TIC Solutions, Inc. (TIC) | The Buildout — AI Infrastructure
The Verdict
TIC Solutions is a services provider that inspects and certifies industrial assets, designs and commissions buildings and data centers, and collects and analyzes geospatial data. It was formed by the combination of Acuren and NV5 Global. The AI infrastructure link runs mainly through consulting engineering, where TIC supports data center design, commissioning, and mission-critical operations, and secondarily through power delivery and emerging inspection work.
| Market Cap | — |
| Revenue (TTM) | $1.8B |
| EBITDA Margin (TTM) | 11.0% |
| Net Debt | $1.3B |
| Earnings Beats | 0 of 6 |
| P/E (TTM) | — |
| EV/EBITDA (TTM) | — |
What We Like
- Consulting Engineering revenue grew 16.8% year over year to a record $207M in Q2, with adjusted gross margin of 47.2%.
- CE + GEO backlog reached a record $1.18B, up 20% year over year.
- Data center trailing-twelve-month revenue reached about $98M, with backlog above $110M.
- Synergy actions reached $20M of annualized run-rate savings by June 30, toward a $25M year-end target.
- Q2 revenue of $584M was slightly above guidance, and adjusted EBITDA of $95M was within the guided range.
What We’re Watching
- Inspection & Mitigation revenue fell 5.5% year over year in Q2; first half was down 3%.
- Planned outage work shifted from Q2 into Q3/H2 and represents less than 10% of I&M revenue.
- Q1 operating cash flow was only $10M; H2 cash conversion is an expectation, not yet reported.
- Geospatial gross margin swung from down 320 basis points in Q1 to up 360 basis points in Q2 on fixed-fee timing.
The thesis is strengthening on the evidence available: record backlog, a larger data-center book, and more specific I&M recovery metrics. The core engine is not yet proven—I&M reported revenue is still negative and the recovery is back-half weighted. The open question is whether Q3 confirms the inflection after June turned positive and the lost-site comparison lapsed in August.
Earnings
Second-quarter revenue was $584M, slightly above the $570–582M guide; adjusted EBITDA was $95M, within the $90–96M guide. Adjusted gross margin was 38.2%, up 135 basis points year over year, and adjusted EBITDA margin was 16.2%, up 40 basis points. Consulting Engineering set a record $207M revenue quarter, up 16.8% year over year.
| Metric | Q1 FY2026 | Q4 FY2025 | Q1 FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $488M | $508M | $234M | +108.4% |
| Gross margin | 24.8% | 35.2% | 18.6% | +620bps |
| EBITDA | $30M | $55M | $19M | +55.2% |
| EPS | $-0.26 | $-0.30 | $-0.21 | +24.0% |
| CE + GEO backlog | $1.18B | $1.12B | n/a | +20% y/y |
If you set aside the outage and site losses within the quarter, the business was actually up 4%.— Benjamin Heraud, Chief Executive Officer, 2026-08-06
Management tone: Management became more quantitative and specific on the I&M recovery from Q1 to Q2, providing a roughly $30M drag bridge from site losses and shifted outages. They still avoided quantifying cross-selling directly, pointing instead to record backlog.
Management Guidance
Q3 2026 guidance was initiated at revenue of $610–630M and adjusted EBITDA of $100–110M. FY2026 guidance was reiterated at revenue of $2.15–2.25B and adjusted EBITDA of $330–355M. The company narrowed full-year cash taxes to $25–30M and capex to $50–65M, while leaving net interest expense at $95–105M.
Trajectory
Revenue moved from $508.3M in Q4 FY2025 to $488.0M in Q1 FY2026, then reached $584M in Q2 2026. The forward mix is shifting toward higher-margin Consulting Engineering and Geospatial, while Inspection & Mitigation remains the drag. Management says a little over 100 basis points of improvement is baked into the second half from mix and execution.
