Executive Summary

Q1 2024 revenue was $6.53M with gross margin of 7.1%, a sharp improvement from a gross loss in Q1 2023; net loss narrowed to $1.40M and diluted EPS was -$0.27 .
SG&A expense fell materially to $2.02M, down $2.40M year over year as restructuring and exit from self-performed fabrication, construction and field services took effect .
Backlog was ~$10.8M and bookings were ~$5.7M in Q1; management highlighted ongoing discussions with strategic partners and a path to profitability through better execution and cost discipline .
No specific quantitative guidance was issued; liquidity has improved sequentially but going concern risk remains, mitigated in part by an amended credit agreement (term loan extended to July 2, 2025, rate cut to 8.0%, plus up to $1.0M revolving facility) .

What Went Well and What Went Wrong

Gross margin turned positive to 7.1% vs. a gross loss in Q1 2023, driven by lower indirect costs and the decision to stop self-performing fabrication/field services .
SG&A decreased $2.4M YoY (labor, rent, and lower bad debt), materially narrowing the operating loss .
Management emphasized operational focus and potential strategic opportunities: “we believe we are on a path to profitability through improved operating efficiencies and a commitment to enhanced project execution” .

Revenue declined 50.5% YoY to $6.53M as commercial revenue fell due to the exit of certain businesses; government services increased but did not offset commercial declines .
Liquidity remains constrained and the company disclosed substantial doubt about going concern pending additional financing and sustained profitability .
Legal exposure: a $1.3M breach-of-lease lawsuit was disclosed, with management disputing the claims but noting inherent litigation uncertainty .

Metric	Q3 2023	Q4 2023	Q1 2024
Revenue ($USD Millions)	$9.50	n/a	$6.53
Net Income ($USD Millions)	-$0.70	n/a	-$1.40
Diluted EPS ($USD)	-$0.02	n/a	-$0.27
Gross Margin (%)	19.4%	n/a	7.1%

Note: Q4 2023 quarterly specifics were not disclosed in our document set; annual 2023 data was provided but without quarterly breakdown .

Segment	Revenue ($USD Millions)	Gross Profit ($USD Millions)	Gross Margin (%)
Commercial	$4.39	$0.35	8.0%
Government Services	$2.14	$0.11	5.3%
Consolidated	$6.53	$0.46	7.1%

KPI	Q3 2023	Q1 2024
Backlog ($USD Millions)	$15.5	$10.8
Bookings/New Business ($USD Millions)	$6.5	$5.7
Utilization (Billable Resources)	~90%	>80%

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2024	n/a	No quantitative guidance provided	Maintained (no formal guidance)
Backlog completion	FY 2024	n/a	Majority of $10.8M backlog expected to be completed in 2024	Informational (not formal guidance)
Margins/OpEx/Tax	FY 2024	n/a	Not provided	n/a

Note: No Q1 2024 earnings call transcript was available in our document set; themes reflect press releases and 10‑Q commentary .

Topic	Previous Mentions (Q3 2023)	Previous Mentions (Q4/FY 2023)	Current Period (Q1 2024)	Trend
Operational restructuring	Exited unprofitable legacy projects; SG&A reductions; margin recovery to 19.4%	Continued repositioning; utilization improved 15–20 pts YoY	Continued progress; SG&A down $2.4M YoY; positive gross margin	Improving execution and cost base
Segment mix (Commercial vs. Gov’t)	Commercial revenue down YoY; margin uplift from contract adjustments	Streamlined engineering; added modular fabrication capabilities	Commercial $4.39M, Gov’t $2.14M; Gov’t up on a new project	Gov’t contribution rising; Commercial rehabbing
Liquidity/Capital structure	Refinanced facility with term loan from Chairman’s LP	Considering strategic transactions; ongoing credit facility	Amended credit agreement: term loan to 7/2/2025, 8.0% rate; new $1.0M revolver	Incremental support; still tight
Backlog and pipeline	Backlog $15.5M; pipeline ~$70M	Book-to-bill >1 in early 2024	Backlog $10.8M; bookings $5.7M	Steady bookings; backlog lower
Risk disclosure	—	Going concern risks highlighted	Going concern language; litigation ($1.3M claim)	Elevated risk profile persists

“ENGlobal continued to make progress in repositioning its business… While we posted a modest loss in the first quarter, we believe we are on a path to profitability through improved operating efficiencies and a commitment to enhanced project execution.” — William A. Coskey, P.E., Chairman & CEO .
“We are actively pursuing new opportunities that, if successful, create a path for significant revenue and earnings growth… discussions with potential strategic partners that could be transformational” .
“Gross profit margin of 19.4% in the third quarter was a vast improvement… the first positive quarter in over a year.” — Q3 2023 context .
Strategic priorities include streamlined engineering services, higher-margin modular automation capabilities, and receivables collections to improve liquidity .

No earnings call transcript was available for Q1 2024 in our document catalog; no Q&A themes could be validated. External listings show press release distribution but do not provide a transcript for Q1 2024 .

S&P Global consensus estimates for Q1 2024 were unavailable for ENG in our data retrieval (Capital IQ mapping not present); as such, we cannot assess beats/misses vs. Wall Street consensus. Where estimates are required, note that consensus was unavailable via S&P Global for this issuer during the period.

Margin recovery is the core narrative: turning to positive gross margin and cutting SG&A materially improves operating leverage; sustained execution could drive breakeven if bookings/backlog convert at targeted margins .
Revenue base reset: exiting self-performed fabrication and field services reduces revenue but should lift profitability quality; watch Commercial mix and Gov’t project cadence .
Liquidity risk is still high despite the amended credit agreement; monitor receivables collections, backlog conversion, and potential strategic transactions for capital support .
Backlog/bookings provide near-term visibility, but are lower than Q3; track award momentum and schedule timing (management expects majority of backlog in 2024) .
Legal/litigation and internal control remediation add execution risk; diligence on process improvements and cash controls is critical to avoid working capital pressure .
Near-term trading: stock likely reacts to margin improvements and capital actions; medium term thesis depends on sustained margin discipline, backlog growth, and resolving going concern headwinds .