SUGAR LAND, Texas, Aug. 12, 2025 (GLOBE NEWSWIRE) -- Team, Inc. (NYSE: TISI) (“TEAM” or the “Company”), a global, leading provider of specialty industrial services offering customers access to a full suite of conventional, specialized, and proprietary mechanical, heat-treating, and inspection services, today reported its financial results for the quarter ended June 30, 2025. Second Quarter 2025 Highlights: Generated revenue of $248.0 million, up $19.4 million, or 8.5% over the second quarter of 2024.Grew gr ...

Financial Data and Key Metrics Changes - The company reported a 19% increase in operating earnings for Q4 and a 15% increase for the year [9] - EPS grew by 13% in Q4 and over 9% for the year [9] - Adjusted free cash flow for the year was $2.5 billion, exceeding expectations by $500 million [10] - Total company revenue was $60.2 billion, relatively flat on a reported basis, but increased by 21% when adjusting for contract expiration [10][11] - Gross profit grew 17% to $2.2 billion, with a gross margin improvement of approximately 50 basis points [11] Business Line Data and Key Metrics Changes - Pharmaceutical segment revenue was flat at $55.4 billion, but increased by 22% excluding customer contract expiration, driven by brand and specialty pharmaceutical sales [14] - The GMPD segment saw a 3% revenue increase to $3.2 billion, with segment profit reaching $70 million, its highest profit quarter [16] - Other growth businesses reported a 37% revenue increase to $1.6 billion, with segment profit increasing 44% to $160 million [17] Market Data and Key Metrics Changes - The company experienced strong pharmaceutical demand across all business areas, including brand, specialty, generics, and consumer health [14] - The At Home Solutions segment, including the ADS acquisition, saw significant growth, contributing to the overall revenue increase [18] Company Strategy and Development Direction - The company is focused on driving simplification and operational efficiencies while making strategic investments for growth [5] - The acquisition of Solaris Health is expected to enhance the company's position in the specialty market, particularly in urology [6][35] - The company aims to expand its distribution capabilities and modernize its technology platforms to support long-term growth [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal year 2026, expecting EPS growth of 13% to 15% [21] - The company remains confident in its resilient business model and ability to navigate regulatory changes [46] - Management highlighted strong demand across the business and a positive outlook for the upcoming fiscal year [62] Other Important Information - The company completed four strategic acquisitions during the year, including Green Specialty and At Home Solutions [10] - The ending cash balance for fiscal year 2025 was $3.9 billion, reflecting strong cash flow generation [20] Q&A Session Summary Question: Can you discuss the updated guidance for the Pharmaceutical and Specialty Solutions division? - Management confirmed that the guidance was raised by $0.20, with half attributed to liability classification and the other half to higher expectations for Pharma and other businesses [50] Question: What are the drivers of the SG&A increase quarter over quarter? - Management indicated that the increase in SG&A was primarily due to recent acquisitions, with ongoing efforts to simplify and optimize operating costs [55] Question: Can you elaborate on the gross profit performance in the quarter? - Management noted that the margin expansion was driven by a favorable mix, particularly from specialty distribution and MSO acquisitions [66] Question: What are the utilization trends across the GMPD segment? - Management stated that utilization remains consistent, with ongoing efforts to increase penetration of Cardinal Health branded products [72] Question: What capabilities does Solaris Health bring to the company? - Management highlighted that Solaris Health adds over 750 providers and diverse revenue streams, enhancing the company's MSO structure [81]

