TISI — Team, Inc.

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

1. Key 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.

2. Strategic 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.

3. Forward 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.

4. Bad 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.

5. Notable 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.