Long Cast Advisers Shared Highlights on Matrix Service Company (MTRX) in Q3

MTRX +0.60%

Long Cast Advisers, an investment management firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund’s cumulative net returns improved 4%. The fund returned a cumulative 266% net of fees, or 14% CAGR, since its inception in November 2015 through the quarter-end of Q3 2025. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Long Cast Advisers highlighted stocks such as Matrix Service Company (NASDAQ:MTRX) in the second quarter 2024 investor letter. Matrix Service Company (NASDAQ:MTRX) offers engineering, fabrication, construction, and maintenance services to support critical energy infrastructure and industrial markets. The one-month return of Matrix Service Company (NASDAQ:MTRX) was -22.79%, and its shares lost 12.76% of their value over the last 52 weeks. On November 28, 2025, Matrix Service Company (NASDAQ:MTRX) stock closed at $11.69 per share, with a market capitalization of $328.776 million.

Long Cast Advisers stated the following regarding Matrix Service Company (NASDAQ:MTRX) in its third quarter 2025 investor letter:

"Matrix Service Company (NASDAQ:MTRX) reported F1Q26 results (for period ending 9/31/25) that showed continued improvement in revenues leading to near-breakeven operations. This is a “metal bending” construction company focused on liquid and gas storage, industrial processing and energy / power assets. It is behind where we expected it would be at this point in the cycle, but continues to make progress towards profitability. As I’ve long said, one would need to analyze pre-COVID financials to understand the earnings power in the business. Few do, and therefore plenty of skeptical investors dismiss this idea. However, as revenues grow, the company should demonstrate better overhead recovery and margin expansion. If they can show profitability, which should come as soon as next quarter, I believe doubters will have to reconsider their thinking and “re-rate” the multiple, now less than 8x a “bad scenario” $20M in EBITDA (as a reminder, there’s $16M of EBITDA just from adding back D&A plus stock based comp)."

Matrix Service Company (NASDAQ:MTRX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Matrix Service Company (NASDAQ:MTRX) at the end of the third quarter, which was 17 in the previous quarter. In the first quarter of fiscal 2026, MTRX reported revenue of $211.9 million, which is a 28% increase from $165.6 million in the same period of fiscal 2025. While we acknowledge the potential of Matrix Service Company (NASDAQ:MTRX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.