Team (T9CA) Q2 2026 Earnings Report

The call conveyed mixed results: material near‑term operational and financial headwinds (notably a ~7.7% revenue decline and ~44% decline in adjusted EBITDA, >50% drop in turnaround revenues and elevated net debt) tempered by a clear, actionable transformation plan, identified structural savings ($20M–$35M annualized), targeted cash‑flow improvements ($5M–$15M), diversification into faster‑growing end markets (>10% growth in select verticals), and renewed investor confidence via Stellex's increased ownership. Management reaffirmed full‑year guidance but signaled results will likely land toward the lower half of the ranges given timing uncertainty. Overall, the call balanced significant near‑term challenges with credible medium‑term remediation plans and investor backing.

Team reaffirmed full-year 2026 guidance of revenue $920–$945 million, gross profit $240–$260 million and adjusted EBITDA $68–$73 million, but said near-term results will likely sit toward the lower half of those ranges as a portion of deferred Mechanical Services activity is expected to be weighted to the second half; Q2 revenue was $229M (Inspection & Heat Treating $131M, down 5% YoY; Mechanical Services $97M, down 11% YoY), turnaround revenues are down a little more than 50% YTD and the Middle East conflict reduced H1 revenue by over $20M. Management expects structural cost savings of $20–35M annualized (with ~$8–15M of benefit in H2 2026 and $5–15M of incremental cash flow this year), one-time implementation costs of ~$5–10M, a full run-rate by 2027, and noted Q2 capex $3.9M, cash used in operations $0.7M, total liquidity ~$51.2M and net debt $300.3M.