation of Revenue [Line Items]
Total Revenue	$ 75,135	$ 90,140	$ 233,368	$ 277,655

Property, Plant, and Equipment

Property, Plant, and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Property, Plant and Equipment [Line Items]
Proceeds from asset sales			$ 5,535	$ 110
Gain on disposition of assets			$ 4,530	$ 21
Catoosa Facility Disposal
Property, Plant and Equipment [Line Items]
Proceeds from asset sales		$ 2,700
Gain on disposition of assets		2,000
Burlington Office
Property, Plant and Equipment [Line Items]
Proceeds from asset sales		2,700
Gain on disposition of assets		$ 2,500
Bakersfield Facility Purchase [Domain]
Property, Plant and Equipment [Line Items]
Payments to Acquire Buildings	$ 4,100

Goodwill (Details)

Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2022	Mar. 31, 2024	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment	$ 0	$ 0	$ 12,300	$ 12,300	$ 0	$ 12,316

Debt (Details)

Debt (Details) $ in Millions	9 Months Ended
	Mar. 31, 2024 USD ($)
Debt Disclosure [Abstract]
Line of credit facility, initiation date	Sep. 09, 2021
Line of credit facility, maximum borrowing capacity	$ 90
Line of credit facility, increase (decrease)	15
Compensating balance	25
Line of credit facility, borrowing base	72.3
Letters of credit outstanding, amount	7
Line of credit facility, remaining borrowing capacity	$ 65.3
Asset backed credit facility, adjusted term SOFR one-month tenor, basis points	11.448
Asset backed credit facility, adjusted term SOFR three-month tenor, basis points	26.161
Asset backed credit facility, federal funds rate addition	0.0050
Asset backed credit facility, adjusted term SOFR rate, minimum	0.0100
Alternate base rate margin	0.0100
Additional margin on alternate base rate loans, minimum	1%
Additional margin on alternate base rate loans, maximum	1.50%
Additional margin on adjusted term SOFR, minimum	0.0200
Additional margin on adjusted term SOFR, maximum	0.0250
Unused credit facility fee, percentage	0.25%
Asset backed line of credit, balance limit for fixed charge, coverage ratio	$ 15
Asset backed line of credit, percentage limit for fixed charge, coverage ratio	15%
Asset backed credit facility, fixed charge coverage ratio requirement, minimum	1
Asset backed credit facility, fixed charged coverage ratio requirement, maximum	1

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Valuation allowances placed on deferred tax assets	$ 4.4	$ 3.6	$ 5.8	$ 13.3
Effective Income Tax Rate Reconciliation, Percent		2.80%		0.70%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	10 Months Ended
	Oct. 31, 2023	Mar. 31, 2024
Iron and Steel Project
Loss Contingencies [Line Items]
Proceeds from legal settlements	$ 16.8
Mining and Minerals Project
Loss Contingencies [Line Items]
Contracts receivable, claims and uncertain amounts		$ 5.6
Crude Oil Terminal Project
Loss Contingencies [Line Items]
Contracts receivable, claims and uncertain amounts		$ 32.7

Earnings per Common Share - Com

Earnings per Common Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Basic EPS:
Net income (loss)	$ (14,581)	$ (12,686)	$ (20,599)	$ (52,025)
Weighted average shares outstanding - basic (in shares)	27,443	27,038	27,357	26,969
Basic loss per share (in dollars per share)	$ (0.53)	$ (0.47)	$ (0.75)	$ (1.93)
Diluted EPS:
Diluted weighted average shares outstanding (in shares)	27,443	27,038	27,357	26,969
Diluted loss per share (in dollars per share)	$ (0.53)	$ (0.47)	$ (0.75)	$ (1.93)
Net income (loss)	$ (14,581)	$ (12,686)	$ (20,599)	$ (52,025)

Earnings per Common Share - Ant

Earnings per Common Share - Antidilutive Securities Excluded from the Calculation of Diluted Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Nonvested restricted stock shares (in shares)	1,056	133	868	81

Segment Information (Details)

