About Mistras Group

Mistras Group, Inc. operates as a leading one source multinational provider of integrated technology-enabled asset protection solution. The company’s core capabilities include Non-Destructive Testing (NDT) field inspections enhanced by advanced robotics, laboratory quality control and assurance testing, sensing technologies and NDT equipment, asset and mechanical integrity engineering services, and light mechanical maintenance and access services. The company enhances value for its clients by integrating asset protection throughout supply chains and centralizing integrity data through a suite of Industrial Internet of Things (IIoT) -connected digital software and monitoring solutions. The company offers its customers One Source for Asset Protection Solutions and are a leading global provider of technology-enabled asset protection solutions used to evaluate the safety, structural integrity and reliability of critical energy, industrial and public infrastructure. The company’s asset protection solutions are intended to help maximize safety and uptime of its customers' assets and facilities. These mission critical solutions enhance the company’s customers’ ability to comply with governmental safety and environmental regulations, extend the useful life of their assets, increase productivity, minimize repair costs, manage risk and avoid catastrophic disasters. The company delivers value through a comprehensive OneSource portfolio of customized solutions, utilizing a proven systematic method that creates a closed-loop lifecycle for addressing continuous asset protection and improvement. The company’s specialized asset protection solutions include field inspections; data management and services; monitoring, laboratory testing, maintenance, engineering consulting, access, and equipment. The company’s OneSource model emphasizes the integration of these solutions and the asset integrity data associated with them to service its customers throughout their assets’ lifetimes and are delivered to its customers in three primary ways: data services, field operations, and shop work. Under this business model, many customers outsource their inspection, integrity data management and other asset protection needs to it on a run-and-maintain basis to ensure the continued safety and structural and operational integrity of their assets. Revenue streams include data services revenue derived from the selling of licenses and analyzing and synthesizing customer data through the company’s OneSuite platform; field operations revenue derived from work performed in the field at customer locations; and shop work revenue derived from inspecting and testing materials in its laboratories for its customers. The company has established long-term relationships as a critical solutions provider to many of the leading companies with asset-intensive infrastructure in its target markets. These markets primarily consist of oil and gas (downstream, midstream and upstream); aerospace and defense; industrial; power generation and transmission; infrastructure, research and engineering; other process industries, and petrochemical. A majority of the company’s revenues are generated by deploying technicians at its customers' locations. Most of the company’s revenues from aerospace and defense, as well as certain manufacturing customers are generated by performing inspections and testing at its various in-house laboratories. Specialized Solutions As a OneSource provider of asset protection solutions, the company combines its industry-leading services, products, data management solutions and technologies to provide a unique, custom-tailored solution for each customer’s individual asset protection needs, ranging from routine inspections to complex, plant-wide asset integrity management. Field Inspections The company’s field inspections portfolio includes traditional and advanced NDT techniques, along with predictive maintenance assessments of fixed and rotating assets and inline inspection for pipelines. The company offers these solutions on an individual basis, or as parts of enterprise inspection and testing programs. NDT is the examination of an asset without materially impacting its integrity. The ability to inspect infrastructure assets and not interfere with their operating performance makes NDT a highly-attractive alternative to many traditional techniques, which may require shutting down an asset or entire facility. Typical issues for which the company’s technicians inspect include corrosion, cracking, leaking, faults and flaws in piping, storage tanks and pressure vessels, as well as a wide range of other industrial assets and public infrastructure. The company’s automated data acquisition solutions utilize smart sensing and monitoring, robotic inspection systems, and digitized spot inspections to provide asset integrity data with greater insight into current and future asset conditions. Field inspection services lend themselves to integration with the company’s other offerings, and as such have often served as the initial entry point to more advanced customer engagements that require additional solutions. After an initial field inspection is performed, the company is able to provide multiple supplemental solutions that further serve to solidify its relationships with its customers and drive additional revenue. Data Solutions The asset protection solutions that the company provides throughout its customers’ asset lifecycles generate asset integrity data that needs to be effectively archived, managed, and analyzed. A common difficulty that the company’s customers face is the ability to easily access and analyze data from multiple data collection and input contractors. The company recognizes that this data is most valuable