Company Sees Q2 EBITDA Adjustments of $3M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy TBI?
Sees Q2 EBITDA adjustments $3M. Sees Q2 gross margin 21.1%-21.5%. Sees Q2 SG&A $85M-$89M. Sees FY26 capital expenditures $11M-$15M. Sees FY26 income tax expense $0M-$4M. Says revenue guidance assumes current market conditions continue into Q2 and growth across all skilled businesses. Says gross margin decline due primarily to prior year workers' compensation reserve adjustments not expected to repeat at the same level and changes in business mix. Says FY26 depreciation expected to be $24M-$28M and includes $4M of software depreciation reported in cost of services. Says minimal income tax expense expected due to the valuation allowance in effect. Comments and guidance taken from Q1 earnings conference call.
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Analyst Views on TBI
Wall Street analysts forecast TBI stock price to fall
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 6.010
Low
6.00
Averages
6.00
High
6.00
Current: 6.010
Low
6.00
Averages
6.00
High
6.00
About TBI
TrueBlue, Inc. provides specialized workforce solutions. Its segments include PeopleReady, PeopleScout and PeopleManagement. The PeopleReady segment provides on-demand and skilled labor in a range of industries that include construction, transportation, manufacturing, retail, hospitality and energy. The PeopleScout segment provides permanent employee recruitment process outsourcing, employer branding services and management of outsourced labor service providers through the segments: PeopleScout recruitment process outsourcing (RPO), which outsourced recruitment of permanent employees on behalf of clients and employer branding services, and PeopleScout managed service provider (MSP), which manages multiple third-party staffing vendors on behalf of clients. PeopleManagement segment offers contingent, on-site industrial staffing and commercial driver services. Its Healthcare Staffing Professionals offer long-term and permanent staffing solutions primarily focused on healthcare positions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Energy Market Performance: Revenue in the energy sector more than doubled this quarter, with data center projects now representing approximately one-third of active energy projects, indicating strong performance in the rapidly growing energy market, which is expected to further drive future revenue growth.
- Cost Control and Profitability: CFO Carl Schweihs reported that despite an 8% revenue increase, the company successfully reduced SG&A expenses by 8%, demonstrating effective cost control that aids in enhancing overall profitability.
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See More
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- Earnings Miss: TrueBlue reported a Q4 non-GAAP EPS of -$0.25, missing expectations by $0.20, indicating pressure on profitability that could undermine investor confidence.
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- Market Reaction: Despite the strong revenue performance, the earnings miss may pressure the stock price in the short term, prompting investors to monitor the company's future profitability improvement strategies.
- Future Outlook: TrueBlue must implement effective measures to enhance profitability in response to market competition and investor expectations regarding financial performance, ensuring sustained business growth and shareholder returns.
See More
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- Sales Growth Strategy: TrueBlue CEO Taryn Owen stated that the company is focused on strengthening sales reach, expanding into growing markets, and leveraging an efficient operating structure to drive revenue growth, with Q1 revenue reaching $399 million, exceeding expectations by 8%.
- Energy Market Performance: Revenue in the energy sector more than doubled this quarter, with data center projects now representing approximately one-third of active energy projects, indicating strong performance in the rapidly growing energy market, which is expected to further drive future revenue growth.
- Cost Control and Profitability: CFO Carl Schweihs reported that despite an 8% revenue increase, the company successfully reduced SG&A expenses by 8%, demonstrating effective cost control that aids in enhancing overall profitability.
- Future Outlook: Management expects Q2 2026 revenue growth of 2% to 8% year-over-year, along with anticipated gross margin expansion of 130 to 170 basis points, reflecting the company's commitment to maintaining cost discipline while pursuing improved profitability.
See More
EHS Investors Demand Board Change at TrueBlue Amid Financial Decline
- Deteriorating Financials: TrueBlue's forecast for Q1 2026 indicates a projected gross profit decline of approximately 9% year-over-year, highlighting the urgent need for meaningful board changes to address serious operational and financial challenges and prevent further shareholder value destruction.
