Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 6, 2026 · Beat 0 of last 6 quarters
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TIC's results underscore the sustained demand for data center design, commissioning, and inspection services, with data center backlog exceeding $110M and trailing 12-month revenue reaching $98M. The company's cross-selling model is expanding I&M into data centers and traditional infrastructure, positioning it to capture more of the AI infrastructure lifecycle. Record backlog and strong power/utilities demand signal continued investment in grid reliability and data center capacity.
TIC Solutions reported Q2 revenue of $584M, up 3.3% YoY on a combined basis, with organic growth of 2.5%. Adjusted EBITDA was $95M (16.2% margin), up from $89M a year ago, driven by margin expansion in C&E and GEO. C&E delivered record revenue of $207M (+16.8%), while GEO grew 7.9% to $81M; I&M declined 5.5% to $297M due to site losses and outage timing, but June turned positive YoY. The company completed 3 bolt-on acquisitions, repriced its term loan (25 bps lower), and repurchased 1.9M shares for $16M. Combined C&E and GEO backlog reached a record $1.18B, up 20% YoY.
Management reiterated full-year 2026 guidance of $2.15B-$2.25B revenue and $330M-$355M adjusted EBITDA, with Q3 guidance of $610M-$630M revenue and $100M-$110M adjusted EBITDA (implying ~9% revenue growth and ~16% EBITDA growth at midpoint). They expect I&M to improve in the second half on planned outage work, new site wins, and a robust proposal pipeline, with June already turning positive YoY. C&E and GEO are expected to continue growing on record backlog and strong end-market demand. Management reaffirmed long-term targets of $3B revenue, 18% adjusted EBITDA margin, and 85% FCF conversion by 2029, and expects to deliver $25M annualized cost synergies by year-end. They plan to continue executing on bolt-on M&A and deleveraging, with an active M&A pipeline and disciplined approach to inorganic growth.
“Our services are in high demand. Aging infrastructure across the globe requires sustained investment in inspection, engineering and geospatial services. Growing energy demand is driving investment in power delivery, grid reliability, LNG and other energy infrastructure. Increasing data consumption supports construction, commissioning and technical services required for data centers.”
on Demand drivers
“The trajectory of inspection and mitigation is improving. Site and project wins are increasing, commercial momentum is building, and we expect the segment to benefit from planned outage activity and continued conversion of the opportunity pipeline in the second half.”
on I&M outlook
“We are also executing with discipline on capital allocation. During the quarter, we reduced our cost of debt, opportunistically bought back 1.9 million shares and continue to build out the platform through strategic acquisitions.”
on Capital allocation
Is there any way to put an approximate value on the cross-selling revenue expected in '26 and a growth factor in '27? Is it having a meaningful impact on organic growth this year?
Ben Heraud said they are not reporting cross-selling numbers specifically, but it is showing up in record backlog and end-market exposure. He cited many examples of projects won due to the breadth of services under the combined platform, and momentum in cross-selling is increasing.
The second half implied margin is high 16s at midpoint. Besides synergies and seasonality, what needs to fall into place to hit that?
Kristin Schultes said there is a little over 100 basis points of improvement baked into the second half, driven by mix and execution—growth in higher-margin end markets, improved utilization, and internal KPIs pointing in that direction. She emphasized they take internal forecasting seriously.
Can you talk about volume and pricing performance in the quarter, and the cadence of organic growth in the back half?
Ben Heraud said technical yields (revenue per hour) are up in I&M, so they are taking price. They lapped lost sites in August and are already seeing YoY growth, which will compound organically. Backlog is a strong indicator of organic growth in other segments.