Team, Inc. (TISI): Business Model Canvas [Dec-2025 Updated]

You're digging into Team, Inc.'s current engine, and frankly, the story as of late 2025 is less about shiny new tech and more about disciplined financial repair supporting solid field execution. With trailing twelve months revenue at $884.95 million ending September 30, 2025, and Q3 seeing Mechanical Services grow 7.8%, the core business is chugging along, but the real focus is the debt restructuring and the drive for $\ge$$10 million in annual cost savings. We've broken down how their $57.1 million liquidity position and key financial partnerships underpin their entire operation across all nine building blocks-dive in below to see the precise structure powering this turnaround.

Team, Inc. (TISI) - Canvas Business Model: Key Partnerships

You're looking at the core financial relationships Team, Inc. solidified in 2025 to manage its capital structure and provide operational flexibility. These partnerships are critical to the company's near-term stability.

The September 2025 private placement with Stellix Capital Management, LLC was a major event, immediately strengthening the balance sheet. This deal involved the issuance of $75 million in preferred stock and warrants, which directly facilitated the payoff of approximately $67 million in existing debt.

The existing Asset-Based Lending (ABL) facility with Eclipse Business Capital was also a key focus for amendment and support across these transactions.

Here's a breakdown of the primary financial partners and facility details as of late 2025:

The March 2025 refinancing, led by HPS Investment Partners, LLC, lowered the blended interest rate by over 100 basis points.

Regarding the other partnership categories, here are the relevant operational data points we have:

• Team, Inc. provides clients access to a full suite of conventional, specialized, and proprietary mechanical, heat-treating, and inspection services.
• Team, Inc. provides specialty industrial services across more than 13 countries.
• The September 2025 Stellix transaction grants Stellex the right to nominate two members to Team, Inc.'s Board of Directors.

Specific financial figures detailing the value or scale of strategic alliances with technology and equipment vendors, or contracts with subcontractors and specialized labor pools, were not present in the latest available financial disclosures.

If onboarding takes 14+ days, churn risk rises. Finance: draft 13-week cash view by Friday.

Team, Inc. (TISI) - Canvas Business Model: Key Activities

You're looking at the core actions Team, Inc. (TISI) is taking to run the business as of late 2025. It's all about service delivery and getting costs under control. The company operates across 13 countries, deploying services for critical asset integrity management.

Delivering specialized non-destructive testing (NDT) and advanced inspection services is a major focus, primarily through the Inspection and Heat Treating (IHT) segment. This segment showed solid growth in the first three quarters of 2025. For instance, Q2 2025 IHT revenue grew by 15.2% year-over-year, and Q3 2025 IHT revenue was up 5.7% year-over-year, reaching $\$6.2$ million higher than Q3 2024.

Providing proprietary mechanical repair, hot tapping, and leak sealing services falls under the Mechanical Services (MS) segment, which saw mixed results but finished Q3 strong. The MS segment revenue grew by 7.8%, or $\$8.0$ million, in the third quarter of 2025. Specific services like Leak Detection and Repair (LDAR) are part of this offering.

Executing large-scale maintenance turnarounds and call-out repair work drives activity in both segments. U.S. Mechanical Services revenue growth in Q3 2025 was up 12.6%, directly tied to increased turnaround demand in the U.S. Also, the IHT segment saw higher revenue from nested and callout service activity with existing customers.

Here's a quick look at how the two main service segments performed in the reported quarters of 2025:

Driving cost discipline and a cost optimization program targeting $\geq\$10$ million in annual savings is a critical activity supporting margin expansion. The company is definitely executing on this, as evidenced by operational expense control. For example, Adjusted Selling, General and Administrative Expense decreased to 20.8% of consolidated revenue in Q3 2025, down from 21.7% in Q3 2024.

The company also took steps to improve its financial structure, which supports long-term operational stability. They completed a refinancing in March 2025 that extended term loan maturities to 2030 and lowered the blended interest rate by over 100 basis points. Plus, in September 2025, they closed a private placement of preferred stock for $75.0 million in proceeds.

