Team 2025 Q2 Earnings Worse Performance as Net Loss Widens 54.4%

Team (TISI) reported its fiscal 2025 Q2 earnings on August 12, 2025. The results fell short of expectations with a deepening loss, despite revenue growth. The company guided for improved performance in the second half of the year, with expectations for stronger top-line and Adjusted EBITDA growth.

Revenue
Team’s total revenue increased by 8.5% to $248.03 million in the second quarter of 2025, compared to $228.62 million in the same period in 2024. Strong performance came from the IHT segment, which saw a 15.2% rise in revenue. Within that, the Canada operations surged by 31.4%, while the MS U.S. operations posted a 6.6% increase. These gains contributed to a broader revenue growth, despite broader challenges affecting profitability.

Earnings/Net Income
Team’s losses deepened to $0.95 per share in Q2 2025, a 50.8% wider loss compared to $0.63 per share in Q2 2024. The company’s net loss widened to $-4.27 million in Q2 2025, up from $-2.76 million in the prior-year period, marking a 54.4% increase in the net loss. The deteriorating profitability highlights ongoing operational and margin pressures.

Price Action
The stock price of Team has edged down 2.79% during the latest trading day, dropped 4.99% during the most recent full trading week, and tumbled 8.96% month-to-date.

Post Earnings Price Action Review
The strategy of buying Team (TISI) shares on the earnings release date and selling after 30 days has historically performed poorly. Over the past three years, it yielded a return of -33.52%, significantly underperforming the benchmark’s 46.32%. Despite a maximum drawdown of 0.00% indicating no losses during the holding period, the strategy failed to capture gains and delivered a CAGR of -13.15%, underscoring the stock’s poor post-earnings performance.

CEO Commentary
Keith D. Tucker, Chief Executive Officer, highlighted improved second-quarter performance with revenue up nearly 9% and Adjusted EBITDA up 12.4% year over year. He noted that IHT segment revenue grew 15.2%, with Canada operations up 31.4% and MS U.S. operations up 6.6%. Tucker emphasized the completion of cost optimization actions expected to yield $10 million in annualized savings, including $6 million in H2 2025, and Dan Dolson’s appointment to lead the transformation program. He reiterated the company’s commitment to top-line growth, cost discipline, and margin improvement through operational resilience and transformation execution.

Guidance
The company expects second-half top-line growth over the prior year across both segments, improved Adjusted EBITDA levels, and continued improvement in Canadian and international operations. Management anticipates realizing further cost and margin improvements and growing momentum from the transformation program. The company remains committed to delivering full-year top-line growth and at least 15% year-over-year growth in Adjusted EBITDA.

Additional News
In a major recognition, Schneider Electric was named the World’s Most Sustainable Company for the second consecutive year by TIME and Statista. In Nigeria, the Lagos State Government launched a digital house numbering project to improve service delivery and land management, while Cross River State expanded its state-owned airline’s fleet. The Nigerian Bar Association condemned Ibom Air for the mistreatment of a female passenger. Additionally, political developments continued with by-election preparations and party loyalty appeals, while a prominent academic resigned from ASUU, citing governance issues.