Team, Inc. (TISI): BCG Matrix [Dec-2025 Updated]

You're looking for a clear map of where Team, Inc. (TISI) is actually making money and where the risks are, so let's break down their business segments into the four BCG quadrants. The picture shows a clear growth engine in Inspection & Heat Treating (IHT) with 9.4% year-to-date revenue growth, while Mechanical Services (MS) reliably churns cash with a 31.2% operating income jump in Q3 2025. Still, we have to address the drag from legacy costs contributing to the consolidated net loss of $(11.447) million in Q3 2025, and the high-investment Canadian turnaround that remains a big question mark. Dive in to see exactly where you should be focusing capital and where the firm needs to cut bait.

Background of Team, Inc. (TISI)

You're looking at Team, Inc. (TISI), which is a global leader in providing specialty industrial services. Honestly, they focus on keeping critical industrial assets safe and running efficiently, offering everything from standard to highly specialized inspection, maintenance, and repair solutions. The company was first established way back in 1995 in Alvin, Texas, though they are now headquartered in Sugar Land, Texas.

Team, Inc. serves a wide range of heavy industries. You'll find their work in petrochemical, power, pipeline, refining, steel, and pulp and paper sectors. They also work with municipalities, original equipment manufacturers (OEMs), distributors, and engineering/construction firms. To deliver these services, Team, Inc. deploys a workforce of about 5,400 highly trained employees across over 220 locations spanning more than 20 countries worldwide.

Financially, the company's performance in fiscal year 2025 shows a clear upward trend in key areas, even with some segment variability. For instance, in the second quarter of 2025, revenue hit $248.0 million, which was an 8.5% increase over the same period in 2024. The third quarter of 2025 continued this momentum, with revenue growing by nearly 7% year-over-year.

Looking at the segments through the first nine months of 2025, the Inspection & Heat Treating (IHT) segment has been a strong performer, delivering 9.4% year-over-year revenue growth. The Mechanical Service (MS) segment, however, saw slower growth at just under 1% for the same period, often due to callout revenue shifts or project delays. Management is projecting full-year 2025 revenue growth to land around 5%.

A significant event for Team, Inc. in 2025 was the completion of a refinancing transaction in March. This move was important because it extended term loan maturities out to 2030 and successfully lowered the company's blended interest rate by more than 100 basis points. The focus remains on cost discipline and executing commercial initiatives to drive profitability, aiming for an adjusted EBITDA margin of at least 10% for the full year.

Team, Inc. (TISI) - BCG Matrix: Stars

The Inspection & Heat Treating (IHT) segment is positioned as a Star within the Team, Inc. portfolio, characterized by high growth in a market where the company holds a leading position. This segment is consuming cash to fuel its expansion but is critical for future Cash Cow status.

For the first nine months of 2025, the Inspection & Heat Treating segment delivered 9.4% year-over-year revenue growth. This growth trajectory is supported by management's focus on end markets exhibiting high-margin and high-growth characteristics, specifically naming power, aerospace, and LNG. The company is aggressively leveraging its technical expertise in these areas.

The operational strength of this segment is evident in its profitability metrics. In the third quarter of 2025, IHT operating income increased by 16.9% compared to the prior year period. This segment is the primary driver of the company's overall top-line momentum, contributing to the consolidated revenue of $225.0 million for Q3 2025, which was up 6.7% year-over-year.

These services are proprietary and specialized, which grants Team, Inc. a strong competitive footing in these demanding sectors. The high-growth nature of the segment is further detailed by its Q3 2025 performance:

• IHT revenues reached $113.8 million in Q3 2025.
• Q3 revenue growth for IHT was 5.7% year-over-year.
• International operations, including Canada, saw IHT revenue lift by 8.9% in Q3 2025.

The investment thesis for a Star requires sustained support to maintain market share until the market growth slows, at which point the segment transitions. Here's a quick look at the segment's Q3 2025 financial snapshot:

The company's full-year 2025 guidance reflects this focus, projecting consolidated revenue growth of approximately 5% and Adjusted EBITDA growth of approximately 13%. The consolidated Adjusted EBITDA for Q3 2025 was $14.5 million, representing a 28.6% increase and an expanded margin of 6.5% of consolidated revenue.

Team, Inc. (TISI) - BCG Matrix: Cash Cows

You're looking at the core engine of Team, Inc.'s current stability, the Mechanical Services (MS) segment. This is the classic Cash Cow profile: a market leader in a mature space that you milk for capital to fund riskier ventures.

The MS segment is a core, mature service line for industrial clients. Its performance in the first nine months of 2025 clearly shows this maturity. For the year-to-date (9M 2025) period, the segment delivered revenue growth of just under 1%, which signals a stable, slow-growth market. Still, the segment is showing strong operational leverage.

The segment delivers consistent cash flow, which is the key takeaway here. For the third quarter of 2025, the MS operating income was up 31.2% year-over-year, indicating high efficiency in managing costs relative to revenue. This profitability boost is what makes it a Cash Cow; it generates more cash than it consumes in maintenance spending.

