Team (NYSE:TISI) executives pointed to year-over-year growth in revenue, margins, and adjusted EBITDA in fiscal 2025, while also highlighting balance sheet actions completed during the year that extended maturities, lowered borrowing costs, and reduced net debt.
The company discussed fourth quarter and full-year 2025 results on its earnings call led by Chief Executive Officer Gary Hill, who said the call marked his first as Team’s CEO. Chief Financial Officer Nelson Haight provided financial details and said the company’s recent performance has helped create more flexibility to support growth and cash flow generation.
Leadership transition and strategic priorities
Looking ahead, Hill said he sees opportunities to increase “wallet share” with existing customers and to accelerate growth in end markets including aerospace and midstream. He said he is focused on accelerating top-line growth, enhancing efficiency, and reducing costs, which he said should translate into margin and EBITDA growth. Hill also emphasized continued investment in people and infrastructure and reiterated that safety remains the company’s top priority.
Capital structure changes and liquidity
Haight said Team has spent the past three years simplifying the business, strengthening the capital structure and balance sheet, and improving margins. He outlined several financing actions taken during fiscal 2025:
- March 2025 refinancing: The company refinanced its capital structure, lowering its blended interest rate by more than 100 basis points and extending term loan maturities to 2030.
- September 2025 private placement: Team completed a $75 million private placement of preferred stock and warrants, which Haight said helped pay down about $67 million of debt.
- ABL amendment: As part of the same transaction, Team amended its asset-based lending (ABL) credit facility to increase the commitment by $20 million to support seasonal working capital needs and to lower the applicable interest rate margin.
- First lien term loan amendment: The company also amended its first lien term loan facility to lower the applicable interest rate margin and improve financial flexibility.
- Delayed draw feature: The private placement included a delayed draw feature available through September 2027, which Haight said could allow the company to raise up to an additional $30 million in preferred stock and warrants depending on intended use of proceeds.
Haight said net debt at the end of fiscal 2025 was $279 million, down from about $289.6 million at the end of fiscal 2024. He added that the company ended 2025 with liquidity of $77.4 million. He said completing the transactions was supported by improvements in operating performance and cash flow generation over the past several years, and that the actions addressed near-term maturities, lowered the cost of capital, and improved financial flexibility.
Fourth quarter results reflect revenue growth and margin improvement
For the fourth quarter, Haight said Team delivered year-over-year improvements in revenue, operating income, adjusted EBITDA, and gross margins.
Revenue increased by $11.5 million, or 5.4%, compared with the prior-year quarter. Haight attributed the growth to an 8.9% increase in the Mechanical Services segment and a 1.9% increase in the Inspection and Heat Treating segment.
Operating income rose by $4.4 million, or 200%, year over year. Haight said the improvement was driven by a focus on higher-margin opportunities in both segments along with “sustainable cost reductions.”
He also pointed to progress in a cost management program, noting that fourth quarter adjusted selling, general and administrative expense—excluding non-cash items and expenses not representative of ongoing operations—was lower by $1 million in absolute terms and improved by 150 basis points as a percentage of revenue versus the prior-year period. Haight said these factors contributed to adjusted EBITDA increasing by nearly $2 million to $16.4 million.
Full-year 2025 revenue, operating income, and adjusted EBITDA increased
For full-year 2025, Haight said revenue increased $44 million, or 5.2%, versus 2024. He said both operating segments contributed, with Inspection and Heat Treating revenue up 7.5% and Mechanical Services revenue up 2.8%.
Operating income increased by $3.9 million, or 39%, alongside the revenue growth, according to Haight. He said the company generated adjusted EBITDA of $60.7 million, representing an improvement of roughly 12% over 2024. Adjusted EBITDA margin expanded to “almost 7%” in 2025 from 6.4% in 2024.
Haight said Team has “significantly improved” adjusted EBITDA over the last three years and reiterated a longer-term target of achieving an adjusted EBITDA margin greater than 10%. He added that the company plans to continue prioritizing free cash flow generation through improvements in working capital management and margin expansion, with an emphasis on deleveraging and enabling meaningful debt paydown.
Outlook: momentum cited, but no formal 2026 guidance
Hill said that heading into 2026, management expects to build on 2025’s momentum with further growth in the top line and adjusted EBITDA. However, he said the company will not provide fiscal 2026 guidance at this time due to his recent transition to CEO and the need for a deeper review of operational performance, market trends, and strategic priorities.
Hill said Team plans to provide a more detailed update outlining longer-term plans and objectives, including 2026 guidance, after the end of the fiscal quarter. He closed by emphasizing a commitment to continuous improvement and a belief that the company can strategically grow and “unlock substantial value” for shareholders.
About Team (NYSE:TISI)
Team, Inc (NYSE:TISI) designs, engineers and manufactures industrial screen printing and digital printing equipment for a variety of end markets. The company’s solutions are used primarily in textile decorating, apparel, signage and graphics, and specialty industrial applications. By combining precision mechanical design with automated controls, Team delivers systems that enhance production speed, print quality and repeatability for its customers.
Team’s product portfolio includes manual and automatic screen presses, inkjet UV LED curing systems, digital direct-to-garment printers and hybrid platforms that integrate multiple printing technologies.
