Team (TISI) Q2 2025 earnings summary

Executive summary

• Revenue increased 8.5% year-over-year to $248.0 million in Q2 2025, driven by strong IHT segment growth and higher turnaround and callout activity in the U.S. and Canada.

• Gross margin rose 7.1% to $68.1 million; Adjusted EBITDA grew 12.4% to $24.5 million, representing 9.9% of revenue.

• Net loss was $4.3 million ($0.95 per share), compared to a net loss of $2.8 million ($0.63 per share) in Q2 2024, impacted by higher non-core expenses and foreign currency losses.

• Transformation and cost optimization initiatives yielded $10 million in expected annualized savings, with $6 million anticipated in the second half of 2025.

• Leadership changes include the appointment of Dan Dawson (or Dolson) as EVP, Chief Strategy and Transformation Officer to accelerate transformation and margin improvement.

Financial highlights

• Q2 2025 revenue: $248.0 million, up $19.4 million (8.5%) year-over-year.

• Gross margin: $68.1 million (27.5% of revenue), up from $63.6 million (27.8%) in Q2 2024.

• Adjusted EBITDA: $24.5 million (9.9% of revenue), up from $21.8 million (9.5%) in Q2 2024.

• Adjusted net loss: $0.9 million, improved from $2.0 million in Q2 2024.

• Free cash flow for Q2 2025 was negative $6.3 million; for the six months ended June 30, 2025, negative $36.3 million due to higher working capital usage.

Outlook and guidance

• Targeting at least 15% year-over-year growth in adjusted EBITDA for full year 2025.

• Expecting continued top-line growth and margin improvement in the second half of 2025, with full-year adjusted EBITDA margin target of at least 10%.

• Anticipate $6 million in cost savings to be realized in the second half of 2025 from recent SG&A actions.

• Management expects sufficient liquidity and working capital to fund operations and service debt for the next twelve months.

• Full-year impact of transformation initiatives expected in 2026.