TEAM, Inc. (NYSE: TISI) Reports Strong Q4 and Full-Year 2025 Results, Announces Strategic Financial Moves and Leadership Change

Executive Summary

TEAM, Inc., a global leader in specialty industrial services, released its financial results for the fourth quarter and full-year ended December 31, 2025. The report contains several key developments that are likely to be price sensitive for shareholders and investors, including improved operating metrics, significant debt and equity transactions, and a change in executive leadership.

Key Financial Highlights

• Q4 2025 Revenue: \$224.8 million, up 5.4% year-over-year, driven by robust growth in the U.S. (4.9%) and Canada (21.6%).
• Full-Year 2025 Revenue: \$896.5 million, up 5.2% compared to 2024.
• Gross Margin: Q4 gross margin grew to \$58.3 million (25.9% of revenue). Full-year gross margin was \$231.7 million (25.8% of revenue), up \$8.6 million.
• Operating Income: Q4 operating income was \$6.6 million, up \$4.4 million; full-year operating income was \$14.1 million, up 39% over 2024.
• Net Loss: Q4 net loss improved to \$3.8 million (down from \$7.2 million). Full-year net loss was \$49.2 million, including a \$13.1 million loss on debt extinguishment.
• Adjusted EBITDA: Q4 Adjusted EBITDA was \$16.4 million (7.3% of revenue), up 12.1%. Full-year Adjusted EBITDA was \$60.7 million (6.8% of revenue), up 11.9%.
• Free Cash Flow: Q4 free cash flow was \$14.6 million. For the year, free cash flow was negative \$20.6 million, reflecting investment and restructuring activity.
• Adjusted SG&A: Q4 SG&A expenses as a percentage of revenue decreased to 20.0% (down 150bps); full-year fell to 20.5%, a reduction of 90bps.

Strategic Financial Transactions

• March 2025 Refinancing: TEAM executed a refinancing transaction that simplified its capital structure, extended maturities, and reduced blended interest rates by more than 100bps.
• September 2025 Capital Raise: Issued preferred stock and warrants, raising \$75 million in proceeds (before expenses), used to significantly reduce debt and bolster financial flexibility.
• Liquidity Position: As of December 31, 2025, TEAM had \$77.4 million in total liquidity, including \$14.1 million in cash and \$63.4 million in undrawn credit facilities. Option to draw an additional \$30 million in preferred stock and warrants through September 2027.
• Net Debt: Net debt was \$279.1 million at year-end, reflecting debt reduction following the capital raise.

Segment Performance

• Inspection & Heat Treating (IHT): Q4 revenue grew 1.9% to \$108.5 million, with U.S. turnaround activity and lab projects driving growth. Operating income in Q4 decreased by \$1.6 million due to timing of labor and equipment costs. Full-year IHT revenue increased 7.5% to \$458.9 million, with operating income up 18.5% to \$43.9 million.
• Mechanical Services (MS): Q4 revenue grew 8.9% to \$116.3 million, led by oil, refining, and Canadian project work. Q4 operating income improved \$3.4 million due to pricing, job mix, and cost reductions. Full-year MS revenue increased 2.8% to \$437.6 million, though full-year operating income decreased by \$0.9 million to \$26.4 million.
• Corporate & Shared Support: Q4 costs decreased \$2.6 million (17.0%), mainly due to lower insurance and legal expenses. Full-year corporate operating loss increased by \$2.0 million, primarily from higher professional fees related to debt and equity transactions.

Leadership Change and Strategic Outlook

In early February 2026, TEAM welcomed Gary L. Hill as its new CEO. In his first earnings release, Hill outlined an aggressive focus for 2026: accelerating commercial execution, deepening customer relationships, capturing profitable market share in core sectors, and expanding into aerospace and power markets. The company will emphasize cost efficiency, disciplined resource allocation, safety, and process optimization.

Due to the leadership change, TEAM is not providing full-year guidance for 2026 at this time. The company is actively reviewing strategic priorities and expects to update guidance after Q1 results. Mr. Hill noted market and energy price volatility due to Middle East events, but remains optimistic about further revenue and EBITDA growth in 2026.

Shareholder-Relevant Events & Risks

• Debt Reduction and Improved Financial Flexibility: The \$75 million capital raise and refinancing significantly lowered debt and interest expense, improving liquidity and financial stability—a positive for shareholders.
• Leadership Change: New CEO Gary L. Hill is expected to drive renewed strategic focus and operational momentum, which may impact share value, especially as guidance is updated.
• Ongoing Losses: While losses narrowed, TEAM still reported substantial net and adjusted losses, including a \$13.1 million loss on debt extinguishment, which may weigh on investor sentiment.
• No Guidance Yet for 2026: The lack of forward guidance introduces uncertainty until after Q1.
• Market Volatility: Management cited recent Middle East events as a source of market and energy price volatility; this could impact future results.

Conference Call and Additional Information

TEAM will discuss Q4 and full-year 2025 results via conference call on March 13, 2026 at 10:00 a.m. CT. No Q&A will be hosted. Webcast and replay will be available on TEAM’s website.

Non-GAAP Financial Measures

TEAM uses several non-GAAP metrics, including Adjusted EBITDA, Adjusted EBIT, Adjusted Net Loss, and Free Cash Flow, to provide a clearer picture of core operating performance. These figures exclude non-recurring items such as legal settlements, professional fees, severance, and loss on debt extinguishment. Investors should note that non-GAAP metrics are not directly comparable to GAAP earnings and may differ from similar metrics used by other companies.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. The information herein is based on TEAM, Inc.’s reported financials and public statements as of March 12, 2026. Forward-looking statements are subject to risks and uncertainties, including market volatility, company performance, leadership changes, and global events. Readers should conduct their own due diligence and consult a financial advisor before making any investment decisions. TEAM, Inc. assumes no obligation to update forward-looking statements except as required by law.

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