Team 2025 Q3 Earnings Widens Losses as Net Income Drops 6.3%

Team (TISI), ranked by market capitalization, reported fiscal 2025 Q3 earnings on Nov 12, 2025. The company posted a wider net loss per share and outlined guidance for revenue and Adjusted EBITDA growth in Q4 and full-year 2025.

Revenue

Team’s total revenue rose 6.7% year-over-year to $224.98 million in 2025 Q3, driven by 7.8% growth in the U.S. and Canadian Mechanical Services (MS) segment and 5.7% expansion in Inspection & Heat-Treating (IHT). Inspection & Heat-Treating accounted for $113.78 million, while Mechanical Services contributed $111.20 million.

Earnings/Net Income

Team’s losses deepened to $2.68 per share in Q3 2025, a 6.3% wider loss compared to $2.52 per share in Q3 2024. The company’s net loss widened to $11.45 million, a 2.9% increase from $11.13 million in the prior-year period. The company’s net loss widened by 2.9%, signaling ongoing financial challenges.

Post-Earnings Price Action Review

Despite the earnings miss, Team’s stock price edged up 2.38% during the latest trading day, climbed 4.04% in the most recent full trading week, and surged 15.68% month-to-date. Investors appear to be betting on the company’s guidance for Q4 and full-year 2025 growth, though the widening losses remain a concern.

CEO Commentary

CEO Keith D. Tucker highlighted 6.7% revenue growth to $225.0 million, driven by 7.8% MS growth in the U.S. and Canada and 5.7% IHT growth. Adjusted EBITDA increased 28.6% to $14.5 million, reflecting margin expansion. Tucker emphasized the $75.0 million preferred stock sale with Stellex Capital as a catalyst for financial flexibility and cost-efficiency initiatives, including accelerated margin improvements and top-line growth.

Guidance

Team expects Q4 2025 revenue and Adjusted EBITDA growth, with improved Canadian and international performance. For full-year 2025, the company targets ~5% revenue growth and ~13% Adjusted EBITDA growth. Forward-looking priorities include executing cost-saving measures, enhancing financial flexibility post-September refinancing, and leveraging operational efficiencies to drive value creation. The guidance excludes non-GAAP adjustments and aligns with the company’s focus on liquidity and debt reduction.

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Additional News

Team completed a $75.0 million preferred stock private placement with Stellex Capital, enhancing liquidity and reducing debt to $302.8 million. CEO Keith Tucker emphasized Canada’s 25% revenue growth and ongoing transformation plans, underscoring margin expansion and customer relationships. The company also amended credit facilities, securing $57.1 million in total liquidity, including $46.5 million undrawn availability. These moves aim to strengthen financial flexibility and support operational growth initiatives.