to its customers when it is accessible and integrated (regardless of vendor, tool, or facility), and have taken significant steps to digitalizing asset protection processes through the release of the first-ever asset protection software ecosystem MISTRAS OneSuite. The OneSuite software platform offers functions of the company’s popular software and services brands as integrated apps on a cloud environment. OneSuite serves as a single access portal for customers' data activities and provides access to 90 plus integrated applications being offered on one centralized platform. Plant Condition Management Software (PCMS): The company’s world-class enterprise inspection database management software (IDMS) - Plant Condition Management Software (PCMS) - was developed specifically for process industries and equipment, and enables the storage, organization and analysis of inspection data. PCMS offers wide-ranging support for mechanical integrity programs, including comprehensive inspection tracking, scheduling and analysis; corrosion analysis and trending; integrated risk-based inspection (RBI) calculators; and safety relief valve management. PCMS compares data to prior operations, similar assets, industrial standards and specific risk conditions, such as use with highly-flammable or corrosive materials. It also develops asset integrity management plans based on RBI calculations that specify an optimal schedule for the testing, maintenance and retirement of assets. In many instances, customers of the company’s field inspections and consulting services also has licensed PCMS for storage and analysis of collected inspection and Mechanical Integrity (MI) data. Pipeline Data: Following the company’s acquisitions of companies, such as Onstream and New Century Software that support the midstream sector of the oil and gas industry, it provides among the most comprehensive, data-driven pipeline protection solutions available to the industry. These proprietary pipeline data analysis solutions enable deep integration of inline inspection (ILI) big data with real-time risk analytics and business intelligence (BI) to provide capabilities for supporting pipeline integrity. MISTRAS Digital: The company has also invested resources in digitalizing and optimizing the collection, transfer, and visibility of field inspection data. MISTRAS Digital is an electronic platform that digitally delivers field inspection assignments and related data, captures inspection results, and delivers electronic reporting and productivity tracking via relevant key performance indicators (KPIs) to multiple members of a customer organization, including those not directly associated with the inspection function. Customers have made clear that the timely and accurate delivery of field data to their IDMS is an important feature for them. MISTRAS Digital integrates with PCMS and other inspection data management systems to provide additional productivity improvements. Monitoring Online Monitoring: The company’s online condition-monitoring solutions provide real-time reports and analysis of infrastructure to alert facility personnel to damages before critical failures occur, while its flexible, IIoT-compatible, cloud-based online monitoring portal centralizes and analyzes all collected monitoring data. These monitoring solutions are often installed in hazardous or hard-to-reach locations, helping to enhance safety by reducing the need to send technicians into unsafe locations. The company offers monitoring solutions for a wide range of assets and applications, including wind turbine blades; tube leaking; power transformer health and reliability; stator vane cracking; bridge structural health monitoring; wall thickness tracking; high-energy piping (HEP) integrity; fluid corrosivity; and through-valve leaking. The company has continued to develop new technologies to provide monitoring of wind blade integrity through its Sensoria blade monitoring technology. Sensoria helps provide real-time monitoring and damage detection of wind turbine blades and allows the company’s customers to maximize uptime, performance and safety of wind turbine blades. This tool provides additional growth and expansion of the company’s capabilities to serve both new and existing wind turbines and greatly enhances its product offerings within the renewable energy industry. With expertise in monitoring hardware and services, the company designs and installs monitoring systems, and provides commissioning, training, reporting, technical support and annual maintenance services. The company offers a variety of secure, web-based solutions that monitor structural integrity and analyze conditions against its library of historical inspection data, allowing users to stay aware of potential concerns and prioritize future inspections and maintenance. The company also offers custom-developed software that integrates with sensing technologies, reporting platforms, and onsite IDMSs; stores and trends monitoring data; and provides immediate automated data analysis. Much of the company’s monitoring is based on acoustical emissions technology. Laboratory Testing The company’s network of in-house laboratories located across North America and Europe offers quality assurance and quality control (QA/QC) solutions for new and existing metal and alloy components, materials, and composites. The company’s in-house laboratories work with its customers to test and measure utilized components throughout their lifetimes, from preparation and production to post-processing and in-service component monitoring. The company’s laboratory QA/QC solutions help to meet customer needs throughout their manufacturing cycles, with a focus on optimizing production logistics. The company’s in-house laboratory solutions