Key operational metrics supporting these activities include:

• Global presence across 13 countries.
• Consolidated Adjusted EBITDA margin target of at least 10% for the full year 2025.
• Adjusted EBITDA for the first nine months of 2025 reached over $44 million.
• Projected full-year 2025 revenue growth of approximately 5%.

Finance: draft 13-week cash view by Friday.

Team, Inc. (TISI) - Canvas Business Model: Key Resources

When we look at the core assets Team, Inc. (TISI) relies on to execute its business model, we see a mix of human capital, specialized tools, and financial backing. These are the things that make their service delivery possible, so you want to know they are solid.

The human element is significant. Team, Inc. (TISI) maintains a specialized, certified workforce of approximately 5,400 employees globally. This scale is necessary to support their international operations and the diverse service lines they offer across Inspection and Heat Treating (IHT) and Mechanical Services (MS) segments. This workforce is the delivery mechanism for their expertise.

The company's physical and intangible assets are centered on specialized execution. Team, Inc. (TISI) deploys proprietary inspection technologies and mechanical service equipment. This is coupled with their intellectual property and technical expertise in asset integrity management, which is crucial for their value proposition in high-stakes industries like power and LNG. The ability to offer these specialized tools and the know-how to use them effectively is a major barrier to entry for competitors.

Geographically, Team, Inc. (TISI) has a global operating footprint with locations in more than 20 countries. This wide reach allows them to service large, multinational clients and respond to call-out activity across different regions, which is key for their service model. For instance, Q3 2025 saw international operations growth of 8.9%, showing this footprint is actively contributing to revenue.

Finally, the financial foundation supports these operations. As of September 30, 2025, the reported liquidity position was $57.1 million. This financial resource is vital for managing working capital fluctuations inherent in project-based service work and funding ongoing operational needs. Here's the quick math on that liquidity:

To be fair, the ability to generate cash flow is what sustains these resources long-term. Management projects full-year 2025 revenue growth of approximately 5% and adjusted EBITDA growth of approximately 13%, aiming for an adjusted EBITDA margin of at least 10%. These targets reflect the expected utilization of their key resources.

The tangible and intangible assets supporting their service delivery include:

• Workforce size: 5,400 employees.
• Geographic reach: Locations in over 20 countries.
• Financial buffer: Liquidity of $57.1 million (9/30/2025).
• Proprietary assets: Specialized inspection technologies.

Finance: draft 13-week cash view by Friday.

Team, Inc. (TISI) - Canvas Business Model: Value Propositions

You're looking at the core promises Team, Inc. makes to its industrial clients as of late 2025, grounded in their operational results from the first half of the year and their forward guidance.

Ensuring greater safety and regulatory compliance for critical industrial assets.

Team, Inc. deploys conventional to highly specialized inspection, condition assessment, maintenance, and repair services that result in greater safety, reliability, and operational efficiency for customers' most critical assets. This value is delivered through locations in more than 20 countries. The company's focus on integrity management is a primary driver for client engagement.

Maximizing operational efficiency and reliability through preventative maintenance.

The drive for efficiency is reflected in segment performance. For instance, in the second quarter of 2025, the Inspection and Heat Treating (IHT) revenue grew by 15.2% year-over-year, fueled partly by higher activity in turnaround and callout services from existing customers. The company is targeting a full year 2025 Adjusted EBITDA growth of approximately 13%.

Offering a full suite of conventional, specialized, and proprietary services.

Team, Inc. provides access to a full suite of services, which includes conventional, specialized, and proprietary mechanical, heat-treating, and inspection services. The growth in the specialized areas demonstrates client adoption of these higher-value offerings.

• Higher margin heat treating services grew nearly 22% year-over-year in Q1 2025.
• The Cincinnati laboratory testing and inspection services facility saw 64% growth in Q1 2025.
• IHT segment Adjusted EBITDA improved by 39% year-over-year in Q1 2025.

Providing fully-integrated, customized solutions to complex integrity challenges.

