Matrix reported a penny loss in 1Q:F26 compared to our estimate of a $0.03 loss and a GAAP loss per share of $0.13. Project intake was solid, as a 0.9x book to bill ratio put the backlog at $1.161 billion compared to $1.382 billion in 4Q:F25 and $1.411 billion a year earlier. However, the company removed two jobs from backlog due to changes initiated by the client. These projects had not yet started and were likely F2027 revenue. As such, management maintained its F2026 revenue guidance of $875-$925 million in F2026, suggesting sales growth of 14%-20% this year. We lower our F2026 EPS estimate to $0.24 (from $0.42) as we have tempered our overhead recovery this year and rebalanced, but left unchanged, our F2027 EPS estimate of $0.91. In 2Q:F24, MTRX repaid its remaining debt and in 1Q:F26 had total cash of $217.3 million (net cash per share of $6.87), which includes $25 million in restricted cash. Our $16 price target is based on 18x our F2027 EPS estimate of $0.91. Our moderate risk rating reflects the company's clean balance sheet, countered by end market cyclicality and uncertainty in the timing of realizing project-based work.