include non-destructive evaluation/inspection (NDE/NDI); destructive testing (DT); metallurgical testing; chemical analysis testing; mechanical services; machining services; pre-machining; casting repair solutions; and finishing services The company often inspects and tests components prior to assembly to screen for defects and discontinuities introduced in the manufacturing process. The company also inspects existing components to ensure they remain fit-for-purpose. The company’s laboratories hold a wide variety of certifications, such as Nadcap, AS9100/ISO-9001, Federal Aviation Administration Repair Station, and the International Traffic in Arms Regulations/Export Administration Regulations, that allow it to perform inspections which meet or exceed stringent regulatory and manufacturers' requirements. With these certifications come a comprehensive range of approvals from prime contractors of major projects, militaries and internationally-renowned original equipment manufacturers (OEMs) from many of the company’s key markets, including the oil and gas, aerospace and defense, power generation and industrial markets. Maintenance The company performs maintenance and light mechanical services to prepare assets for inspection and to return them to working condition post inspection. These services include corrosion removal, mitigation and prevention; insulation installation and removal; electrical services; heat tracing, industrial cleaning; pipefitting; and welding. The company’s light mechanical services are often offered as complementary, value-added solutions to inspections, such as removing insulation in order to inspect piping, then re-installing insulation. The company’s multi-disciplined technicians offer maintenance and light mechanical services in hard-to-access areas, in combination with rope access or diving strategies. Mechanical services are still a small part of its business, and the company carefully try to avoid providing any such services that conflict with its inspection services. Engineering Consulting The company provides a broad range of engineering consulting services, primarily for process equipment, technologies and facilities. The company’s engineering consultations include plant operations and management support, turnaround/shutdown planning, profit improvement, facilities planning studies, engineering design, process safety reviews, energy optimization evaluations, benchmarking/key performance indicator development and technical training. The company’s Asset Integrity Management (AIMS) and MI services help improve asset reliability and regulatory compliance through a systematic, engineering-based approach to ensure the ongoing integrity and safety of equipment and industrial facilities. AIMS/MI services can include conducting an inventory of infrastructure assets; developing, implementing and training personnel in executing inspection and maintenance procedures; and managing MI programs. The company helps to identify gaps between existing and desired practices and establish quality assurance standards for fabrication, engineering and installation of infrastructure assets. Access Much of the company’s work is conducted in hard-to-access locations, including those in at-height, subsea and confined locations. The company utilizes scaffolding and rope access to access at-height and confined assets; certified divers for subsea inspection and maintenance; and unmanned (drone) aerial, land-based and subsea systems to deliver a wide range of inspection applications, with an emphasis on minimizing at-height access and confined space entry. Equipment The company designs and manufactures portable, handheld, wireless and turnkey NDT equipment, along with corresponding data acquisition sensors and software, for spot inspections and long-term, unattended monitoring applications. The company sells these solutions as individual components, or as complete systems, which include a combination of sensors, amplifiers, signal processing electronics, knowledge-based software and decision and feedback electronics. The company also sells integrated service-and-system technology packages, in which its field technicians utilize its proprietary and specialized testing procedures and hardware, advanced pattern recognition, neural network software and databases to compare test results against its prior testing data or industry standards. The company provides a range of acoustic emission (AE) products and are a leader in the design and manufacture of AE sensors, instruments and turnkey systems used for monitoring and testing materials, pressure components, processes, and structures. The company also designs and manufactures ultrasonic testing (UT) equipment. Most of its hardware products are fabricated, assembled and tested in its ISO-9001-certified facility in Princeton Junction, New Jersey. The company also designs and manufactures automated ultrasonic systems and scanners in France. Centers of Excellence The company’s subject matter experts engage in strategic sales opportunities to offer customers value-added solutions using advanced technologies and methods. The COEs help to standardize its approach to common problems in its key market segments. The company’s COEs include Acoustic Emission; Aerospace; American Petroleum Institute (API) turnarounds; AIMS/MI/Engineering; Automated Ultrasonics; Data Solutions; Fossil Power; Guided Wave Ultrasonics; Infrastructure; PCMS Software and Services; Mechanical Services; MISTRAS Digital; Nuclear Power; Offshore; Phased Array; Pipeline; Power Generation; Predictive Maintenance; Refractory Inspection; Rope Access/Wind; Substation Reliability; Tank Inspection; Transportation; Tube Inspection; and Unmanned Systems. Growth Strategy The key elements of the