The ability to combine services into integrated solutions supports better financial outcomes for Team, Inc. and its clients. The company's focus on cost discipline and growing higher margin work is intended to help accomplish its goal of achieving an adjusted EBITDA margin target of at least 10% for the full year 2025.

Here's the quick math on the latest reported quarterly performance, showing the scale of operations and margin expansion:

Extending asset life and reducing unplanned downtime for high-pressure systems.

Team, Inc. deploys inspection and condition assessment services specifically designed to safeguard critical assets, which directly translates to extending asset life and reducing the costly impact of unplanned downtime. The company's Q2 2025 U.S. Mechanical Services business saw revenue increase by 6.6% year-over-year, indicating continued project and callout activity supporting asset integrity.

Finance: draft 13-week cash view by Friday.

Team, Inc. (TISI) - Canvas Business Model: Customer Relationships

You're looking at how Team, Inc. (TISI) manages its client base as of late 2025, which is heavily tied to securing recurring, high-value service work. The focus is clearly on embedding services within the client's critical operations.

Dedicated, long-term contractual relationships for nested and turnaround work.

The strategic push is toward higher-margin revenue streams, which often implies longer-term service agreements or repeat turnaround work. For the first nine months of 2025, the Inspection & Heat Treating (IHT) segment revenue grew by 9.4% year-over-year, with growth in higher-margin heat treating services up nearly 22% year-over-year in Q1 2025. In Q2 2025, IHT revenue grew by 15.2%, fueled by higher activity in turnaround and callout services from existing customers. The Mechanical Service segment, however, saw lower callout revenue and delayed project/turnaround activity in Q1 2025, which offset some growth. The company is projecting full-year 2025 revenue growth of approximately 5%.

Here's a snapshot of the financial context for 2025 performance:

Consultative selling model focused on technical expertise and problem-solving.

The drive for margin expansion suggests the sales approach emphasizes technical value over pure volume. The company is strategically prioritizing higher-margin revenue streams, evident in the strong performance of the Inspection & Heat Treating (IHT) segment. A key executive's role includes managing and growing key enterprise client relationships and representing Team, Inc.'s interests to industry stakeholders. The IHT segment saw Cincinnati, Ohio laboratory testing and inspection services facility grow by 64% year-over-year in Q1 2025, indicating success in selling specialized, technical services.

High-touch, on-site service delivery for critical, non-discretionary maintenance.

The nature of the work, including turnaround and callout services, inherently requires a high-touch, on-site presence for critical asset integrity. The IHT segment's U.S. operations grew revenue by 13.4% in Q2 2025, driven by higher activity in turnaround and callout services from existing customers. The company's overall employee count is reported at 5,400, representing the workforce delivering these services.

Strategic focus on consolidating purchases with fewer, more sophisticated providers.

This strategy aligns with the focus on enterprise client relationships and margin improvement. The company is targeting growth in adjacent markets such as midstream, aerospace, and general industrial lab inspection and testing, which often involve large, sophisticated customers. The Debt / Equity ratio stood at 10.98, and Return on Invested Capital (ROIC) was reported at 1.61%, showing the capital structure supporting these large-scale service contracts.

Key relationship indicators for late 2025 include:

• Enterprise Client Focus: Executive role dedicated to managing and growing key enterprise relationships.
• High-Margin Service Growth: Nearly 22% YoY growth in higher-margin heat treating services (Q1 2025).
• Specialized Lab Growth: Laboratory testing services grew by 64% YoY (Q1 2025).
• Customer Callout Activity: Turnaround and callout services from existing customers fueled IHT revenue growth in Q2 2025.

Finance: draft 13-week cash view by Friday.

Team, Inc. (TISI) - Canvas Business Model: Channels

You're looking at how Team, Inc. gets its specialized industrial services-think inspection, heat-treating, and mechanical work-into the hands of its industrial clients. The channels here are very much about boots on the ground, supported by a digital backbone.

Direct sales force and account management teams are the primary interface for securing the large-scale turnaround and nested work that drives revenue. While a specific count for the dedicated sales force isn't public, the scale of the operation suggests a significant, relationship-driven team. The total workforce supporting these channels is substantial; as of the latest data, Team, Inc. has approximately 5,400 employees. This team is responsible for delivering the services that generated a Trailing Twelve Months (TTM) revenue of $0.88 Billion USD as of late 2025.

