Latest news with #TeamInc
Yahoo
17-05-2025
- Business
- Yahoo
Team Reports Wider Loss in Q1, Eyes 15% EBITDA Growth in 2025
Shares of Team, Inc. TISI have gained 3% since reporting results for the first quarter of 2025. This compares with the S&P 500 index's 1% growth over the same period. However, over the past month, the stock has declined 6.7% against an 11.4% rally in the S&P 500, underperforming the broader market despite near-term post-earnings strength. Team reported total revenues of $198.7 million compared with $199.6 million in the prior-year quarter. However, the company's net loss widened to $29.7 million, or $6.61 per share, from a loss of $17.2 million, or $3.89 per share, in the same quarter of 2024. The reported loss included an $11.9-million charge on debt extinguishment related to a March 2025 refinancing. Adjusted EBITDA declined to $5.3 million from $6.5 million a year ago, with the margin narrowing to 2.7% from 3.3%. Team, Inc. price-consensus-eps-surprise-chart | Team, Inc. Quote Team's Inspection and Heat Treating (IHT) segment was the primary driver of strength during the quarter. IHT revenues rose 6.8% year over year to $106.2 million, supported by an 8.8% increase in U.S. operations. The segment delivered a 39% year-over-year improvement in adjusted EBITDA, aided by 22% growth in higher-margin heat treating services and a 64% jump in revenues from the Cincinnati laboratory, testing and inspection facility. Conversely, the Mechanical Services (MS) segment reported a 7.7% revenue decline to $92.4 million, reflecting lower callout activity and weather-related delays, particularly in the U.S. and certain international markets. As a result, the segment swung to an operating loss of $1.1 million from an income of $4.1 million in the year-ago period. The company-wide gross margin slipped to 23.8% from 24.4%, while selling, general and administrative (SG&A) expenses fell 3.4% to $53.3 million. Adjusted SG&A represented 22.7% of revenues, down slightly from the previous year, indicating modest operational efficiencies. CEO Keith Tucker emphasized continued progress against the company's multi-year strategic roadmap. He highlighted that first-quarter results were affected by seasonality and severe winter weather in January, which shifted project and turnaround revenues into later quarters. However, he noted robust activity levels heading into the second quarter and reinforced Team's expectation for full-year top-line growth and at least a 15% year-over-year rise in adjusted EBITDA. CFO Nelson Haight echoed these sentiments, citing consistent execution and improving performance as enablers of the March refinancing deal. He also reiterated that adjusted EBITDA has improved annually since 2021, with further gains expected in 2025. Both executives highlighted ongoing initiatives to improve cost structure and operational efficiency, including optimization efforts in Canadian operations. The company faced headwinds in its MS segment due to reduced emergency callout demand and project delays, both weather-induced and operational. Meanwhile, the IHT segment benefited from increased demand for specialized inspection and heat treating services, particularly in the U.S. Energy, chemical and petrochemical sectors, which were major revenue contributors. Additionally, Team cited the successful execution of its strategic roadmap, including operational streamlining and cost control, as key to sustaining its positive trajectory. Notably, management launched a cost optimization initiative in the quarter, targeting annualized savings of at least $10 million. Looking forward, Team expects improved financial performance across both segments in the second quarter of 2025. Management reaffirmed its commitment to achieving at least 15% growth in adjusted EBITDA for the full year, supported by margin improvements, enhanced Canadian operations, and steady revenue gains. There was no specific guidance on earnings per share or revenue for upcoming quarters, but management remains optimistic about continued operational progress. A milestone in the quarter was the refinancing completed in March 2025. The transaction replaced near-term maturities with longer-term instruments, extending the term loan maturity to 2030 and lowering the blended interest rate by more than 100 basis points. The new capital structure includes a $175-million first lien term loan and a $50-million delayed draw term loan, alongside a $97.4-million second lien term loan. The refinancing also repaid approximately $158 million in debt and improved the company's financial flexibility. In sum, while Team's first-quarter 2025 results were mixed, with strong IHT performance offset by MS weakness, the company appears to be laying a solid foundation for full-year growth through strategic execution, improved cost structure, and a simplified balance sheet. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Team, Inc. (TISI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Q1 2025 Team Inc Earnings Call
