Exhibit

“As expected, our third quarter results were the lowest of the year, but the actual results, which were primarily impacted by lower revenue volumes, proved more disappointing relative to our earlier forecast,” said Matrix Service Company President and CEO John R. Hewitt. “Results were also impacted by non-routine tax adjustments and lower margin work bid in a highly competitive environment that allowed us to maintain market position and critical resources.”

Hewitt added, “The strong project awards in the quarter and year-to-date has pushed our backlog to its highest point since March 2016. This momentum has continued since the end of the third quarter and we expect a similar award performance in the fourth quarter. The improving size and quality of our backlog and the strength of our opportunity pipeline will begin to marginally improve revenue volume and earnings in the fourth quarter and point to a much stronger fiscal 2019. Therefore, we expect the fourth quarter to return to profitability, with full year earnings per share between $0.15 and $0.20 on revenue of $1.075 to $1.1 billion.”

Consolidated revenue was $245.6 million for the three months ended March 31, 2018, compared to $251.2 million in the same period in the prior fiscal year. Electrical Infrastructure segment revenue declined due to a reduction in revenue associated with the construction of a large power generating facility compared to the prior year and a reduction in high voltage revenue. Oil Gas & Chemical and Storage Solutions revenue was essentially flat. In Oil Gas & Chemical, lower volumes of capital work was offset with higher volumes of turnaround and maintenance work. In Storage Solutions, a higher volume of tank construction work was largely offset by lower volumes of terminal and balance of plant work. Revenue was higher in the Industrial segment due to increased volumes of work in the iron and steel industry.

Consolidated gross profit was $14.9 million in the three months ended March 31, 2018 compared to a loss of $2.6 million in the three months ended March 31, 2017. The gross margin was 6.1% in the three months ended March 31, 2018 compared to (1.0)% in the same period in the prior fiscal year. The fiscal 2018 gross margin was negatively impacted by revenue associated with low margin work bid in a highly competitive environment, increased levels of lower margin maintenance work, and lower than expected capital project volumes, which led to under recovery of construction overhead costs. The fiscal 2017 gross margin was negatively affected by the financial impact of a large power generating facility charge in the Electrical Infrastructure segment, which decreased gross profit by $18.9 million, and lower than anticipated volumes, which led to under recovery of construction overhead costs.

Consolidated revenue was $798.5 million for the nine months ended March 31, 2018, compared to $905.7 million in the same period in the prior fiscal year. Storage Solutions revenue declined primarily as a result of delays in project awards which have prevented the Company from replacing higher revenue generated in the prior fiscal year in connection with work on the construction of a significant crude gathering terminals project. Electrical Infrastructure segment revenue declined due to a reduction in revenue associated with the construction of a large power generating facility compared to the prior year and a reduction in high voltage revenue. These decreases were partially offset by increases in revenue for the Oil Gas & Chemical segment attributable to higher maintenance, turnaround and construction volumes, and the Industrial segment on higher volumes of work in the iron and steel industry.

Consolidated gross profit was $70.5 million in the nine months ended March 31, 2018 compared to $57.9 million in the nine months ended March 31, 2017. The gross margin was 8.8% in the nine months ended March 31, 2018 compared to 6.4% in the same period in the prior fiscal year. The fiscal 2017 gross margin was impacted by an Electrical Infrastructure project which decreased gross profit by $13.7 million and under-recovery of overhead costs.

Consolidated SG&A expenses were $63.9 million in the nine months ended March 31, 2018 compared to $56.5 million in the same period a year earlier. The increase in fiscal 2018 is primarily attributable to the acquired overhead and amortization on intangible assets associated with a December 2016 acquisition that expanded the Company's engineering business as well as higher project pursuit costs across the business.

Backlog at March 31, 2018 was $914.2 million compared to $725.0 million at December 31, 2017. The quarterly book-to-bill ratio was 1.8 on project awards of $434.8 million. In the quarter, the Company received project awards of $229.1 million in the Storage Solutions segment, resulting in a book-to-bill ratio of 3.0 and received project awards of $117.8 million in the Industrial segment, resulting in a book-to-bill ratio of 2.8. The nine month ended March 31, 2018 book-to-bill ratio was 1.3 on project awards of $1.030 billion. Backlog at the end of the quarter was at its highest level since March 31, 2016.

The cash balance combined with availability under the credit facility provides the Company with liquidity of $133.7 million at March 31, 2018, an increase of $34.1 million since December 31, 2017. This increase in liquidity is primarily attributable to a reduction in the credit facility capacity constraint combined with positive cash flow from operations. During the quarter, the Company made net repayments on the credit facility of $41.3 million. At March 31, 2018, borrowings under the credit facility were $9.3 million. The Company's liquidity continues to support its long-term strategic growth plans.

The Company is revising fiscal 2018 earnings and revenue guidance. We now expect full year earnings to be between $0.15 and $0.20 per fully diluted share and full year revenue to be $1.075 to $1.1 billion. The Company had previously projected earnings to be between $0.55 and $0.75 per fully diluted share and revenue to be between $1.150 and $1.225 billion.

