Team (TISI) Q1 2026 earnings summary

Executive summary

• Revenue increased 8.3% year-over-year to $215.1 million, the highest Q1 since 2019, driven by strong performance in both Inspection & Heat Treating (IHT) and Mechanical Services (MS) segments, and favorable foreign exchange impacts.

• Adjusted EBITDA rose 45.2% to $7.7 million (3.6% margin), the best Q1 level since before 2019.

• Net loss improved to $11.3 million from $29.7 million in the prior year, with adjusted net loss per share at $(2.76) versus $(3.31) year-over-year.

• Operational and financial improvements are attributed to a focus on people, cost efficiency, and targeted market expansion.

• Strategic vision centers on workforce investment, margin-accretive growth, and disciplined commercial execution.

Financial highlights

• Q1 2026 revenue: $215.1 million, up $16.4 million (8.3%) year-over-year, with IHT segment revenue at $123.4 million (+8.6%) and MS segment at $91.7 million (+7.8%).

• Gross margin increased to $50.2 million (23.3% of revenue), up $2.9 million (6.1%) year-over-year.

• Operating loss improved to $3.4 million from $6.0 million year-over-year.

• Adjusted EBITDA improved by nearly $2.4 million to $7.7 million (3.6% margin).

• Adjusted SG&A as a percentage of revenue decreased by 150 basis points year-over-year, reflecting improved scalability.

Outlook and guidance

• Full year 2026 revenue expected to grow 4% at midpoint, with guidance range of $920–$945 million.

• Gross margin forecasted at $240–$260 million, up 8% at midpoint from 2025.

• Adjusted EBITDA guidance for 2026 is $68–$73 million, a 16% increase at midpoint over 2025.

• Management expects stronger performance in H2 2026, driven by U.S. and international growth and further margin expansion.

• Capital expenditures expected between $13–$14 million.