TISI

Board Changes: Team, Inc. announced the appointment of K. Niclas Ytterdahl and Michael D. Stewart to its Board of Directors, effective October 24, 2025, following an investment agreement with Stellex Capital Management. Jeffery G. Davis will step down from the Board at the end of 2025.

Leadership Transition: Michael J. Caliel has returned to the role of Chairman of the Board, having previously served as Executive Chairman, during which the company improved its operations and financial performance.

Board Composition: Following the recent changes, the Board will consist of nine members, reducing to eight after Mr. Davis's departure.

Company Overview: Team, Inc. is a global provider of specialty industrial services, offering a range of mechanical, heat-treating, and inspection services to enhance safety and operational efficiency for critical assets across more than 13 countries.

Transaction Overview: Team, Inc. has successfully closed a $75 million private placement of preferred stock and warrants with Stellex Capital Management, which will reduce debt and enhance financial flexibility.

Debt Repayment and Facility Amendments: The proceeds will be used to pay down approximately $67 million of debt, and amendments to existing credit facilities will increase commitment amounts and reduce applicable margins, extending maturity to October 2028.

Strategic Partnership: The investment marks the beginning of a strategic partnership with Stellex, which will also have the right to nominate two members to Team's Board of Directors, aligning with the company's focus on growth and employee development.

Future Growth Potential: Stellex expresses confidence in Team's fundamentals and aims to unlock further growth potential through operational improvements and technological advancements, supporting Team's long-term value creation strategy.

Financial Performance: Team reported an 8.5% increase in Q2 2025 revenue to $248 million, driven by strong growth in Inspection and Heat Treating services, while adjusted EBITDA rose 12.4% to $24.5 million despite a widening net loss of $(4.3) million.

Operational Highlights: The company is focusing on transformation initiatives for operational efficiency and margin improvement, with the Inspection and Heat Treating segment showing significant growth, while cash flow remains negative but improved compared to last year.