Team, Inc.

Revenue was $229 million, down from $248 million in the prior-year quarter. Inspection and Heat Treating revenue was $131 million, down 5% year over year, and Mechanical Services revenue was $97 million, down 11% year over year. Adjusted EBITDA was $13.7 million versus $24.5 million in Q2 2025. SG&A was $46.6 million, down 7.8%, and adjusted SG&A was $44.6 million, down 4.8%. Cash used in operating activities was $0.7 million, capital expenditures were $3.9 million, total liquidity was approximately $51.2 million, and net debt was $300.3 million. Full-year 2026 guidance was reaffirmed for revenue of $920 million to $945 million, gross profit of $240 million to $260 million, and adjusted EBITDA of $68 million to $73 million. Management said near-term results are likely toward the lower half of those ranges, with some deferred mechanical services activity expected to return in the second half of 2026.

Gary Hill framed the quarter as evidence of both the business’s resilience and the need for change. He said Team has a strong technical foundation, but the company is taking action on leadership, commercial discipline, and operational efficiency to improve consistency, margins, and cash generation. He also emphasized that Team is expanding beyond its core refining and petrochemical base into areas like aerospace, LNG, nuclear, utilities, aviation, and other industrial markets to build a broader, less cyclical opportunity set. His tone was constructive but candid about the softness in Q2 and the uncertainty around timing of deferred work returning.

Clinton Roeder focused on the financial impact of lower turnaround activity and the company’s cost plan. He pointed to revenue of $229 million, Adjusted EBITDA of $13.7 million, SG&A of $46.6 million, and cash used in operations of $0.7 million, while noting liquidity of approximately $51.2 million and net debt of $300.3 million. He said Team has identified $20 million to $35 million of annualized savings and productivity benefits, expects $5 million to $15 million of cash flow improvement this year, and sees $8 million to $15 million of benefit in the second half of 2026, with full run-rate benefits by 2027. He also said implementation costs should be about $5 million to $10 million.

The main questions centered on the Stellex ownership increase, the size and timing of deferred turnaround revenue, growth in new end markets, and cash flow improvement. Gary said Stellex’s larger stake signals confidence in Team’s strategy and embedded value, while Clinton said the cost actions will require $5 million to $10 million of one-time implementation costs. On the revenue deferral issue, Gary said the Middle East conflict and crack spreads hurt first-half revenue by more than $20 million, but that the work cannot be indefinitely delayed and should begin to return in the back half of 2026. Management also cited growth in LNG, aerospace, commercial nuclear power, and pulp and paper, saying those markets are already showing more than 10% year-on-year growth and should accelerate in the second half.