company’s strategy are to continue to digitalize asset protection data and processes; expand its focus in the aerospace and defense industries; expand its focus in the pipeline integrity industry; expand its mechanical services portfolio; continue to develop technology-enabled and digital asset protection solutions; expand its solution offerings to existing customers; and continue to expand its customer base into new end markets. Segments The company operates through three operating segments: Services, International, and Products and Systems. Services provides asset protection solutions 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 structural integrity and reliability of critical energy, industrial and public infrastructure and commercial aerospace components. This segment includes data services revenue derived from the selling of licenses and analyzing and synthesizing customer data through the company’s OneSuite platform, field operations revenue derived from work performed in the field at customer locations, and shop revenue derived from operations designing, building, and customizing products in its laboratories for its customers. PCMS software and pipeline related software and data analysis solutions are included in this segment. International 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. This segment includes data services revenue derived from the selling of licenses and analyzing and synthesizing customer data through the company’s OneSuite platform, field operations revenue derived from work performed in the field at customer locations, and shop revenue derived from operations designing, building and customizing products in its laboratories for its customers. Products and Systems designs, manufactures, sells, installs and services the company’s asset protection products and systems, including equipment and instrumentation, predominantly in the United States. Target Markets The company focuses on strategic sales, marketing and product development efforts on a range of infrastructure-intensive based industries and governmental authorities. The company views energy-related infrastructure and commercial aerospace as its largest market opportunities. The company performs inspection and mechanical services for customers in both industries. In the energy market, there are various economic indicators that drive its business, especially in the U.S. domestic markets. It is unclear what the short and long term effects of the war between Russia and Ukraine is likely to have on the world economy and certain of its target markets, including particularly the oil and gas market. Revenue by Target Market Oil and Gas The company supplies oil and gas asset protection solutions to downstream (refining), midstream (transportation and storage) and upstream (exploration and production) operations. The company uses its vast solutions portfolio to help identify current and future asset performance, and actively prevent, mitigate or otherwise address potential issues, including corrosion, cracking, leaking and other damages that may lead to safety, productivity or environmental concerns. The company’s solutions help identify conditions that if not remedied, could lead to potential catastrophic failures in tanks, vessels, valves, buried and above ground pipelines, pumps, motors, compressors and other critical assets found throughout the oil and gas production and delivery supply chain. The company actively seeks to evolve its solutions through technological enhancements and research and development to discover new applications. Online monitoring and permanently-mounted sensors, as well as the use of drones and other alternative delivery devices, are all being considered as oil and gas infrastructure owners look to smart technologies that reduce human intervention while delivering highly-accurate inspection and integrity data. The company also has actively sought to further enhance its integrated approach to asset protection, through the development of its complementary mechanical service portfolio. Aerospace and Defense The company served this rapidly-growing target market by providing a full range of inspection, testing, machining, mechanical, finishing, additive manufacturing and equipment solutions, for which the company are Nadcap certified. The company’s state-of-the-art in-house labratories maintain numerous accreditations from industry organizations, including Nadcap, and some of the largest manufacturers in the world, such as Boeing, Safran, Airbus, Bombardier and Embraer. Power Generation and Transmission The company provides asset protection solutions for customers in the combined cycle, fossil, nuclear, transmission and distribution and wind/alternative energy industries. During the fourth quarter of 2021, the company received a U.S. patent for the technology behind Sensoria, its innovative 24/7/365 rotor blade monitoring system and sensors that enable blade integrity management for wind turbine owners and operators. Sensoria is a remote rotor blade monitor that detects and reports damages in real-time, including cracks, lightning strikes, skin ruptures and perforations, delaminations, and more. The company also offers solutions for inspection, maintenance, monitoring and data services for wind turbines and their components. These include NDT services — often performed through rope and/or drone access — to identify corrosion, cracking, and other defects that can affect the safety and operational effectiveness of wind turbines, along with remedial solutions to repair minor damages identified during inspections. Other Process Industries The company’s asset protection solutions are crucial for process industries, or industries in which raw materials are treated or prepared in a series of