Here's a quick look at how MS stacked up against the Inspection, Heat Treating, and Testing (IHT) segment in Q3 2025, which is the Star or Question Mark, depending on its growth trajectory:

Because this segment is established, it requires lower capital investment to maintain market share than the IHT segment, which is likely chasing higher growth. This lower reinvestment need means more free cash flow drops to the bottom line for Team, Inc.

You want to ensure the MS segment remains productive, so investments should focus on efficiency, not expansion. Think about infrastructure supporting existing operations.

• Focus on maintaining existing asset base.
• Invest in process automation for existing workflows.
• Ensure high utilization rates are sustained.
• Targeted spending to reduce SG&A as a percentage of revenue.

For instance, the overall Adjusted Selling, General and Administrative Expense for Team, Inc. improved to 20.8% of consolidated revenue in Q3 2025, down from 21.7% in Q3 2024. A portion of that efficiency gain likely stems from disciplined management within the mature MS base.

Team, Inc. (TISI) - BCG Matrix: Dogs

Dogs, units or products with a low market share and low growth rates, are prime candidates for divestiture because expensive turn-around plans usually do not help. For Team, Inc. (TISI), the financial metrics from the third quarter of 2025 reflect the drag these low-performing areas place on the overall enterprise.

The financial burden is evident in the bottom line. The consolidated net loss widened slightly to $(11.447) million in Q3 2025. To be fair, this loss represented a 2.9% increase from the net loss of $11.13 million reported in the third quarter of 2024, deepening the overall loss per share to $(2.68).

This pressure is exacerbated by specific cost spikes. Corporate and shared support services costs rose by $4.9 million, a significant increase of +43.6% year-over-year, driven by non-recurring professional fees and legal reserves. These non-operational expenses directly impact the ability of the core business to generate sustainable profit.

The balance sheet reflects the capital tied up in these low-return areas. The substantial net debt balance was still reported at $288.0 million as of September 30, 2025. While financing actions in September 2025 improved liquidity to $57.1 million, the underlying debt level remains a constraint.

Legacy cost structures and underperforming regional operations are the units that fit the Dogs profile. For instance, the traditional mechanical services segment, identified as having reduced market relevance, reported revenue of $12.3 million as of Q4 2023. This revenue figure represented a 7.2% decline from the prior year, and the segment's market share had fallen from 6.5% to 4.9%.

Here's a quick look at the financial metrics illustrating the drag:

The company is actively working on cost discipline, with Adjusted SG&A leverage improving to 20.8% of consolidated revenue in Q3 2025, down from 21.7% in the prior year. Still, the existence of units like the declining traditional mechanical services segment necessitates a strategic decision on minimization or divestiture.

You should review the capital allocation strategy for any segment showing a market share below 5% in a low-growth environment. The focus on higher-margin revenue streams, like those in Inspection and Heat Treating (IHT), which saw operating income up 16.9%, clearly shows where resources are being redirected away from these Dogs.

Team, Inc. (TISI) - BCG Matrix: Question Marks

You're looking at business units that are definitely growing fast but haven't secured a dominant position yet. These are the Question Marks, consuming cash while you try to push them toward Star status. For Team, Inc. (TISI), this quadrant is characterized by high potential offset by significant investment needs.

The Canadian operations fit this profile well; they are clearly in a turnaround phase, showing positive momentum but not yet a stable profit center. For instance, in the third quarter of 2025, the Inspection and Heat-Treating (IHT) international operations, which include Canada, saw revenue grow by 8.9% year-over-year. Still, the Mechanical Services (MS) segment in Canada showed a very strong jump, with revenue up 66.4%, contributing $3.4 million to the segment's growth in that quarter. The IHT segment saw an increase of $1.2 million from Canada and other international regions in Q3 2025. This growth is exactly what you want to see, but the underlying market share remains low, demanding continued capital allocation.

New commercial initiatives are showing early promise, which is critical for future Star potential. Specifically, the new commercial initiatives targeting midstream end markets delivered nearly 15% revenue growth during the first quarter of 2025. This kind of rapid uptake in a specific market segment signals where heavy investment might pay off quickly. The challenge, as always with Question Marks, is converting that growth into sustainable, high-margin returns.

The pursuit of an Adjusted EBITDA margin target of at least 10% for Team, Inc. exemplifies the high-risk, high-reward nature of managing these assets. While the company is making progress-forecasting full-year 2025 Adjusted EBITDA growth of approximately 13%-the actual consolidated Adjusted EBITDA margin for the third quarter of 2025 stood at 6.5% of consolidated revenue. That gap between the 6.5% actual margin and the 10% target shows the cash burn required to fund the growth needed to close the market share gap.

Here's a quick look at the Q3 2025 financial context for these cash-consuming units:

These units require heavy investment to capture market share quickly, or they risk slipping into the Dog quadrant. The decision point for Team, Inc. management is whether to pour capital into these areas, like the midstream initiatives, to push them toward Star status, or to divest if the path to that 10% margin target seems too distant or capital-intensive.