Mistras Group, Inc.MG
Mistras Group, Inc. Segments Disclosure
Segment Disclosure
The Company’s three operating segments, which are also the Company's reportable segments, are:
•North America: This segment provides asset protection solutions predominantly in North America, with the largest concentration in the United States, followed by Canada, consisting primarily of NDT, inspection, mechanical and engineering services that are used to evaluate the safety, structural integrity and reliability of critical energy, industrial and public infrastructure and commercial aerospace components. Software, digital and data services are included in this segment.
•International: This segment offers services, products and systems similar to those of the other segments to select markets within Europe, the Middle East, Africa, Asia and South America, but not to customers in China and South Korea, which are served by the Products and Systems segment.
•Products and Systems: This segment designs, manufactures, sells, installs and services the Company’s asset protection products and systems, including equipment and instrumentation, predominantly in the United States.
Costs incurred for general corporate services, including finance, legal, and certain other costs that are provided to the segments are reported within Corporate and eliminations. Sales to the International segment from the Products and Systems segment and subsequent sales by the International segment of the same items are recorded and reflected in the operating performance of both segments. Additionally, engineering charges and royalty fees charged to the North America and International segments by the Products and Systems segment are reflected in the operating performance of each segment.
The chief operating decision maker ("CODM") reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. For the year ended December 31, 2025, our CODM was identified as Natalia Shuman, our Chief Executive Officer, as she has final authority over performance assessment and resource allocation decisions. Our segments are based on the type and concentration of customers served, service requirements, methods of distribution and major product lines.
Segment income (loss) from operations is the primary performance measure used by the CODM to evaluate segment performance and allocate resources, including considering budget-to-actual variances and prior year-to-actual variances on a monthly basis in accordance with GAAP under ASC 280, Segment Reporting. Segment income (loss) from operations for each of the Company's reportable segments is comprised of revenue, selling, general & administrative expenses, and "other expenses." "Other expenses" include cost of revenue, bad debt provision for troubled customers, goodwill impairment charges, reorganization and environmental costs, legal settlements and recoveries, acquisition-related expenses, depreciation and amortization and research and engineering.
Corporate and other assets are comprised principally of cash, deposits, property, plant and equipment, domestic deferred taxes, deferred charges and other assets. Corporate loss from operations consists of administrative charges related to corporate personnel and other charges that cannot be readily identified for allocation to a particular segment. These items of our operating profit are managed centrally at the corporate level and are excluded from the measure of segment income reviewed by the CODM, as well as the measure of segment performance used for incentive compensation purposes.
The accounting policies of the reportable segments are the same as those described in Note 1 - Summary of Significant Accounting Policies and Practices.
Selected consolidated financial information by segment for the periods shown was as follows. Income (loss) from operations by operating segment includes intercompany transactions, which are eliminated in Corporate and eliminations.
For the year ended December 31, 2025
| Segment | |||||||||||||||||||||||||||||||||||
| North America | International | Products and Systems | Total Reportable Segments | Corporate and eliminations | Total | ||||||||||||||||||||||||||||||
| Revenue | $ | 584,131 | $ | 143,843 | $ | 13,970 | $ | 741,944 | $ | (17,920) | $ | 724,024 | |||||||||||||||||||||||
| Selling, general & administrative expenses | 81,291 | 29,620 | 3,411 | 114,322 | 25,554 | 139,876 | |||||||||||||||||||||||||||||
| Other Expenses | 440,052 | 103,870 | 7,908 | 551,830 | (8,254) | 543,576 | |||||||||||||||||||||||||||||
| Income (loss) from operations | $ | 62,788 | $ | 10,353 | $ | 2,651 | $ | 75,792 | $ | (35,220) | $ | 40,572 | |||||||||||||||||||||||
For the year ended December 31, 2024
| Segment | |||||||||||||||||||||||||||||||||||
| North America | International | Products and Systems | Total Reportable Segments | Corporate and eliminations | Total | ||||||||||||||||||||||||||||||
| Revenue | $ | 593,527 | $ | 135,969 | $ | 13,661 | $ | 743,157 | $ | (13,517) | $ | 729,640 | |||||||||||||||||||||||
| Selling, general & administrative expenses | 75,567 | 29,126 | 3,677 | 108,370 | 27,082 | 135,452 | |||||||||||||||||||||||||||||
| Other Expenses | 455,674 | 100,568 | 7,474 | 563,716 | (9,354) | 554,362 | |||||||||||||||||||||||||||||
| Income (loss) from operations | $ | 62,286 | $ | 6,275 | $ | 2,510 | $ | 71,071 | $ | (31,245) | $ | 39,826 | |||||||||||||||||||||||
For the year ended December 31, 2023
| Segment | |||||||||||||||||||||||||||||||||||
| North America | International | Products and Systems | Total Reportable Segments | Corporate and eliminations | Total | ||||||||||||||||||||||||||||||
| Revenue | $ | 579,330 | $ | 124,414 | $ | 12,986 | $ | 716,730 | $ | (11,257) | $ | 705,473 | |||||||||||||||||||||||
| Selling, general & administrative expenses | 80,503 | 28,577 | 4,049 | 113,129 | 34,114 | 147,243 | |||||||||||||||||||||||||||||
| Other Expenses | 443,657 | 108,066 | 8,670 | 560,393 | (259) | 560,134 | |||||||||||||||||||||||||||||
| Income (loss) from operations | $ | 55,170 | $ | (12,229) | $ | 267 | $ | 43,208 | $ | (45,112) | $ | (1,904) | |||||||||||||||||||||||
The tables above only reconcile to income (loss) from operations as our measure of segment profitability and the remainder of the reconciliation to net income (loss) can be seen on the Consolidated Statement of Income (Loss). Products and Systems segment revenue was comprised of approximately $3.0 million of sales to the International segment, which was eliminated upon consolidation, for the year ended December 31, 2025. Intersegment revenue related to sales between other segments was immaterial for the years ended December 31, 2025, 2024 and 2023.
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Intangible assets, net | |||||||||||
| North America | $ | 28,245 | $ | 30,869 | |||||||
| International | 1,110 | 1,377 | |||||||||
| Products and Systems | 733 | 946 | |||||||||
| Corporate and eliminations | 8,319 | 6,516 | |||||||||
| $ | 38,407 | $ | 39,708 | ||||||||
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Total assets | |||||||||||
| North America | $ | 426,146 | $ | 390,052 | |||||||
| International | 150,741 | 97,546 | |||||||||
| Products and Systems | 12,072 | 11,280 | |||||||||
| Corporate and eliminations | (10,178) | 24,160 | |||||||||
| $ | 578,781 | $ | 523,038 | ||||||||
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Long-lived assets | |||||||||||
| North America | $ | 278,419 | $ | 268,608 | |||||||
| International | 27,900 | 24,822 | |||||||||
| Products and Systems | 850 | 1,049 | |||||||||
| Corporate and eliminations | 9,231 | 7,563 | |||||||||
| $ | 316,400 | $ | 302,042 | ||||||||
Refer to Note 2 - Revenue, for revenue by industry and by geographic area for the years ended December 31, 2025, 2024, and 2023.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 11, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Mar 11, 2024 | |
| 2022 | Mar 15, 2023 | |
| 2021 | Mar 14, 2022 | |
| 2020 | Mar 16, 2021 | |
| 2019 | Mar 27, 2020 | |
| 2018 | Mar 18, 2019 | |
| 2017 | Mar 14, 2018 | |
| 2016 | Aug 15, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.