Team (TISI) Q1 2025 Earnings Call Transcript

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Tuesday, May 13, 2025 astatine 11 a.m. ET

• President and Chief Executive Officer — Keith Tucker

• Chief Financial Officer — Nelson Haight

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Keith Tucker: Thank you, Nelson. Welcome, everyone, and convey you for joining america to reappraisal our archetypal 4th of 2025 operational and fiscal highlights. During the archetypal 4th of 2025, we proceed to marque advancement against our strategical roadmap designed to amended presumption Team for occurrence and amended fiscal performance. Over the past 2 years, we person worked to simplify our business, grow our margins and code our superior operation and equilibrium sheet. Our occurrence to day connected these initiatives helped Team to well-positioned to turn the top-line and marketplace share.

The tangible improvements we person delivered successful operating show and currency travel generating implicit the past 2 years were cardinal to completing the refinancing we announced successful March 2025, which simplified our superior structure, lowered our blended involvement complaint by much than 100 ground points and extended our word indebtedness maturities retired to 2030. Nelson volition spell into much item astir this, but I judge the hard enactment from each of our employees astatine Team has helped to marque our occurrence possible. Turning to the archetypal 4th of 2025. We continued to present coagulated results. We made important advancement against 1 of our halfway commercialized initiatives, increasing gross from midstream extremity markets by astir 15% successful the quarter.

Our Inspection & Heat Treating conception delivered beardown top-line maturation with gross up 6.8% implicit the anterior twelvemonth and up 8.8% successful our halfway U.S. operations. In our Mechanical Service segment, little callout gross and delays successful task and turnaround enactment shifted gross into aboriginal periods, which offset the maturation successful our IHT segment. Overall, revenues were fundamentally level year-over-year, but I privation to punctual you that, our enactment is seasonal, and portion wintertime is usually our slowest time, we besides experienced antagonistic impacts to the top-line from adverse upwind successful January that adversely impacted our customers and our enactment levels. Having said that, we expect to spot increases successful year-over-year enactment for the afloat twelvemonth 2025.

We delivered adjusted EBITDA for the archetypal 4th of $5.3 million. Notably, our Inspection & Heat Treating conception generated a 39% year-over-year betterment successful adjusted EBITDA, driven by year-over-year gross maturation of astir 22% successful our higher borderline vigor treating services and 64% from our laboratory investigating and inspection services installation successful Cincinnati, Ohio. We proceed to spot benefits from our outgo subject successful the archetypal 4th with our selling, wide and administrative disbursal little by astir $2 cardinal versus the anterior twelvemonth period. We stay focused connected driving gross growth, strict outgo subject and improving operational execution.