Matrix Faces Refinancing Challenge Despite Strong Subsea Order Book
Matrix Composites & Engineering Ltd delivered a solid FY25 with $74.8 million revenue driven by subsea buoyancy demand, underpinning a $5.0 million underlying EBITDA. The company’s $57 million subsea order book and recent $45 million SURF awards set a promising stage for FY26 growth.
- FY25 revenue of $74.8 million led by subsea buoyancy
- Underlying EBITDA of $5.0 million with a net loss of $2.2 million due to project timing
- Subsea order book stands at approximately $57 million with $45 million in recent SURF awards
- Robust cash position of $18.3 million and net cash of $10.7 million
- Growth initiatives in advanced materials, corrosion technologies, and energy transition sectors
Solid FY25 Performance Anchored by Subsea Demand
Matrix Composites & Engineering Ltd reported a revenue of $74.8 million for the full year 2025, marking a steady performance underpinned by strong demand in its subsea buoyancy segment. This segment remains the company’s core revenue driver, accounting for nearly 90% of total sales. The company’s underlying EBITDA stood at $5.0 million, reflecting operational profitability despite a reported net loss after tax of $2.2 million, which was primarily attributed to project delivery timing that deferred revenue and profit recognition into FY26.
Robust Order Book and Strategic Contract Wins
Matrix’s subsea order book is robust at approximately $57 million, bolstered by recent SURF (Subsea Umbilicals Risers and Flowlines) contract awards totaling around $45 million secured in July. These contracts not only reinforce the company’s market position but also provide strong revenue visibility heading into FY26. The company continues to expand its subsea product portfolio beyond buoyancy, targeting areas such as subsea production, protection, vortex-induced vibration suppression, installation, and large floating structures, aligning with growing CAPEX spend in the sector.
Diversification and Growth in Advanced Materials and Corrosion Technologies
Beyond subsea buoyancy, Matrix is actively growing its advanced materials and corrosion technologies segments. The advanced materials business is positioned for growth with applications in renewables, defence, and resources sectors, including energy absorption materials and syntactic foam for unmanned underwater vehicles. Corrosion technologies provide steady operational expenditure and maintenance revenue streams, particularly in energy and resources markets. The company’s strategic focus on energy transition markets, including floating offshore wind, signals a forward-looking approach to diversify revenue sources.
Financial Position and Refinancing Efforts
Matrix maintains a solid balance sheet with cash on hand of $18.3 million and a net cash position of $10.7 million, supporting its opportunity pipeline. The company is managing the refinancing of a convertible note maturing in December 2025, engaging with major Australian banks and non-bank lenders to secure enhanced facilities that will provide working capital and bank guarantee support. This refinancing is critical to underpin ongoing growth initiatives and project execution.
Outlook – Momentum into FY26 and Beyond
Looking ahead, Matrix is well positioned to capitalize on a strengthening subsea market with a strong base of secured revenue and a healthy pipeline of competitive quotations estimated at around $300 million. The company is also targeting growth in advanced materials and defence sectors, leveraging its strategic location within Australia’s largest defence precinct. Floating wind opportunities, while expected to contribute more significantly from 2026 onwards, add to the company’s prospective growth avenues. Overall, Matrix’s FY25 results and strategic initiatives suggest a company gearing up for sustained growth amid evolving energy and industrial markets.
Bottom Line?
Matrix’s FY25 results lay a solid foundation, but refinancing and contract execution will be key to sustaining momentum into FY26.
Questions in the middle?
- How will the refinancing of the convertible note impact Matrix’s financial flexibility?
- What is the timeline and expected contribution from the advanced materials and floating wind segments?
- Can Matrix convert its strong quotation pipeline into firm orders amid industry uncertainties?
