Summary of Team, Inc. (TISI) Q1 2026 Earnings Call

1Key Financial Results and Metrics

Revenue: Increased by 8.3% year-over-year to $215 million, the highest Q1 revenue since 2019.

Adjusted EBITDA: Rose 45.2% to $7.7 million, with a 90 basis point improvement in adjusted EBITDA margin.

Operating Income: Up 43.8% year-over-year, reflecting stronger revenue and lower corporate costs.

Adjusted SG&A: Decreased by 150 basis points as a percentage of revenue, indicating improved scalability.

2Strategic Updates and Business Highlights

Core Markets: Stability in refining and petrochemical sectors, with growth opportunities in LNG, midstream, data centers, power, and aerospace.

Workforce Commitment: Focus on employee retention and engagement through innovative career path programs and enhanced benefits.

Cost Efficiency: Ongoing initiatives to optimize costs, particularly in supply chain and operational processes, with expectations for further cost reductions announced in Q2.

Customer Focus: Emphasis on pursuing higher-margin opportunities and expanding market share in targeted sectors.

3Forward Guidance and Outlook

Revenue Growth: Projected full-year revenue growth of approximately 4%, with a range of $920 million to $945 million.

Gross Margin: Expected to increase by 8% at the midpoint, targeting between $240 million and $260 million.

Adjusted EBITDA: Forecasted to rise by 16% at the midpoint, with a range of $68 million to $73 million for 2026.

4Bad News, Challenges, or Points of Concern

Geopolitical Risks: The ongoing Middle East conflict is impacting the oil and gas industry, potentially delaying turnaround scopes.

Market Volatility: While core markets are stable, there are concerns about the cyclical nature of some segments and the need for disciplined growth strategies.

Operational Challenges: Although progress has been made, there is still work to be done in improving operating leverage and efficiency.

5Notable Q&A Insights

Management emphasized the importance of employee safety and satisfaction as a driver of operational success.

Discussions highlighted the need for strategic additions to the leadership team to enhance capabilities and accountability.

There was a focus on the company's commitment to open communication and collaboration with stakeholders to foster continuous improvement and growth. Overall, Team, Inc. reported a strong start to 2026 with solid financial results and a clear strategic vision aimed at sustainable growth, despite facing some external challenges.