Team, Inc. (TISI): ANSOFF MATRIX [Dec-2025 Updated]

You're looking for the clear roadmap to hit Team, Inc.'s expected 5% revenue growth and 10% Adjusted EBITDA margin for 2025, and honestly, the Ansoff Matrix lays it out perfectly. As someone who's mapped strategies for decades, I see four distinct pathways-from doubling down on U.S. IHT with its recent 13.4% Q2 growth to using the $6 million in cost savings for competitive pricing. We'll break down exactly how new products, like proprietary heat treating services seeing nearly 22% growth, and even aggressive moves like entering new Canadian regions with 31.4% growth, fit into this plan. Keep reading to see the actionable steps for each quadrant.

Team, Inc. (TISI) - Ansoff Matrix: Market Penetration

You're looking at how Team, Inc. plans to deepen its hold in existing markets, which means selling more of what you already offer to the customers you already serve. This strategy hinges on leveraging recent operational wins to drive volume and margin in core segments.

To increase wallet share with key refining and power customers through bundled Inspection, Heat Treating (IHT), and Mechanical Services (MS), you need to see the segment momentum. The Q2 2025 results show the IHT segment revenue grew 15.2% year-over-year, reaching $130.4 million in the quarter. This growth is what you aim to cross-sell into the MS customer base.

Aggressively pursuing higher-margin call-out and advanced service offerings is clearly supported by the data. For instance, the higher-margin heat treating revenue saw a nearly 26% year-over-year increase in Q2 2025. This focus helped drive the IHT segment Adjusted EBITDA up 25% in the quarter.

You can use the expected cost savings to fuel more aggressive pricing on high-volume, conventional services. The optimization program is targeting annualized cost savings of around $10 million, and management expects about $6 million of those savings to flow through in the second half of 2025. That cash flow improvement is the lever for more competitive conventional service pricing.

Focusing sales efforts on the U.S. IHT segment is a clear action, given its performance. This segment delivered revenue growth of 13.4% in Q2 2025, which was a significant driver for the total consolidated revenue growth of 8.5% for the quarter. Capturing competitor share in this area is the immediate goal.

To secure multi-year maintenance contracts with pipeline and petrochemical clients, you need to show consistent operational improvement. This ties directly into the cost discipline you've already demonstrated:

• Adjusted Selling, General and Administrative Expense decreased to 18.9% of consolidated revenue in Q2 2025.
• This compares to 19.8% of consolidated revenue in Q2 2024.
• Consolidated Adjusted EBITDA margin expanded by 40 basis points year-over-year in Q2 2025, reaching 9.9%.

The full-year 2025 projection remains for at least 15% year-over-year growth in Adjusted EBITDA, building on the nearly $30 million generated through the first half of 2025.

Team, Inc. (TISI) - Ansoff Matrix: Market Development

You're looking at how Team, Inc. (TISI) can take its existing services and push them into new customer bases or geographies. This is Market Development, and the numbers from 2025 show some clear paths forward.

First, let's look at the success in a specific vertical. You've already seen traction expanding the existing Inspection and Heat Treating (IHT) services into the midstream oil and gas market. That effort paid off in the first quarter of 2025, showing a revenue increase from those midstream end markets of nearly 15%. This validates the strategy of applying current capabilities to adjacent, high-value energy sectors.

The turnaround in Canada provides a strong template for regional expansion. The Canadian operations, which have been a focus for strengthening commercial performance, delivered a revenue growth of 31.4% in the second quarter of 2025. That Q2 performance, which included a $3.6 million increase in Canada IHT revenue, suggests you can use that momentum to push into new industrial regions within Canada.

The IHT segment itself is the engine for this market development. In Q2 2025, total IHT revenues grew by 15.2% year-over-year, reaching $130.4 million. This segment's operating income jumped by 26.7% year-over-year. Targeting the aerospace industry with specialized non-destructive testing (NDT) and inspection services is a natural next step, given the segment's overall strength.

Here's a quick look at the Q2 2025 IHT segment performance that supports this market push:

For broader industrial markets, the success in a specific lab area shows potential for a dedicated sales push. The Cincinnati lab testing revenue specifically rose by 64% in Q1 2025, which suggests that establishing a dedicated sales team to market general industrial lab inspection and testing services to non-core heavy industries could yield similar high-margin results.

Internationally, the company currently operates in over 15 countries. The plan is to systematically enter two new international markets beyond the current 20+ countries, focusing on regions showing high capital project spending. This expansion needs to be measured against the current full-year 2025 revenue growth projection of approximately 5% and the target for Adjusted EBITDA margin of at least 10%. The Q3 2025 results showed a 7% revenue increase year-over-year, so the market is responding to current efforts.