In conjunction with the earnings release, Matrix Service Company will host a conference call / webcast with John R. Hewitt, President and CEO, and Kevin S. Cavanah, Vice President and CFO. The call will take place at 10:30 a.m. (Eastern) / 9:30 a.m. (Central) on Thursday, May 10, 2018 and will be simultaneously broadcast live over the Internet which can be accessed at the Company’s website at matrixservicecompany.com on the Investors’ page under Conference Calls/Events. Please allow extra time prior to the call to visit the site and download the streaming media software required to listen to the Internet broadcast. The conference call will be recorded and will be available for replay within one hour of completion of the live call and can be accessed following the same link as the live call.

Founded in 1984, Matrix Service Company is parent to a family of companies that include Matrix Service Inc., Matrix NAC, Matrix PDM Engineering and Matrix Applied Technologies. Our subsidiaries design, build and maintain infrastructure critical to North America's energy, power and industrial markets. Matrix Service Company is headquartered in Tulsa, Oklahoma with subsidiary offices located throughout the United States and Canada, as well as Sydney, Australia and Seoul, South Korea.

This release contains forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are generally accompanied by words such as “anticipate,” “continues,” “expect,” “forecast,” “outlook,” “believe,” “estimate,” “should” and “will” and words of similar effect that convey future meaning, concerning the Company’s operations, economic performance and management’s best judgment as to what may occur in the future. Future events involve risks and uncertainties that may cause actual results to differ materially from those we currently anticipate. The actual results for the current and future periods and other corporate developments will depend upon a number of economic, competitive and other influences, including those factors discussed in the “Risk Factors” and “Forward Looking Statements” sections and elsewhere in the Company’s reports and filings made from time to time with the Securities and Exchange Commission. Many of these risks and uncertainties are beyond the control of the Company, and any one of which, or a combination of which, could materially and adversely affect the results of the Company's operations and its financial condition. We undertake no obligation to update information contained in this release, except as required by law.



	Three Months Ended						Nine Months Ended
	March 31, 2018			March 31, 2017			March 31, 2018			March 31, 2017
Revenues	$	245,645		$	251,237		$	798,466		$	905,673
Cost of revenues	230,754			253,851			727,981			847,797
Gross profit (loss)	14,891			(2,614		)	70,485			57,876
Selling, general and administrative expenses	20,753			18,596			63,852			56,548
Operating income (loss)	(5,862		)	(21,210		)	6,633			1,328
Other income (expense):
Interest expense	(643		)	(833		)	(2,080		)	(1,573		)
Interest income	130			73			234			111
Other	370			(51		)	384			3
Income (loss) before income tax expense	(6,005		)	(22,021		)	5,171			(131		)
Provision (benefit) for federal, state and foreign income taxes	(852		)	(8,521		)	1,968			(1,223		)
Net income (loss)	$	(5,153	)	$	(13,500	)	$	3,203		$	1,092
Less: Net income attributable to noncontrolling interest	—			321			—			321
Net income (loss) attributable to Matrix Service Company	$	(5,153	)	$	(13,821	)	$	3,203		$	771

Basic earnings (loss) per common share	$	(0.19	)	$	(0.52	)	$	0.12		$	0.03
Diluted earnings (loss) per common share	$	(0.19	)	$	(0.52	)	$	0.12		$	0.03
Weighted average common shares outstanding:
Basic	26,817			26,594			26,747			26,511
Diluted	26,817			26,594			27,054			26,838



	March 31, 2018			June 30, 2017
Assets
Current assets:
Cash and cash equivalents	$	46,885		$	43,805
Accounts receivable, less allowances (March 31, 2018— $6,294 and June 30, 2017—$9,887)	189,156			210,953
Costs and estimated earnings in excess of billings on uncompleted contracts	66,985			91,180
Inventories	5,339			3,737
Income taxes receivable	5,627			4,042
Other current assets	6,812			4,913
Total current assets	320,804			358,630
Property, plant and equipment at cost:
Land and buildings	40,641			38,916
Construction equipment	90,453			94,298
Transportation equipment	48,442			48,574
Office equipment and software	38,618			36,556
Construction in progress	2,514			5,952
Total property, plant and equipment - at cost	220,668			224,296
Accumulated depreciation	(146,290		)	(144,022		)
Property, plant and equipment - net	74,378			80,274
Goodwill	113,615			113,501
Other intangible assets	24,438			26,296
Deferred income taxes	3,927			3,385
Other assets	2,077			3,944
Total assets	$	539,239		$	586,030



