Team, Inc. reported its third‑quarter 2025 results, showing revenue of $225.0 million, a 6.7% year‑over‑year increase driven by growth in both its Mechanical Services and Inspection & Heat‑Treating segments. The Mechanical Services segment grew 7.8% to $233.0 million, while the Inspection & Heat‑Treating segment rose 5.7% to $92.0 million, reflecting strong demand for nested and call‑out work in the U.S. and a 8.9% rise in international operations, including Canada.
Adjusted EBITDA climbed to $14.5 million, up 28.6% from $11.2 million in Q3 2024 and the highest Q3 level since 2016. The margin expansion to 6.5% of revenue, up from 5.4% a year earlier, is largely attributable to disciplined cost management and a shift toward higher‑margin work. Despite the operational gains, the company posted a net loss of $11.4 million, underscoring that the turnaround is still in progress and that the company remains investing in growth initiatives.
Management highlighted that the company’s multi‑year turnaround—simplifying the business, improving capital structure, and expanding margins—has begun to pay off. CEO Keith D. Tucker noted that the company’s focus on high‑margin markets and cost discipline is driving the improved EBITDA, while CFO Nelson Haight emphasized that expenses are trending lower as a percentage of revenue, supporting the margin gains. The company also completed a $75 million preferred‑stock placement in September, reducing debt and improving financial flexibility.
For the full year 2025, Team, Inc. maintains guidance of approximately 5% revenue growth and 13% Adjusted EBITDA growth, with an Adjusted EBITDA margin target of at least 10%. The guidance reflects confidence in continued demand in core segments and the ability to sustain cost discipline, while the company signals that it remains focused on unlocking value through its transformation plan.
The results provide a clearer picture of the company’s trajectory: revenue growth is accelerating, margin expansion is underway, and the capital structure is improving. However, the persistent net loss and the need for further investment suggest that the turnaround will require continued execution and that the company’s profitability trajectory will depend on maintaining the current mix of high‑margin work and controlling costs as it scales.
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