Financial Data and Key Metrics Changes - The company announced nearly $750 million in adjusted EBITDA and over $120 million in adjusted free cash flow for the quarter, with oil volumes growing 6% quarter over quarter [15][16] - Cash operating expenses on a unit basis were more than 10% lower, and capital investments were at the low end of the plan due to lower well costs and improved cycle times [15][16] - The company anticipates achieving a net debt target of $4.5 billion by the end of the year [9][25] Business Line Data and Key Metrics Changes - The company reported significant operational efficiencies in the Permian Basin, with 50% of wells drilled and 30% of completions occurring in the Delaware [18] - In the Midland Basin, the average daily footage drilled per well exceeded 1,850 feet, and production commenced on several new pads [19] - The DJ Basin also showed efficiency gains, with drill times for four-mile laterals averaging about six days [20] Market Data and Key Metrics Changes - The company is approximately 60% hedged on oil for the remainder of the year, which is about twice the normal levels [11] - The divestment of $435 million in non-core DJ Basin assets is expected to close around the end of the third quarter, with production from these assets estimated at around 10,000 barrels equivalent per day for next year [13] Company Strategy and Development Direction - The company has four clear priorities for 2025: maximizing free cash flow, strengthening the balance sheet, returning cash to shareholders, and leading in ESG initiatives [8][10] - An aggressive capital returns plan has been reinstated, with a buyback authorization exceeding 25% of the market cap [10][14] - The company aims to allocate 50% of free cash flow after the base dividend to share buybacks annually, with a target of $375 million in repurchases for the current year [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the $4.5 billion net debt goal and emphasized the importance of a strong balance sheet for executing the company's strategy [30][56] - The recent Tax Act is expected to provide over $200 million in savings over the next five years, ensuring minimal cash taxes for the foreseeable future [16] - Management highlighted the need for continued operational improvements and cost leadership to enhance shareholder value [46][56] Other Important Information - The company has optimized investment levels to focus on higher free cash flow and returns, and has proactively issued $750 million in new senior notes to enhance liquidity [11][12] - The company is on track with a $100 million cost optimization initiative, with approximately 80% of the savings captured to date [21][66] - The annual sustainability report was published, detailing the company's performance and sustainability initiatives [16] Q&A Session Summary Question: Strategy shift and balance sheet comfort - Management indicated that recent steps, including incremental hedges and divestments, have positioned the company advantageously for capital returns [29][30] Question: 2026 plans post-strategy shift - The company plans to hold production flat at a lower level of CapEx following asset sales, with a focus on optimization [32][33] Question: Initial impressions of operations - Management noted good asset quality and operational execution, with ongoing efforts to improve efficiency and reduce costs [38][39] Question: CEO search attributes - The company seeks a CEO who can set strategy, allocate capital effectively, and enhance performance without a complete strategic overhaul [45][46] Question: Dividend levels and stock buybacks - Management reaffirmed commitment to the base dividend while also implementing an accelerated repurchase program [61] Question: Cycle time reductions and efficiency - Management highlighted a mix of proprietary methods and vendor solutions to improve cycle times and reduce costs [96][97]

Financial Data and Key Metrics Changes - The company reported nearly $750 million in adjusted EBITDA and over $120 million in adjusted free cash flow for the quarter, with oil volumes growing 6% quarter over quarter [14][15] - Cash operating expenses on a unit basis were more than 10% lower, and capital investments were on the low end of the plan due to lower well costs and improved cycle times [14][15] - The company anticipates a significant increase in volumes and lower capital and operating costs, expecting a meaningful ramp in both EBITDA and free cash flow in the second half of the year [15] Business Line Data and Key Metrics Changes - The company optimized investment levels focusing on higher free cash flow and returns, with approximately 60% of oil hedged for the remainder of the year, which is about twice the normal levels [10][11] - The divestment of $435 million in non-core DJ Basin assets is expected to close around the end of the third quarter, with production from these assets estimated at around 10,000 barrels equivalent per day for next year [12][13] - The company plans to allocate 50% of free cash flow after the base dividend to share buybacks annually, amounting to about $375 million in repurchases for the current year [13] Market Data and Key Metrics Changes - The company has around $2 billion in financial liquidity and anticipates no borrowings outstanding on its credit facility by the end of the year [11] - The recent Tax Act is expected to provide over $200 million in savings over the next five years, ensuring minimal cash taxes for the foreseeable future [15] Company Strategy and Development Direction - The company has four clear priorities for 2025: maximizing free cash flow, strengthening the balance sheet, returning cash to shareholders, and leading in ESG initiatives [7][8] - The company aims to achieve a net debt target of $4.5 billion by the end of the year, with a focus on operational execution and cost leadership [7][25] - The company is committed to a strong base dividend while also implementing an aggressive capital returns plan, including a buyback authorization that is over 25% of its market cap [8][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving debt reduction targets and emphasized the importance of a strong and sustainable capital return to shareholders [25] - The company is focused on optimizing its resource base and driving costs out of the system, with a commitment to continuous improvement in operational execution [25] - Management acknowledged the macro volatility but remains optimistic about the company's ability to navigate challenges and enhance shareholder value [7][25] Other Important Information - The company has appointed Wouter van Kempen as Interim CEO following the departure of Chris Doyle, with a focus on enhancing execution and performance [5][6] - The company has exceeded its full-year target for non-core asset sales, achieving a 4x multiple on 2026 cash flow for the divested assets [12] Q&A Session Summary Question: Strategy shift and comfort with balance sheet - Management highlighted that recent steps, including incremental hedges and divestments, have positioned the company advantageously for capital returns [30][31] Question: 2026 plans post-strategy shift - The company plans to hold production flat at a lower level of CapEx following asset sales, with ongoing optimization efforts [33][34] Question: Initial impressions of Civitas operations - Management noted strong asset quality and operational performance, with ongoing efforts to improve efficiencies and reduce costs [39][40] Question: CEO search attributes and timeline - The company is looking for a CEO who can set strategy, allocate capital effectively, and build a strong culture, with a timeline of around six months for the search [46][48] Question: Dividend levels and stock buybacks - Management reaffirmed commitment to the base dividend while also implementing an accelerated repurchase program, which will save on future dividends [64][65] Question: Cost reduction opportunities in the DJ Basin - Management indicated ongoing efforts to lower costs and improve performance, with significant progress already made [68][69] Question: Inventory assessment across basins - The company has a total of 2,000 locations, with better returns currently seen in the Permian Basin, but ongoing improvements are expected across all areas [74][75]