Nelson Haight; Executive Vice President & Chief Financial Officer; Team Inc Keith Tucker; Chief Executive Officer; Team Inc Operator Good day, and welcome to the Team Inc first quarter update conference call. (Operator Instructions) I would now like to turn the conference over to Mr. Nelson Haight, Executive Vice President and Chief Financial Officer. Please go ahead, sir. Nelson Haight Thank you, operator. Good morning, everyone, and welcome to Team Inc's discussion about our first quarter 2025 operational and financial results. On the discussion today are Keith Tucker, our Chief Executive Officer; and myself, Nelson Haight, Chief Financial Officer. I want to remind you that management's commentary today may include forward-looking statements, including without limitation those regarding revenue, gross margin, operating expense, other income and expense, taxes, adjusted EBITDA, cash flow and future business outlook, which, by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially. For a discussion of some of the risk factors that could cause actual results to differ, please refer to the Risk Factors section of Team's latest annual and quarterly filings filed with the Securities and Exchange Commission, along with our associated earnings release. Team assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. With that, I will turn it over to Keith Tucker, our CEO. Keith Tucker Thank you, Nelson. Welcome, everyone, and thank you for joining us to review our first quarter of 2025 operational and financial highlights. During the first quarter of 2025, we continue to make progress against our strategic road map designed to better position team for success and improved financial performance. Over the past two years, we have worked to simplify our business, expand our margins and address our capital structure and balance sheet. Our success to date on these initiatives has Team well positioned to grow the top line and market share. The tangible improvements we have delivered in operating performance and cash flow generating over the past two years were key to completing the refinancing we announced in March 2025, which simplified our capital structure, lowered our blended interest rate by more than 100 basis points and extended our term loan maturities out to 2030. Nelson will go into more detail about this, but I believe the hard work from all of our employees at Team, has helped to make our success possible. Turning to the first quarter of 2025. We continue to deliver solid results. we made significant progress against one of our core commercial initiatives, growing revenue from midstream end markets by nearly 15% in the quarter. Our Inspection and Heat Treating segment delivered strong top line growth, with revenue up 6.8% over the prior year and up 8.8% in our core US operations. In our Mechanical Service segment, lower callout revenue and delays in project and turnaround activity shifted revenue into future periods, which offset the growth in our IHT segment. Overall, revenues were essentially flat year over over, but I want to remind you that our work is seasonal and while winter is usually our slowest time, we also experienced negative impacts to the top line from adverse weather in January that adversely impacted our customers and our activity levels. Having said that, we expect to see increases in year over over activity for the full year 2025. We delivered adjusted EBITDA for the first quarter of $5.3 million. Notably, our Inspection and Heat Treating segment generated a 39% year over over improvement and adjusted EBITDA, driven by year over over revenue growth of nearly 22% in our higher-margin heat treating services and 64% from our laboratory testing and inspection services facility in Cincinnati, Ohio. We continue to see benefits from our cost discipline in the first quarter with our selling, general and administrative expense lower by about $2 million versus the prior year period. We remain focused on driving revenue growth, strict cost discipline and improving operational execution. As previously discussed, in the first quarter, we kicked off a series of actions targeting further improvement in cost and operating efficiency that are expected to yield annualized cost savings of around $10 million. In addition, we have implemented steps to improve the performance of our Canadian operations. These actions are a mix of top line growth initiatives and improvements to our cost structure and margins. We expect to begin to see the results from these actions in our 2025 results with the full year impact realized in 2026. Looking ahead, while we continue to closely monitor the potential impact of tariff policies and related effect on our end markets, we've experienced strong activity levels to start the second quarter and expect second quarter top line growth over the prior year across both segments and improved adjusted EBITDA levels. We believe our diversified portfolio of service offerings across multiple industries and our geographic footprint positions us to better navigate recent macroeconomic uncertainty around tariff policies. Our management team is focused on the things that we can control, which are continued cost discipline and execution on our commercial initiatives, and we remain committed to delivering top line growth for the full year and at least 15% year over over growth in adjusted EBITDA. With that, I would like to turn it over to Nelson to discuss our financial accomplishments. Nelson Haight Thank you, Keith. Before I go into