stages, including chemicals, pharmaceuticals, food processing, pulp and paper and metals and mining. Infrastructure, Research and Engineering The company has provided testing and structural health monitoring and data solutions on bridges and structures worldwide, including some of the largest and most well-known bridges in the United States and United Kingdom. The company’s sensors continuously monitor these assets, alerting owner/operators when defects are detected. The company’s monitoring teams also provide regular reports that include early warnings of suspect areas before an alarm is generated. Petrochemical The company provides asset protection NDT services for customers within the petrochemical industry, as they transform byproducts into goods which are utilized in many end products such as plastics, soaps, fertilizers, synthetic fibers and rubber. The company actively seeks to evolve its solutions through technological enhancements and R&D to discover new applications. Online monitoring and permanently-mounted sensors provide real-time data to petrochemical owners and operators and provide an opportunity for the company to synergistically leverage its asset protection solutions into its MISTRAS Digital platform, OneSuite. Digital transmission of data in various industry sectors, with built-in analytic functions, will allow its customers to better leverage inspection data that is being generated in the field. The company also has actively sought to further enhance its integrated approach to asset protection, through the development of its complementary mechanical service portfolio. Customers The company provides its asset protection solutions to a global customer base of diverse companies primarily in its target markets. Geographic Areas The company has operations in 10 countries and occasionally conduct business in a few other countries. Most of its revenues are derived from its U.S., Canadian and European operations. Sales and Marketing The company sells its asset protection solutions through its direct sales and marketing activities worldwide. In addition, the company’s project and laboratory managers, as well as its management, are trained on its solutions and often are the source of sales leads and customer contacts. The company’s direct sales and marketing teams work closely with its customers to demonstrate the benefits and capabilities of its asset protection solutions, refine its asset protection solutions based on changing market and customer needs and identify potential opportunities. The company divides its sales and marketing efforts into services sales, products and systems sales and marketing and utilizes marketing automation and customer relationship management (CRM) systems to collect, manage and collaborate customer information with its teams globally. The company’s CRM systems also provide critical data to provide accurate forecasting and reporting. Seasonality The company’s business is seasonal. This seasonality relates primarily to the company’s oil and gas target market, and to a lesser extent within its other target markets. U.S. refineries’ non-peak periods are generally in the fall, when they are retooling to produce more heating oil for winter, and in the spring, when they are retooling to produce more gasoline for summer. The peak periods for these customers are the summer and winter months, when they run at peak capacity and are not retooling or performing turnarounds or shut downs. As a result, its revenues in the summer and winter months are typically lower than its revenues in the fall and spring, when demand for its asset protection solutions from the oil and gas, as well as the fossil and nuclear power industries increases during their non-peak production periods. Competition The company’s competition with respect to NDT services include Acuren, SGS Group, the Team Qualspec division of Team, Inc. and APPLUS RTD. The company’s competition with respect to its PCMS software includes UltraPIPE, Lloyd’s Register Capstone, Inc. and Meridium Systems. Research and Development The company’s company-sponsored research and engineering expenses were approximately $2.0 million for the year ended December 31, 2022. Intellectual Property As of December 31, 2022, the company held seven U.S. patents by direct ownership and six patent applications pending in the United States. All the patent applications pending have been filed since 2018. As of December 31, 2022, the primary trademarks and service marks that the company held in the United States included MISTRAS, its stylized globe design and its tag line. Other key trademarks or service marks that the company utilizes in localized markets or product advertising include Onstream (word and logo); PCMS (word and logo); Ropeworks; MISTRAS Digital; OneSuite; Sensoria; OneSource; CALIPERAY (word and logo); Physical Acoustics PAC logo; Streamview; Sensor Highway; TankPAC; VPAC; Transformer Clinic; FieldCal; UTwin; AEwin; Pocket AE; and Pocket UT. Governmental Regulations The company is subject to numerous environmental, legal and regulatory requirements related to its operations worldwide. In the United States, these laws and regulations include, among others: the Comprehensive Environmental Response, Compensation, and Liability Act, the Resources Conservation and Recovery Act, the Clean Air Act, the Federal Water Pollution Control Act, the Toxic Substances Control Act, the Atomic Energy Act, the Energy Reorganization Act of 1974, and applicable regulations. In addition to the federal laws and regulations, states and other countries where it does business often have numerous environmental, legal and regulatory requirements by which it must abide. History Mistras Group, Inc. was founded in 1978. The company was incorporated in 1994.