TISI · Team, Inc.

Team, Inc. delivered a strong start to 2026 with Q1 revenue of $215.1 million, the highest first-quarter figure since 2019, up 8.3% from $198.7 million in Q1 2025. Growth was balanced across segments: Inspection & Heat-Treating (IHT) rose 8.6% to $123.4 million, fueled by higher turnaround services and capital projects in the U.S. ($6.5 million increase), plus gains in Canada ($2.2 million) and other international markets ($1.1 million). Mechanical Services (MS) increased 7.8% to $91.7 million, driven by elevated turnaround, callout, and project activity in the U.S. and Canada. Geographically, U.S. revenue grew 5.7%, Canada surged 35.6%, and other international markets rose 10.7%.

Profitability improved markedly, with gross margin at $50.2 million (23.3% of revenue), up 6.1%. Adjusted EBITDA climbed 45.2% to $7.7 million (3.6% margin from 2.7%), reflecting revenue leverage and cost efficiencies. Adjusted SG&A fell to 21.2% of revenue from 22.7%, a 150-basis-point gain excluding non-recurring items. Operating loss narrowed to $3.4 million from $6.0 million, while net loss halved to $11.3 million ($3.12 per share loss attributable to common shareholders) from $29.7 million ($6.61 per share). IHT operating income edged up 1.7% to $10.9 million; MS loss improved 52.7% to $1.5 million; corporate costs declined 5.8%.

Balance sheet shows $49.2 million liquidity ($8.7 million cash, $40.5 million undrawn credit), with debt at $306.5 million (up from $297.2 million year-end 2025 due to ABL borrowings). CEO Gary L. Hill highlighted momentum from 2025, emphasizing commercial execution, talent additions, and cost initiatives for margin expansion, particularly in H2 2026. Full-year guidance signals confidence: revenue $920-$945 million (~4% growth midpoint vs. 2025), gross margin $240-$260 million (~8%), Adjusted EBITDA $68-$73 million (~16%), and capex $13-$14 million. A conference call is set for May 14, 2026.