MGNYSEServices-Engineering ServicesUS GAAP · USD

Mistras Group, Inc.

Mistras Group, Inc. provides asset protection solutions that help customers inspect, test, monitor, and analyze critical equipment and infrastructure. The company combines nondestructive testing, laboratory services, mechanical and engineering work, and software/data analytics to assess structural integrity and reliability across energy, industrial, aerospace, and public infrastructure assets.

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Revenue724m USD
−0.8 %y/y
Operating profit (EBIT)40.6m USD
+1.9 %y/y
EBIT margin5.6%
+0.1 ppy/y
Net income16.8m USD
−11.2 %y/y
Free cash flow8.3m USD
−74.2 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-2000200400600800m USD2020: 593 m USD2020: EBIT -101 m USD20202021: 677 m USD2021: EBIT 18 m USD20212022: 687 m USD2022: EBIT 20 m USD20222023: 705 m USD2023: EBIT -1.9 m USD20232024: 730 m USD2024: EBIT 40 m USD20242025: 724 m USD2025: EBIT 41 m USD202572441
RevenueOperating profit (EBIT)

Business

Share of revenue
Field Services67 %

On-site inspection, testing, and maintenance services performed at customer facilities and assets.

Shop Laboratories9 %

In-house laboratory testing and quality assurance for components and materials.

Data Analytical Solutions10 %

Software, subscriptions, implementation, and analytics that centralize asset integrity data.

Products and Systems2 %

Monitoring products, instrumentation, installation, and related service support.

Other and Integrated Services12 %

Mixed-service locations and other revenue streams tied to inspection and testing operations.

Products

Reported · share of revenue
54.8%13.0%11.1%9.4%FY2025100 %
  • Oil Gas54.8 %
  • Aerospaceand Defense13.0 %
  • Industrials11.1 %
  • Power Generation and Transmission6.1 %
  • Other Process Industries5.5 %
  • Other9.4 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Mistras sells to industrial customers that need to keep critical assets safe, compliant, and operating, especially in oil and gas, aerospace and defense, power, chemicals, and infrastructure. Its customer base is global and diversified, but revenue is still heavily influenced by large energy customers and North America operations. Buyers use Mistras to reduce downtime, meet regulatory requirements, and centralize inspection and integrity data across multiple sites.

Oil and gas operators

Buy field inspection, pipeline integrity, monitoring, and data analytics to manage asset reliability and compliance.

Aerospace and defense

Use shop laboratory testing and inspection services for component quality, safety, and certification needs.

Industrial, chemicals, and manufacturing

Purchase NDT, mechanical services, and testing to reduce downtime and support maintenance programs.

Power generation and transmission

Buy inspection and monitoring services to maintain reliability of critical infrastructure and equipment.

Public infrastructure and authorities

Use asset protection solutions for safety, compliance, and lifecycle management of public assets.

Strategy

Mistras is trying to shift from a traditional inspection provider toward a more technology-enabled asset protection platform. Management is prioritizing digital tools, integrated data workflows, and cross-selling adjacent services to deepen customer relationships and create recurring revenue opportunities. It is also expanding into new end markets such as renewable energy, data centers, natural gas transportation, and additive manufacturing while remaining disciplined on acquisitions because of debt covenant constraints.

Build a more integrated digital platformMedium term

Unified data and software can increase customer stickiness and support recurring revenue.

Expand into adjacent services for existing customersShort term

Broader service scope raises wallet share and makes Mistras more embedded in customer operations.

Grow in new end marketsMedium term

Diversification reduces dependence on oil and gas and opens higher-growth use cases for inspection technology.

Pursue disciplined capital allocationShort term

Debt covenant constraints limit acquisition flexibility, so management is emphasizing organic growth and cash preservation.

Geography

Q1/2026

Mistras operates in 11 countries, with most revenue coming from the United States, Canada, and Europe. North America is the largest operating base, while International serves Europe, the Middle East, Africa, Asia, and South America; the Products and Systems business is predominantly U.S.-based. The company does not do business in Russia or Ukraine, which limits direct exposure to those conflict zones but leaves it exposed to broader energy-market and geopolitical volatility.

United States77 %
Europe22 %
Asia Pacific1.1 %

Share of the revenue the company reports by geography.

Risks

Mistras is exposed to cyclical demand in oil and gas, where customer spending and project timing can move sharply with energy prices, geopolitics, and regulation. The business also faces customer concentration, cybersecurity, and execution risk as it digitizes inspection workflows and relies more on software, cloud tools, and third-party vendors. Debt covenant limits, tariff uncertainty, and goodwill impairment risk add financial and accounting sensitivity to the operating model.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Oil and gas end-market concentration1Customer concentration2Cybersecurity and IT disruption3Goodwill impairment4Trade policy and tariff changes5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Oil and gas end-market concentrationImpact: HighLikelihood: Medium

    A large share of revenue comes from oil and gas customers, so spending slowdowns directly affect inspection volumes.

    Exposure: Oil and gas customers were about 56% of nine-month 2025 revenue.

  2. Customer concentrationImpact: HighLikelihood: Medium

    The top ten customers contributed roughly 36% of revenue, so loss or deferral by a few accounts can move results.

    Exposure: Concentrated mainly in North America.

  3. Cybersecurity and IT disruptionImpact: HighLikelihood: Medium

    The company stores sensitive inspection data and increasingly uses cloud and remote tools, raising breach exposure.

    ExposureData managementCustomer communicationsDigital monitoring systems
  4. Goodwill impairmentImpact: MediumLikelihood: High

    Acquired businesses and reporting units depend on forecast cash flows and market multiples.

    Exposure: International reporting unit and acquisition-related goodwill.

  5. Trade policy and tariff changesImpact: MediumLikelihood: Medium

    Imported equipment and global supply chains can become more expensive or harder to source.

    ExposureProductsSystemsEquipment procurement

Accounting

Judgemental items
Revenue recognition under ASC 606

Most revenue comes from short-term services, but software, subscriptions, and bundled offerings require judgment on allocation and timing.

Impact: Affects revenue timing, segment mix, and gross margin

Cost reclassification into cost of revenue

The company changed presentation of certain overhead and personnel costs, which alters gross profit and SG&A comparability.

Impact: Changes reported gross margin and operating expense trends

Goodwill impairment testing

Reporting-unit fair value depends on discounted cash flow and market assumptions, especially for International operations.

Impact: Can create material non-cash charges

Acquisition accounting

Past and future acquisitions require purchase price allocation and fair value estimates for acquired assets and liabilities.

Impact: Affects amortization, goodwill, and future impairment risk

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Last updated: 24/09/2026