Segment Information (Details)	3 Months Ended			6 Months Ended	9 Months Ended
	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Mar. 31, 2024 USD ($) segment	Mar. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment					3
Revenue	$ 166,013,000	$ 186,895,000			$ 538,714,000	$ 589,166,000
Cost of Revenue	(160,435,000)	(182,476,000)			(510,688,000)	(573,041,000)
Gross profit (loss)	5,578,000	4,419,000			28,026,000	16,125,000
Selling, general and administrative expenses	19,948,000	16,862,000			52,792,000	51,218,000
Goodwill impairment	0	0	$ 12,300,000	$ 12,300,000	0	12,316,000
Restructuring Costs		316,000				2,881,000
Operating income (loss)	(14,370,000)	(12,759,000)			(24,766,000)	(50,290,000)
Segment assets	440,005,000				440,005,000		$ 400,504,000
Storage and Terminal Solutions
Segment Reporting Information [Line Items]
Revenue	54,304,000	52,165,000			206,808,000	191,614,000
Cost of Revenue	51,991,000	52,975,000			197,704,000	183,211,000
Gross profit (loss)	2,313,000	(810,000)			9,104,000	8,403,000
Selling, general and administrative expenses	5,395,000	5,735,000			14,362,000	15,342,000
Goodwill impairment						0
Restructuring Costs		79,000				984,000
Operating income (loss)	(3,082,000)	$ (6,624,000)			(5,258,000)	$ (7,923,000)
Segment assets	$ 142,168,000				$ 142,168,000		139,333,000
Storage and Terminal Solutions | Intersegment Eliminations
Segment Reporting Information [Line Items]
Segment Information	(1)	(1) Total revenues are net of inter-segment revenues which are primarily Storage and Terminal Solutions and were $1.7 million for the three months ended March 31, 2023.			(1)	(1) Total revenues are net of inter-segment revenues which are primarily Storage and Terminal Solutions and were $2.8 million for the nine months ended March 31, 2023.
Utility and Power Infrastructure
Segment Reporting Information [Line Items]
Revenue	$ 46,120,000	$ 35,024,000			$ 118,659,000	$ 130,429,000
Cost of Revenue	44,711,000	32,234,000			112,139,000	123,500,000
Gross profit (loss)	1,409,000	2,790,000			6,520,000	6,929,000
Selling, general and administrative expenses	2,733,000	1,869,000			6,259,000	5,394,000
Goodwill impairment						0
Restructuring Costs		0				37,000
Operating income (loss)	(1,324,000)	921,000			261,000	1,498,000
Segment assets	77,054,000				77,054,000		67,630,000
Process and Industrial Facilities
Segment Reporting Information [Line Items]
Revenue	65,589,000	99,706,000			212,014,000	267,123,000
Cost of Revenue	63,822,000	96,546,000			198,498,000	264,764,000
Gross profit (loss)	1,767,000	3,160,000			13,516,000	2,359,000
Selling, general and administrative expenses	2,590,000	3,556,000			7,884,000	11,308,000
Goodwill impairment						12,316,000
Restructuring Costs		106,000				803,000
Operating income (loss)	(823,000)	(502,000)			5,632,000	(22,068,000)
Segment assets	118,412,000				118,412,000		90,514,000
Corporate Segment
Segment Reporting Information [Line Items]
Revenue	0	0			1,233,000	0
Cost of Revenue	(89,000)	721,000			2,347,000	1,566,000
Gross profit (loss)	89,000	(721,000)			(1,114,000)	(1,566,000)
Selling, general and administrative expenses	9,230,000	5,702,000			24,287,000	19,174,000
Goodwill impairment						0
Restructuring Costs		131,000				1,057,000
Segment assets	102,371,000				102,371,000		$ 103,027,000
Corporate
Segment Reporting Information [Line Items]
Operating income (loss)	$ (9,141,000)	$ (6,554,000)			$ (25,401,000)	$ (21,797,000)

Restructuring Costs (Details)

Restructuring Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 0	$ 316	$ 0	$ 2,881
Severance and Other Personnel-Related Costs
Restructuring Cost and Reserve [Line Items]
Restructuring costs		$ 300		$ 2,900