Loading...
01/11 03:19
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents a mixed picture: positive aspects include strategic roadmap progress, cost savings, and a 15% growth in certain segments. However, flat overall revenue, an adjusted net loss, and vague guidance in the Q&A raise concerns. Risks such as supply chain issues and regulatory impacts further complicate the outlook. Given the lack of clear guidance and ongoing financial challenges, the sentiment is neutral, with no significant short-term catalysts for a strong positive or negative movement.
Revenue Essentially flat year-over-year; grew revenue from midstream end markets by nearly 15%, but offset by lower callout revenue and delays in project activity.
Adjusted EBITDA $5.3 million; 39% year-over-year improvement in Inspection & Heat Treating segment driven by nearly 22% revenue growth in higher margin heat treating services.
Gross Margin 23.8%; no specific year-over-year change mentioned.
Adjusted Selling, General and Administrative Costs Declined by almost $1 million year-over-year, representing 22.7% of consolidated revenue.
Adjusted Net Loss $14.9 million; essentially flat with the first quarter of 2024.
Cost Savings Initiatives Targeting annualized cost savings of around $10 million from ongoing cost optimization efforts.
Revenue Growth in Midstream End Markets: Grew revenue from midstream end markets by nearly 15% in the quarter.
Inspection & Heat Treating Segment Growth: Inspection & Heat Treating segment revenue up 6.8% over the prior year and up 8.8% in core U.S. operations.
Adjusted EBITDA: Delivered adjusted EBITDA for Q1 of $5.3 million, with a 39% year-over-year improvement in the Inspection & Heat Treating segment.
Cost Savings Initiatives: Kicked off actions targeting annualized cost savings of around $10 million.
SG&A Expense Reduction: Selling, general and administrative expense lower by about $2 million versus the prior year.
Refinancing: Completed refinancing in March 2025, lowering blended interest rate by over 100 basis points and extending term loan maturities to 2030.
Operational Improvements: Launched next phase targeting further cost optimization and improved workforce utilization.
Forward-looking statements: Management's commentary includes forward-looking statements that are uncertain and outside the company's control, which could lead to actual results differing materially.
Regulatory issues: The company is closely monitoring the potential impact of tariff policies on their end markets, indicating a risk related to regulatory changes.
Supply chain challenges: Delays in project and turnaround activity have shifted revenue into future periods, indicating potential supply chain challenges affecting revenue.
Economic factors: Macroeconomic uncertainty around tariff policies poses a risk to the company's operations and market performance.
Seasonal impacts: The company's work is seasonal, with winter typically being the slowest time, and adverse weather in January negatively impacted customer activity levels.
Financial performance: The company reported an adjusted net loss of $14.9 million, indicating ongoing financial challenges despite improvements in adjusted EBITDA.
Operational execution: The company is focused on driving revenue growth and operational execution, which are critical to overcoming current challenges.
Strategic Roadmap Progress: Team, Inc. has made significant progress against its strategic roadmap designed to improve financial performance and position the company for success.
Revenue Growth Initiatives: The company has targeted revenue growth from midstream end markets, achieving nearly 15% growth in the first quarter.
Cost Optimization Actions: A series of actions targeting further improvement in costs and operational efficiency are expected to yield annualized cost savings of around $10 million.
Canadian Operations Improvement: Steps have been implemented to improve the performance of Canadian operations.
Adjusted EBITDA Target: The company is targeting at least 15% year-over-year growth in adjusted EBITDA for 2025.
Revenue Expectations: Team, Inc. expects year-over-year growth in revenue for the full year 2025.
Adjusted EBITDA Growth: The company anticipates at least 15% year-over-year growth in adjusted EBITDA.
Margin Improvement Target: Team aims for an adjusted EBITDA target margin of at least 10%.
Cost Discipline: Management is focused on continued cost discipline and execution on commercial initiatives.
Financial Flexibility: The refinancing completed in March 2025 has provided financial flexibility and improved capital structure.
Shareholder Return Plan: The company is focused on delivering growth in shareholder value through improved operational and financial performance, targeting at least 15% year-over-year growth in adjusted EBITDA for 2025.
Debt Repayment: The company repaid about $158 million of outstanding debt as part of their refinancing efforts.
Cost Savings Initiatives: The company is targeting annualized cost savings of around $10 million through various operational improvements.
The earnings call summary indicates strong financial performance with revenue and EBITDA growth, margin expansion, and improved liquidity. The strategic partnership with Stellex Capital Management and focus on high-margin industries further bolster the outlook. Despite some risks, such as macroeconomic uncertainty and working capital challenges, the positive guidance and strategic initiatives suggest a positive stock price movement over the next two weeks.
The earnings call reflects positive sentiment due to strong revenue growth, improved margins, and cost savings initiatives. Despite international revenue challenges, U.S. operations showed resilience. Management's optimistic guidance for adjusted EBITDA growth and successful cost reduction efforts further boost confidence. The Q&A section did not reveal significant negative concerns. However, macroeconomic uncertainties and execution risks from transformation initiatives are noted. Overall, the positive financial performance and strategic initiatives suggest a positive stock price movement over the next two weeks.
The earnings call reflects mixed signals: strong revenue growth in midstream markets and a successful refinancing are positive, but overall revenue was flat, and operational challenges persist. The share repurchase program is a positive, yet uncertainties remain due to project delays and regulatory risks. The Q&A highlighted improvements in EBITDA and cost savings, but also noted an adjusted net loss. With flat revenue and mixed guidance, the stock price is likely to remain relatively stable, resulting in a neutral sentiment.
The earnings call presents a mixed picture: positive aspects include strategic roadmap progress, cost savings, and a 15% growth in certain segments. However, flat overall revenue, an adjusted net loss, and vague guidance in the Q&A raise concerns. Risks such as supply chain issues and regulatory impacts further complicate the outlook. Given the lack of clear guidance and ongoing financial challenges, the sentiment is neutral, with no significant short-term catalysts for a strong positive or negative movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
