8-K: TEAM, Inc. Reports Q1 2026 Results, Revenue Up 8.3%

TEAM, Inc. announced first quarter 2026 financial results, showing an 8.3% increase in revenue to $215.1 million and a significant improvement in Adjusted EBITDA.

Summary

• TEAM, Inc. reported first quarter 2026 revenues of $215.1 million, an increase of 8.3% ($16.4 million) compared to the first quarter of 2025.
• Gross margin for the quarter was $50.2 million, up 6.1% ($2.9 million) year-over-year.
• The company reported a net loss of $11.3 million, an improvement of $18.4 million from the prior year period.
• Adjusted EBITDA increased by 45.2% to $7.7 million (3.6% of consolidated revenue) from $5.3 million (2.7% of consolidated revenue) in Q1 2025.
• Adjusted Selling, General and Administrative Expense improved to 21.2% of consolidated revenue, down from 22.7% in the prior year.
• Full-year 2026 guidance projects revenue between $920 million and $945 million, with Adjusted EBITDA expected between $68 million and $73 million.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report, with strong revenue growth, significant improvements in profitability metrics like Adjusted EBITDA, and optimistic full-year guidance, despite a continued net loss.

Positives

• Revenue growth of 8.3% to $215.1 million, the highest Q1 revenue since 2019.
• Gross margin increased by 6.1% to $50.2 million.
• Net loss improved significantly by $18.4 million to $11.3 million.
• Adjusted EBITDA surged by 45.2% to $7.7 million, with a 90-basis point improvement in margin.
• Adjusted SG&A as a percentage of revenue improved by 150 basis points to 21.2%.
• Inspection & Heat-Treating segment revenue grew 8.6% driven by increased project and callout activity.
• Mechanical Services revenue increased 7.8% due to higher project and turnaround activity.
• Full-year 2026 guidance indicates substantial increases in revenue, gross margin, and Adjusted EBITDA.

Negatives

• The company reported a net loss of $11.3 million for the quarter.
• Net loss attributable to common shareholders was $14.2 million, or $3.12 per share.
• Total debt increased to $306.5 million as of March 31, 2026, from $297.2 million at fiscal year-end 2025.
• Net debt was $293.7 million at the end of the quarter.
• Free Cash Flow was negative at $(11.5) million for the quarter.

Risks

• Potential for negative market conditions, including domestic and global inflationary pressures.
• Impact of changes in global trade policies and tariffs, and future economic uncertainties.
• The company's liquidity and ability to obtain additional financing.
• Impact of new or changes to existing governmental laws and regulations and their application.
• Outcome of tax examinations, changes in tax laws, and other tax matters.
• Foreign currency exchange rate and interest rate fluctuations.
• Ability to repay, refinance, or restructure debt.
• Maintaining compliance with New York Stock Exchange continued listing requirements.

Future Outlook

For the full year 2026, TEAM, Inc. is guiding for total company revenue between $920 million and $945 million, gross margin between $240 million and $260 million, and Adjusted EBITDA between $68 million and $73 million. Capital expenditures are expected to be between $13 million to $14 million. The company anticipates a healthy second quarter with stronger performance expected in the second half of the year.

Management Comments

• "We delivered a solid start to 2026, with first-quarter revenues rising 8.3% year-over-year to $215.1 million - our highest Q1 revenue since 2019."
• "Our Inspection & Heat-Treating segment grew 8.6%, or $9.8 million, boosted by increased project and callout activity in the U.S. and Canada."
• "In my first 100 days as CEO, I've been deeply impressed by the talent, technical expertise, and customer focus across the organization, and I've seen firsthand the value we deliver to our customers through best-in-class service, quality and safety."
• "Building on the momentum we established in 2025, I am focused on accelerating that pace of improvement by sharpening our commercial execution, strengthening the team with targeted talent additions, and accelerating cost efficiency initiatives."
• "I am excited about TEAM's potential and remain confident in our ability to deliver profitable top-line growth, expand margins, and generate stronger cash flow."

Industry Context

StockSavvy.ai notes that TEAM, Inc.'s reported revenue growth and improved profitability metrics in Q1 2026 align with a general trend of recovery and increased activity in the industrial services sector, particularly in areas like turnarounds and capital projects, following periods of economic uncertainty.

Stakeholder Impact

• Shareholders may see positive sentiment due to revenue growth and improved profitability, though the net loss persists.
• Employees may benefit from the focus on strengthening the team and accelerating cost efficiencies, potentially leading to improved operational stability.
• Customers are expected to continue receiving best-in-class service, quality, and safety, with increased project and turnaround activity indicating demand for TEAM's services.

Next Steps

• Further details on the go-forward plan will be shared in the second quarter call.
• Focus on accelerating improvement through sharpening commercial execution, strengthening the team, and accelerating cost efficiency initiatives.
• Continued focus on gross margin improvement with further opportunities identified in the second half of 2026.
• Anticipate stronger performance in the second half of the year driven by continued strength in the U.S. and improvement in Canada and other international markets.

Key Dates

Recommendation

The company shows positive operational momentum with revenue growth and improved profitability metrics, supported by optimistic guidance. However, the continued net loss and significant debt levels warrant a cautious 'hold' rating until sustained profitability and deleveraging are demonstrated.

Keywords

TEAM Inc., TISI, Specialty Industrial Services, Inspection Services, Heat Treating Services, Mechanical Services, Q1 2026 Earnings, Financial Results