TISI

Team Inc. ($TISI) Major Shareholder Buys $200K in December as Q3 EBITDA Hits 8-Year High, Accelerating Turnaround

12/04/2025 02:05

Team Inc. ($TISI) insiders have been aggressively buying shares in recent months, with major shareholder John Barrett's $200,000+ purchasing spree in just two days this December standing out as a particularly strong signal of confidence in the company's turnaround story. Team Inc., founded in 1973, is a specialty industrial services company providing mechanical services and inspection/heat treating solutions to the petrochemical, refining, and pipeline industries. With approximately 5,400 employees, the company operates primarily in the United States, Canada, and other international markets through two main business segments: Inspection & Heat Treating (IHT) and Mechanical Services (MS). Insider trading data reveals overwhelmingly bullish sentiment from company leadership. Most notable is major shareholder John Barrett's sustained buying campaign. In June alone, he executed nine separate purchases totaling over $520,000, and recently added another $197,000 and $10,000 in December purchases. These latest buys came as the stock was consolidating from its highs, demonstrating remarkable conviction in the company's prospects. Other directors have shown similar confidence. Director Anthony Horton purchased $62,000 worth of shares in November, while Director Pamela Mcginnis made three separate purchases in August totaling $25,000. The selling pressure has been minimal, limited to some position trimming by Director Evan Lederman in June and small sales by Director Jeffery Davis. This insider confidence appears well-founded based on improving fundamentals. Q3 2025 revenue increased 6.7% year-over-year to $225 million, while adjusted EBITDA surged 28.6% to $14.5 million, marking the best Q3 performance since at least 2016. Both core business segments showed operating income improvements, with IHT up 16.9% and MS up 31.2%. The company's transformation program is delivering tangible results. Targeting $10 million in annual cost savings, the program has already achieved $6 million in savings for the second half of 2025. Additionally, a $75 million preferred stock placement completed in September reduced debt by $67 million, significantly improving financial stability. However, challenges remain significant. The company still reports a TTM net loss of $53.2 million and maintains an extremely high debt-to-equity ratio exceeding 1,000%. The stock has also corrected from October highs of $25 to current levels around $17-18, reflecting ongoing market skepticism about the turnaround's sustainability. Key metrics for investors to monitor include continued adjusted EBITDA margin expansion in 2026 Q1 results. Management's guidance of approximately 5% revenue growth and 13% EBITDA growth for 2025 provides a near-term benchmark. Success in meeting these targets would validate insider buying decisions, while disappointment could trigger further price weakness. From a long-term perspective, Team Inc. benefits from structural tailwinds including aging petrochemical infrastructure requiring increased maintenance, stricter safety regulations, and growing international opportunities. The 66% growth in Canadian operations demonstrates successful international expansion efforts. Risk scenarios include energy sector slowdowns, reduced capital spending by customers, and increased interest expenses from the company's debt burden. Execution risks around the transformation program also remain. The aggressive insider buying appears based on fundamental improvement confidence rather than technical speculation. However, given the high-risk nature of this turnaround story, investors should closely monitor H1 2026 results while considering position sizes carefully.