Team Inc (TISI) Stock Analysis and Metrics

Team

NYSE: TISI

$16.99 ▲ +0.10 (+0.59%)

At close: Jul 24, 2026 · 3:59 PM UTC

Financial Ratios

Market Cap79.19 Mn

P/E-2.13

P/S0.09

Div. Yield0.00

ROIC (Qtr)0.01

Total Debt (Qtr)306.50 Mn

Revenue Growth (1y) (Qtr)8.26

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About

Team, Inc. is a global, leading provider of specialty industrial services offering customers access to a full suite of conventional, specialized, and proprietary mechanical, heat treating, and inspection services. The company deploys inspection, condition assessment, maintenance, and repair services that improve safety, reliability, and operational efficiency for critical assets. Team, Inc. uniquely combines inspection to assess condition, engineering assessment to determine fitness for purpose, and mechanical services to repair, rerate or replace components based on customer needs. It also provides services across three distinct customer demand profiles: turnaround or project services, call-out services, and nested or run-and-maintain services.

Team, Inc. generates revenue by providing its mechanical, heat treating, and inspection services to industrial customers. These services are performed while facilities are operating, during scheduled turnarounds, or during new construction and expansion activities. Revenue is derived from fees charged for the scope, complexity, and technical nature of the work, with pricing often tied to project milestones or unit based rates. The company’s ability to deliver services both onstream and offline helps maximize customer uptime and minimize downtime, contributing to recurring revenue streams.

The company operates through the following segments: Inspection and Heat-Treating (IHT) and Mechanical Services (MS).

• Inspection and Heat-Treating (IHT): This segment provides conventional and advanced non destructive testing services primarily for the process, pipeline and power sectors. It also offers pipeline integrity management services and field heat treating services. Additionally, IHT provides associated engineering and condition assessment services, advanced digital imaging such as remote digital video imaging, and non destructive testing and metallurgical and chemical processing services for the aerospace and other industries, covering finished machined and in-service components.

• Mechanical Services (MS): This segment delivers solutions for customers’ needs during both operational (onstream) and off line asset states. Onstream services include standard to custom engineered leak repair and composite solutions, emissions control and compliance, hot tapping and line stopping, and online valve insertion solutions. Off line services consist of specialty maintenance, turnaround and outage work such as on site field machining, bolted joint integrity testing, vapor barrier plug testing, and valve management solutions, all aimed at minimizing customer downtime.

Team, Inc. holds a leading position in the specialty industrial services market, competing with other providers of inspection, heat treating, and mechanical repair services. Its competitive advantage stems from the ability to offer integrated services that combine inspection, engineering assessment, and mechanical services, allowing it to address the full lifecycle of critical assets. The company is uniquely qualified to escalate service levels from standard offerings to advanced asset integrity and reliability management solutions based on the severity of damage and operating conditions. Furthermore, Team, Inc. leverages a workforce of cross certified technicians with multi craft capabilities to deliver timely and efficient services across diverse industries.

Team, Inc. serves customers across a broad range of heavy industries. In the energy sector, it supports refining, power generation, renewables, nuclear facilities, offshore oil and gas operations, and liquefied natural gas plants. Within manufacturing and process industries, the company works with chemical, petrochemical, pulp and paper, automotive, and mining facilities. Midstream customers include operators of valves, terminals, storage facilities, and pipelines. Infrastructure projects served encompass construction, roads, dams, amusement parks, bridges, ports, and railways. Additionally, Team, Inc. provides services to aerospace and defense manufacturers and operators.

