Team, Inc. (NYSE: TISI), a global provider of specialty industrial services, reaffirmed its full-year 2026 revenue guidance of $920 million to $945 million following the release of its second-quarter results. The company reported a net loss of $6.8 million for Q2 2026, widening from a $4.3 million loss in the same period last year. This deterioration was driven by a $19.3 million decline in consolidated revenue to $228.7 million, as customers in core oil and gas and petrochemical markets deferred planned turnaround and maintenance activities to capitalize on favorable crack spreads. The deferral created a less favorable sales mix that pressured margins, causing Adjusted EBITDA to fall 48% to $12.8 million (5.6% of revenue) from $24.5 million (9.9% of revenue) in Q2 2025.

The operational headwinds were most pronounced in the Mechanical Services (MS) segment, where revenues decreased by 11.3% to $97.4 million due to lower turnaround and project activities across all operating regions. In contrast, the Inspection and Heat-Treating (IHT) segment showed resilience, with revenues declining only 5.0% to $131.3 million, supported by growth in other international markets. Management also cited geographic challenges in the Middle East, where ongoing conflict directly impacted business. Despite the top-line pressure, Team, Inc. reduced Adjusted Selling, General and Administrative Expenses by 4.5% to $44.7 million, reflecting early progress in its structural cost improvement program.

Gary L. Hill, Chief Executive Officer, stated that the company is advancing key pillars of its operational and commercial transformation to position the business for stronger, more consistent performance. He noted that while the deferral of mechanical services activity creates short-term top-line softness, it is expected to create additional strength and tailwinds for both segments in subsequent quarters as these activities return. Hill emphasized that the company has established a clear goal for its structural cost improvement program, targeting $8 million to $15 million in full-year 2026 savings, with a full annual run-rate goal of $20 million to $35 million.

For fiscal year 2026, Team, Inc. provided guidance indicating substantive increases at the midpoint of approximately 4%, 8%, and 16% in revenues, gross margin, and Adjusted EBITDA, respectively, over 2025 results. Specifically, the company expects total revenue between $920 million and $945 million, gross margin between $240 million and $260 million, and Adjusted EBITDA between $68 million and $73 million. Capital expenditures are projected to be between $13 million and $14 million. Clinton Roeder, Chief Financial Officer, commented that while the timing of recapturing deferred revenues remains hard to predict, the company is balancing softer top-line impact with structural cost improvements to protect underlying profitability.

What the Numbers Show

The divergence between segment performance highlights a strategic shift in demand dynamics within the industrial services sector. While the high-margin Mechanical Services segment faced an 11.3% revenue contraction, the Inspection and Heat-Treating segment’s relatively stable performance suggests growing reliance on routine inspection services over major turnarounds. Furthermore, the company’s ability to reduce Adjusted SG&A expenses by $2.1 million despite a 7.8% revenue decline indicates effective operational leverage. However, the widening net loss, exacerbated by $9.8 million in net loss attributable to common shareholders due to preferred stock dividends and accretion, underscores the immediate cash flow pressures associated with deferred project cycles. The forward-looking guidance implies management expects a robust recovery in H2 2026 to offset this Q2 shortfall.

Team, Inc. has appointed Clinton Roeder as Executive Vice President and Chief Financial Officer effective June 22, 2026, to lead the company in its next stage of growth and financial improvement. Roeder succeeds Nelson Haight, who is retiring from Team, Inc. after serving as Chief Financial Officer for over four years. This leadership transition aims to support the company's strategic objectives and operational stability.

Nelson Haight will remain with Team, Inc. for a short transition period as a Special Advisor to the CEO to ensure a smooth handover of responsibilities. The company provides a full suite of conventional, specialized, and proprietary inspection, heat-treating, and mechanical services globally. The appointment of Roeder is expected to bolster the company's financial leadership during this critical phase of expansion.

Key Leadership Changes

The following table outlines the recent changes in Team, Inc.'s executive leadership:

Roeder brings over 30 years of financial and operational experience across multiple industries including industrial, energy, and aviation. Most recently, from 2020 to 2026, he served as Executive Vice President and Chief Financial Officer of PrimeFlight Aviation Services. From 2017 to 2020, Mr. Roeder served as Chief Financial Officer of Nine Energy Services, Inc., including taking it public in 2018. From 2013 to 2017, he served as Chief Financial Officer for Total Safety.

Gary Hill, Team, Inc.'s Chief Executive Officer, expressed confidence in Roeder's ability to accelerate the company's improvement plan. "We are very pleased to welcome Clinton, who brings a demonstrated track record of strong financial and operational capabilities and leadership across multiple service industries," said Hill. Roeder stated he is excited to join Team, Inc. to help further its growth and financial performance.