Team, Inc. Q3 FY2025 earnings call

• Thanked employees for their hard work contributing to recent successes. - Revenue grew almost 7% year-over-year, with gross margin up 8.4% and adjusted EBITDA at 28.6% (highest third quarter since at least 2016). - Adjusted EBITDA increased by $3.2 million year-over-year, with margin up 110 basis points to 6.5% of consolidated revenue. - Adjusted selling, general, and administrative expense lowered to 20.8% of consolidated revenue vs 21.7% in 2024. - Completed private placement of preferred stock with Stellix in September 2025, strengthening balance sheet and enhancing financial flexibility. - Liquidity at $57.1 million as of September 30, 2025, consisting of $10.6 million unrestricted cash and $46.5 million undrawn availability under credit facilities. - Adjusted EBITDA up 12% year-over-year for first nine months of 2025, adjusted SG&A expenses as % of revenue down 70 basis points.

In the third quarter, the inspection and heat treating (IHT) segment saw 5.7% overall revenue growth, driven by strong nested and call-out activity in the U.S. and 8.9% growth in international operations including Canada. The Mechanical Services (MS) segment had strong revenue growth of 7.8% or $8 million, led by increased turnaround demand in the U.S. operations and improved year-over-year performance in Canada. Revenue grew almost 7% year-over-year, with gross margin increasing by 8.4% and adjusted EBITDA up to 28.6% for the third quarter.

• Full-year 2025 revenue growth expected to be approximately 5% and adjusted EBITDA growth approximately 13%. - Expect fewer non-recurring professional fees and adverse working capital trends to reverse in the fourth quarter, improving future free cash flow. - Aim for adjusted EBITDA target margin of at least 10%.

• Management's commentary includes forward-looking statements which are uncertain and actual results may differ materially. - Risk factors discussed in Team, Inc.'s latest annual and quarterly filings with the Securities and Exchange Commission.