our first quarter results, I would like to discuss in more detail the recent actions we've taken to strengthen our balance sheet. As Keith mentioned, in March, we closed a refinancing transaction that lowered our blended interest rate by over 100 basis points, simplified our capital structure and extended our term loan maturities out to 2030. Our new first lien term loan facility consists of a funded $175 million term loan that matures in 2030 and a $50 million delayed draw term loan available to the company subject to satisfying certain conditions. We used the initial proceeds to repay about $158 million of outstanding debt, consisting of our delayed draw term loan and equipment and real estate loans under our ABL credit facility and a portion of the outstanding balance of our prior senior secured term loan. All remaining outstanding debt under the prior senior secured term loan rolled over into a new $97.4 million second lien term loan, also maturing in 2030. The completion of this transaction address all our near-term maturities and lowered our cost of capital while also providing the company financial flexibility as the company's performance continues to improve. Turning now to our first quarter financial results. Our revenue was essentially flat year over over, and our gross margin was 23.8%. Our adjusted selling, general and administrative costs, which excludes expenses not representative of our ongoing operations and noncash amounts such as depreciation and share-based compensation, declined by almost $1 million and represented 22.7% of consolidated revenue. Our adjusted net loss for the quarter was $14.9 million, also essentially flat with the first quarter of 2024. We delivered solid adjusted EBITDA of $5.3 million and continue to focus on expanding our margins through cost discipline and a focus on growing higher-margin work. Since 2021, we have increased our adjusted EBITDA every year and we believe that we will continue that trend in 2025. As Keith noted, we have continued to build off our strategic road map. And during the first quarter, we launched the next phase, targeting further cost optimization and improved workforce utilization. We expect this phase of our ongoing program to generate sustainable improvements to margins and cash flow and are targeting annualized cost savings of at least $10 million. We are in a significantly improved position compared to where we were three years ago, and I remain confident in our ability to continue building off our progress to date in improving our overall financial and operating performance. We expect to continue delivering improvements in our results that will ultimately lead to growth in shareholder value. With that, let me now turn it back over to Keith for some closing comments. Keith Tucker Thanks, Nelson. Over the past several years, we've made significant progress against our strategic plan designed to drive improved operational and financial performance. We expect to continue building off that progress in 2025. For the full year, we expect to see year over over growth in revenue, improved performance from our Canadian operations, at least 15% year over over growth in adjusted EBITDA and further meaningful progress towards our adjusted EBITDA target margin of at least 10%, all of which we believe will lead to further growth in shareholder value. Our progress to date would not be possible without our outstanding and experienced workforce that is working every day to safely execute our strategic plan and unlock the inherent value here at Team. I am very proud of our safety culture and our focus on continuous improvement, because at the end of the day, our people are our most vital asset and no job is too important not to be done safely. In closing, I remain confident about our future because I am a firm believer in our capabilities, talented employees and our leadership team. We have delivered improved results over the past three years, and we remain committed to continuous improvement in margin, cost discipline and cash flow generation. I believe that we are well positioned to sustainably and profitably grow Team well into the future. Thank you for joining us today and for your continued interest in Team. Operator The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Sign in to access your portfolio
Yahoo
13-05-2025
- Business
- Yahoo
Team: Q1 Earnings Snapshot
SUGAR LAND, Texas (AP) — SUGAR LAND, Texas (AP) — Team Inc. (TISI) on Monday reported a loss of $29.7 million in its first quarter. The Sugar Land, Texas-based company said it had a loss of $6.61 per share. Losses, adjusted for non-recurring costs, were $3.31 per share. The industrial services provider posted revenue of $198.7 million in the period. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on TISI at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Washington Post
12-05-2025
- Business
- Washington Post
Team: Q1 Earnings Snapshot
SUGAR LAND, Texas — SUGAR LAND, Texas — Team Inc. (TISI) on Monday reported a loss of $29.7 million in its first quarter. The Sugar Land, Texas-based company said it had a loss of $6.61 per share. Losses, adjusted for non-recurring costs, were $3.31 per share. The industrial services provider posted revenue of $198.7 million in the period.
