Team, Inc. Q4 FY2025 earnings call

Gary Hill, CEO, mentioned being honored to lead Team, having spent time connecting with employees, customers, and stakeholders, seeing opportunities to expand wallet share with existing customers and grow in end markets like aerospace and midstream, aiming to accelerate top-line growth, enhance efficiency, reduce costs, and continue strengthening the organization through investment in people and infrastructure, with safety being a top priority. Nelson Haight, CFO, stated that over the last three years, Team focused on simplifying business, strengthening capital structure and balance sheet, and improving margins. 2025 results reflected operational and commercial initiatives with revenue, margins, and adjusted EBITDA growth. In March 2025, lowered blended interest rate and extended term loan maturities. In September 2025, closed on a $75 million private placement of preferred stock and warrants, amended ABL credit facility and first lien term loan facility for more flexibility and lower interest rates. Net debt at the end of 2025 was $279 million, down from 2024, and liquidity was strong. Fourth quarter and full year showed positive trends in revenue, operating income, adjusted EBITDA, with cost management program having an impact on SG&A expense.

For the fourth quarter, revenue increased by 11.5 million, or 5.4%, year-over-year. The mechanical services segment grew by 8.9% and the inspection and heat treating segment grew by 1.9%. For the full year 2025, revenue increased by 44 million, or 5.2%, year-over-year. The inspection and heat treating segment grew by 7.5% and the mechanical services segment grew by 2.8%. In terms of adjusted EBITDA, for the full year 2025, it was $60.7 million, a roughly 12% improvement over 2024, and the adjusted EBITDA margin expanded to almost 7% in 2025 from 6.4% in 2024. In the fourth quarter, adjusted selling general and administrative expense was lowered by $1 million in absolute terms and 150 basis points as a percentage of revenue compared to the prior year period, and adjusted EBITDA was higher by nearly 2 million to $16.4 million.

Gary said that heading into 2026, Team expects to continue growth in top line and adjusted EBITDA. Since his recent transition to CEO, they will not provide guidance on fiscal year 2026 at this time, but will present a more wholesome update with longer-term plans and 2026 guidance after the end of the fiscal quarter.

Refer to the risk factors section of Team Inc.'s latest annual and quarterly filings filed with the Securities and Exchange Commission, along with our associated earnings release for discussion of risk factors.

None