To execute this, you'll need to focus on a few key areas:

• Expand IHT into midstream oil and gas, building on the ~15% Q1 2025 revenue increase.
• Use the 31.4% Q2 2025 Canada revenue growth as a blueprint for new regional penetration.
• Target aerospace using the IHT segment, which grew revenue by 15.2% in Q2 2025.
• Scale lab testing success, following the 64% revenue rise in Cincinnati in Q1 2025.
• Systematically enter two new international markets beyond the current 20+ countries.

Finance: draft 13-week cash view by Friday.

Team, Inc. (TISI) - Ansoff Matrix: Product Development

You're looking at the core of where Team, Inc. is pushing for higher margins and better returns, building on momentum from its existing service lines. The Inspection and Heat Treating (IHT) segment, for instance, saw its revenue climb 6.8% year-over-year in the first quarter of 2025, with U.S. operations up 8.8%. This is the foundation for new product introductions.

The Product Development quadrant focuses on leveraging this base to introduce new, proprietary offerings to current power and petrochemical clients. Here are the specific vectors for that growth:

• Roll out fully-digitized asset performance assurance solutions to existing power and petrochemical clients.
• Introduce proprietary, high-margin heat treating services, building on the nearly 22% growth seen in that area in Q1 2025.
• Develop and patent a new, faster mechanical leak repair composite for high-temperature, high-pressure piping systems.
• Invest R&D into remote visual inspection (RVI) technology to reduce on-site labor costs for current refining customers.
• Offer advanced engineering assessment services that integrate inspection data with predictive maintenance analytics for current clients.

To see the immediate impact of successful service enhancements, look at the segment results from the first half of 2025. The growth in higher-margin services is clear:

The push for new products is directly tied to improving the bottom line, which saw an Adjusted EBITDA of $5.3 million in Q1 2025, despite a net loss of $29.7 million that included an $11.9 million charge on debt extinguishment from the March 2025 refinancing. The company is targeting a full-year 2025 Adjusted EBITDA growth of approximately 13% and aims for an Adjusted EBITDA margin of at least 10%. Also, the company has an ongoing optimization program expected to save $10 million annually.

Team, Inc. (TISI) - Ansoff Matrix: Diversification

You're looking at how Team, Inc. (TISI) can push beyond its core industrial services into entirely new markets. Diversification means taking what works and applying it somewhere new, which is a big step from the current operational focus.

Consider the momentum in the Inspection and Heat Treating (IHT) segment. In the first quarter of 2025, IHT revenue grew 6.8% year-over-year, reaching $106.2 million. This strength is the platform for new ventures.

Here's a look at the internal performance metrics that could fund or inform these new paths:

The first diversification vector involves expanding into renewable energy infrastructure maintenance. This is a new market for Team, Inc. (TISI), but it leverages inspection expertise. The company is already seeing success in high-growth areas within its existing structure; for instance, heat treating services grew nearly 22% year-over-year in Q1 2025.

For launching a new software-as-a-service (SaaS) platform for industrial asset integrity management, the internal efficiency gains are relevant. Management is targeting annualized cost savings of $\ge$$10 million. This kind of operational leverage is what a successful SaaS offering needs to show early on.

Developing specialized materials for marine shipping corrosion prevention is a product-focused diversification. The success of the Cincinnati laboratory provides a strong precedent for developing proprietary offerings. That lab saw its testing revenue jump 64% in Q1 2025.

The environmental compliance monitoring joint venture is another market/service expansion. Team, Inc. (TISI) is focused on improving overall profitability, with a full-year 2025 goal of $\ge$15% Adjusted EBITDA growth. The Q2 2025 Adjusted EBITDA was $24.5 million, representing 9.9% of revenue.

The most direct application of existing strength is materials science testing for the automotive sector, using the Cincinnati lab's success as the springboard. You need to map that 64% Q1 2025 revenue growth against the overall segment performance:

• IHT Segment Revenue (Q1 2025): $106.2 million
• Heat Treating Services Growth (YoY Q1 2025): Nearly 22%
• Cincinnati Lab Revenue Growth (YoY Q1 2025): 64%
• Mechanical Services (MS) Revenue (Q1 2025): $92.4 million

The company's financial structure also informs the risk profile of these aggressive moves. The Debt / Equity ratio stands at 10.98, and the Market Cap is $68.63 million. It defintely suggests that external financing, perhaps through a joint venture structure, would be a necessary component for significant diversification.