Team, Inc. Reports Third Quarter 2025 Results

Core Insights - Team, Inc. reported a solid third quarter with revenue increasing by 6.7% year-over-year to $225.0 million, driven by growth in Mechanical Services and Inspection & Heat-Treating segments [4][6][7] - The company completed a private placement of preferred stock with Stellex Capital Management, enhancing its financial flexibility and balance sheet [4][5] - Adjusted EBITDA increased by 28.6% to $14.5 million, marking the best third quarter performance since 2016 [4][9] Financial Performance - Third quarter revenues reached $225.0 million, up $14.2 million or 6.7% year-over-year, primarily from U.S. Mechanical Services and Inspection & Heat-Treating businesses [6][7] - Gross margin improved to $58.0 million, an increase of $4.5 million or 8.4% compared to the same quarter in 2024 [7][26] - The company reported a net loss of $11.4 million, compared to a net loss of $11.1 million in the third quarter of 2024 [9][25] Segment Performance - Inspection and Heat-Treating (IHT) revenues grew by $6.2 million or 5.7%, with U.S. revenue up 5.3% [12][33] - Mechanical Services (MS) revenues increased by $8.0 million or 7.8%, with U.S. revenue up 12.6% [12][33] - IHT operating income rose by 16.9% to $11.5 million, while MS operating income increased by approximately 31.2% [13][33] Balance Sheet and Liquidity - As of September 30, 2025, the company had total liquidity of $57.1 million, including $10.6 million in cash and cash equivalents [17][18] - Total debt decreased to $302.8 million from $325.1 million at the end of fiscal year 2024, primarily due to the preferred stock sale [18][27] Future Outlook - The company expects year-over-year top-line growth and improved Adjusted EBITDA in the fourth quarter [5] - For the full year, revenue is anticipated to increase by approximately 5% and Adjusted EBITDA by approximately 13% [5]