The global network of operating branches and service centers provides the physical footprint necessary for localized service delivery and rapid response. Team, Inc. maintains a presence in more than 20 countries. This network has grown significantly, with the organization reporting over 140 locations all over the globe as of 2023. These locations are the hubs from which specialized teams are deployed to client sites.

On-site deployment of specialized field technicians and equipment is the core execution channel for their value proposition. This involves deploying certified inspectors, engineers, and technicians for conventional to highly specialized services. The efficiency of this deployment directly impacts profitability; the revenue generated per employee across the organization is approximately $163,880. The Inspection and Heat Treating (IHT) segment, for example, saw U.S. revenue growth of 13.4% in Q2 2025, driven by turnaround and callout activity, which relies entirely on on-site execution.

The final, implied channel is through digital platforms for reporting and integrity data management. Team, Inc. positions itself as a provider of integrated, digitally-enabled asset performance assurance and optimization solutions. The TEAM360 offering specifically delivers asset-centric solutions. This digital layer acts as a channel for delivering data, reports, and ongoing monitoring, complementing the physical service delivery.

Here's a quick look at the scale of the business supporting these channels as of the latest available figures:

The execution of the channel strategy relies on several key operational components:

• Deployment across two main operating groups: Inspection & Heat Treating (IHT) and Mechanical Services (MS).
• Strong growth in specific service areas, such as IHT revenue growing 15.2% year-over-year in Q2 2025.
• Account management focused on securing high-value activities like turnarounds and project work.
• Digital reporting integrated into service delivery, evidenced by the mention of digitally-enabled solutions.

The financial performance in Q2 2025 shows the direct impact of channel activity:

• Consolidated Adjusted EBITDA reached $24.5 million, or 9.9% of consolidated revenue.
• Adjusted Selling, General and Administrative Expense (SG&A) was lowered to 18.9% of consolidated revenue, down from 19.8% year-over-year.
• Canada operations, a key international channel, saw revenue growth of 31.4% in Q2 2025.

Team, Inc. (TISI) - Canvas Business Model: Customer Segments

You're looking at the core client base for Team, Inc. (TISI) as of their latest reported financials in late 2025. This company focuses on specialty industrial services-think inspection, heat-treating, and mechanical work-for clients whose assets run hot, high-pressure, or are mission-critical. The customer base is concentrated in heavy industry, which is why their operational performance is so tied to capital project timing and maintenance turnarounds.

Team, Inc. serves a global set of customers, deploying its 5,400 highly trained employees across 220 locations in more than 20 countries. For the first nine months of 2025, the company generated over $44 million in Adjusted EBITDA, showing the value they extract from these industrial relationships.

The primary customer segments Team, Inc. targets are:

• Owners and operators in the oil and gas (upstream, midstream, downstream) sector.
• Petrochemical and chemical processing plant operators.
• Power generation facilities (nuclear, fossil fuel, renewable).
• Heavy industrial sectors like manufacturing, aerospace, and transportation.

The company's two operating segments, Inspection and Heat Treating (IHT) and Mechanical Services (MS), show where the revenue action is coming from within these segments. For instance, in the second quarter of 2025, IHT revenue grew 15.2% year-over-year, while MS revenue saw nearly 2% growth.

Here's a look at the revenue performance across the segments, which directly reflects the demand from these customer groups through the first half of 2025:

You can see the upstream and midstream oil and gas components are strong drivers, especially within the IHT segment. For example, in Q1 2025, U.S. operations within IHT grew revenue by 8.8% year-over-year. The company is also explicitly focusing on markets like power and aerospace for future margin expansion, signaling these are key areas for customer acquisition or deeper penetration.

The company's outlook for the full year 2025, based on their Q3 update, projects total company revenue growth of approximately 5% and Adjusted EBITDA growth of approximately 13%. This suggests continued, albeit more moderate, demand from the core customer base for the remainder of the year.