Investment Thesis

▲ Bull case

The company’s strategic emphasis on deepening workforce commitment represents a durable competitive advantage that the market may be underestimating. By launching a hire to retire career path program for technicians and reinforcing total health and wellness benefits, Team is positioning itself to improve retention rates in an industry where skilled labor scarcity often drives up costs and disrupts service delivery. Higher retention reduces recruitment and training expenses while preserving institutional knowledge that translates into faster turnaround times and higher customer satisfaction. Over time, this focus on people can translate into more consistent revenue growth and stronger operating margins as the firm leverages its experienced workforce to win higher margin contracts. The initiative also supports the goal of becoming the employer of choice, which can further enhance productivity and reduce absenteeism. Consequently, the upside to earnings from improved labor stability may not be fully reflected in current valuation multiples.
Team’s identification of long term tailwinds in LNG, midstream, data centers, power and aerospace offers a diversification away from its traditional refining and petrochem base that could drive sustainable top line expansion. The surge in AI fueled data center construction is generating unprecedented demand for power related inspection and mechanical services, a trend that management highlighted as a key growth area. Expansion of existing LNG facilities and greenfield projects continues to raise the need for rigorous inspection and mechanical integrity work, supporting recurring revenue streams. Increased defense spending and a rebound in commercial aerospace activity provide additional opportunities for the firm’s highly accretive laboratory inspection services. Together, these markets are less tied to the cyclicality of oil refining and can provide a buffer during downturns in the core sector. If Team captures even a modest share of these expanding markets, revenue growth could exceed the guided 4% midpoint.
The ongoing focus on cost efficiency and operating leverage presents a clear pathway to margin expansion and improved free cash flow generation that may be undervalued by investors. Management noted progress in simplifying the business, strengthening the capital structure and integrating systems to lower costs across supply chain and operational processes. These initiatives are designed to improve scalability, allowing revenue increases to translate into a larger proportion of incremental earnings. The first quarter already showed a 150 basis point decrease in adjusted SG&A as a percentage of revenue, indicating that cost discipline is taking hold. As the firm rolls out bespoke targeted cost reduction amounts in the second quarter, the cumulative effect could push adjusted EBITDA growth well beyond the 16% midpoint guidance. Enhanced operating leverage also strengthens the balance sheet, providing flexibility for debt pay down and potential shareholder returns.
Team’s balance sheet improvements and deleveraging trajectory create a foundation for future reinvestment and shareholder friendly actions that the market may not be fully pricing in. The CFO highlighted that the organization is now positioned to strategically grow the top line while expanding cash flow generation, with a clear aim to further reduce leverage. A stronger balance sheet reduces financial risk and lowers the cost of capital, making accretive acquisitions or internal investments in high growth areas more feasible. Additionally, reduced leverage improves the firm’s ability to weather cyclical downturns in its traditional markets without breaching covenants. This financial resilience can support a higher valuation multiple as investors reward lower risk profiles. The combination of deleveraging and cash flow generation sets the stage for potential dividend initiation or share repurchase programs down the line.
The guidance range for full year 2026 revenue between $920 million and $945 million reflects a modest 4% growth at the midpoint, yet the underlying drivers suggest considerable upside potential if the company executes on its strategic priorities. The firm highlighted that revenue growth coupled with margin expansion should substantially improve free cash flow and adjusted EBITDA over the prior year. If the targeted growth markets such as data centers and LNG experience stronger than expected demand, the top line could outpace the guidance range. Furthermore, the margin expansion opportunities cited – including an 8% increase in gross margin at the midpoint – indicate that profitability could rise faster than revenue. The market may be underappreciating the leveraged effect of simultaneous top line and bottom line improvement on overall shareholder value.

The company’s strategic emphasis on deepening workforce commitment represents a durable competitive advantage that the market may be underestimating. By launching a hire to retire career path program for technicians and reinforcing total health and wellness benefits, Team is positioning itself to improve retention rates in an industry where skilled labor scarcity often drives up costs and disrupts service delivery. Higher retention reduces recruitment and training expenses while preserving institutional knowledge that translates into faster turnaround times and higher customer satisfaction. Over time, this focus on people can translate into more consistent revenue growth and stronger operating margins as the firm leverages its experienced workforce to win higher margin contracts. The initiative also supports the goal of becoming the employer of choice, which can further enhance productivity and reduce absenteeism. Consequently, the upside to earnings from improved labor stability may not be fully reflected in current valuation multiples.
Team’s identification of long term tailwinds in LNG, midstream, data centers, power and aerospace offers a diversification away from its traditional refining and petrochem base that could drive sustainable top line expansion. The surge in AI fueled data center construction is generating unprecedented demand for power related inspection and mechanical services, a trend that management highlighted as a key growth area. Expansion of existing LNG facilities and greenfield projects continues to raise the need for rigorous inspection and mechanical integrity work, supporting recurring revenue streams. Increased defense spending and a rebound in commercial aerospace activity provide additional opportunities for the firm’s highly accretive laboratory inspection services. Together, these markets are less tied to the cyclicality of oil refining and can provide a buffer during downturns in the core sector. If Team captures even a modest share of these expanding markets, revenue growth could exceed the guided 4% midpoint.
The ongoing focus on cost efficiency and operating leverage presents a clear pathway to margin expansion and improved free cash flow generation that may be undervalued by investors. Management noted progress in simplifying the business, strengthening the capital structure and integrating systems to lower costs across supply chain and operational processes. These initiatives are designed to improve scalability, allowing revenue increases to translate into a larger proportion of incremental earnings. The first quarter already showed a 150 basis point decrease in adjusted SG&A as a percentage of revenue, indicating that cost discipline is taking hold. As the firm rolls out bespoke targeted cost reduction amounts in the second quarter, the cumulative effect could push adjusted EBITDA growth well beyond the 16% midpoint guidance. Enhanced operating leverage also strengthens the balance sheet, providing flexibility for debt pay down and potential shareholder returns.
Team’s balance sheet improvements and deleveraging trajectory create a foundation for future reinvestment and shareholder friendly actions that the market may not be fully pricing in. The CFO highlighted that the organization is now positioned to strategically grow the top line while expanding cash flow generation, with a clear aim to further reduce leverage. A stronger balance sheet reduces financial risk and lowers the cost of capital, making accretive acquisitions or internal investments in high growth areas more feasible. Additionally, reduced leverage improves the firm’s ability to weather cyclical downturns in its traditional markets without breaching covenants. This financial resilience can support a higher valuation multiple as investors reward lower risk profiles. The combination of deleveraging and cash flow generation sets the stage for potential dividend initiation or share repurchase programs down the line.
The guidance range for full year 2026 revenue between $920 million and $945 million reflects a modest 4% growth at the midpoint, yet the underlying drivers suggest considerable upside potential if the company executes on its strategic priorities. The firm highlighted that revenue growth coupled with margin expansion should substantially improve free cash flow and adjusted EBITDA over the prior year. If the targeted growth markets such as data centers and LNG experience stronger than expected demand, the top line could outpace the guidance range. Furthermore, the margin expansion opportunities cited – including an 8% increase in gross margin at the midpoint – indicate that profitability could rise faster than revenue. The market may be underappreciating the leveraged effect of simultaneous top line and bottom line improvement on overall shareholder value.

