Team (TISI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue declined to $228.7 million, down 7.8% year-over-year, with both IHT and MS segments impacted by deferred turnaround and maintenance activity, especially in core oil & gas and petrochemicals markets, and regional weakness due to Middle East conflict.

• Gross margin for Q2 was $54.4 million, down from $68.1 million, and operating income fell to $2.2 million, an 82% decrease from the prior year.

• Net loss attributable to common shareholders was $9.8 million ($2.15/share), compared to $4.3 million ($0.95/share) in Q2 2025.

• Transformation and cost reduction initiatives are underway, targeting $8–$15 million in 2026 and $20–$35 million at full run-rate, with leadership changes and commercial execution focus.

• Stellex Capital Management became the largest shareholder, signaling confidence in the company’s strategy.

Financial highlights

• Q2 2026 revenue was $228.7 million, down from $248 million year-over-year; gross margin was $54.4 million (23.8% of revenue).

• Adjusted EBITDA for Q2 2026 was $12.8 million (5.6% margin), down from $24.5 million (9.9% margin) in Q2 2025.

• Adjusted SG&A expense decreased by $2.1 million (4.5%) to $44.7 million.

• Cash and cash equivalents as of June 30, 2026 were $26.0 million; total liquidity was $51.2 million, including $28.9 million in ABL capacity.

• Net debt at June 30, 2026 was $300.3 million; total debt increased to $326.3 million from $297.2 million at year-end 2025.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: revenue of $920–$945 million, gross profit of $240–$260 million, and adjusted EBITDA of $68–$73 million, but near-term results expected at the lower end due to deferred activity.

• Capital expenditures for 2026 expected at $13–$14 million.

• Management expects current working capital, forecasted cash flows, and available credit to be sufficient for at least the next twelve months.

• Anticipates a portion of deferred mechanical services activity to return in the second half of 2026, with full normalization dependent on macro factors.