Team Inc. Q2: Revenue Slides 8%, Operating Income Tumbles 82%
TISI sits 34% above its 52-week low of $12.34 on elevated volume (2.3× avg).
Summary
Team Inc. delivered a disappointing Q2, with revenue down 7.8% and operating income plunging 82%, reversing the positive momentum from Q1. While cash burn improved, top-line weakness and high leverage keep the company in a precarious position.
Key Events · Earnings and Guidance · TISI
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Revenue Declines 7.8%
Driven by lower turnaround activity in both IHT and MS segments, Q2 revenue fell to $228.7M from $248.0M a year ago.
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Operating Income Plunges 82%
Operating income dropped to $2.2M from $12.1M in Q2 2025, as an unfavorable project mix and higher benefit costs eroded margins.
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Net Loss Widens
Net loss attributable to common shareholders was $9.8M ($2.15/share) vs. a $4.3M loss a year ago, including $3.0M in preferred stock dividends.
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Cash Burn Improves but Leverage Remains High
Cash used in operations improved to $8.4M in H1 2026 from $32.0M in H1 2025, but total debt stands at $326M with a shareholders' deficit of $49.7M.
Analysis · TISI · Trade & Services
The second quarter marked a sharp reversal from the improving trends Team Inc. posted in Q1. Revenue contracted 7.8% year-over-year to $228.7 million, while operating income collapsed 82% to just $2.2 million, pressured by lower turnaround activity and an unfavorable project mix. The net loss widened to $6.8 million from $4.3 million a year ago. On a brighter note, cash burn improved significantly—operating cash outflow was only $8.4 million versus $32 million in the first half of 2025—but the company remains deeply leveraged with $326 million in total debt and a shareholders' deficit of $49.7 million. Liquidity stands at $54.4 million, including undrawn credit lines, yet the deteriorating top-line trajectory raises questions about the sustainability of recent operational improvements. The filing also discloses a $10 million accrual for the Kelli Most litigation, though it is fully covered by insurance.
At the time of this filing, TISI was trading at $16.55 on NYSE in the Trade & Services sector, with a market capitalization of approximately $75.7M. The 52-week trading range was $12.34 to $19.99. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.