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TISINeutralEarningsShort Term

High materiality8/10

Team, Inc. Reports Second Quarter 2026 Results

StockNews.AIAug 10, 5:26 PM EDT2 sources

Trading thesisImportance 8/10

Initiate/accumulate TISI on 6–12 month horizon as H2 recovery and cost savings drive margin upside.

AI summary

What happened and why it matters

Team, Inc. reported a Q2 2026 revenue of $228.7M with 23.8% gross margin and a net loss of $6.8M, while Adjusted EBITDA fell to $12.8M. Management reaffirmed 2026 targets: revenue up about 4%, gross margin up around 8%, and Adjusted EBITDA up roughly 16%, supported by an $8–$15M structural cost program and a run-rate of $20–$35M. A rebound in deferred turnaround activity in H2 could drive margin expansion across segments.

2026 guidance midpoint implies material margin and cash-flow improvement into 2H.
Deferral of oil/gas turnaround activity weighing current quarter; potential rebound next half.
ME regional weakness remains near-term revenue headwind; sensitivity to geopolitical risk.
Liquidity tightness: total liquidity $51.2M; net debt proxy ~ $300M.

Sentiment rationale

The company posted a Q2 loss with revenue and EBITDA down YoY, but reaffirmed 2026 targets and announced a substantial cost-reduction program. If H2 activity recovers as expected and cost savings flow through, margins may rebound, potentially supporting multiple compression-to-expansion moves. However, near-term performance and ME region weakness pose downside risk until visibility improves.

Key facts

01
Q2 2026 revenue $228.7M; gross margin $54.4M (23.8%). Net loss $6.8M; adj EBITDA $12.8M (5.6%).
02
SG&A expense declined; mid-year guidance raised for 2026.
03
2026 guidance: revenue up ~4%; gross margin up ~8%; adj EBITDA up ~16%.
04
Deferred turnaround activity weighed on ME; expect second-half rebound.
05
Cost reductions target $8–$15M in 2026; run-rate $20–$35M.

Earnings

Earnings; the release centers on quarterly results, cost-reduction initiatives, and 2026 guidance, fitting an earnings-focused assessment with strategic transformation emphasis.