The Model
The model projects FY+1 revenue of $2,250M and EBITDA of $356M, a 15.8% margin, and FY+2 revenue of $2,425M and EBITDA of $424M, a 17.5% margin. Near-term revenue is anchored by the record CE + GEO backlog and data-center backlog above $110M; FY+2 assumes continued CE/GEO mix shift and an I&M recovery.
| Metric | FY2025 | Next FY (E) | Following FY (E) |
|---|---|---|---|
| Revenue | $1.5B | $2.2B | $2.4B |
| YoY Growth | — | +47.0% | +7.8% |
| EBITDA | $185M | $356M | $424M |
| EBITDA Margin | 12.1% | 15.8% | 17.5% |
Projections are the median of 5 independent model runs. The model’s revenue sits 5.7% above analyst consensus.
Q3 2026 guidance was initiated at revenue of $610–630M and adjusted EBITDA of $100–110M. FY2026 guidance was reiterated at revenue of $2.15–2.25B and adjusted EBITDA of $330–355M. The company narrowed full-year cash taxes to $25–30M and capex to $50–65M, while leaving net interest expense at $95–105M.
What Could Go Right — and Wrong
- I&M returns to sustained year-over-year growth in Q3 and Q4 after the August lost-site lapse.
- Data center backlog above $110M converts, and ongoing operations grow beyond the current ~15% recurring share.
- CE + GEO backlog continues compounding from the record $1.18B, supporting H2 revenue.
- Cross-selling becomes quantifiable with named dollar awards.
- Rare-earth follow-on converts from 3 active discussions into a material award.
- I&M new-site wins stall or additional site losses emerge; largest segment remains negative.
- Outage work slips again from Q3/H2; higher-margin work trails.
- A large fixed-price contract loss in GEO or CE compresses margin.
- H2 cash conversion disappoints while leverage remains near 3.7x.
- Data center build-out order flow pauses on component shortages or customer in-sourcing.
Looking Ahead
The next 12 months hinge on two conversions: the I&M recovery and backlog conversion in CE/GEO. Management has guided Q3 2026 revenue of $610–630M and adjusted EBITDA of $100–110M, and reiterated FY2026 revenue of $2.15–2.25B and adjusted EBITDA of $330–355M. The key tests are whether June's positive I&M growth carries through Q3/Q4, whether data center backlog above $110M converts, and whether the rare-earth follow-on discussions convert into awards.
- Q3 2026Q3 2026 earnings — Tests guided revenue $610–630M and adjusted EBITDA $100–110M.
- Q3/Q4 2026I&M recovery evidence — June positive growth carries into Q3/Q4; outage work executes.
- Year-end 2026Synergy program completion — Full $25M annualized run-rate savings actioned.
- H2 2026Rare-earth follow-on discussions — 3 active discussions may convert into awards.
- 2027$30M I&M LNG MSA ramp — New LNG MSA begins translating into revenue.
Financials
Annual Summary
| Metric | FY2025 | TTM |
|---|---|---|
| Revenue | $1.5B | $1.8B |
| Gross Margin | 27.4% | 29.5% |
| EBITDA | $185M | $215M |
| EBITDA Margin | 12.1% | 11.0% |
| Net Income | −$87M | −$103M |
| Free Cash Flow | $38M | $42M |
| Net Cash | — | — |
Key Ratios (Trailing)
- P/E TTM—
- EV/EBITDA TTM—
- EV/Revenue TTM—
- Price/FCF TTM—
- Gross Margin (TTM)29.5%
- EBITDA Margin (TTM)11.0%
- Net Margin (TTM)-5.8%
- ROIC-0.7%
- FCF Conversion6.9%
- SBC / Revenue0.5%
The Company
TIC Solutions provides testing, inspection, certification and compliance, engineering, and geospatial services for industrial assets, buildings, and public infrastructure. The work is often non-discretionary and driven by regulation, customer risk policies, and asset-life extension.
It is a services provider, not a manufacturer. The company operates from a leased corporate headquarters in Hollywood, Florida and owned and leased facilities across the United States, Canada, Europe, Asia, and the Middle East. Capex was $20M in Q2 2026, or about 2.4% of year-to-date revenue, consistent with a people-and-certifications model.
Business Segments
Competitive Landscape
No competitor relationships are documented in the supplied material. No sole-source disclosures appear in the supplied 10-K or 10-Q extracts.
Supply Chain
TIC sits between software/sensor providers and asset owners as a services integrator. No verified supplier relationships or sole-source disclosures appear in the supplied SEC extracts.
More on TIC: Earnings recap