- Stock Price Plunge: Following the latest earnings release, TrueBlue's stock fell 24% within days, reflecting strong investor dissatisfaction with the management's failure to effectively address financial pressures, necessitating decisive action to restore market confidence.
- Board Communication Failure: EHS investors criticize TrueBlue's board for failing to engage meaningfully with their highly qualified director nominees, resulting in the company not fully leveraging external expertise to tackle the current financial crisis, further exacerbating shareholder disappointment.
- Shareholder Action Plan: EHS intends to nominate new director candidates at the 2026 annual meeting and urges the board to engage in good faith to avoid a lengthy and distracting proxy contest, thereby achieving necessary changes to protect shareholder interests.
See More
EHS Investors Demand Board Change at TrueBlue Amid Financial Struggles
- Deteriorating Financials: TrueBlue's forecast for Q1 2026 indicates a projected gross profit decline of approximately 9% year-over-year, highlighting the urgent need for meaningful board changes to address serious operational and financial challenges and prevent further shareholder value destruction.
- Significant Stock Decline: Following the latest earnings release, TrueBlue's stock plummeted 24% within days, reflecting investor dissatisfaction with the management's failure to effectively tackle financial difficulties, underscoring the necessity for decisive action to restore market confidence.
- Board Communication Issues: EHS investors criticize TrueBlue's board for failing to engage meaningfully with their highly qualified director nominees, resulting in the company's inability to address shareholder concerns in a timely manner, further exacerbating the trust crisis between shareholders and management.
- Proxy Voting Initiative: EHS intends to file a proxy statement for the 2026 annual meeting to solicit votes for their nominated director candidates, aiming to drive the necessary changes that will enable the company to effectively confront its current financial challenges and achieve long-term growth.
See More
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- Overview of Oversold Stocks: According to Benzinga Pro, several stocks in the industrials sector have relative strength indices (RSI) near or below 30, indicating they are undervalued and may present rebound opportunities.
- RSI Indicator Interpretation: The RSI is a momentum indicator that compares a stock's strength on up days to its strength on down days, helping traders better assess short-term stock performance and informing investment decisions.
- Key Oversold Companies: Avis Budget Group Inc (NASDAQ:CAR), Trueblue Inc (NYSE:TBI), and Huron Consulting Group Inc (NASDAQ:HURN) are notable companies in this sector with current RSIs below 30, suggesting potential investment value.
- Market Opportunity Analysis: As market attention on these oversold stocks increases, investors may seize this opportunity to buy at lower prices, potentially profiting from future market rebounds.
See More
TrueBlue, Inc. Q4 2025 Earnings Call Insights
- Strategic Partnership Success: TrueBlue's strategic partnership with a leading purchasing organization has resulted in approximately $15 million in annualized new business wins, demonstrating the company's effectiveness in expanding client acquisition channels and fueling multi-brand opportunities.
- Strong Growth in Energy Sector: The company's energy sector revenue surged by 60%, while its commercial driver business achieved double-digit growth for the second consecutive year, indicating TrueBlue's strengthened position in the rapidly growing energy market.
- Robust Financial Performance: Total revenue for Q4 reached $418 million, an 8% increase year-over-year, with organic revenue up 5%, reflecting the company's ongoing commitment to cost management and enhanced profitability.
- Optimistic Outlook: Looking ahead, TrueBlue expects revenue growth of 3% to 9% in Q1 2026, despite anticipated margin compression, as the company focuses on optimizing its cost structure to drive improved profitability.
See More
TrueBlue Q4 Earnings Report Analysis
- Earnings Miss: TrueBlue reported a Q4 non-GAAP EPS of -$0.25, missing expectations by $0.20, indicating pressure on profitability that could undermine investor confidence.
- Revenue Growth: The company achieved revenue of $418 million, an 8.3% year-over-year increase, surpassing market expectations by $46,900, reflecting robust sales growth amid recovering market demand.
- Market Reaction: Despite the strong revenue performance, the earnings miss may pressure the stock price in the short term, prompting investors to monitor the company's future profitability improvement strategies.
- Future Outlook: TrueBlue must implement effective measures to enhance profitability in response to market competition and investor expectations regarding financial performance, ensuring sustained business growth and shareholder returns.
See More
