Team, Inc. (NYSE: TISI) released its unaudited financial results for the third quarter ended September 30, 2026, reporting a net loss of $11.1 million, a slight improvement compared to a $11.4 million loss in the prior-year period. The company reported revenue of $220.4 million, a 2.0% decrease from $225.0 million in the third quarter of 2025.
Despite the revenue decline, the company highlighted growth in Adjusted EBITDA, which increased to $15.7 million (7.1% of revenue) from $14.5 million (6.5% of revenue) in the third quarter of 2025. This increase was driven by a 7.4% reduction in Adjusted Selling, General and Administrative Expenses to $43.3 million. However, the company reported an operating loss of $0.5 million, compared to operating income of $1.3 million in the prior year.
Segment performance showed mixed results. The Inspection, Heat Treating and Mechanical Services (IHT) segment reported revenue of $127.1 million, an increase of 3.9% year-over-year, and operating income of $15.2 million. Conversely, the Mechanical Services (MS) segment saw revenue decrease by 9.1% to $93.3 million, with operating income falling to $0.4 million from $3.4 million.
Management attributed the results to a deferral of planned turnaround and maintenance activity across core refining and petrochemical markets, particularly in the U.S. The company also noted that the escalation of conflict in the Middle East has disrupted customer activity and delayed work previously anticipated before year-end.
Regarding liquidity, Team, Inc. reported total liquidity of $43.5 million as of September 30, 2026, consisting of $8.1 million in cash and $35.4 million of available capacity under its ABL Credit Facility. Total debt stood at $319.1 million, resulting in a Net Debt of $308.1 million.
The company has updated its full-year 2026 guidance, projecting Total Company Revenue of $870 million to $890 million, Adjusted EBITDA of $56 million to $59 million, and Gross Margin between $226 million and $249 million. Management anticipates that the recovery in turnaround activity will largely shift into early 2027.
