Team, Inc.

Welcome to the Team Incorporated first quarter update conference call. All participants will be in a listen-only mode. I would now like to turn the conference over to Mr. Nelson Haight, Executive Vice President and Chief Financial Officer. Please go ahead, sir.

Thank you, operator. Good morning, everyone, and welcome to Team Inc.' 's discussion about our first quarter 2025 operational and financial results. On the discussion today are Keith Tucker, our Chief Executive Officer, and myself, Nelson Haight, Chief Financial Officer. I want to remind you that management's commentary today may include forward-looking statements, including without limitation those regarding revenue, gross margin, operating expense, other income and expense, taxes, adjusted EBITDA, cash flow, and future business outlook, which, by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially. For a discussion of some of the risk factors that could cause actual results to differ, please refer to the risk factors section of TEAM's latest annual and quarterly filings filed with the Securities and Exchange Commission, along with our associated earnings release. TEAM assumes no obligation to update any forward-looking statements or information which speak as of their respective dates. With that, I will turn it over to Keith Tucker, our CEO.

Thank you, Nelson. Welcome, everyone, and thank you for joining us to review our first quarter of 2025 operational and financial highlights. During the first quarter of 2025, we continue to make progress against our strategic roadmap designed to better position TEAM for success and improve financial performance. Over the past two years, we have worked to simplify our business expand our margins, and address our capital structure and balance sheet. Our success to date on these initiatives has team well positioned to grow the top line and market share. The tangible improvements we have delivered in operating performance and cash flow generating over the past two years were key to completing the refinancing we announced in March 2025, which simplified our capital structure, lowered our blended interest rate by more than 100 basis points, and extended our term loan maturities out to 2030. Nelson will go into more detail about this, but I believe the hard work from all of our employees and team has helped to make our success possible. Turning to the first quarter of 2025, We continued to deliver solid results. We made significant progress against one of our core commercial initiatives, growing revenue from midstream end markets by nearly 15% in the quarter. Our inspection and heat treating segment delivered strong top-line growth, with revenue up 6.8% over the prior year and up 8.8% in our core U.S. operations. In our mechanical service segment, lower call-out revenue and delays in project and turnaround activity shifted revenue into future periods, which offset the growth in our IHG segment. Overall, revenues were essentially flat year over year, but I want to remind you that our work is seasonal, and while winter is usually our slowest time, We also experienced negative impacts to the top line from adverse weather in January that adversely impacted our customers and our activity levels. Having said that, we expect to see increases in year-over-year activity for the full year 2025. We delivered adjusted EBITDA for the first quarter of $5.3 million. Notably, our inspection and heat treating segment generated a 39% year-over-year improvement and adjusted EBITDA, driven by year-over-year revenue growth of nearly 22% in our higher-margin heat treating services and 64% from our laboratory testing and inspection services facility in Cincinnati, Ohio. We continue to see benefits from our cost discipline in the first quarter, with our selling general administrative expense lower by about $2 million versus the prior period. We remain focused on driving revenue growth, strict cost discipline, and improving operational execution. As previously discussed, in the first quarter we kicked off a series of actions targeting further improvement in cost and operating efficiency that are expected to yield annualized cost savings of around $10 million. In addition, we have implemented steps to improve the performance of our Canadian operations. These actions are a mix of top line growth initiatives and improvements to our cost structure and margins. We expect to begin to see the results from these actions in our 2025 results with the full year impact realized in 2026. Looking ahead, while we continue to closely monitor the potential impact of TARIF policies and related effect on our end markets, We've experienced strong activity levels to start the second quarter and expect second quarter top line growth over the prior year across both segments and improved adjusted EBITDA levels. We believe our diversified portfolio of service offerings across multiple industries and our geographic footprint positions us to better navigate recent macroeconomic uncertainty around TRF policies. Our management team is focused on the things that we can control, which are continued cost discipline and execution on our commercial initiatives. And we remain committed to delivering top line growth for the full year and at least 15% year over year growth in adjusted EBITDA. With that, I would like to turn it over to Nelson to discuss our financial accomplishments.