▼ Bear case

The company’s continued reliance on refining and petrochemical markets exposes it to cyclical downturns and structural shifts related to the global energy transition that may be underestimated by investors. While management highlighted the long term opportunity stemming from the age of refineries and high utilization rates, the sector faces increasing pressure from decarbonization policies, renewable energy adoption and fluctuating crude prices. A prolonged period of lower refining run times or delayed turnaround projects could directly reduce demand for Team’s inspection and mechanical services. Moreover, any acceleration in the shift away from fossil fuels could erode the long term viability of core market growth assumptions. The firm’s discussion did not fully address how it plans to mitigate this exposure beyond referencing minimal direct impact from geopolitical events. Consequently, adverse developments in the refining sector could weigh on revenue stability and limit upside from growth initiatives.
Indirect effects from the Middle East conflict, though described as minimal, may still pose risks to project timing and customer spending patterns that management did not elaborate on. The CEO noted that the conflict is impacting the broader oil and gas industry, leading to increased refining run times and pushing some turnaround scopes later into the year. Such shifts can disrupt the predictability of service demand, creating quarterly volatility that may affect financial planning. Additionally, heightened geopolitical tension could lead to sanctions, trade restrictions or changes in energy flows that alter the demand landscape for inspection services in affected regions. If these knock on effects intensify, they could result in postponed capital expenditures by customers, thereby reducing the addressable market for Team’s services. The lack of a detailed contingency plan for such scenarios leaves investors exposed to unforeseen headwinds.
The cost reduction targets outlined for the second quarter and beyond carry execution risk that could limit the anticipated margin expansion if initiatives fall short of expectations. Management referenced simplifying processes, better integrating teams and locations, and investing in systems to lower costs, yet provided few specifics on the magnitude of savings or timelines for realization. Achieving further improvement in supply chain efficiency often requires substantial upfront investment, change management and potential disruptions to ongoing operations. If the firm underestimates the complexity of integrating disparate systems or faces resistance from employees, the expected cost savings may be delayed or diminished. Moreover, any unexpected increase in input costs, such as wages or materials, could offset the benefits of efficiency programs. The market may be assuming a smooth implementation of these initiatives without fully considering the operational challenges involved.
While the hire to retire career path program and wellness benefits aim to improve retention, labor market pressures and wage inflation could undermine these efforts and increase operating costs. The industry continues to experience competition for skilled technicians, which can drive up salary expectations and make it challenging to maintain the industry leading retention rates cited by management. If Team cannot match compensation offered by larger integrated service providers or specialty contractors, it may experience higher turnover despite its career development offerings. Increased turnover would raise recruitment and training expenses, erode productivity and potentially affect service quality. Furthermore, the broader trend toward remote work and flexible arrangements in other sectors may make traditional field based roles less attractive to younger workers. These labor dynamics could translate into higher SG&A expenses and limit the margin benefits expected from workforce initiatives.
The competitive landscape in inspection and mechanical services is intensifying, with larger players expanding their service offerings and potentially limiting Team’s ability to capture additional wallet share from existing customers. Management discussed expanding market share in targeted end markets through disciplined pursuit of opportunities where technical capabilities are most valued, yet did not detail how it will differentiate itself against rivals that are also investing heavily in digital inspection tools, automation and geographic expansion. If competitors succeed in offering comparable or superior services at lower price points, Team may be forced to concede on pricing or accept lower margins to retain contracts. Additionally, the rise of specialized niche providers focusing exclusively on high growth areas such as data centers or aerospace could fragment the market and reduce the addressable opportunity for a broad based player like Team. This competitive pressure could constrain revenue growth and hinder the firm’s leverage improvement plans.

