Key Highlights

  • Gross Margin was $55.8 million in the third quarter, or 25.3% of revenue.
  • The net loss narrowed to $11.1 million from $11.4 million a year earlier.
  • International Revenue increased 8.3%, while United States revenue declined 4.4%.
  • The company updated its full-year 2026 guidance alongside the quarterly results.

Team, Inc. (NYSE:TISI) reported results for the quarter ended September 30, 2026, on November 11, 2026, showing a narrower net loss and a gross margin of 25.3% of revenue. The Sugar Land, Texas-based company provides specialty industrial services, including inspection, heat treating and mechanical services. It also updated its full-year 2026 guidance, which gives investors a fresh view of the company’s expectations as it continues a broader operational and commercial transformation.

Chief Executive Officer Gary L. Hill said the company is making progress on initiatives designed to optimize its operating footprint, improve execution and reduce its overall cost structure. Those steps form the core of the transformation the company has been pursuing.

Margins, Costs and the Operating Loss

Consolidated gross margin in the third quarter was $55.8 million, or 25.3% of revenue. Selling, general and administrative expenses were $50.7 million, down $0.5 million or 1.1% from a year earlier. Adjusted SG&A, which excludes items such as professional and legal costs, transformation expenses and severance, is the measure the company uses to show ongoing spending.

Operating results were lower than the prior year, with an operating loss of $0.5 million compared with Operating Income of $1.3 million in the third quarter of 2025. The net loss of $11.1 million was an improvement of $0.3 million from the $11.4 million loss a year earlier, which shows that the company has held its loss roughly steady despite the operating shortfall.

Regional Performance and Commercial Shift

Revenue rose 8.3% in the company’s international markets and fell 4.4% in the United States. The mix suggests that the company’s push into higher-value industrial end markets and its international footprint are helping offset softer domestic activity, which has been affected by reduced turnaround work in the United States.

Management said it is actively strengthening its commercial capabilities and expanding into higher-value industrial markets. Those changes are intended to diversify Demand away from cyclical maintenance and turnaround projects, although the benefits will take time to appear in the reported numbers.

Guidance, Transformation and the Road Ahead

Chief Executive Hill said the company expects its expanding commercial opportunities, together with a leaner operating structure and an eventual recovery in turnaround activity, to support greater Earnings power over time. The company has not signaled a specific timetable for that recovery, which leaves investors relying on its guidance updates for near-term direction.

Transformation programs of this kind often carry restructuring costs and execution risk. The company will need to keep cutting costs without hurting service quality, and it will need to show that new industrial customers can add enough revenue to offset softness in turnaround-driven demand.

Final Word

Team reported a higher gross margin in dollar terms, a slightly narrower net loss and mixed regional revenue trends in the third quarter of 2026. The company updated its guidance as it works through operational changes and a shift toward higher-value markets. Future results will show whether cost reductions and commercial gains can restore operating profit while domestic demand remains uneven.