TIC Solutions Q3 Earnings Call Highlights

Key Points

• TIC raised its 2026 revenue outlook to $2.24 billion–$2.27 billion and lifted the midpoint of its adjusted EBITDA forecast to $346 million. Third-quarter revenue grew 12.5% to $640 million, with organic growth accelerating to 8.4%.
• Growth spanned all three segments, while consulting and engineering and geospatial backlog reached a record $1.29 billion, up 23% year over year. Data center revenue doubled to $38 million, and its backlog exceeded $120 million.
• TIC announced three acquisitions totaling about $90 million in annualized revenue, but net leverage rose to 3.9 times versus its 2.5-times long-term target. Geospatial margins declined amid project timing, mix and execution factors; the company said it does not expect further deterioration in the fourth quarter.

TIC Solutions NYSE: TIC raised its full-year revenue outlook after reporting third-quarter growth across all three of its business segments, with organic growth accelerating and data center revenue doubling from a year earlier.

The company reported revenue of $640 million for the quarter, up 12.5% on a combined basis from $569 million a year earlier. Organic growth accelerated to 8.4% from 2.5% in the second quarter. Adjusted EBITDA rose 19% to $107 million, while adjusted EBITDA margin expanded to 16.8% from 15.9%.

The year-over-year comparisons use a non-GAAP combined view of legacy Acuren and legacy NV5, where applicable. Adjusted diluted earnings per share were $0.18, up from $0.14 in the second quarter.

CEO Ben Heraud said cross-selling services across the combined business was contributing to organic growth. The company’s combined consulting and engineering and geospatial backlog reached a record $1.29 billion, up 23% from a year earlier.

Revenue Outlook Raised

TIC increased its 2026 revenue guidance to $2.24 billion to $2.27 billion from $2.15 billion to $2.25 billion. It also narrowed its adjusted EBITDA forecast to $342 million to $350 million from $330 million to $355 million, raising the midpoint to $346 million.

The updated forecast implies fourth-quarter revenue of $528 million to $558 million and adjusted EBITDA of $82 million to $90 million. At the midpoint, those figures represent year-over-year growth of approximately 7% and 13%, respectively, CFO Kristin Schultes said.

Schultes told analysts that the fourth-quarter outlook implies organic growth and only a small contribution from acquisitions, reflecting their timing and the seasonality of the acquired businesses.

For 2027, the company is planning for mid-to-high single-digit revenue growth, with adjusted EBITDA expected to grow faster than revenue. Schultes said consulting and engineering and geospatial growth are expected to outpace inspection and mitigation. TIC plans to provide formal 2027 guidance later.

Inspection Rebounds as Geospatial Margins Decline

Inspection and mitigation revenue rose 8.5% to $318 million, helped by callout, outage and capital project activity, including work shifted from the second quarter. Adjusted gross margin increased 80 basis points to 29.2%, reflecting higher-margin work and indirect cost discipline.

Heraud told analysts he viewed the inspection business as a low- to mid-single-digit grower and cited a robust commercial pipeline. Schultes said rope access work grew more than 20% in the quarter.

Consulting and engineering revenue climbed 20.3% to $223 million, with adjusted gross margin roughly flat at 47.4%. Buildings, infrastructure, and power and utilities all contributed to growth.

Geospatial revenue increased 9.3% to $98 million, supported by power and utilities and military programs, as well as acquisitions. Its adjusted gross margin fell 330 basis points to 44.9% because of project timing, mix and execution, including a higher proportion of pass-through work.

Heraud said TIC had made leadership changes in geospatial and was bringing project-management practices from consulting and engineering into the business. Schultes said the company was not anticipating further margin degradation in the fourth quarter, though it had not issued segment-level guidance.

Data Centers, Acquisitions and Cash Conversion

Data center revenue doubled to $38 million in the quarter, bringing trailing 12-month revenue to $117 million and exceeding the company’s earlier $100 million target. Heraud said the business had a backlog of more than $120 million. About 80% of data center revenue was in Asia Pacific and 20% in the U.S., with a small amount in Europe, he told analysts.

TIC announced three strategic acquisitions during the quarter: Canadian surveying and geomatics business GeoVerra, utility-focused GIS consulting and data services provider WDI, and European commissioning consultancy Core Group. Together, the three generate approximately $90 million in annualized revenue, Heraud said.

The company deployed $170 million in net cash on acquisitions during the quarter, including an additional bolt-on acquisition, Schultes said. She told analysts that two of the four businesses were somewhat larger than the others and that the quarter’s acquisition multiples were at the high end of TIC’s stated range of five to seven times.

Cash conversion remained a focus. Bank-calculated net leverage rose to 3.9 times as TIC invested in working capital and acquisitions, compared with its long-term target of 2.5 times. Schultes said a concentration of revenue in August and September increased receivables. The company expects some collections associated with delayed inspection work in the fourth quarter and the remainder in early 2027.

TIC also reported progress on integration savings, with approximately $22 million of annualized run-rate savings actioned by Sept. 30. It remains on track for its $25 million year-end target and expects approximately $15 million in realized savings in 2026.

About TIC Solutions (NYSE:TIC)

Acuren Corporation provides critical asset integrity services in North America. Its activities include various nondestructive testing (NDT) solutions, such as radiography, ultrasonic testing, magnetic particle inspection, penetrant testing, and visual inspection. Its NDT activities include inspection and evaluation of industrial equipment through various technology-enabled methods to ensure asset integrity, avoid accidents, and comply with regulatory requirements without destroying the asset or component.

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