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Shares of Team, Inc. TISI have gained 3% since reporting results for the first quarter of 2025. This compares with the S&P 500 index’s 1% growth over the same period. However, over the past month, the stock has declined 6.7% against an 11.4% rally in the S&P 500, underperforming the broader market despite near-term post-earnings strength.
Team reported total revenues of $198.7 million compared with $199.6 million in the prior-year quarter. However, the company’s net loss widened to $29.7 million, or $6.61 per share, from a loss of $17.2 million, or $3.89 per share, in the same quarter of 2024. The reported loss included an $11.9-million charge on debt extinguishment related to a March 2025 refinancing. Adjusted EBITDA declined to $5.3 million from $6.5 million a year ago, with the margin narrowing to 2.7% from 3.3%.
Team, Inc. Price, Consensus and EPS Surprise
Team, Inc. price-consensus-eps-surprise-chart | Team, Inc. Quote
Segment Performance & Other Business Metrics
Team’s Inspection and Heat Treating (IHT) segment was the primary driver of strength during the quarter. IHT revenues rose 6.8% year over year to $106.2 million, supported by an 8.8% increase in U.S. operations. The segment delivered a 39% year-over-year improvement in adjusted EBITDA, aided by 22% growth in higher-margin heat treating services and a 64% jump in revenues from the Cincinnati laboratory, testing and inspection facility.
Conversely, the Mechanical Services (MS) segment reported a 7.7% revenue decline to $92.4 million, reflecting lower callout activity and weather-related delays, particularly in the U.S. and certain international markets. As a result, the segment swung to an operating loss of $1.1 million from an income of $4.1 million in the year-ago period.
The company-wide gross margin slipped to 23.8% from 24.4%, while selling, general and administrative (SG&A) expenses fell 3.4% to $53.3 million. Adjusted SG&A represented 22.7% of revenues, down slightly from the previous year, indicating modest operational efficiencies.
Management Commentary
CEO Keith Tucker emphasized continued progress against the company’s multi-year strategic roadmap. He highlighted that first-quarter results were affected by seasonality and severe winter weather in January, which shifted project and turnaround revenues into later quarters. However, he noted robust activity levels heading into the second quarter and reinforced Team’s expectation for full-year top-line growth and at least a 15% year-over-year rise in adjusted EBITDA.
CFO Nelson Haight echoed these sentiments, citing consistent execution and improving performance as enablers of the March refinancing deal. He also reiterated that adjusted EBITDA has improved annually since 2021, with further gains expected in 2025. Both executives highlighted ongoing initiatives to improve cost structure and operational efficiency, including optimization efforts in Canadian operations.