Team (TISI) Q3 2026 earnings summary

Executive summary

• Q3 revenue fell 2.0% YoY to $220.369M; adjusted EBITDA rose 8.2% to $15.739M, while operating results shifted to a $0.471M loss from $1.342M income.

• Transformation and diversification progressed as deferred turnaround work weighed on results; much of the delayed activity is expected to return in early 2027.

Financial highlights

• Gross margin was $55.768M, or 25.3% of revenue, versus $58.044M a year earlier; net loss narrowed to $11.068M from $11.447M.

• Excluding identified non-core expenses, Q3 operating income was $7.517M versus $5.442M YoY; identified non-core expenses totaled $7.988M.

• Adjusted SG&A declined 7.4% to $43.3M, or 19.7% of revenue; reported SG&A was $50.698M versus $51.239M.

• Nine-month revenue declined 1.1% to $664.103M; net loss narrowed to $29.213M, while adjusted EBITDA fell to $36.216M from $44.322M.

• Q3 diluted loss per share was $3.10 versus $2.68; adjusted net loss was $3.399M, or $1.43 per share.

Outlook and guidance

• FY 2026 guidance: revenue $870M–$890M, gross margin $226M–$249M and adjusted EBITDA $56M–$59M; revisions reflect deferred work shifted beyond year-end.

• FY 2026 capital expenditure guidance is $13M–$14M; structural cost improvements are targeted at $15M–$18M in 2026 and $30M–$38M at full annual run rate.

• Guidance assumes stable Inspection and Heat-Treating activity, no further Middle East escalation and realization of cost actions already taken; 2027 guidance was not issued.

• Much deferred turnaround activity is expected to return in early 2027, subject to customer schedules and refining utilization.