Core Insights - Espresso AI has launched a Kubernetes Scheduler for Snowflake that optimizes query routing between data warehouses in real time, aiming to reduce costs by 50% for users [1][4] - The new scheduling solution addresses the limitations of Snowflake's current system, which requires users to choose between overprovisioned or underutilized warehouses, leading to performance issues and budget overruns [2][3] Company Overview - Espresso AI was founded by three ex-Googlers with backgrounds in machine learning and deep learning research, specifically from Google DeepMind and Google Cloud [5][6] - The company has successfully raised $11 million in seed funding from notable investors including FirstMark Capital, Nat Friedman, and Daniel Gross [5] Product Features - The Kubernetes Scheduler dynamically allocates workloads by routing queries to warehouses with available capacity, akin to an "Uber Pool" model for queries [3] - In cases where no existing warehouse can handle a request, the system can automatically spin up a new warehouse and subsequently downsize it when not needed, leading to significant cost savings [4]

Financial Data and Key Metrics Changes - In the second quarter, the company reported net sales of $483 million, a 4% increase from the prior year, with organic volumes increasing by 2% [18] - Adjusted EBITDA was $75.5 million, reflecting a sequential increase of approximately $6 million, with adjusted EBITDA margins at 15.6% [9][20] - Gross margins were slightly lower at 36%, influenced by higher raw material and manufacturing costs, but remained within the target range [9][19] Business Line Data and Key Metrics Changes - The Asia Pacific segment achieved 3% organic sales growth, driven by strong contributions from new business wins and acquisitions, with sales increasing by 20% year over year [21] - The EMEA segment saw net sales growth compared to the prior year and quarter, with organic volumes increasing by 4% sequentially [22] - The Americas segment experienced a 1% decline in net sales year over year, with volumes down 2% [23] Market Data and Key Metrics Changes - The overall market served by the company is estimated to have declined by a low single-digit percentage compared to the prior year, with regional differences noted [7] - Demand uncertainty due to tariffs is impacting overall demand and geographic/product mix [8] Company Strategy and Development Direction - The company is focused on reducing complexity and improving cost structure to support long-term performance [6] - Investments are being made in new manufacturing capabilities and innovation to enhance customer solutions [10][11] - The integration of Dipsol's technology is expected to contribute positively to the company's portfolio [12] Management's Comments on Operating Environment and Future Outlook - Management anticipates that end market softness will persist through 2025, but remains confident in the ability to drive above-market growth [14][15] - The company is taking actions to enhance competitiveness and expects to deliver solid cash flow in 2025 [26][28] - Management expressed confidence in sustaining a long-term growth rate of 2% to 4% despite external market challenges [15][37] Other Important Information - The board approved a 5% increase in cash dividends, marking the sixteenth consecutive annual increase [14] - The company repurchased $33 million of shares and has $68 million remaining on its share repurchase authorization [28] Q&A Session Summary Question: Can you provide more details on the share gains and their sustainability? - Management noted broad-based share gains across all regions, particularly strong in Asia Pacific, and expressed confidence in sustaining a mid-single-digit growth rate into the second half of the year [35][37] Question: What is the outlook for Asia Pacific margins and raw material impacts? - Management indicated that new business wins may initially impact margins but expect stability and modest improvement in the second half, with targeted pricing actions in response to raw material costs [39] Question: What is the expected EBITDA growth cadence for the second half? - Management expects the second half to be stronger than the first, driven by new business wins and cost actions, but does not anticipate significant market improvement [41][46] Question: Can you elaborate on the double-digit growth in advanced products? - Management confirmed that advanced solutions, including Fluid Intelligence, are seeing strong traction and represent about 20% of total revenues, with higher growth rates than the corporate average [53] Question: What are the implications of tariffs on customer inventory and strategy? - Management noted that customers are cautious about building inventory due to uncertainty, but there is potential for positive impacts in North America [63] Question: What changes are being made to the commercial strategy? - Management highlighted improvements in organizational structure and operational efficiency to reduce complexity and enhance growth potential [66]

