Team, Inc.

Good day and welcome to Team Inc.' 's first quarter 2026 conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. Please note this event is being recorded. I would now like to turn the conference over to Nelson Haight, Chief Financial Officer. Please go ahead.

Thank you, Operator. Good morning, everyone, and welcome to Team Inc.' 's discussion about our first quarter 2026 operational and financial results. On the discussion today are Gary Hill, our Chief Executive Officer, and myself, Nelson Pate, 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, and 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 Inc.' '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 Gary Hill, our Chief Executive Officer.

Thank you, Nelson. Welcome, everyone, and thank you for joining us on the call today. I am pleased with the solid start to 2026 that we were able to deliver from both an operational and financial perspective. First quarter of 2026 revenue rose 8.3% year-over-year to $215 million, our highest Q1 revenue since 2019. This growth was driven by robust performance across both our inspection and heat treating and mechanical service segments. These results drove meaningful profitability gains, including a 45.2% increase in adjusted EBITDA to $7.7 million and a 90 basis point improvement in adjusted EBITDA margin. Both are the best Q1 levels since prior to 2019. Our last call was my first with team, and I have been here for about 100 days now. In that time, I have been able to meet with many of our hardworking employees, visit some of our worldwide locations, and have in-depth discussions with the leadership team and board. I am going to share my observations with you and share the priorities, strategic vision, and guidance for 2026 that are the result of these meetings. I want to start by saying that following these discussions, I am even more excited by the financial and operational potential and the opportunity to lead teams. I believe that our strategic vision will help accelerate our delivery of progressively better operational and financial results. My first observation is about teams' most important asset, our people. Our workforce truly has an unparalleled set of skills and technical expertise to tackle any issue that may arise for our customers. We have a dedicated service team that is customer-focused and 100% committed to quality and safety. This is paramount to our success, which is why one of the key points of our strategic vision is deepening our commitment to our workforce. We want to improve our retention rate, which we believe is already industry-leading, and we do that by protecting and investing in our people. For example, we believe TEAM is the first in our industry to develop a former hire-to-retire career path program for our technicians that lays out the long-term benefits from working at TEAM and is a key differentiator from our peers. Along with our leading benefit program focused on On total health and long-term wellness, we also want to strengthen engagement with our employees by encouraging open and honest communication, which is why we conduct annual satisfaction surveys that provide actionable feedback on employee concerns. We know how important our people are, and we want to make team the employer of choice by ensuring our employees return home safely every day, and remain committed to helping TEAM achieve our collective goals. Another observation is that we have good stability in our core markets of refining and petrochem and some very encouraging long-term tailwinds in our targeted growth markets of LNG, midstream, data centers, power, and aerospace. While the Middle East conflict has had minimal direct impact on TEAM, It is impacting the oil and gas industry, and there are some knockoff effects, like increased refining run times, thus pushing some turnaround scopes out later into the year. Regardless of what we believe to be shorter-term headwind, long-term refining in Petrochem remains a strong core opportunity, given the age of refineries, their high utilization rates, and their commercial need to remain online. Team can help with monitoring, repair, and maintenance, often with minimal or no impact on run time. LNG and midstream have seen tremendous growth in the U.S. over the past decade, and geopolitical events are driving natural gas demand and opportunities for U.S. LNG to supply new areas around the world. Expansion of existing facilities and greenfield development drive growing construction mechanical services demands. Another relatively new area is the AI data center build-out that is occurring. The forecast demand for power related to AI-fueled data center construction is unprecedented, which should drive considerable inspection and mechanical services on the power side as well as the construction and maintenance side. We also believe that strong growth in commercial aerospace and increased defense spending provide significant opportunities for our highly-approved laboratory inspection services, which are key growth areas for teams going forward. On the last call, I spoke about opportunities to expand our wallet share with existing customers and accelerate our growth in core and targeted end markets. I also spoke of challenging our entire team to accelerate top-line growth, enhance efficiency, and reduce costs to improve our operating leverage, which should drive margin and EBITDA growth. I want our organization to be committed to improving the rate of progress in these key areas. First up is commercial. We want to prioritize healthy, sustainable growth that is margin accretive and less cyclical. With our strong customer focus, proven technical expertise, geographic footprint, and breadth of service offering, we are focused on expanding our market share in the targeted end markets I previously mentioned. We see a large opportunity per team, and with a focused and disciplined effort, expect to capture market share. We're also being more disciplined about the work we pursue, focusing on opportunities where our technical capabilities and quality of execution are most valued. We are prioritizing healthy growth over growth at any cost. Next is our ongoing focus on cost efficiencies. We have made meaningful progress in cost optimization over the past several years, but there is certainly an opportunity for further improvement, particularly in supply chain, better integrating how our teams and locations work together, further simplifying processes and investing in systems to lower costs, all of which is intended to improve our scalability and expand margins. We are defining the opportunity over and above the reductions previously announced and believe that in the second quarter earnings release and conference call, we will have a better scope set of targeted cost reduction amounts to convey to the market. Finally is our workforce, which I discussed in detail, but I want to further outline how we can improve there. We are targeting strategic additions to our already experienced leadership team that I believe will enhance our capabilities and elevate accountability across the organization. I want all our leaders to share that commitment and to work hand in hand with our workforce to deliver our strategic vision together. I want to enhance communication and our analytics to accelerate and improve our decision making. We need to be nimble and capable of meeting our customers' needs in a changing market so that we can realize first mover advantages. Before I turn the call over to Nelson to go into the quarterly results in detail, I want to give a high-level overview of our full-year 2026 guidance. Our strategic vision and the priorities that I have discussed this morning should lead to a healthier growth in our revenue, margins, and adjusted EBITDA. We are off to a good start in 2026, and we believe our full-year revenue can grow about 4% at the midpoint of our guidance range of between $920 million and $945 million as compared to 2025 actuals. This revenue growth coupled with the margin expansion opportunities we are targeting should help us substantially improve our free cash flow and adjusted EBITDA over the prior year. We are forecasting our gross margin in 2026 to be between $240 million and $260 million, which is an 8% increase at the midpoint compared to 2025. When you start compounding the top line growth with margin expansion and improved operating leverage, you see the impact with our 2026 adjusted EBITDA guidance increasing 16% at the midpoint to between $68 million and $73 million. We have provided a framework of strategic priorities focused on our people, efficiency, leadership, and commercial results that we'll continue to refine and build upon. Expect more detail in the second quarter of 2026. With that, I would like to turn it over to Nelson to discuss our financial accomplishments.