	March 31, 2018			June 30, 2017
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	67,605		$	105,649
Billings on uncompleted contracts in excess of costs and estimated earnings	88,626			75,127
Accrued wages and benefits	25,040			20,992
Accrued insurance	8,863			9,340
Income taxes payable	—			169
Other accrued expenses	4,281			7,699
Total current liabilities	194,415			218,976
Deferred income taxes	3,288			128
Borrowings under senior secured revolving credit facility	9,304			44,682
Other liabilities	309			435
Total liabilities	207,316			264,221
Commitments and contingencies
Stockholders’ equity:
Common stock—$.01 par value; 60,000,000 shares authorized; 27,888,217 shares issued as of March 31, 2018, and June 30, 2017; 26,817,618 and 26,600,562 shares outstanding as of March 31, 2018 and June 30, 2017	279			279
Additional paid-in capital	130,330			128,419
Retained earnings	226,177			222,974
Accumulated other comprehensive loss	(6,498		)	(7,324		)
	350,288			344,348
Less: Treasury stock, at cost — 1,070,599 shares as of March 31, 2018, and 1,287,655 shares as of June 30, 2017	(18,365		)	(22,539		)
Total stockholders' equity	331,923			321,809
Total liabilities and stockholders’ equity	$	539,239		$	586,030



	Three Months Ended						Nine Months Ended
	March 31, 2018			March 31, 2017			March 31, 2018			March 31, 2017
Gross revenues
Electrical Infrastructure	$	58,378		$	82,032		$	203,201		$	273,215
Oil Gas & Chemical	68,689			69,295			242,946			164,036
Storage Solutions	78,859			74,431			221,664			403,008
Industrial	41,976			26,501			134,507			74,254
Total gross revenues	$	247,902		$	252,259		$	802,318		$	914,513
Less: Inter-segment revenues
Oil Gas & Chemical	$	299		$	407		$	544		$	6,892
Storage Solutions	1,958			379			3,307			677
Industrial	—			236			1			1,271
Total inter-segment revenues	$	2,257		$	1,022		$	3,852		$	8,840
Consolidated revenues
Electrical Infrastructure	$	58,378		$	82,032		$	203,201		$	273,215
Oil Gas & Chemical	68,390			68,888			242,402			157,144
Storage Solutions	76,901			74,052			218,357			402,331
Industrial	41,976			26,265			134,506			72,983
Total consolidated revenues	$	245,645		$	251,237		$	798,466		$	905,673
Gross profit (loss)
Electrical Infrastructure	$	1,759		$	(13,371	)	$	15,567		$	(896	)
Oil Gas & Chemical	4,744			4,333			27,550			6,765
Storage Solutions	4,166			5,456			17,004			48,980
Industrial	4,222			968			10,364			3,027
Total gross profit (loss)	$	14,891		$	(2,614	)	$	70,485		$	57,876
Operating income (loss)
Electrical Infrastructure	$	(2,422	)	$	(16,306	)	$	2,234		$	(13,085	)
Oil Gas & Chemical	(648		)	(2,199		)	8,684			(7,054		)
Storage Solutions	(4,025		)	(1,552		)	(6,709		)	23,463
Industrial	1,233			(1,153		)	2,424			(1,996		)
Total operating income (loss)	$	(5,862	)	$	(21,210	)	$	6,633		$	1,328

For long-term maintenance contracts with no minimum commitments and other established customer arrangements, we include only the amounts that we expect to recognize into revenue over the next 12 months. For all other arrangements, we calculate backlog as the estimated contract amount less revenue recognized as of the reporting date.



	Electrical Infrastructure			Oil Gas & Chemical			Storage Solutions			Industrial			Total
	(In thousands)
Backlog as of December 31, 2017	$	94,873		$	238,681		$	186,265		$	205,215		$	725,034
Project awards	44,652			43,347			229,060			117,761			434,820
Revenue recognized	(58,378		)	(68,390		)	(76,901		)	(41,976		)	(245,645		)
Backlog as of March 31, 2018	$	81,147		$	213,638		$	338,424		$	281,000		$	914,209
Book-to-bill ratio⁽¹⁾	0.8			0.6			3.0			2.8			1.8



	Electrical Infrastructure			Oil Gas & Chemical			Storage Solutions			Industrial			Total
	(In thousands)
Backlog as of June 30, 2017	$	162,637		$	287,007		$	141,551		$	91,078		$	682,273
Project awards	121,711			169,033			415,230			324,428			1,030,402
Revenue recognized	(203,201		)	(242,402		)	(218,357		)	(134,506		)	(798,466		)
Backlog as of March 31, 2018	$	81,147		$	213,638		$	338,424		$	281,000		$	914,209
Book-to-bill ratio⁽¹⁾	0.6			0.7			1.9			2.4			1.3


•	Reported a net loss of $0.19 per fully diluted share in the third quarter; earned $0.12 year-to-date


•	Book-to-bill was 1.8 on awards of $434.8 million in the quarter and 1.3 year-to-date on awards of $1.030 billion, with significant project awards in the Storage Solutions and Industrial segments


•	Backlog of $914.2 million is the highest since March 31, 2016 and 26.1% higher than December 31, 2017


•	Liquidity increased to $133.7 million, up 34.2% from December 31, 2017


•	minimum customer commitments on cost plus arrangements; and


•	certain time and material arrangements in which the estimated value is firm or can be estimated with a reasonable amount of certainty in both timing and amounts.


(1)	Calculated by dividing project awards by revenue recognized during the period.


•	fixed-price awards;