Team (NYSE:TISI) released first-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below.
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Access the full call at https://event.choruscall.com/mediaframe/webcast.html?webcastid=sklDnvv5
Summary
Team reported first-quarter 2026 revenue of $215 million, an 8.3% increase year-over-year, marking the highest Q1 revenue since 2019.
Adjusted EBITDA rose by 45.2% to $7.7 million, with a 90 basis point margin improvement, reflecting strong performance in inspection, heat treating, and mechanical service segments.
The company emphasized strategic initiatives including workforce investment, expansion into growth markets like LNG, midstream, and data centers, and a focus on healthy, margin-accretive growth.
Team provided 2026 guidance with expectations of 4% revenue growth, 8% gross margin increase, and 16% adjusted EBITDA growth, driven by cost efficiency and market share expansion.
Management discussed ongoing efforts to optimize costs, enhance leadership, and improve decision-making processes, with plans for detailed cost reduction targets in the next quarter.
Full Transcript
OPERATOR
Good day and welcome to Team’s first quarter 2026 conference call. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. Please note this event is being recorded. I would now like to turn the conference over to Nelson Haight, Chief Financial Officer. Please go ahead.
Nelson Haight (Chief Financial Officer)
Thank you Operator Good morning everyone and welcome to Team’s discussion about our first quarter 2026 operational and financial results. On the discussion today are Gary Hill, our Chief Executive Officer and myself Nelson Haight, Chief Financial Officer. I want to remind you that Management’s commentary today may include forward looking statements including without limitation those regarding revenue, gross margin, operating expense and other income and expense taxes, adjusted EBITDA cash flow and future business outlook which by their nature are uncertain and outside of the company’s control. Although these forward looking statements are based on management’s current expectations and beliefs, actual results may differ materially. For a discussion of some of the risk factors that could cause actual results to differ, please refer to the Risk Factors section of Team’s latest annual and quarterly filings filed with the securities and Exchange Commission along with our associated earnings release. Team assumes no obligation to update any forward looking statements or information which speak as of their respective dates. With that I will turn it over to Gary Hill, our Chief Executive Officer.
Gary Hill (Chief Executive Officer)
Thank you Nelson. Welcome everyone and thank you for joining us on the call today. I am pleased with the solid start to 2026 that we were able to deliver from both an operational and financial perspective. First quarter 2026 revenue rose 8.3% year over year to 215 million, our highest Q1 revenue since 2019. This growth was driven by robust performance across both our inspection and heat treating and mechanical service segments. These results drove meaningful profitability gains including a 45.2% increase in adjusted EBITDA to 7.7 million and a 90 basis point improvement in adjusted EBITDA margin. Both are the best Q1 levels since prior to 2019. Our last call was my first with team and I have been here for about 100 days now. In that time I have been able to meet with many of our hard working employees, visit some of our worldwide locations and have in depth discussions with the leadership, team and board. I am going to share my observations with you and share the priorities, strategic vision and guidance for 2026 that are the result of these meetings. I want to start by saying that following these discussions I am even more excited by the financial and operational potential and the opportunity to lead Team. I believe that our strategic vision will help accelerate our delivery of progressively better operational and financial results. My first observation is about team’s most important asset are people. Our workforce truly has an unparalleled set of skills and technical expertise to tackle any issue that may arise for our customers. We have a dedicated service team that is customer focused and 100% committed to quality and safety. This is paramount to our success, which is why one of the key points of our strategic vision is deepening our commitment to our workforce. We want to improve our retention rate which we believe is already industry leading and we do that by protecting and investing in our people. For example, we believe TEAM is the first in our industry to develop a former hire to retire career path program for our technicians that lays out the long term benefits from working at TEAM and …
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