Team, Inc. (TISI) Reports Strong Q2 2025 Results and Increased Outlook

Team, Inc. (TISI) announced its second quarter 2025 earnings on March 17, 2026, demonstrating significant revenue and margin expansion. The company as well highlighted advancements in its balance sheet flexibility and reaffirmed its positive outlook for the full year.

Key Financial Highlights

• Revenue Growth: Total revenue increased by 8.5% year-over-year, reaching nearly $20 million.
• Gross Margin: Consolidated gross margin improved to 7.1%.
• Adjusted EBITDA: Adjusted EBITDA rose 12.4% year-over-year to $24.5 million, with a margin increase of 40 basis points to 9.9% of revenue.
• Net Loss: Adjusted net loss narrowed to $900,000 for the quarter, an improvement of $1.1 million compared to the prior year.

Segment Performance

Inspection and Heat Treating (IHT)

The IHT segment experienced robust growth, with revenue increasing by 15%. This growth was driven by a 13% increase in the U.S. And a substantial 31% jump in Canada. Higher-margin heat treating revenues increased by 26%, contributing to a 118 basis point expansion in the IHT segment’s adjusted EBITDA margin.

Mechanical Services

U.S. Revenue in the Mechanical Services segment grew by 7%, offsetting softness in international markets and resulting in a total segment increase of 2%.

Strategic Initiatives and Financial Strength

• Cost Reduction: Adjusted SG&A expense as a percentage of revenue decreased to 18.9% from 19.8% in the prior-year quarter.
• Transformation Actions: The company is targeting $10 million in annualized cost savings, with approximately $6 million expected to be realized in the second half of 2025.
• Liquidity: Team, Inc. Maintained a strong liquidity position of $49 million at quarter-end, comprising $16.6 million in cash and $32.7 million in undrawn credit availability.
• Debt Refinancing: A refinancing transaction completed in March 2025 lowered the blended interest rate by over 100 basis points and extended term loan maturities to 2030.
• Leadership Appointment: Dan Dolson was appointed as Executive Vice President, Chief Strategy & Transformation Officer, to lead ongoing transformation efforts.

Full-Year Outlook

Management reiterated its expectation for at least 15% adjusted EBITDA growth and progress toward a 10%+ adjusted EBITDA margin for the full year 2025. The company remains focused on workforce utilization, cost discipline, and expanding higher-margin service offerings.

Conference Call Participants

The earnings call included participation from Keith D. Tucker, President & Chief Executive Officer, and Nelson M. Haight, Executive Vice President & Chief Financial Officer. Full transcript available at The Motley Fool.