Specific performance metrics tied to these industrial clients in Q2 2025 include:

• IHT U.S. revenue increased by $13.3 million year-over-year.
• IHT Canada revenue increased by $3.6 million from higher callout and project work.
• IHT segment Adjusted EBITDA grew by 25% year-over-year.
• MS U.S. operations revenue increased by $4.5 million year-over-year.

Finance: draft 13-week cash view by Friday.

Team, Inc. (TISI) - Canvas Business Model: Cost Structure

The Cost Structure for Team, Inc. (TISI) is heavily weighted toward the direct costs of service delivery, which aligns with its field labor and materials intensive business.

High proportion of variable costs related to field labor and materials (Cost of Revenue) is evident in the gross margin figures. For the third quarter ended September 30, 2025, revenue was $225.0 million, and the gross margin was $58.0 million. This implies that the Cost of Revenue, which includes field labor and materials, was approximately $167.0 million, representing about 74.2% of that quarter's revenue.

The company continues to manage its overhead, though absolute dollar amounts can fluctuate due to strategic activities. Significant Selling, General and Administrative (SG&A) expenses are a key component of the cost base, even with ongoing discipline initiatives.

You see the leverage improving, as Adjusted SG&A as a percentage of revenue was lowered to 20.8% in Q3 2025, down from 21.7% in the third quarter of 2024. Still, corporate and shared support services costs specifically rose by $4.9 million or 43.6% in Q3 2025 due to non-recurring professional fees and legal reserves.

Interest expense on debt is managed through recent balance sheet actions. Team, Inc. completed a refinancing transaction in March 2025 that lowered the blended interest rate by over 100 basis points and extended term loan maturities out to 2030. Furthermore, a $75.0 million preferred stock private placement closed in September 2025, which, along with facility amendments, materially reduced debt. Total debt stood at $353.6 million as of March 31, 2025, but net debt fell to $288.0 million as of September 30, 2025.

Capital expenditures reflect investment in the operational base needed to deliver specialized services. For the last twelve months leading up to the latest report, capital expenditures totaled -$9.17 million. These expenditures support the specialized inspection and mechanical equipment necessary for their service offerings.

The cost structure components for the trailing twelve months (TTM) show the scale of the operation:

• Revenue (TTM): $884.95 million.
• Operating Cash Flow (TTM): -$6.50 million.
• Capital Expenditures (TTM): -$9.17 million.
• Free Cash Flow (TTM): -$15.66 million.

Finance: draft 13-week cash view by Friday.

Team, Inc. (TISI) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers driving Team, Inc.'s top line as of late 2025. The revenue picture is built on two main operational segments, both showing positive momentum in the third quarter.

The trailing twelve months revenue as of September 30, 2025, stood at $884.95 million. This represents a 3.73% increase year-over-year on a TTM basis.

For the third quarter ended September 30, 2025, consolidated revenue climbed to $225.0 million, which was an increase of $14.2 million, or 6.7%, compared to the third quarter of 2024. The company is forecasting full-year 2025 revenue growth of around 5%.

Here's a breakdown of the segment performance that drove that Q3 growth:

The growth in these services is directly tied to the nature of the work, which falls into transactional and project-based categories. You can see the drivers for the growth in the segment details:

• Inspection and Heat Treating (IHT) revenue growth of 5.7% was supported by strong call out activity in the U.S..
• IHT international operations, including Canada, saw an 8.9% growth.
• The MS segment's 7.8% growth was led by increased turnaround demand in the U.S..
• The U.S. MS business specifically grew by 12.6%, or $7.9 million.

The fee-for-service revenue stream is clearly represented by the call-out activity mentioned within the IHT segment, which suggests immediate, non-contracted work. Similarly, contract-based revenue is evidenced by the strength in nested work (IHT) and turnaround projects (MS), which are typically longer-term commitments or project-based engagements. For the first nine months of 2025, the IHT segment showed even stronger year-over-year growth at 9.4%, while MS grew just under 1%, contributing almost $33 million in combined year-over-year revenue increase.

Finance: draft 13-week cash view by Friday.