Team (TISI) Revises Revenue Guidance and Increases Cost Savings Targets Amid Declining Turnaround Revenue
During its third-quarter 2026 earnings call, Team (TISI) reported a significant 49% year-over-year decline in turnaround revenue. This downturn was driven by refinery operators deferring essential plant maintenance to extend production runs and capture higher operating margins. Consequently, the company revised its full-year 2026 revenue guidance to a range of $870 million to $890 million. To mitigate the impact of soft facility activity, management has increased its structural cost savings target for 2026 to between $15 million and $18 million. Looking forward, the company is focusing on diversifying its revenue streams through negotiations in the aerospace and commercial nuclear power sectors. Management expects deferred maintenance projects to return in early 2027, potentially providing greater operating leverage under their new, leaner cost structure.
Topics: cost savings earnings report revenue guidance turnaround services