The company’s continued reliance on refining and petrochemical markets exposes it to cyclical downturns and structural shifts related to the global energy transition that may be underestimated by investors. While management highlighted the long term opportunity stemming from the age of refineries and high utilization rates, the sector faces increasing pressure from decarbonization policies, renewable energy adoption and fluctuating crude prices. A prolonged period of lower refining run times or delayed turnaround projects could directly reduce demand for Team’s inspection and mechanical services. Moreover, any acceleration in the shift away from fossil fuels could erode the long term viability of core market growth assumptions. The firm’s discussion did not fully address how it plans to mitigate this exposure beyond referencing minimal direct impact from geopolitical events. Consequently, adverse developments in the refining sector could weigh on revenue stability and limit upside from growth initiatives.
Indirect effects from the Middle East conflict, though described as minimal, may still pose risks to project timing and customer spending patterns that management did not elaborate on. The CEO noted that the conflict is impacting the broader oil and gas industry, leading to increased refining run times and pushing some turnaround scopes later into the year. Such shifts can disrupt the predictability of service demand, creating quarterly volatility that may affect financial planning. Additionally, heightened geopolitical tension could lead to sanctions, trade restrictions or changes in energy flows that alter the demand landscape for inspection services in affected regions. If these knock on effects intensify, they could result in postponed capital expenditures by customers, thereby reducing the addressable market for Team’s services. The lack of a detailed contingency plan for such scenarios leaves investors exposed to unforeseen headwinds.
The cost reduction targets outlined for the second quarter and beyond carry execution risk that could limit the anticipated margin expansion if initiatives fall short of expectations. Management referenced simplifying processes, better integrating teams and locations, and investing in systems to lower costs, yet provided few specifics on the magnitude of savings or timelines for realization. Achieving further improvement in supply chain efficiency often requires substantial upfront investment, change management and potential disruptions to ongoing operations. If the firm underestimates the complexity of integrating disparate systems or faces resistance from employees, the expected cost savings may be delayed or diminished. Moreover, any unexpected increase in input costs, such as wages or materials, could offset the benefits of efficiency programs. The market may be assuming a smooth implementation of these initiatives without fully considering the operational challenges involved.
While the hire to retire career path program and wellness benefits aim to improve retention, labor market pressures and wage inflation could undermine these efforts and increase operating costs. The industry continues to experience competition for skilled technicians, which can drive up salary expectations and make it challenging to maintain the industry leading retention rates cited by management. If Team cannot match compensation offered by larger integrated service providers or specialty contractors, it may experience higher turnover despite its career development offerings. Increased turnover would raise recruitment and training expenses, erode productivity and potentially affect service quality. Furthermore, the broader trend toward remote work and flexible arrangements in other sectors may make traditional field based roles less attractive to younger workers. These labor dynamics could translate into higher SG&A expenses and limit the margin benefits expected from workforce initiatives.
The competitive landscape in inspection and mechanical services is intensifying, with larger players expanding their service offerings and potentially limiting Team’s ability to capture additional wallet share from existing customers. Management discussed expanding market share in targeted end markets through disciplined pursuit of opportunities where technical capabilities are most valued, yet did not detail how it will differentiate itself against rivals that are also investing heavily in digital inspection tools, automation and geographic expansion. If competitors succeed in offering comparable or superior services at lower price points, Team may be forced to concede on pricing or accept lower margins to retain contracts. Additionally, the rise of specialized niche providers focusing exclusively on high growth areas such as data centers or aerospace could fragment the market and reduce the addressable opportunity for a broad based player like Team. This competitive pressure could constrain revenue growth and hinder the firm’s leverage improvement plans.

Segments Breakdown of Revenue (2025)

Peer Comparison

Companies in the Specialty Business Services

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	CTAS	Cintas Corp	82.43 Bn	0.00 Mn	0.00 Mn	2.66 Bn
2	RTO	Rentokil Initial Plc /Fi	71.81 Bn	0.00 Mn	0.00 Mn	5.57 Bn
3	RELX	Relx Plc	63.28 Bn	11.42 Mn	6.29 Mn	-
4	TRI	Thomson Reuters Corp /Can/	40.35 Bn	0.00 Mn	0.00 Mn	1.56 Bn
5	CPRT	Copart Inc	26.32 Bn	0.00 Mn	0.00 Mn	-
6	GPN	Global Payments Inc	22.09 Bn	0.00 Mn	0.00 Mn	22.57 Bn
7	RBA	Rb Global Inc.	20.79 Bn	0.00 Mn	0.00 Mn	2.32 Bn
8	ULS	UL Solutions Inc.	17.26 Bn	0.00 Mn	0.00 Mn	0.36 Bn

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Investment Thesis

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer Comparison

Research Tools

Developers

About

Investment Thesis

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer Comparison

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