Team, Inc. Reports Decline in Revenue and Increased Net Loss for Q2 2026

Team, Inc. reported a decline in financial performance for the second quarter of 2026, with total revenues of $228.7 million, down 7.8% from $248.0 million in the same period last year. The decrease was primarily attributed to lower turnaround activity in the U.S. and Canada, which saw declines of $5.0 million and $2.6 million, respectively. The company's operating income also fell significantly, totaling $2.2 million compared to $12.1 million in the prior year, reflecting a reduction in revenue and unfavorable project mix impacting margins.

For the first half of 2026, Team, Inc. reported revenues of $443.7 million, a slight decrease of 0.7% from $446.7 million in the same period of 2025. The Inspection and Heat-Treating (IHT) segment saw a modest increase in revenue of 1.1%, while the Mechanical Services (MS) segment experienced a decline of 3.0%. The overall operating loss for the first half was $1.2 million, a significant drop from the operating income of $6.1 million reported in the previous year, driven by reduced revenue and higher benefit costs.

In terms of strategic developments, Team, Inc. has made organizational changes by moving the Emission Control Services from the MS segment to the IHT segment as of January 1, 2026. This adjustment aims to better align with the company's operational focus and improve performance evaluation. The company continues to serve a diverse array of industries, including energy, manufacturing, and aerospace, and is actively managing its operational costs amid challenging market conditions.

Operationally, Team, Inc. reported a net loss of $6.8 million for the second quarter, compared to a loss of $4.3 million in the same quarter of 2025. The company’s total liabilities increased to $490.6 million as of June 30, 2026, up from $458.0 million at the end of 2025, largely due to increased long-term debt. The company’s cash and cash equivalents improved to $26.0 million, reflecting a net increase of $7.8 million during the quarter, primarily driven by financing activities.

Looking ahead, Team, Inc. remains focused on improving operational efficiency and managing costs while navigating the current economic landscape. The company has indicated that it expects to leverage its existing credit facilities and operational capabilities to support its financial stability and growth initiatives. However, it acknowledges the potential risks associated with market conditions, including inflationary pressures and fluctuations in customer demand, which could impact future performance.