Financial Performance - Q2 2025 revenue reached $423 million, an 8% increase quarter-over-quarter[10, 13] - Adjusted EBITDA for Q2 2025 was $94 million, representing 22% of revenue[10] - Adjusted Free Cash Flow was $36 million, or 9% of revenue, highlighting margin improvements and capital discipline[10] - The company reaffirms its 2025 revenue expectation at approximately $17 billion and Adjusted EBITDA of at least $350 million[7, 48, 51] - The company targets shareholder returns of approximately one-third of Adjusted Free Cash Flow, or around $40 million[48, 51] Regional Performance - North & Latin America (NLA) revenue was $143 million, a 6% increase quarter-over-quarter[12, 13, 19] - Europe & Sub-Saharan Africa (ESSA) revenue was $132 million, an 18% increase quarter-over-quarter[12, 13, 27, 28] - Middle East & North Africa (MENA) revenue was $91 million, a 3% decrease quarter-over-quarter[12, 13, 33] - Asia Pacific (APAC) revenue was $57 million, a 12% increase quarter-over-quarter[12, 13, 39] Business Strategy and Outlook - The company is executing its Drive25 operating efficiency campaign, aiming to reduce steady-state support costs by over $30 million, with approximately 50% of the targeted annual savings expected to be reflected in 2025 financial results[8, 54, 60] - The company anticipates mid-single-digit revenue growth in the second half of the year compared to the first half, with Q3 revenue expected to be relatively flat compared to Q2, and revenue growth expected in Q4[49]

Financial Data and Key Metrics Changes - Tilray achieved record annual revenue of $821 million, a 4% increase year over year on a constant currency basis, and $834 million, a 6% increase year over year [7][36] - The company reported a gross profit of $241 million, an 8% increase year over year, and the highest gross margin at 29%, up from 28% in the prior year [8][42] - A net loss for fiscal year 2025 increased to $2.2 billion, or $2.46 per share, compared to a loss of approximately $220 million in the prior year [43][44] Business Line Data and Key Metrics Changes - International cannabis revenue reached $22.4 million in Q4, up 71% year over year, with a full year growth of approximately 20% [7][13] - The Canadian cannabis revenue totaled $186 million, with a market share of 9.3% in the adult recreational segment [18][19] - Beverage revenue increased by 19% year over year, but was impacted by SKU rationalization, resulting in a revenue reduction of $20 million [25][40] Market Data and Key Metrics Changes - The international cannabis business saw significant growth, particularly in Germany, where revenue grew 134% year over year in Q4 [14][17] - The Canadian market is stabilizing, with more retail stores opening and consumers shifting from the illicit market [66][67] - The wellness segment reported net revenue of over $60 million, representing a 9% growth year over year [31][32] Company Strategy and Development Direction - The company is focused on solidifying its global leadership in cannabis and expanding its beverage and wellness business through innovation and strategic acquisitions [6][11] - Tilray aims to strengthen its balance sheet through further strategic debt restructuring in fiscal year 2026 [8][48] - The company is well-positioned to expand its market share across Europe, supported by vertically integrated operations and EU GMP cultivation facilities [14][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, despite the non-cash impairment charges, emphasizing confidence in the intrinsic value of assets and long-term strategy [10][45] - The company anticipates continued growth in international markets and is focused on addressing regulatory challenges to capitalize on opportunities [73][76] - Management highlighted the potential for regulatory reforms in Canada that could enhance market conditions and reduce excise taxes [67][68] Other Important Information - The company has reduced its debt by approximately $100 million and improved its net debt to EBITDA ratio to 0.3 times from 1.7 last year [8][48] - The beverage segment is undergoing a transition with the integration of craft brands and a focus on operational optimization [24][27] Q&A Session Summary Question: What is the current status of import rights and delays? - Management indicated that issues with legal permits in Portugal are being resolved, and they expect to see a pickup in shipments within the first and second quarters [61][62] Question: How is the Canadian market evolving? - Management noted that the Canadian market is stabilizing with more retail stores opening and consumers increasingly purchasing from legal sources rather than the illicit market [65][66] Question: What are the growth expectations for international markets next year? - Management highlighted that there are significant opportunities in Europe and other international markets, with plans for substantial growth built into their strategy [75][76]

