Core Insights - Permian Investment Partners has significantly increased its stake in TIC Solutions, acquiring nearly 4.9 million additional shares, bringing its total holdings to approximately 14.6 million shares valued at $193.9 million as of September 30 [2][3] - TIC Solutions now constitutes about 21.9% of Permian's reportable assets under management (AUM), making it the largest position in the portfolio [3][6] - The company's revenue for the third quarter reached $473.9 million, with adjusted EBITDA increasing by 51% year over year, despite reporting a net loss of $13.9 million [6][8] Company Overview - TIC Solutions, Inc. specializes in nondestructive testing and inspection services, operating across the United States and Canada [4] - The company has a market capitalization of $2.3 billion and trailing twelve-month (TTM) revenue of $1.1 billion, with a net income loss of $121.2 million [4] - The stock price as of the latest report is $10.34, reflecting a nearly 20% decline since its NYSE listing in February [3][4] Investment Rationale - The investment in TIC Solutions reflects a belief in the company's recurring, compliance-driven revenue model, which is less susceptible to cyclical economic fluctuations [5][8] - The company is positioned in a sector where services are often mandated and repeat in nature, suggesting a stable revenue profile that can grow over time [5] - TIC's liquidity remains strong, with $282.9 million available at the end of the quarter, providing flexibility for future growth initiatives [7][8]

Core Insights - Progeny 3 increased its stake in TIC Solutions by 255,800 shares, raising its total position to 15.3 million shares valued at $203.1 million, making it the fund's second-largest holding [2][8] - TIC Solutions shares are currently priced at $9.42, reflecting a 27.5% decline over the past year, underperforming the S&P 500, which has increased by 12.5% in the same period [3][10] - The company is undergoing a significant rebranding and integration process following the Acuren-NV5 combination, with management emphasizing accelerating synergies and a larger operational platform [6][10] Company Overview - TIC Solutions, formerly known as Acuren, operates within the specialty business services segment, employing thousands and maintaining a strong presence in North America [5] - The company focuses on high-value, compliance-driven testing and engineering services, which are essential for clients' operational safety and regulatory compliance [5] - TIC Solutions is projected to achieve full-year service revenue between $1.53 billion and $1.565 billion for 2025, with adjusted EBITDA expected to be between $240 million and $250 million [9] Investment Perspective - Progeny 3's increased investment in TIC Solutions indicates confidence in the company's strategic transformation and potential for future growth [6][10] - TIC now represents 10.5% of Progeny 3's U.S. equity portfolio, highlighting its status as a high-conviction holding [8] - Despite the current stock performance, the market has not fully recognized the potential of TIC's combined platform, suggesting possible upside if management's projections for synergy capture and margin expansion are realized [10]