TIC Solutions Q2 Earnings Call Highlights

Key Points

• Second-quarter results improved: Revenue rose 3.3% to $584 million, while adjusted EBITDA increased to $95 million and the margin expanded to 16.2%. Consulting & Engineering and Geospatial growth offset a decline in Inspection & Mitigation.
• Backlog and end-market demand remain strong: Consulting & Engineering and Geospatial backlog reached a record $1.18 billion, up 20% year over year, supported by demand from infrastructure, power modernization, LNG, data centers, buildings and aerospace.
• Guidance was reaffirmed: TIC Solutions expects third-quarter revenue of $610 million–$630 million and adjusted EBITDA of $100 million–$110 million, while maintaining full-year revenue guidance of $2.15 billion–$2.25 billion and EBITDA guidance of $330 million–$355 million.

TIC Solutions NYSE: TIC reported second-quarter revenue of $584 million, up 3.3% from $566 million a year earlier on a combined basis, as growth in its Consulting & Engineering and Geospatial businesses offset lower revenue in Inspection & Mitigation.

Adjusted EBITDA rose to $95 million from $89 million, while adjusted EBITDA margin improved 40 basis points to 16.2%. Adjusted gross margin increased 135 basis points to 38.2%, which Chief Financial Officer Kristin Schultes attributed to commercial selection, favorable business mix in Consulting & Engineering and Geospatial, and improved operating execution. Adjusted diluted earnings per share were $0.10.

“Our second quarter demonstrated solid execution across the platform,” Chief Executive Officer Ben Heraud said, citing double-digit Consulting & Engineering growth, Geospatial growth, improving commercial activity in Inspection & Mitigation, and rising cross-selling activity.

Backlog Growth Supports Outlook

Combined Consulting & Engineering and Geospatial backlog reached a record $1.18 billion, up 20% year over year. Heraud said the backlog provides visibility into the second half of 2026 and next year, while also reflecting increased cross-selling across the company’s service lines.

The company cited a recent municipal-client assignment involving bridges and water pump stations as an example of its integrated approach. TIC Solutions said it will develop digital twins and use asset data and condition assessments to support engineering, inspection and mitigation programs.

Management pointed to continued demand from aging infrastructure, power-grid modernization, LNG projects, data centers and asset-management applications. Quarterly revenue in the buildings end market increased 28% to $115 million, while industrial manufacturing and metals revenue rose more than 40% to $56 million. Power and utilities revenue increased 11% to $90 million, and aerospace and defense revenue rose more than 40% to $10 million.

TIC Solutions also described several internal artificial-intelligence initiatives, including tools intended to help field technicians access procedures, enable engineers to search historical reports, and review documents for potential inconsistencies, risks and compliance matters. Heraud said the company expects such tools over time to support utilization, cost discipline and margins.

Consulting and Geospatial Drive Growth

Consulting & Engineering revenue increased 16.8% to a second-quarter record of $207 million. Adjusted gross margin for the segment rose 75 basis points to 47.2%, driven by favorable mix and improved operating execution.

Heraud said segment growth was supported by power and utilities, buildings, infrastructure and data-center work. Data-center revenue reached $98 million on a trailing-12-month basis, and its data-center backlog exceeded $110 million. During the call, Heraud said that excluding data centers, Consulting & Engineering was still growing at roughly a 7% pace, with most of the segment’s growth organic.

The company highlighted recent power-sector awards, including grid-hardening work for 230,000-volt transmission infrastructure and a multiyear agreement with a large California utility. It also said battery-storage work is becoming an area of growing activity.

Geospatial revenue rose 7.9% to $81 million, led primarily by power and utilities clients and supported by broader private-sector demand. Segment adjusted gross margin expanded 360 basis points to 51.5%, reflecting favorable mix and project timing. Schultes cautioned that revenue and margins can vary between periods because of the timing and delivery schedules of larger fixed-fee contracts.

During the quarter, the Geospatial business completed a federal offshore-mapping pilot that combined vessel-based survey work, autonomous underwater vehicle imagery, seafloor data collection and physical sample recovery. Heraud said the project could create follow-on opportunities as related programs move toward a broader operational phase. He added during the question-and-answer session that the company was in three active discussions involving other areas for the work.

Inspection & Mitigation Sees Improving Commercial Activity

Inspection & Mitigation revenue declined 5.5% to $297 million. The decline reflected approximately $30 million of combined impact from 2025 site losses and planned outage work that shifted from the second quarter into the second half, according to Schultes. Segment adjusted gross margin declined 45 basis points to 28.3%, primarily because planned outage work carries higher margins.

Management said the result was contemplated in its second-quarter outlook and that commercial conditions improved during the period. Fallout work increased, TIC Solutions received multiple new run-and-maintain site awards and it won additional capital-project work. Heraud said June revenue turned positive year over year and that, excluding site losses and outage timing, the business was up 4% in the quarter.

The company is also expanding the segment’s inspection and integrity-management capabilities into bridges, public infrastructure and data centers. It recently started a multiyear bridge inspection and nondestructive testing engagement, which Heraud characterized as the first scaled application of those services to transportation assets. Management said these newer areas are expected to carry higher margins than the segment’s recent high-20% adjusted gross margin range.

In addition, Heraud said TIC Solutions recently secured a $30 million multiyear master services agreement for LNG work, which he said could help support 2027.

Capital Allocation, Synergies and Guidance

TIC Solutions completed three bolt-on acquisitions during the quarter. It also repriced its $1.6 billion term loan, lowering the interest rate by 25 basis points and reducing annual cash interest expense by approximately $4 million. The company repurchased about 1.9 million shares at an average price of $8.33 per share, spending $16 million under its repurchase program.

As of June 30, the company had $474 million of total liquidity, including $362 million of cash and $112 million of available revolver capacity net of outstanding letters of credit. Bank-calculated net leverage was 3.7 times. Schultes said the increase was primarily due to seasonal working-capital needs and share repurchases, adding that cash conversion is expected to increase in the second half as collections catch up with revenue.

The company said it had actioned $20 million of annualized run-rate integration savings as of June 30, up from $17 million at the end of the first quarter. It remains on track to reach $25 million of annualized savings by year-end and expects about $15 million of realized savings during 2026.

TIC Solutions expects third-quarter revenue of $610 million to $630 million and adjusted EBITDA of $100 million to $110 million. It reaffirmed full-year guidance for revenue of $2.15 billion to $2.25 billion and adjusted EBITDA of $330 million to $355 million.

Management also reiterated its longer-term 2029 framework targeting $3 billion in revenue, an 18% adjusted EBITDA margin and 85% free-cash-flow conversion.

About TIC Solutions (NYSE:TIC)

Acuren Group Inc NYSEAMERICAN: TIC is a leading provider of non‐destructive testing (NDT), inspection, engineering and consulting services to the energy, petrochemical, manufacturing and infrastructure sectors. The company employs a range of advanced testing techniques—such as ultrasonic, radiographic, magnetic particle, liquid penetrant, eddy current and acoustic emission—to evaluate the integrity of pressure vessels, pipelines, storage tanks and other critical assets. By combining field inspections with laboratory analysis, Acuren helps clients identify defects, prevent equipment failures and meet regulatory requirements.

In addition to core NDT capabilities, Acuren offers specialty engineering and consulting services including fitness‐for‐service assessments, corrosion under insulation surveys, mechanical integrity programs, failure analysis and field machining.

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