Team (TISI) Q4 2024 earnings summary

Executive summary

• Achieved significant operational and financial improvements in 2024, including cost reductions, margin enhancements, and strategic initiatives.

• Fourth quarter 2024 revenue was $213.3 million; full year revenue reached $852.3 million.

• Gross margin improved to 26.9% in Q4 and 26.2% for the year, driven by pricing, project mix, and cost optimization.

• Net loss narrowed to $7.2 million in Q4 and $38.3 million for the year, both significant improvements year-over-year.

• Adjusted EBITDA rose 50.5% in Q4 to $14.6 million and 27.7% for the year to $54.3 million.

Financial highlights

• Q4 2024 revenue was nearly flat year-over-year, but operating income in both segments increased by 45.4% and 51%.

• Q4 gross margin increased by 330 basis points year-over-year; full year gross margin up 170 basis points.

• Q4 operating income was $2.2 million, up $11.1 million from Q4 2023; full year operating income was $10.1 million, up $23.4 million.

• Cash flow from operations in Q4 was $21.6 million, up $10.5 million year-over-year; free cash flow was $19.6 million, up $11.5 million.

• Consolidated net loss for 2024 decreased by almost 50% to $38.3 million.

Outlook and guidance

• Expects mid-single-digit revenue growth and at least 15% year-over-year growth in 2025 adjusted EBITDA.

• Targeting further progress toward an adjusted EBITDA margin of at least 10%.

• Additional annualized cost savings of at least $10 million targeted through expanded optimization initiatives.

• Anticipate full impact of recent cost-saving and growth initiatives in 2026.