Financial Data and Key Metrics Changes - IT services revenue for Q1 was $2.59 billion, reflecting a 2% decline in constant currency terms, within guidance range [6][21] - IT services margin was 17.3%, an expansion of 80 basis points year on year [6][22] - Net income grew 10.9% year on year in Q1, with EPS at INR 3.2, a growth of 10.8% year on year [25][26] - Free cash flow as a percentage of net income was robust at 115% for the quarter [26][119] Business Line Data and Key Metrics Changes - BFSI sector saw a decline of 3.8% sequentially and 3.5% year on year, while healthcare grew 0.5% sequentially and 3.5% year on year [24] - Consumer sector declined 4% sequentially and 5% year on year, with technology and communications growing 0.4% sequentially but declining 3% year on year [24] - Capco continued to perform well, growing 6.1% year on year [25] Market Data and Key Metrics Changes - Americas market grew 1.5% year on year in constant terms, with strong deal momentum [6][23] - Europe faced a decline of 6.4% sequentially and 11.6% year on year [23] - Digital spending in India, Middle East, and Southeast Asia remained resilient [6] Company Strategy and Development Direction - Company is focusing on AI, data, and modernization programs, aligning with client priorities [4][5] - Emphasis on vendor consolidation and cost optimization as key drivers for deal wins [11][12] - Company aims to build an AI-first enterprise, integrating AI capabilities into industry solutions [16][17] Management Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macro environment, highlighting ongoing geopolitical uncertainties and tariff impacts [37][39] - Strong order book and healthy pipeline provide confidence for long-term value delivery [18] - Guidance for Q2 indicates a sequential growth range of -1% to +1% in constant currency terms [28] Other Important Information - The board declared an interim dividend of INR 5 per share, distributing over $1.3 billion in cash in the last six months [27][120] - The company revised its capital allocation policy to pay out a minimum of 70% of net income over three years [27] Q&A Session Summary Question: What is the macro outlook right now? - Management acknowledged ongoing uncertainty due to geopolitical factors and tariffs, but noted strong deal momentum in BFSI and technology sectors [37][39] Question: What powered the Americas One performance despite sector declines? - Strong performance in health and communications sectors contributed to the growth in Americas One [40] Question: Is discretionary demand returning? - Discretionary spending is returning in certain pockets, particularly in AI and modernization projects [45] Question: How is AI impacting hiring and headcount changes? - AI efficiency is evolving, and while there is a need for AI-trained talent, the correlation between AI and hiring is not yet strong [48] Question: How are acquired companies contributing to growth? - Capco has performed well, growing 6% year on year, with robust bookings expected to continue [79]

Core Insights - Ericsson reported mixed second-quarter 2025 results, with adjusted earnings exceeding estimates while revenues fell short due to regional weaknesses [1][3][10] Financial Performance - Net income for Ericsson was SEK 4.6 billion ($476 million), a significant recovery from a loss of SEK 11 billion in the prior-year quarter, with adjusted earnings beating the Zacks Consensus Estimate [2][10] - Total revenues amounted to SEK 56.1 billion ($5.8 billion), down 6% year over year, and missed the Zacks Consensus Estimate of $5.94 billion, although organic sales improved by 2% [3][10] Segment Results - The Networks segment generated SEK 35.7 billion ($3.67 billion), a 5% decline from the previous year, missing revenue estimates of SEK 42 billion, but gross margin improved to 49.5% from 46.1% [4] - Cloud Software and Services revenues decreased by 5% year over year to SEK 14.4 billion ($1.49 billion), slightly below estimates, while gross margin improved to 43.2% from 37.2% [5] - The Enterprise segment reported SEK 5.5 billion ($569 million), down 14% from the prior year, but net sales exceeded estimates [6] Regional Performance - South-East Asia, Oceania, and India revenues fell to SEK 5.5 billion ($569 million) from SEK 7.7 billion, while North East Asia saw a 17% decline to SEK 3.8 billion ($393 million) [7] - Revenues from the Americas remained stable at SEK 19.8 billion ($2.04 billion), and Europe, Middle East, and Africa experienced a 6% decline to SEK 16.2 billion ($1.67 billion) [8] Other Financial Metrics - Gross income, excluding restructuring charges, improved to SEK 27 billion ($2.79 billion) from SEK 26.3 billion, with a gross margin of 48% compared to 43.9% in the previous year [11] - Cash generated from operating activities was SEK 4.2 billion ($434 million), with net cash of SEK 36.04 billion ($3.8 billion) as of June 30, 2025 [12] Outlook - For Q3 2025, revenues from Networks and Cloud Software and Services are expected to align with historical seasonality, with gross margin in the Networks segment projected between 48-50% [13]