TEAM, Inc. Reports Fourth Quarter and Full Year 2025 Results

Core Insights - TEAM, Inc. reported strong financial results for Q4 and full year 2025, with a 5.4% revenue growth in Q4 to $224.8 million and a 5.2% increase for the full year to $896.5 million, driven by growth in the U.S. and Canada [5][10] - The company aims to accelerate commercial execution and top-line growth in 2026 by deepening customer relationships and expanding into new markets such as aerospace and power [5][24] - Despite recent market volatility due to geopolitical events, the company remains optimistic about revenue and Adjusted EBITDA growth in 2026 [5] Fourth Quarter 2025 Highlights - Revenue for Q4 2025 was $224.8 million, a 5.4% increase from Q4 2024, with U.S. revenue growing by 4.9% and Canadian revenue by 21.6% [6][7] - Consolidated Adjusted EBITDA improved by 12.1% to $16.4 million, representing 7.3% of revenue [6][9] - The net loss for Q4 2025 was $3.8 million, an improvement of 47.4% compared to the prior year [9] Full Year 2025 Highlights - Total revenue for 2025 reached $896.5 million, up 5.2% from $852.3 million in 2024, with U.S. revenue increasing by 6.7% and Canadian revenue by 14.7% [10][12] - Consolidated Adjusted EBITDA for the year was $60.7 million, an 11.9% increase, representing 6.8% of revenue [12] - The net loss for 2025 was $49.2 million, which included a $13.1 million loss on debt extinguishment [12] Segment Results - In Q4 2025, the Industrial Heat Treating (IHT) segment generated $108.5 million in revenue, a 1.9% increase, while the Mechanical Services (MS) segment saw revenue rise by 8.9% to $116.3 million [15][38] - For the full year, IHT revenue increased by 7.5% to $458.9 million, and MS revenue grew by 2.8% to $437.6 million [19][20] - Operating income for Q4 2025 was $6.6 million, a 200.6% increase from the previous year, with IHT operating income decreasing and MS operating income improving significantly [16][20] Balance Sheet and Liquidity - As of December 31, 2025, the company had total liquidity of $77.4 million, including $14.1 million in cash and $63.4 million in undrawn credit facilities [22] - Total debt decreased to $297.2 million from $325.1 million in 2024, primarily due to debt paydowns following the issuance of preferred stock and warrants [23] 2026 Outlook - The company is not providing full-year guidance at this time due to leadership changes but plans to review strategic priorities and operational plans [24]